| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 2/6 |
| Dividends | 5/6 |
9432 Stock Overview
Nippon Telegraph and Telephone Corporation provides fixed voice-related, mobile voice-related, IP/packet communications, and system integration services in Japan and internationally.
Nippon Telegraph and Telephone Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | JP¥3,888.00 |
| 52 Week High | JP¥4,055.00 |
| 52 Week Low | JP¥2,799.50 |
| Beta | 0.32 |
| 1 Month Change | -2.70% |
| 3 Month Change | 5.97% |
| 1 Year Change | 33.56% |
| 3 Year Change | 51.37% |
| 5 Year Change | 46.25% |
| Change since IPO | 111.51% |
Recent News & Updates
Shareholder Returns
| 9432 | JP Telecom | JP Market | |
|---|---|---|---|
| 7D | 1.5% | 3.8% | 1.9% |
| 1Y | 33.6% | 33.7% | -6.2% |
Return vs Industry: 9432 matched the JP Telecom industry which returned 33.7% over the past year.
Return vs Market: 9432 exceeded the JP Market which returned -6.2% over the past year.
Price Volatility
| 9432 volatility | |
|---|---|
| 9432 Average Weekly Movement | 2.7% |
| Telecom Industry Average Movement | 6.5% |
| Market Average Movement | 4.2% |
| 10% most volatile stocks in JP Market | 8.5% |
| 10% least volatile stocks in JP Market | 2.3% |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1952 | 324,667 | Jun Sawada | https://group.ntt |
Nippon Telegraph and Telephone Corporation provides fixed voice-related, mobile voice-related, IP/packet communications, and system integration services in Japan and internationally. The company’s Mobile Communications Business segment offers mobile phone services and related services, including movie and music distribution, e-book, and finance and payment services, as well as smart life area and internet connection services. Its Regional Communications Business segment provides intra-prefectural communications services, and FTTH and other services.
Nippon Telegraph and Telephone Fundamentals Summary
| 9432 fundamental statistics | |
|---|---|
| Market Cap | JP¥13.99t |
| Earnings (TTM) | JP¥1.18t |
| Revenue (TTM) | JP¥12.16t |
11.7x
P/E Ratio1.1x
P/S RatioIs 9432 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| 9432 income statement (TTM) | |
|---|---|
| Revenue | JP¥12.16t |
| Cost of Revenue | JP¥10.39t |
| Gross Profit | JP¥1.77t |
| Other Expenses | JP¥587.51b |
| Earnings | JP¥1.18t |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 333.50 |
| Gross Margin | 14.55% |
| Net Profit Margin | 9.72% |
| Debt/Equity Ratio | 81.7% |
How did 9432 perform over the long term?
See historical performance and comparisonDividends
3.1%
Current Dividend Yield35%
Payout RatioValuation
Is 9432 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 9432?
Other financial metrics that can be useful for relative valuation.
| What is 9432's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | JP¥13.99t |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.8x |
| Enterprise Value/EBITDA | 6.6x |
| PEG Ratio | 3.7x |
Price to Earnings Ratio vs Peers
How does 9432's PE Ratio compare to its peers?
| 9432 PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 34.8x | ||
3774 Internet Initiative Japan | 28.2x | 12.2% | JP¥435.9b |
9433 KDDI | 14.2x | 4.4% | JP¥9.8t |
9434 SoftBank | 13.8x | 2.9% | JP¥7.1t |
9416 Vision | 82.9x | 48.3% | JP¥62.0b |
9432 Nippon Telegraph and Telephone | 11.7x | 3.1% | JP¥14.0t |
Price-To-Earnings vs Peers: 9432 is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (34.8x).
Price to Earnings Ratio vs Industry
How does 9432's PE Ratio compare vs other companies in the Asian Telecom Industry?
Price-To-Earnings vs Industry: 9432 is good value based on its Price-To-Earnings Ratio (11.7x) compared to the JP Telecom industry average (14.7x)
Price to Earnings Ratio vs Fair Ratio
What is 9432's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 11.7x |
| Fair PE Ratio | 9.5x |
Price-To-Earnings vs Fair Ratio: 9432 is expensive based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (9.5x).
Share Price vs Fair Value
What is the Fair Price of 9432 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 9432 (¥3888) is trading below our estimate of fair value (¥7947.27)
Significantly Below Fair Value: 9432 is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: 9432 is poor value based on its PEG Ratio (3.7x)
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Future Growth
How is Nippon Telegraph and Telephone forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
3.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 9432's forecast earnings growth (3.1% per year) is above the savings rate (0.02%).
Earnings vs Market: 9432's earnings (3.1% per year) are forecast to grow slower than the JP market (9% per year).
High Growth Earnings: 9432's earnings are forecast to grow, but not significantly.
Revenue vs Market: 9432's revenue (2.2% per year) is forecast to grow slower than the JP market (4.5% per year).
High Growth Revenue: 9432's revenue (2.2% 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 (13.6%).
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Past Performance
How has Nippon Telegraph and Telephone performed over the past 5 years?
Past Performance Score
5/6Past Performance Score 5/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
4.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 9432 has high quality earnings.
Growing Profit Margin: 9432's current net profit margins (9.7%) are higher than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: 9432's earnings have grown by 4.4% per year over the past 5 years.
Accelerating Growth: 9432's earnings growth over the past year (28.9%) exceeds its 5-year average (4.4% per year).
Earnings vs Industry: 9432 earnings growth over the past year (28.9%) exceeded the Telecom industry 18.1%.
Return on Equity
High ROE: 9432's Return on Equity (13.9%) is considered low.
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Financial Health
How is Nippon Telegraph and Telephone's financial position?
Financial Health Score
2/6Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: 9432's short term assets (¥5,716.6B) do not cover its short term liabilities (¥6,251.5B).
Long Term Liabilities: 9432's short term assets (¥5,716.6B) do not cover its long term liabilities (¥8,592.6B).
Debt to Equity History and Analysis
Debt Level: 9432's net debt to equity ratio (71.4%) is considered high.
Reducing Debt: 9432's debt to equity ratio has increased from 35.3% to 81.7% over the past 5 years.
Debt Coverage: 9432's debt is well covered by operating cash flow (40.9%).
Interest Coverage: 9432 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is Nippon Telegraph and Telephone current dividend yield, its reliability and sustainability?
Dividend Score
4/6Dividend Score 4/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
3.09%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 9432's dividend (3.09%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).
High Dividend: 9432's dividend (3.09%) is low compared to the top 25% of dividend payers in the JP market (3.74%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (34.9%), 9432's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (33.9%), 9432's dividend payments are well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Jun Sawada (66 yo)
4yrs
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 considered experienced (2.4 years average tenure).
Board Members
Experienced Board: 9432's board of directors are considered experienced (7 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 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
- Implied Market Cap: JP¥13.985t
- Shares outstanding: 3.54b
- Website: https://group.ntt
Number of Employees
Location
- Nippon Telegraph and Telephone Corporation
- East Tower
- Otemachi First Square
- Tokyo
- 100-8116
- Japan
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/27 00:00 |
| End of Day Share Price | 2022/06/27 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2022/03/31 |
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.