Executive Summary
Nippon Telegraph and Telephone Corporation, through its subsidiaries, provides fixed voice-related, mobile voice-related, IP/packet communications, and system integration services in Japan and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued established dividend payer.
Similar Companies
Share Price & News
How has Nippon Telegraph and Telephone's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 9432 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: 9432's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
3.3%
9432
-1.4%
JP Telecom
0.7%
JP Market
1 Year Return
16.3%
9432
16.5%
JP Telecom
34.0%
JP Market
Return vs Industry: 9432 matched the JP Telecom industry which returned 16.5% over the past year.
Return vs Market: 9432 underperformed the JP Market which returned 34% over the past year.
Shareholder returns
| 9432 | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | -1.4% | 0.7% |
| 30 Day | -0.2% | -1.8% | -1.4% |
| 90 Day | 3.9% | 1.7% | 1.3% |
| 1 Year | 21.1%16.3% | 21.1%16.5% | 36.9%34.0% |
| 3 Year | 19.9%7.2% | 21.3%8.7% | 16.0%8.0% |
| 5 Year | 34.7%14.0% | 31.8%12.0% | 59.2%41.7% |
Long-Term Price Volatility Vs. Market
How volatile is Nippon Telegraph and Telephone's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Nippon Telegraph and Telephone undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 9432 (¥2846.5) is trading below our estimate of fair value (¥8986.92)
Significantly Below Fair Value: 9432 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 9432 is good value based on its PE Ratio (11.8x) compared to the JP Telecom industry average (18.5x).
PE vs Market: 9432 is good value based on its PE Ratio (11.8x) compared to the JP market (17.3x).
Price to Earnings Growth Ratio
PEG Ratio: 9432 is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: 9432 is good value based on its PB Ratio (1.4x) compared to the JP Telecom industry average (3.5x).
Future Growth
How is Nippon Telegraph and Telephone forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
4.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 9432's forecast earnings growth (4.1% per year) is above the savings rate (0%).
Earnings vs Market: 9432's earnings (4.1% per year) are forecast to grow slower than the JP market (15% per year).
High Growth Earnings: 9432's earnings are forecast to grow, but not significantly.
Revenue vs Market: 9432's revenue (0.9% per year) is forecast to grow slower than the JP market (5.6% per year).
High Growth Revenue: 9432's revenue (0.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 9432's Return on Equity is forecast to be low in 3 years time (12.2%).
Past Performance
How has Nippon Telegraph and Telephone performed over the past 5 years?
2.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 9432 has high quality earnings.
Growing Profit Margin: 9432's current net profit margins (7.6%) are higher than last year (7.2%).
Past Earnings Growth Analysis
Earnings Trend: 9432's earnings have grown by 2.6% per year over the past 5 years.
Accelerating Growth: 9432's earnings growth over the past year (3.5%) exceeds its 5-year average (2.6% per year).
Earnings vs Industry: 9432 earnings growth over the past year (3.5%) underperformed the Telecom industry 19.6%.
Return on Equity
High ROE: 9432's Return on Equity (14%) is considered low.
Financial Health
How is Nippon Telegraph and Telephone's financial position?
Financial Position Analysis
Short Term Liabilities: 9432's short term assets (¥6,731.3B) do not cover its short term liabilities (¥9,831.2B).
Long Term Liabilities: 9432's short term assets (¥6,731.3B) exceed its long term liabilities (¥5,984.4B).
Debt to Equity History and Analysis
Debt Level: 9432's debt to equity ratio (100.6%) is considered high.
Reducing Debt: 9432's debt to equity ratio has increased from 38.1% to 100.6% over the past 5 years.
Debt Coverage: 9432's debt is well covered by operating cash flow (36.8%).
Interest Coverage: 9432's interest payments on its debt are well covered by EBIT (47x coverage).
Balance Sheet
Dividend
What is Nippon Telegraph and Telephone current dividend yield, its reliability and sustainability?
3.51%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 9432's dividend (3.51%) is higher than the bottom 25% of dividend payers in the JP market (1.25%).
High Dividend: 9432's dividend (3.51%) is in the top 25% of dividend payers in the JP market (2.86%)
Stability and Growth of Payments
Stable Dividend: 9432's dividends per share have been stable in the past 10 years.
Growing Dividend: 9432's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.5%), 9432's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Jun Sawada (65 yo)
2.92yrs
Tenure
Mr. Jun Sawada has been President and Chief Executive Officer at Nippon Telegraph and Telephone Corporation since June 2018. Mr. Sawada has been President, Chief Executive Officer and Member of the Board o...
Leadership Team
Experienced Management: 9432's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: 9432's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Nippon Telegraph and Telephone Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Nippon Telegraph and Telephone Corporation
- Ticker: 9432
- Exchange: TSE
- Founded: 1952
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: JP¥10.109t
- Shares outstanding: 3.62b
- Website: https://www.ntt.co.jp
Number of Employees
Location
- Nippon Telegraph and Telephone Corporation
- East Tower
- Otemachi First Square
- Tokyo
- 100-8116
- Japan
Listings
Biography
Nippon Telegraph and Telephone Corporation, through its subsidiaries, provides fixed voice-related, mobile voice-related, IP/packet communications, and system integration services in Japan and internationa...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/07 08:07 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.