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9433: Future Margins And Capital Returns Will Balance Regulatory And Operational Risks

Telecom And Fintech Integration Will Foster Sustainable Value

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9433
AnalystConsensusTarget
Not Invested
Published 07 Nov 2024

Update shared on 14 Dec 2025

Fair value Increased 0.32%
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AnalystConsensusTarget's Fair Value
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1Y
8.7%
7D
1.2%

Analysts have raised their price target on KDDI slightly to approximately ¥2,725 from about ¥2,716, reflecting modestly improved expectations for revenue growth, profit margins, and future valuation multiples.

What's in the News

  • KDDI's board will meet on December 12, 2025, to approve the transfer of its bulk power purchasing service business for condominiums to Next Power Co., Ltd., a subsidiary of Kansai Electric Power, via an absorption-type company split (company filing).
  • The company declared a second-quarter-end dividend of JPY 40.00 per share for the fiscal year ending March 31, 2026, with payment scheduled for December 8, 2025 (company announcement).
  • Between July 1 and September 12, 2025, KDDI completed a share repurchase program, buying back 171,754,264 shares, or 4.32 percent of shares outstanding, for approximately ¥400 billion under the buyback announced on May 14, 2025 (company announcement).

Valuation Changes

  • Fair Value Estimate has risen slightly to approximately ¥2,725 from about ¥2,716, reflecting a modest upward revision in intrinsic value.
  • Discount Rate is unchanged at 4.8 percent, indicating no shift in the assumed cost of capital or risk profile.
  • Revenue Growth has inched up marginally to about 3.21 percent from roughly 3.21 percent previously, signaling a very small improvement in top line expectations.
  • Net Profit Margin has increased slightly to around 12.58 percent from about 12.58 percent, implying a modestly more optimistic view on profitability.
  • Future P/E has edged up slightly to roughly 12.32x from about 12.29x, pointing to a marginally higher expected valuation multiple on forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.