KDDI (TSE:9433): Assessing Valuation Following Announced Dividend for 2025

KDDI (TSE:9433) has announced a dividend of JPY 40.00 per share for the second quarter-end, payable on December 8, 2025. This move is generally interpreted as a sign of management’s confidence in the company’s ongoing performance.

See our latest analysis for KDDI.

KDDI’s upbeat dividend news comes as the stock shows signs of renewed momentum, with a 12% share price return over the past month. This adds to a solid 1-year total shareholder return of nearly 9%. Investors appear to be warming up again after a quieter spell, suggesting the market is recognizing both recent growth and long-term value.

If positive signals like KDDI’s have you looking for your next investment, now could be the right moment to broaden your search and discover fast growing stocks with high insider ownership

But with KDDI’s stock experiencing a renewed surge and solid multi-year returns, investors must now consider whether the current price truly offers value or if the market has already factored in future growth prospects.

Most Popular Narrative: 1.4% Undervalued

With KDDI's most widely followed fair value estimate sitting just above the recent closing price, analyst forecasts are leaning ever so slightly positive as buyers take notice of underlying momentum.

Continued investment in network modernization and digital solutions is strengthening KDDI's market position, and supporting long-term profitability and business diversification. Reliance on saturated domestic market, slow subscriber growth, intense price competition, and weak diversification heighten risks to future revenue, earnings, and cash flow.

Read the complete narrative.

Curious what's driving this valuation edge? The heart of this narrative hinges on a mix of bold growth assumptions and a profit trajectory that bets on margin expansion and strategic business reinvention. Want to see which financial forecasts and business shifts underpin the consensus target? Uncover the specifics behind KDDI’s valuation story.

Result: Fair Value of ¥2,688 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing sluggish subscriber growth and intense price competition could undermine KDDI’s profit momentum. These factors challenge assumptions that underpin its optimistic valuation.

Find out about the key risks to this KDDI narrative.

Build Your Own KDDI Narrative

If you want to dig into the numbers yourself or see the story differently, you can put together your own perspective in just minutes. Do it your way

A great starting point for your KDDI research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Don’t limit yourself to just one opportunity. Uncover powerful trends and stay ahead of the curve by using the Simply Wall Street Screener to target your next investment.

• Seize the chance to maximize income potential by scanning for companies with consistent payouts. Check out these 16 dividend stocks with yields > 3% offering yields above 3%.
• Tap into breakthrough healthcare tech by reviewing these 31 healthcare AI stocks, spotlighting innovators merging artificial intelligence with medical advancements.
• Spot game-changing opportunities in undervalued sectors. Zero in on these 879 undervalued stocks based on cash flows based on forward-looking cash flows.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com