OTCPK:KDDI.Y

Stock Analysis Report

Executive Summary

KDDI Corporation provides telecommunications services in Japan and internationally.

Snowflake

Fundamentals

Flawless balance sheet, undervalued 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


Market Performance


7 Day Return

-0.4%

KDDI.Y

-0.4%

US Wireless Telecom

-0.6%

US Market


1 Year Return

-4.2%

KDDI.Y

5.2%

US Wireless Telecom

0.7%

US Market

KDDI.Y underperformed the Wireless Telecom industry which returned 5.2% over the past year.

KDDI.Y underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

KDDI.YIndustryMarket
7 Day-0.4%-0.4%-0.6%
30 Day2.7%3.0%2.9%
90 Day4.2%-0.7%1.3%
1 Year-4.2%-4.2%6.4%5.2%2.9%0.7%
3 Year-14.4%-14.4%32.9%27.8%44.6%35.2%
5 Year32.4%32.4%42.3%28.6%61.9%44.2%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

KDDI's share price is below the future cash flow value, and at a moderate discount (> 20%).

KDDI's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

KDDI is good value based on earnings compared to the US Wireless Telecom industry average.

KDDI is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

KDDI is poor value based on expected growth next year.


Price Based on Value of Assets

KDDI is good value based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is KDDI expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

KDDI's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).

KDDI's earnings are expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).

KDDI's revenue growth is positive but not above the United States of America market average.

KDDI's earnings growth is positive but not above the United States of America market average.

KDDI's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

KDDI is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has KDDI performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

KDDI's year on year earnings growth rate has been positive over the past 5 years.

KDDI's 1-year earnings growth is less than its 5-year average (4.1% vs 8.8%)

KDDI's earnings growth has not exceeded the US Wireless Telecom industry average in the past year (4.1% vs 7.7%).


Return on Equity

KDDI has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

KDDI used its assets more efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

KDDI's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is KDDI's financial position?


Financial Position Analysis

KDDI is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

KDDI's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

KDDI's level of debt (31%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (35.8% vs 31% today).

Debt is well covered by operating cash flow (67.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 128.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

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

4.18%

Expected Dividend Yield


Dividend Yield and Payments Analysis

KDDI's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

KDDI's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Makoto Takahashi (58yo)

1.4yrs

Tenure

0

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 ...


Management Age and Tenure

1.3yrs

Average Tenure

59yo

Average Age

The average tenure for the KDDI management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

60yo

Average Age

The average tenure for the KDDI board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Makoto Takahashi (58yo)

    President

    • Tenure: 1.4yrs
  • Toshitake Amamiya (59yo)

    Managing Executive Officer

    • Tenure: 0.3yrs
  • Akira Dobashi

    GM of Gen. Admn. & HR Division

    • Tenure: 0yrs
  • Kei Amano

    Head of Smartpass Business

    • Tenure: 0yrs
  • Tsutomu Honda

    Managing Executive Officer

    • Tenure: 0yrs
  • Takashi Shoji (61yo)

    Senior Managing Executive Officer & Director

    • Tenure: 3.3yrs
  • Shinichi Muramoto (59yo)

    Senior Managing Executive Officer

    • Tenure: 3.3yrs
  • Yoshiaki Uchida (63yo)

    Executive VP

    • Tenure: 5.3yrs
  • Junnou Matsuishi

    Head of Planning Group Section - Mobile Technical Planning Department

    • Tenure: 0yrs
  • Keita Horii

    General Manager of Investor Relations Department

    • Tenure: 0yrs

Board Members

  • Goro Yamaguchi (63yo)

    Outside Director

    • Tenure: 2.3yrs
  • Makoto Takahashi (58yo)

    President

    • Tenure: 1.4yrs
  • Hirofumi Morozumi (63yo)

    Vice Chairman

    • Tenure: 1.4yrs
  • Takashi Tanaka (62yo)

    Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: JP¥123.00m
  • Toshitake Amamiya (59yo)

    Managing Executive Officer

    • Tenure: 0.3yrs
  • Takashi Shoji (61yo)

    Senior Managing Executive Officer & Director

    • Tenure: 3.3yrs
  • Shinichi Muramoto (59yo)

    Senior Managing Executive Officer

    • Tenure: 3.3yrs
  • Yoshiaki Uchida (63yo)

    Executive VP

    • Tenure: 5.3yrs
  • Keiichi Mori (59yo)

    Senior Managing Executive Officer

    • Tenure: 2.3yrs
  • Kei Morita (58yo)

    Managing Executive Officer

    • Tenure: 1.3yrs

Company Information

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


Key Information

  • Name: KDDI Corporation
  • Ticker: KDDI.Y
  • Exchange: OTCPK
  • Founded: 1953
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥6.709t
  • Listing Market Cap: JP¥62.155b
  • Shares outstanding: 2.34b
  • 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 Analysis2019/09/22 00:02
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.