TSE:9433

Stock Analysis Report

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Executive Summary

KDDI Corporation provides telecommunications services in Japan and internationally. More Details


Snowflake Analysis

Undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has KDDI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 9433 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 9433's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

9433

2.9%

JP Wireless Telecom

-0.05%

JP Market


1 Year Return

-2.8%

9433

27.1%

JP Wireless Telecom

7.3%

JP Market

Return vs Industry: 9433 underperformed the JP Wireless Telecom industry which returned 27.1% over the past year.

Return vs Market: 9433 underperformed the JP Market which returned 7.3% over the past year.


Shareholder returns

9433IndustryMarket
7 Day0.9%2.9%-0.05%
30 Day6.9%2.4%3.3%
90 Day18.6%19.3%12.5%
1 Year1.1%-2.8%31.9%27.1%9.9%7.3%
3 Year31.5%17.3%61.9%49.0%6.5%-0.9%
5 Year35.1%14.2%120.5%91.8%53.2%36.0%

Long-Term Price Volatility Vs. Market

How volatile is KDDI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is KDDI undervalued compared to its fair value and its price relative to the market?

49.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 9433 (¥3232) is trading below our estimate of fair value (¥6424.16)

Significantly Below Fair Value: 9433 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 9433 is good value based on its PE Ratio (11.2x) compared to the JP Wireless Telecom industry average (17.4x).

PE vs Market: 9433 is good value based on its PE Ratio (11.2x) compared to the JP market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: 9433 is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: 9433 is good value based on its PB Ratio (1.6x) compared to the JP Wireless Telecom industry average (4x).


Next Steps

Future Growth

How is KDDI forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9433's forecast earnings growth (2.1% per year) is above the savings rate (0%).

Earnings vs Market: 9433's earnings (2.1% per year) are forecast to grow slower than the JP market (17.6% per year).

High Growth Earnings: 9433's earnings are forecast to grow, but not significantly.

Revenue vs Market: 9433's revenue (1.9% per year) is forecast to grow slower than the JP market (5.5% per year).

High Growth Revenue: 9433's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9433's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has KDDI performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9433 has high quality earnings.

Growing Profit Margin: 9433's current net profit margins (12.8%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: 9433's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: 9433's earnings growth over the past year (7.3%) exceeds its 5-year average (6% per year).

Earnings vs Industry: 9433 earnings growth over the past year (7.3%) underperformed the Wireless Telecom industry 7.3%.


Return on Equity

High ROE: 9433's Return on Equity (14.2%) is considered low.


Next Steps

Financial Health

How is KDDI's financial position?


Financial Position Analysis

Short Term Liabilities: 9433's short term assets (¥3,075.4B) do not cover its short term liabilities (¥3,093.1B).

Long Term Liabilities: 9433's short term assets (¥3,075.4B) exceed its long term liabilities (¥1,703.2B).


Debt to Equity History and Analysis

Debt Level: 9433's debt to equity ratio (26.8%) is considered satisfactory.

Reducing Debt: 9433's debt to equity ratio has increased from 25.7% to 26.8% over the past 5 years.

Debt Coverage: 9433's debt is well covered by operating cash flow (109.2%).

Interest Coverage: 9433's interest payments on its debt are well covered by EBIT (291.7x coverage).


Balance Sheet


Next Steps

Dividend

What is KDDI current dividend yield, its reliability and sustainability?

3.71%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 9433's dividend (3.71%) is higher than the bottom 25% of dividend payers in the JP market (1.22%).

High Dividend: 9433's dividend (3.71%) is in the top 25% of dividend payers in the JP market (2.97%)


Stability and Growth of Payments

Stable Dividend: 9433's dividend payments have been volatile in the past 10 years.

Growing Dividend: 9433's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.5%), 9433'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?

2.8yrs

Average management tenure


CEO

Makoto Takahashi (59 yo)

2.75yrs

Tenure

JP¥148,000,000

Compensation

Mr. Makoto Takahashi serves as Executive Director of Corporate & Marketing Communications at KDDI Corporation since April 2019. Mr. Takahashi has been the President at KDDI Corporation since April 01, 2018...


CEO Compensation Analysis

Compensation vs Market: Makoto's total compensation ($USD0.00) is below average for companies of similar size in the JP market ($USD2.01M).

Compensation vs Earnings: Insufficient data to compare Makoto's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Makoto Takahashi
President2.75yrsJP¥148.00m0.0013%
¥ 98.6m
Akira Dobashi
GM of Gen. Admn. & HR Divisionno datano datano data
Ikuko Hongou
General Manager of Investor Relations Departmentno datano datano data
Toshitake Amamiya
Managing Executive Officer1.58yrsno data0.0017%
¥ 124.8m
Tsutomu Honda
Managing Executive Officerno datano datano data
Takashi Shoji
EVP, Executive Director of Personal Business & Global Consumer Business and Representative Director4.58yrsno data0.00054%
¥ 40.3m
Shinichi Muramoto
Executive VP4.58yrsno data0.00045%
¥ 33.6m
Keiichi Mori
Senior Managing Executive Officer3.58yrsno data0.00059%
¥ 44.1m
Kei Morita
Managing Executive Officer2.58yrsno data0.00056%
¥ 41.8m
Nanae Saishoji
Deputy General Manager of Corporate Management Division and Administrative Officerno datano datano data
Atsushi Akagi
Managing Executive Officer3.75yrsno datano data
Hirokuni Takeyama
Managing Executive Officer0.58yrno data0.00041%
¥ 30.6m

2.8yrs

Average Tenure

60yo

Average Age

Experienced Management: 9433's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Makoto Takahashi
President2.75yrsJP¥148.00m0.0013%
¥ 98.6m
Toshitake Amamiya
Managing Executive Officer1.58yrsno data0.0017%
¥ 124.8m
Takashi Shoji
EVP, Executive Director of Personal Business & Global Consumer Business and Representative Director4.58yrsno data0.00054%
¥ 40.3m
Shinichi Muramoto
Executive VP4.58yrsno data0.00045%
¥ 33.6m
Keiichi Mori
Senior Managing Executive Officer3.58yrsno data0.00059%
¥ 44.1m
Kei Morita
Managing Executive Officer2.58yrsno data0.00056%
¥ 41.8m
Hirokuni Takeyama
Managing Executive Officer0.58yrno data0.00041%
¥ 30.6m
Kazuyuki Yoshimura
Executive Officer0.58yrno data0.000060%
¥ 4.5m
Goro Yamaguchi
Independent Outside Director3.58yrsno data0.00032%
¥ 23.9m
Shigeo Ohyagi
Outside & Independent Director2.58yrsno data0.000090%
¥ 6.7m
Takashi Tanaka
Chairman of the Board2.75yrsJP¥124.00m0.0027%
¥ 204.7m
Keiji Yamamoto
Independent Outside Director1.58yrsno data0.000010%
¥ 747.1k

2.7yrs

Average Tenure

60yo

Average Age

Experienced Board: 9433's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

KDDI Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KDDI Corporation
  • Ticker: 9433
  • Exchange: TSE
  • Founded: 1953
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥7.471t
  • Shares outstanding: 2.28b
  • Website: https://www.kddi.com

Number of Employees


Location

  • KDDI Corporation
  • Garden Air Tower
  • 3-10-10, Iidabashi
  • Tokyo
  • 102-8460
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIPDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1994
9433TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYMay 1994
KDDI.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMay 1994
KDDI.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

KDDI Corporation provides telecommunications services in Japan and internationally. It operates through four segments: Personal Services, Life Design Services, Business Services, and Global Services. The P...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 08:10
End of Day Share Price2021/01/18 00:00
Earnings2020/09/30
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.