company background image
9432

Nippon Telegraph and Telephone TSE:9432 Stock Report

Last Price

JP¥3.89k

Market Cap

JP¥14.0t

7D

1.5%

1Y

33.6%

Updated

27 Jun, 2022

Data

Company Financials +
9432 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health2/6
Dividends5/6

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

Summary of all time highs, changes and price drops for Nippon Telegraph and Telephone
Historical stock prices
Current Share PriceJP¥3,888.00
52 Week HighJP¥4,055.00
52 Week LowJP¥2,799.50
Beta0.32
1 Month Change-2.70%
3 Month Change5.97%
1 Year Change33.56%
3 Year Change51.37%
5 Year Change46.25%
Change since IPO111.51%

Recent News & Updates

Shareholder Returns

9432JP TelecomJP Market
7D1.5%3.8%1.9%
1Y33.6%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

Is 9432's price volatile compared to industry and market?
9432 volatility
9432 Average Weekly Movement2.7%
Telecom Industry Average Movement6.5%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.5%
10% least volatile stocks in JP Market2.3%

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

FoundedEmployeesCEOWebsite
1952324,667Jun Sawadahttps://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

How do Nippon Telegraph and Telephone's earnings and revenue compare to its market cap?
9432 fundamental statistics
Market CapJP¥13.99t
Earnings (TTM)JP¥1.18t
Revenue (TTM)JP¥12.16t

11.7x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
9432 income statement (TTM)
RevenueJP¥12.16t
Cost of RevenueJP¥10.39t
Gross ProfitJP¥1.77t
Other ExpensesJP¥587.51b
EarningsJP¥1.18t

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)333.50
Gross Margin14.55%
Net Profit Margin9.72%
Debt/Equity Ratio81.7%

How did 9432 perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

35%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 9432 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation 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.

9432 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA6.6x
PEG Ratio3.7x

Price to Earnings Ratio vs Peers

How does 9432's PE Ratio compare to its peers?

9432 PE Ratio vs Peers
The above table shows the PE ratio for 9432 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average34.8x
3774 Internet Initiative Japan
28.2x12.2%JP¥435.9b
9433 KDDI
14.2x4.4%JP¥9.8t
9434 SoftBank
13.8x2.9%JP¥7.1t
9416 Vision
82.9x48.3%JP¥62.0b
9432 Nippon Telegraph and Telephone
11.7x3.1%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.

9432 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.7x
Fair PE Ratio9.5x

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)


Discover undervalued companies

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

1/6

Future 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%).


Discover growth companies

Past Performance

How has Nippon Telegraph and Telephone performed over the past 5 years?

Past Performance Score

5/6

Past 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.


Discover strong past performing companies

Financial Health

How is Nippon Telegraph and Telephone's financial position?

Financial Health Score

2/6

Financial 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


Discover healthy companies

Dividend

What is Nippon Telegraph and Telephone current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend 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.


Discover strong dividend paying companies

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.