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Nippon Telegraph (NTTYY)
:NTTYY
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Nippon Telegraph And Telephone
(OTC:NTTYY)
69Neutral
Nippon Telegraph And Telephone (NTTYY) vs. S&P 500 (SPY)
Market Cap
$82.65B
Dividend Yield2.57%
Average Volume (3M)25.53K
Price to Earnings (P/E)11.1
Beta (1Y)0.04
Revenue Growth-4.36%
EPS Growth-11.33%
CountryUS
Employees338,467
SectorCommunication Services
Sector Strength74
IndustryTelecommunications Services
Share Statistics
EPS (TTM)2.20
Shares Outstanding3,622,012,700
10 Day Avg. Volume0
30 Day Avg. Volume25,531
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.11
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Nippon Telegraph And Telephone Business Overview & Revenue Model
Company DescriptionNippon Telegraph And Telephone Corporation (NTT) is a leading global telecommunications company headquartered in Tokyo, Japan. It operates across multiple sectors including mobile communications, regional communications, long-distance and international communications, data communications, and other related businesses. NTT provides a wide range of services such as mobile network operations, broadband internet, data centers, cloud services, and IT solutions, serving both individual consumers and corporate clients worldwide.
How the Company Makes MoneyNTT makes money through a diversified revenue model primarily centered around telecommunications and IT services. Key revenue streams include mobile communications under NTT DOCOMO, which offers mobile phone services, data transmission, and related products; regional and long-distance communications through fixed-line services provided by NTT East and NTT West, including broadband internet, voice communication, and additional services like IPTV. The company also generates significant revenue from its data communications segment led by NTT Communications, which provides cloud services, data centers, and network management solutions to businesses. Furthermore, NTT engages in system integration and IT infrastructure services through NTT DATA, catering to various industries. Strategic partnerships and collaborations, both domestically and internationally, enhance its market reach and service offerings, contributing to its financial performance.
Nippon Telegraph And Telephone Financial Statement Overview
Summary
Nippon Telegraph And Telephone exhibits solid financial performance with strong revenue growth and profitability, as indicated by healthy margins. The balance sheet is stable, with a good equity ratio, though there is a need to manage increasing leverage. Cash flow generation is robust, but declining free cash flow requires strategic attention.Income Statement
Nippon Telegraph And Telephone shows strong revenue growth with a 1.81% increase from the previous year, reflecting a positive trend. The company maintains robust profitability with a gross profit margin of 14.38% and a net profit margin of 9.57% for the latest annual period. EBIT and EBITDA margins are also healthy at 14.38% and 27.96%, respectively. These figures highlight the company's efficiency and cost management, contributing to its stable profitability. However, the slight decline in gross profit from previous years may indicate rising costs or competitive pressures.78
Positive
Balance Sheet
The balance sheet exhibits a solid equity position with an equity ratio of 33.25%, indicating financial stability and a healthy balance between debt and equity. The debt-to-equity ratio stands at 1.09, which is manageable but suggests moderate leverage. Return on equity is strong at 12.99%, showcasing effective use of shareholders' equity to generate profits. The company's increase in total assets and stockholders' equity from the previous year demonstrates an upward trajectory in financial strength. However, the rising debt levels could pose a risk if not managed carefully.70
Positive
Cash Flow
The cash flow statement reveals a decrease in free cash flow by 29.1% over the previous year, which could impact future investments or debt servicing. The operating cash flow to net income ratio is 1.86, indicating strong cash generation relative to reported net income. However, the free cash flow to net income ratio has declined to 0.23, suggesting potential constraints in liquidity for discretionary spending. While operating cash flows remain robust, the declining trend in free cash flow necessitates attention to maintain financial flexibility.65
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 13.50T | 13.37T | 13.14T | 12.16T | 11.94T | 11.90T | Gross Profit |
| 6.80T | 1.92T | 10.37T | 9.59T | 9.48T | 9.47T | EBIT |
| 1.94T | 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 |
| 1.18T | 1.28T | 1.21T | 1.18T | 916.18B | 855.31B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.29T | 982.87B | 892.57B | 923.00B | 977.46B | 1.07T | Total Assets |
| 18.94T | 29.60T | 25.31T | 23.86T | 22.97T | 23.01T | Total Debt |
| 4.51T | 10.71T | 9.15T | 8.21T | 8.37T | 4.75T | Net Debt |
| 3.60T | 9.73T | 8.36T | 7.37T | 7.44T | 3.72T | Total Liabilities |
| 9.17T | 18.71T | 15.96T | 14.84T | 14.76T | 11.55T | Stockholders Equity |
| 7.79T | 9.84T | 8.56T | 8.28T | 7.56T | 9.06T |
| Cash Flow | Free Cash Flow | ||||
| 115.51B | 290.15B | 409.13B | 1.25T | 1.21T | 1.14T | Operating Cash Flow |
| 2.23T | 2.37T | 2.26T | 3.01T | 3.01T | 3.00T | Investing Cash Flow |
| -2.13T | -1.99T | -1.74T | -1.70T | -1.42T | -1.85T | Financing Cash Flow |
| -39.71B | -234.45B | -590.20B | -1.44T | -1.69T | -1.04T |
Nippon Telegraph And Telephone Technical Analysis
Negative
24.50
Price Trends
24.56
Negative
24.79
Negative
25.00
Negative
Market Momentum
-0.06
Positive
40.52
Neutral
0.31
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTTYY, the sentiment is Negative. The current price of 24.5 is below the 20-day moving average (MA) of 24.72, below the 50-day MA of 24.56, and below the 200-day MA of 25.00, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 0.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTTYY.
Nippon Telegraph And Telephone Risk Analysis
Nippon Telegraph And Telephone disclosed 17 risk factors in its most recent earnings report. Nippon Telegraph And Telephone reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nippon Telegraph And Telephone Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $14.26B | 10.13 | 16.61% | 5.66% | -2.99% | -7.36% | |
71 Outperform | $23.36B | 9.13 | 4.31% | 7.43% | -24.84% | -74.77% | |
69 Neutral | $82.65B | 11.13 | 11.36% | 2.57% | -4.36% | -11.33% | |
67 Neutral | $45.00B | 28.97 | 7.78% | 3.37% | 3.15% | -63.12% | |
64 Neutral | $27.94B | ― | <0.01% | 4.83% | 1.18% | ― | |
63 Neutral | $5.49B | 4.86 | 23.27% | ― | -26.74% | ― | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% |
* Communication Services Sector Average
Performance Comparison
NTTYY
Nippon Telegraph And Telephone
24.50
-4.37
-15.14%
AMX
America Movil
14.09
-3.99
-22.07%
TLK
PT Telekomunikasi Indonesia Tbk
13.89
-6.40
-31.54%
TEO
Telecom Argentina
9.86
2.04
26.09%
TEF
Telefonica
4.62
0.56
13.79%
VOD
Vodafone
8.50
0.51
6.38%
Nippon Telegraph And Telephone Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: -0.89% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted record operating revenue and strong performance in certain segments like Global Solutions and Data Centers. However, significant challenges remain, particularly in the Integrated ICT and Regional Communication Businesses, with a notable decrease in operating profit and overall profit. The sentiment leans towards a cautious outlook with efforts focused on cost reduction and strategic investments for future growth.Highlights
Record High Operating Revenue
Operating revenue increased by JPY332.9 billion, reaching a record JPY10,049.7 billion, due to growth in domestic and global revenue, especially from the Smart Life Business at Docomo.
Positive Performance in Global Solutions
Sales increased year-on-year in the public, financial, and corporate sectors in Japan, with a significant contribution from foreign exchange rates.
Expansion in Data Center and Urban Solutions
Sales and profit in the Other business segment increased year-on-year due to the expansion of data center engineering and NTT Urban solutions.
Fiber Service Growth
Net increase in optical fiber services posted a year-on-year increase due to stronger sales of 10 gigabit plans and all unit plans for the condominium market.
Lowlights
Decrease in Operating Profit
Operating profit decreased by JPY87 billion, reaching JPY1,399.2 billion, due to a decline in communication service revenues in mobile and fixed line segments.
Profit Decline
Profit fell by JPY160.4 billion year-on-year to JPY850.7 billion, mainly due to declining operating profit and a rebound from gains on stock sales from the previous year.
Integrated ICT Business Challenges
Despite growth in finance and payment in the Smart Life business, overall profit declined due to measures to strengthen the customer base and weak performance in the consumer communication segment.
Regional Communication Business Struggles
Both revenue and profit decreased due to a decline in network revenue and a rebound from the impact of slowing down non-core assets implemented in the previous year.
Challenges in Enterprise Business
The enterprise business faced challenges, particularly in the SME market, leading to weakened revenue and profit growth.
Company Guidance
In the recent call, NTT provided detailed guidance on their fiscal year 2024 third-quarter financial results. The company reported record-high operating revenue for the quarter at JPY10,049.7 billion, an increase of JPY332.9 billion, driven by domestic and global revenue growth, particularly in the Smart Life Business at Docomo. However, operating profit decreased by JPY87 billion to JPY1,399.2 billion, influenced by a decline in communication service revenues and the impact of non-core asset slowdown. Profit was JPY850.7 billion, down JPY160.4 billion year-on-year, largely due to a drop in operating profit and a rebound from previous stock sales gains. EBITDA slightly declined by JPY19.2 billion, reaching JPY2,552.5 billion. The company highlighted segment-specific performances, noting growth in the Integrated ICT business and challenges in the Regional Communication Business. The Global Solution business saw increased sales and operating profit due to favorable foreign exchange rates and strong performance in the data center business. NTT is actively reviewing its cost structure and exploring medium-term growth strategies, including regional revitalization initiatives and expanding its data center business in India. Despite challenges, NTT remains committed to achieving its annual profit targets through strategic efforts across its operating companies.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.