Nippon Telegraph And Telephone (NTTYY) AI Stock Analysis

• Market Cap: $85.26B
• Dividend Yield: 2.82%
• Average Volume (3M): 3.57K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.10
• Revenue Growth: 2.78%
• EPS Growth: -8.43%
• Country: US
• Employees: 338,467
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.66
• Shares Outstanding: 3,622,012,700
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 3,567
• PEG Ratio: -0.58
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 52.26
• Enterprise Value/Market Cap: 293.38
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 8.91
• Enterprise Value/Ebitda: 9.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $27.00 ▲(8.35% Upside)

The overall stock score of 63 reflects the financial challenges faced by Nippon Telegraph And Telephone, particularly in terms of declining revenue and cash flow. While the valuation is attractive with a low P/E ratio and a decent dividend yield, the technical indicators suggest a bearish trend. Addressing financial stability issues is crucial for improving the stock's outlook.

Positive Factors

Strategic Partnerships

The partnership with Bentley Systems enhances NTTYY's digital construction capabilities, potentially expanding its market reach and improving its service offerings, which can lead to long-term growth opportunities in the construction sector.

Market Position

NTTYY's position as a leading telecommunications provider ensures a strong market presence, allowing it to leverage scale advantages and maintain competitive pricing, which supports long-term revenue stability.

Diversified Revenue Streams

NTTYY's diversified revenue sources, including telecommunications, cloud services, and data centers, provide resilience against market fluctuations and support sustainable long-term growth.

Negative Factors

Revenue Decline

The notable decline in revenue indicates potential challenges in maintaining market share or pricing power, which could affect long-term profitability and growth prospects.

Cash Flow Constraints

The sharp decline in free cash flow growth suggests potential liquidity issues, limiting NTTYY's ability to invest in growth initiatives and manage debt effectively over the long term.

Increased Leverage

The high debt-to-equity ratio indicates increased financial leverage, which could strain the company's financial flexibility and increase risk if revenue and cash flow do not improve.

Nippon Telegraph And Telephone Business Overview & Revenue Model

Company Description

Nippon Telegraph and Telephone Corporation (NTTYY) is a Japanese telecommunications and IT service provider, widely recognized as one of the largest telecommunications companies in the world. The company operates through various segments, including telecommunications, data centers, and system integration services. NTTYY offers a broad range of services, such as fixed-line and mobile voice services, broadband internet, cloud computing, and IT infrastructure solutions, catering to individual consumers, businesses, and government entities.

How the Company Makes Money

NTTYY generates revenue primarily through its telecommunications services, which include fixed-line and mobile voice services, broadband internet subscriptions, and data transmission. A significant portion of its income comes from enterprise solutions, including cloud services and IT systems integration, which cater to large businesses and organizations. The company also earns revenue from its data centers and other IT-related services. Key partnerships with global technology firms enhance its service offerings and broaden its market reach. Additionally, strategic investments in new technologies and infrastructure projects contribute to NTTYY's revenue streams, ensuring a diversified income base.

Nippon Telegraph And Telephone Financial Statement Overview

Summary

Nippon Telegraph And Telephone faces challenges with declining revenue and cash flow generation in the TTM period. While profitability margins remain reasonable, the increased leverage and reduced cash flow growth are areas of concern. The company needs to address these issues to maintain financial stability.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a significant revenue decline of 24.24%, which is concerning. However, the company maintains a healthy net profit margin of 7.50% and an EBIT margin of 12.50%. The gross profit margin has decreased compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.69 in the TTM period, suggesting increased leverage. However, the return on equity remains solid at 10.68%, indicating efficient use of equity. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth by 90.60% in the TTM period, raising concerns about cash generation. The operating cash flow to net income ratio is low at 0.20, indicating potential cash flow constraints. The free cash flow to net income ratio is also low at 3.84%.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.40T	13.70T	13.37T	13.14T	12.16T	11.94T
Gross Profit	2.81T	3.79T	1.92T	1.83T	1.77T	9.48T
EBITDA	2.57T	3.51T	3.74T	3.41T	3.33T	3.20T
Net Income	707.22B	1.00T	1.28T	1.21T	1.18T	916.18B
Balance Sheet
Total Assets	33.45T	30.06T	29.60T	25.31T	23.86T	22.97T
Cash, Cash Equivalents and Short-Term Investments	4.49T	1.00T	1.05T	892.57B	923.00B	977.46B
Total Debt	15.59T	11.17T	10.71T	9.15T	8.21T	8.37T
Total Liabilities	23.91T	18.72T	18.71T	15.96T	14.84T	14.76T
Stockholders Equity	9.21T	10.22T	9.84T	8.56T	8.28T	7.56T
Cash Flow
Free Cash Flow	50.62B	231.74B	290.15B	409.13B	1.25T	1.21T
Operating Cash Flow	1.77T	2.36T	2.37T	2.26T	3.01T	3.01T
Investing Cash Flow	-1.07T	-2.00T	-1.99T	-1.74T	-1.70T	-1.42T
Financing Cash Flow	-379.58B	-343.03B	-234.45B	-590.20B	-1.44T	-1.69T

Nippon Telegraph And Telephone Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTTYY, the sentiment is Neutral. The current price of 24.92 is below the 20-day moving average (MA) of 24.93, below the 50-day MA of 25.14, and below the 200-day MA of 25.92, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 52.50 is Neutral, neither overbought nor oversold. The STOCH value of 48.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NTTYY.

Nippon Telegraph And Telephone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	81 Outperform	$170.01B	8.59	19.70%	6.60%	2.42%	102.17%
TMUS	76 Outperform	$222.61B	19.14	19.03%	1.75%	7.30%	17.67%
CMCSA	74 Outperform	$108.52B	4.94	24.73%	4.42%	0.20%	61.54%
T	71 Outperform	$174.83B	8.01	20.88%	4.56%	1.98%	150.68%
NTTYY	63 Neutral	$85.26B	11.89	10.59%	2.82%	2.78%	-8.43%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMX	60 Neutral	$64.00B	16.84	17.70%	2.69%	1.14%	83.48%

Nippon Telegraph And Telephone Corporate Events

NTT Reports Mixed Q2 2025 Financial Results

Nippon Telegraph and Telephone Corporation (NTT) is a leading telecommunications company based in Japan, providing a wide range of services including fixed and mobile voice-related services, IP/packet communications, and system integration services. It operates in various segments such as Integrated ICT, Global Solutions, and Regional Communications.