OTCPK:NPPX.F

Stock Analysis Report

Nippon Telegraph and Telephone

Executive Summary

Nippon Telegraph and Telephone Corporation, through its subsidiaries, provides fixed voice-related, mobile voice-related, IP/packet communications, and system integration services in Japan and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Nippon Telegraph and Telephone's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

NPPX.F

0.01%

US Telecom

-0.6%

US Market


1 Year Return

5.8%

NPPX.F

8.2%

US Telecom

0.7%

US Market

NPPX.F underperformed the Telecom industry which returned 8.1% over the past year.

NPPX.F outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

NPPX.FIndustryMarket
7 Day0%0.01%-0.6%
30 Day4.6%7.9%4.9%
90 Day4.6%9.5%1.7%
1 Year5.8%5.8%13.9%8.2%3.0%0.7%
3 Year7.0%7.0%15.7%-1.1%44.8%35.4%
5 Year-21.2%-21.2%36.3%5.1%62.0%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Nippon Telegraph and Telephone 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

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

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


Price Based on Earnings

Nippon Telegraph and Telephone is good value based on earnings compared to the US Telecom industry average.

Nippon Telegraph and Telephone is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Nippon Telegraph and Telephone is poor value based on expected growth next year.


Price Based on Value of Assets

Nippon Telegraph and Telephone is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Nippon Telegraph and Telephone expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nippon Telegraph and Telephone's revenue is expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).

Nippon Telegraph and Telephone's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Nippon Telegraph and Telephone's revenue growth is positive but not above the United States of America market average.

Nippon Telegraph and Telephone's earnings growth is positive but not above the United States of America market average.

Nippon Telegraph and Telephone's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

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

11.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nippon Telegraph and Telephone's year on year earnings growth rate has been positive over the past 5 years.

Nippon Telegraph and Telephone's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Nippon Telegraph and Telephone's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

Nippon Telegraph and Telephone has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Nippon Telegraph and Telephone used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Nippon Telegraph and Telephone has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Nippon Telegraph and Telephone's financial position?


Financial Position Analysis

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

Nippon Telegraph and Telephone's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Nippon Telegraph and Telephone's level of debt (40.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (41.6% vs 40.9% today).

Debt is well covered by operating cash flow (51.5%, greater than 20% of total debt).

Nippon Telegraph and Telephone earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

3.90%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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

Nippon Telegraph and Telephone's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

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 Nippon Telegraph and Telephone's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Jun Sawada (64yo)

1.3yrs

Tenure

0

Mr. Jun Sawada has been President and CEO at Nippon Telegraph and Telephone since June 2018. Mr. Sawada served as Chief Financial Officer, Chief Compliance Officer, Chief Information Officer at Nippon Tele ...


Management Age and Tenure

3.3yrs

Average Tenure

58yo

Average Age

The tenure for the Nippon Telegraph and Telephone management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

58.5yo

Average Age

The tenure for the Nippon Telegraph and Telephone board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Takashi Hiroi (56yo)

    Senior VP

    • Tenure: 4.3yrs
  • Akira Shimada (62yo)

    Senior EVP & Representative Director

    • Tenure: 7.3yrs
  • Jun Sawada (64yo)

    President

    • Tenure: 1.3yrs
  • Tsunehisa Okuno (59yo)

    Executive VP

    • Tenure: 7.3yrs
  • Hiroki Kuriyama (58yo)

    Senior VP

    • Tenure: 5.3yrs
  • Eiichi Sakamoto (56yo)

    Senior VP

    • Tenure: 3.3yrs
  • Ryota Kitamura (54yo)

    Senior VP

    • Tenure: 1.3yrs
  • Motoyuki Li (61yo)

    Senior EVP & Representative Director

    • Tenure: 1.3yrs
  • Natsuko Fujiki

    Head of IR

    • Tenure: 0yrs
  • Atsuko Oka (56yo)

    Head of Technology Planning

    • Tenure: 0.3yrs

Board Members

  • Takashi Hiroi (56yo)

    Senior VP

    • Tenure: 4.3yrs
  • Akira Shimada (62yo)

    Senior EVP & Representative Director

    • Tenure: 7.3yrs
  • Jun Sawada (64yo)

    President

    • Tenure: 1.3yrs
  • Hiromichi Shinohara (65yo)

    Chairman of the Board

    • Tenure: 1.3yrs
  • Tsunehisa Okuno (59yo)

    Executive VP

    • Tenure: 7.3yrs
  • Hiroki Kuriyama (58yo)

    Senior VP

    • Tenure: 5.3yrs
  • Eiichi Sakamoto (56yo)

    Senior VP

    • Tenure: 3.3yrs
  • Ryota Kitamura (54yo)

    Senior VP

    • Tenure: 1.3yrs
  • Motoyuki Li (61yo)

    Senior EVP & Representative Director

    • Tenure: 1.3yrs
  • Atsuko Oka (56yo)

    Head of Technology Planning

    • Tenure: 0.3yrs

Company Information

Nippon Telegraph and Telephone Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nippon Telegraph and Telephone Corporation
  • Ticker: NPPX.F
  • Exchange: OTCPK
  • Founded: 1952
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥9.468t
  • Listing Market Cap: JP¥87.718b
  • Shares outstanding: 1.82b
  • Website: https://www.ntt.co.jp

Number of Employees


Location

  • Nippon Telegraph and Telephone Corporation
  • East Tower
  • Otemachi First Square
  • Tokyo
  • 100-8116
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTTDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
9432TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NPPX.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
NTT1 NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
NTTY.YOTCPK (Pink Sheets LLC)SPON ADR EACH REP 1 ORD SHSUSUSDSep 1994
NLVDB (Deutsche Boerse AG)SPON ADR EACH REP 1 ORD SHSDEEURSep 1994

Biography

Nippon Telegraph and Telephone Corporation, through its subsidiaries, provides fixed voice-related, mobile voice-related, IP/packet communications, and system integration services in Japan and internationa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 23:54
End of Day Share Price2019/09/13 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.