OTCPK:NTDT.Y

Stock Analysis Report

Executive Summary

NTT DATA Corporation provides consulting, system development, and business information technology (IT) outsourcing services worldwide.

Rewards

PE ratio (22.8x) is below the IT industry average (32x)

Earnings are forecast to grow 9.47% per year

Earnings grew by 26.9% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NTDT.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

NTDT.Y

1.7%

US IT

0.6%

US Market


1 Year Return

22.4%

NTDT.Y

42.2%

US IT

24.6%

US Market

Return vs Industry: NTDT.Y underperformed the US IT industry which returned 39.9% over the past year.

Return vs Market: NTDT.Y underperformed the US Market which returned 25.1% over the past year.


Shareholder returns

NTDT.YIndustryMarket
7 Day-2.3%1.7%0.6%
30 Day3.5%7.1%3.0%
90 Day6.4%14.5%10.6%
1 Year22.9%22.4%43.7%42.2%27.3%24.6%
3 Year41.7%41.0%109.6%100.6%50.5%40.8%
5 Year91.1%90.2%161.6%138.3%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

23.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NTDT.Y ($14.53) is trading above our estimate of fair value ($8.19)

Significantly Below Fair Value: NTDT.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NTDT.Y is good value based on its PE Ratio (22.8x) compared to the IT industry average (32x).

PE vs Market: NTDT.Y is poor value based on its PE Ratio (22.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: NTDT.Y is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: NTDT.Y is good value based on its PB Ratio (2.3x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is NTT DATA forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTDT.Y's forecast earnings growth (9.5% per year) is above the savings rate (1.7%).

Earnings vs Market: NTDT.Y's earnings (9.5% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: NTDT.Y's revenue (3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: NTDT.Y's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTDT.Y's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has NTT DATA performed over the past 5 years?

17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTDT.Y has high quality earnings.

Growing Profit Margin: NTDT.Y's current net profit margins (4.3%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: NTDT.Y's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: NTDT.Y's earnings growth over the past year (26.9%) exceeds its 5-year average (17.6% per year).

Earnings vs Industry: NTDT.Y earnings growth over the past year (26.9%) exceeded the IT industry 16.2%.


Return on Equity

High ROE: NTDT.Y's Return on Equity (10.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NTT DATA's financial position?


Financial Position Analysis

Short Term Liabilities: NTDT.Y's short term assets (¥887.1B) exceed its short term liabilities (¥761.7B).

Long Term Liabilities: NTDT.Y's short term assets (¥887.1B) exceed its long term liabilities (¥821.8B).


Debt to Equity History and Analysis

Debt Level: NTDT.Y's debt to equity ratio (57.3%) is considered high.

Reducing Debt: NTDT.Y's debt to equity ratio has reduced from 59.1% to 57.3% over the past 5 years.

Debt Coverage: NTDT.Y's debt is well covered by operating cash flow (51.2%).

Interest Coverage: NTDT.Y's interest payments on its debt are well covered by EBIT (104.4x coverage).


Balance Sheet

Inventory Level: NTDT.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: NTDT.Y's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is NTT DATA's current dividend yield, its reliability and sustainability?

1.15%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: NTDT.Y's dividend (1.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: NTDT.Y's dividend (1.16%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: NTDT.Y's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.8%), NTDT.Y'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

What is the CEO of NTT DATA's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Yo Honma 0

2yrs

Tenure

0

Mr. Yo Honma has been President and Chief Executive Officer at NTT Data Corporation since 2018 and served as its Senior Executive Vice President since 2016. Mr. Honma served as President and Representative ...


Management Age and Tenure

3.3yrs

Average Tenure

Experienced Management: NTDT.Y's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

Experienced Board: NTDT.Y's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Robb Rasmussen

    Head of Global Marketing Headquarters

    • Tenure: 2.5yrs
  • Koji Ito

    Executive VP

    • Tenure: 2yrs
  • Yo Honma

    President

    • Tenure: 2yrs
  • Tsuyoshi Kitani

    Head of Technology & Innovation General HQ

    • Tenure: 3.6yrs
  • Shigeki Yamaguchi (58yo)

    Senior EVP & Representative Director

    • Tenure: 2.6yrs
  • Takashi Nakamura (55yo)

    Senior VP & Head of Finance Department

    • Keiichiro Yanagi

      Senior EVP

      • Tenure: 3.6yrs
    • Toshi Fujiwara

      Senior EVP & Representative Director

      • Tenure: 2.6yrs
    • Shunichi Takeuchi

      Executive VP & Director

      • Tenure: 2yrs
    • Tadashi Uhira

      Senior Vice President


      Board Members

      • John McCain (60yo)

        Director

        • Tenure: 2yrs
      • Koji Ito

        Executive VP

        • Tenure: 2yrs
      • Yo Honma

        President

        • Tenure: 2yrs
      • Tsuyoshi Kitani

        Head of Technology & Innovation General HQ

        • Tenure: 3.6yrs
      • Shigeki Yamaguchi (58yo)

        Senior EVP & Representative Director

        • Tenure: 2.6yrs
      • Keiichiro Yanagi

        Senior EVP

        • Tenure: 3.6yrs
      • Toshi Fujiwara

        Senior EVP & Representative Director

        • Tenure: 2.6yrs
      • Shunichi Takeuchi

        Executive VP & Director

        • Tenure: 2yrs
      • Hisashi Matsunaga

        Executive VP

        • Tenure: 1yrs
      • Koji Miyajima

        Senior VP & Chair of NTT Data EMEA

        Company Information

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


        Key Information

        • Name: NTT DATA Corporation
        • Ticker: NTDT.Y
        • Exchange: OTCPK
        • Founded: 1967
        • Industry: IT Consulting and Other Services
        • Sector: Software
        • Market Cap: JP¥2.203t
        • Listing Market Cap: JP¥20.054b
        • Shares outstanding: 1.40b
        • Website: https://www.nttdata.com

        Number of Employees


        Location

        • NTT DATA Corporation
        • Toyosu Center Building
        • 3-3, Toyosu 3-chome
        • Tokyo
        • 135-6033
        • Japan

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        9613TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYApr 1995
        NT5DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1995
        NTDT.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

        Biography

        NTT DATA Corporation provides consulting, system development, and business information technology (IT) outsourcing services worldwide. It operates through Public & Social Infrastructure, Financial, Enterprise & Solutions, North America, and EMEA & LATAM segments. The company offers value-added IT services for government, medical, telecommunications, electric power, and other social infrastructure; financial institutions; and the manufacturing, distribution, and servicing industries, as well as payment services and platform solutions. The company was formerly known as NTT Data Communications Systems Corporation and changed its name to NTT DATA Corporation in 1996. The company was founded in 1967 and is headquartered in Tokyo, Japan. NTT DATA Corporation is a subsidiary of Nippon Telegraph and Telephone Corporation. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 00:43
        End of Day Share Price2020/01/22 00:00
        Earnings2019/09/30
        Annual Earnings2019/03/31


        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.