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Nippon Telegraph and Telephone Corporation (JP:9432)
:9432
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Nippon Telegraph and Telephone
(OTC:9432)
74Outperform
Nippon Telegraph and Telephone (9432) vs. S&P 500 (SPY)
Market Cap
$12.78T
Dividend Yield3.52%
Average Volume (3M)171.89M
Price to Earnings (P/E)11.2
Beta (1Y)0.48
Revenue Growth3.22%
EPS Growth-4.93%
CountryJP
Employees338,467
SectorCommunication Services
Sector Strength76
IndustryTelecommunications Services
Share Statistics
EPS (TTM)13.34
Shares Outstanding90,550,310,000
10 Day Avg. Volume164,869,621
30 Day Avg. Volume171,892,260
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$155.98Price Target Upside3.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Nippon Telegraph and Telephone Business Overview & Revenue Model
Company DescriptionNippon Telegraph and Telephone Corporation (NTT) is a leading Japanese telecommunications company, headquartered in Tokyo. It operates in various sectors including fixed-line and mobile communications, network services, and system integration. NTT provides a wide range of products and services, such as voice communication, internet services, data communications, and IT solutions, catering to both individual and corporate clients globally.
How the Company Makes MoneyNTT generates revenue through multiple streams, primarily from its telecommunications services. The company earns a substantial portion of its income from mobile communications, which includes voice calls, data services, and related products. Fixed-line communications, offering traditional telephone services and broadband internet, also contribute significantly to its earnings. Additionally, NTT's network services and system integration segments provide IT infrastructure, data centers, and cloud services, driving further revenue. Key partnerships with technology firms and enterprises enhance its service offerings and expand its market reach, supporting its financial performance.
Nippon Telegraph and Telephone Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 13.71T | 13.37T | 13.14T | 12.16T | 11.94T | 11.90T | Gross Profit |
| 2.63T | 1.92T | 10.37T | 9.59T | 9.48T | 9.47T | EBIT |
| 2.82T | 1.92T | 1.83T | 1.77T | 1.67T | 1.56T | EBITDA |
| 3.56T | 3.74T | 3.41T | 3.33T | 3.20T | 3.07T | Net Income Common Stockholders |
| 1.12T | 1.28T | 1.21T | 1.18T | 916.18B | 855.31B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.20T | 982.87B | 892.57B | 923.00B | 977.46B | 1.07T | Total Assets |
| 30.60T | 29.60T | 25.31T | 23.86T | 22.97T | 23.01T | Total Debt |
| 12.09T | 10.71T | 9.15T | 8.21T | 8.37T | 4.75T | Net Debt |
| 10.89T | 9.73T | 8.36T | 7.37T | 7.44T | 3.72T | Total Liabilities |
| 19.32T | 18.71T | 15.96T | 14.84T | 14.76T | 11.55T | Stockholders Equity |
| 10.16T | 9.84T | 8.56T | 8.28T | 7.56T | 9.06T |
| Cash Flow | Free Cash Flow | ||||
| -152.31B | 290.15B | 409.13B | 1.25T | 1.21T | 1.14T | Operating Cash Flow |
| 2.02T | 2.37T | 2.26T | 3.01T | 3.01T | 3.00T | Investing Cash Flow |
| -1.83T | -1.99T | -1.74T | -1.70T | -1.42T | -1.85T | Financing Cash Flow |
| 23.41B | -234.45B | -590.20B | -1.44T | -1.69T | -1.04T |
Nippon Telegraph and Telephone Technical Analysis
Positive
150.30
Price Trends
145.15
Positive
148.36
Positive
148.11
Positive
Market Momentum
1.01
Negative
59.46
Neutral
92.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9432, the sentiment is Positive. The current price of 150.3 is above the 20-day moving average (MA) of 145.74, above the 50-day MA of 145.15, and above the 200-day MA of 148.11, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 92.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9432.
Nippon Telegraph and Telephone Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥20.45T | 17.92 | 14.40% | 0.53% | 9.56% | 26.52% | |
76 Outperform | ¥10.23T | 16.70 | 11.94% | 3.03% | 1.71% | -4.87% | |
74 Outperform | $12.78T | 11.24 | 11.36% | 3.52% | 3.22% | -4.93% | |
74 Outperform | ¥1.72T | 11.60 | 1.62% | 5.47% | 55.03% | ||
65 Neutral | ¥43.57B | 19.16 | 2.22% | 7.59% | 17.49% | ||
58 Neutral | $13.14B | 6.83 | -2.45% | 3.85% | 2.36% | -36.75% | |
51 Neutral | $9.74T | 11.56 | 8.02% | 0.61% | 5.38% | ― |
* Communication Services Sector Average
Performance Comparison
JP:9432
Nippon Telegraph and Telephone
150.30
-14.85
-8.99%
JP:9435
Hikari Tsushin, Inc.
40,340.00
15,653.64
63.41%
JP:9438
MTI Ltd.
793.00
93.64
13.39%
JP:6758
Sony
3,537.00
984.64
38.58%
JP:9984
SoftBank Group
6,803.00
-911.60
-11.82%
JP:9433
KDDI
2,580.00
467.09
22.11%
Nippon Telegraph and Telephone Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: 1.97% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there are positive developments in global solutions and Smart Life Business, the company faces significant challenges with declining profits and intense market competition affecting several key segments.Highlights
Record High Operating Revenue
Operating revenue increased by JPY332.9 billion, reaching a record high of JPY10,049.7 billion for the third quarter due to a boost in domestic and global revenue.
Growth in Smart Life Business
Smart Life Business at Docomo contributed to the increase in operating revenue, with a focus on expanding finance and payment segments.
Global Solution Business Segment Growth
Operating profit increased year-on-year due to higher sales in public, financial, and corporate sectors in Japan, as well as increased income from the data center business overseas.
Expansion in Data Center and Urban Solutions
Year-on-year growth in sales and profit for the Other business segment due to the expansion of data center engineering and NTT Urban solutions.
Lowlights
Decrease in Operating Profit
Operating profit decreased by JPY87 billion, reaching JPY1,399.2 billion, due to a decline in communication service revenues and the impact of slowing down non-core assets.
Significant Decline in Profit
Profit fell by JPY160.4 billion year-on-year due to declining operating profit and rebound from gains on stock sales from the previous year.
Challenges in Integrated ICT Business
Despite growth in Smart Life Business, overall profit declined due to measures to strengthen the customer base and a decline in mobile communication service revenue.
Intense Competition Affecting ARPU
The consumer communication segment faced challenges with lower-than-expected ARPU and increased marketing expenses to maintain market share.
Enterprise Business Struggles
The enterprise section of Integrated ICT business experienced weaker profitability, with challenges in SME market growth and slower growth in large companies.
Impact of Inflation and Market Competition
Market conditions, including inflation and intense competition, have made it challenging to realize the expected growth in telecommunications business.
Company Guidance
During the call, NTT provided guidance on their financial results for the third quarter of fiscal year 2024, noting a record high operating revenue of JPY10,049.7 billion, an increase of JPY332.9 billion year-on-year, largely driven by domestic and global revenue growth, particularly from the Smart Life Business at Docomo. However, operating profit decreased by JPY87 billion to JPY1,399.2 billion due to declines in communication service revenues in mobile and fixed-line segments and measures to strengthen Docomo's customer base. Profit also fell by JPY160.4 billion to JPY850.7 billion, influenced by a rebound from gains on stock sales the previous year. EBITDA was reported at JPY2,552.5 billion, down JPY19.2 billion. The company highlighted challenges in achieving annual profit targets but emphasized ongoing efforts to enhance marketing and cost reduction initiatives. Additionally, they discussed segment-specific performances, including the Integrated ICT business, Regional Communication Business, and Global Solution business, each facing unique challenges and growth opportunities. Looking ahead, NTT expressed commitment to regional revitalization and urban development initiatives, expansion of their data center business, and participation in global events, such as the Mobile World Congress.Nippon Telegraph and Telephone Corporate Events
NTT to Enhance Governance with New Committee Structure
Mar 25, 2025
NTT has announced its decision to transition from a company with an audit and supervisory board to one with an audit and supervisory committee. This change aims to strengthen corporate governance, enhance management discussions, and make the governance structure more comprehensible for global stakeholders. The transition is pending approval at the upcoming shareholders’ meeting and from the Minister of Internal Affairs and Communications.
NTT Concludes Major Stock Repurchase Program
Feb 26, 2025
NTT announced the conclusion of its stock repurchase program, which was authorized by the Board of Directors in August 2024. The company repurchased a total of 1,331,715,900 shares for approximately 200 billion yen, with the final phase of repurchases conducted between February 3 and February 25, 2025. This strategic move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.
NTT Reports Mixed Financial Results for Nine Months Ending December 2024
Feb 7, 2025
NTT’s financial results for the nine months ended December 31, 2024, showed a slight increase in operating revenues by 3.4% compared to the previous year, reaching 10,049,724 million yen. However, the company experienced declines in operating profit, profit before taxes, and profit attributable to NTT, reflecting challenges in its operational performance. Basic earnings per share also decreased due to the results. Despite these challenges, NTT maintained its annual dividend forecast, reflecting a stable outlook for stakeholders.
NTT Announces Progress in Stock Repurchase Program
Feb 3, 2025
NTT announced the progress of its stock repurchase program, revealing that it repurchased 152,803,000 shares of common stock amounting to 23,410,388,664 yen between January 6 and January 31, 2025. This move is part of a larger initiative approved by the Board of Directors to repurchase up to 1.4 billion shares with an aggregate amount of up to 200 billion yen, aiming to enhance shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.