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Nippon Telegraph and Telephone

Market Cap

JP¥10.1t

Last Updated

2021/05/07 08:07 UTC

Data Sources

Company Financials +

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


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

9432IndustryMarket
7 Day3.3%-1.4%0.7%
30 Day-0.2%-1.8%-1.4%
90 Day3.9%1.7%1.3%
1 Year21.1%16.3%21.1%16.5%36.9%34.0%
3 Year19.9%7.2%21.3%8.7%16.0%8.0%
5 Year34.7%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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 08:07
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.