OTCPK:NPPX.F

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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.

Rewards

Trading at 36.9% below our estimate of its fair value

Earnings grew by 0.2% over the past year

Pays a reliable dividend of 3.79%

Risk Analysis

No risks detected for NPPX.F from our risk checks.


Snowflake Analysis

Flawless balance sheet, undervalued 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

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


Market Performance


7 Day Return

4.4%

NPPX.F

-0.2%

US Telecom

0.5%

US Market


1 Year Return

5.1%

NPPX.F

-5.0%

US Telecom

18.7%

US Market

Return vs Industry: NPPX.F exceeded the US Telecom industry which returned -3.1% over the past year.

Return vs Market: NPPX.F underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

NPPX.FIndustryMarket
7 Day4.4%-0.2%0.5%
30 Day0.2%3.2%4.9%
90 Day12.5%7.3%19.8%
1 Year5.1%5.1%-0.2%-5.0%21.2%18.7%
3 Year-1.2%-1.2%11.3%-4.7%46.2%36.8%
5 Year33.9%33.9%27.2%-1.4%85.3%65.1%

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 compared to its fair value and its price relative to the market?

36.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NPPX.F ($24.34) is trading below our estimate of fair value ($38.55)

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


Price To Earnings Ratio

PE vs Industry: NPPX.F is good value based on its PE Ratio (11.4x) compared to the US Telecom industry average (12.7x).

PE vs Market: NPPX.F is good value based on its PE Ratio (11.4x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: NPPX.F is poor value based on its PEG Ratio (7.2x)


Price to Book Ratio

PB vs Industry: NPPX.F is good value based on its PB Ratio (1x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

How is Nippon Telegraph and Telephone forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NPPX.F's forecast earnings growth (1.6% per year) is below the savings rate (2.2%).

Earnings vs Market: NPPX.F's earnings (1.6% per year) are forecast to grow slower than the US market (24.1% per year).

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

Revenue vs Market: NPPX.F's revenue (1.2% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: NPPX.F's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NPPX.F's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

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

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NPPX.F has high quality earnings.

Growing Profit Margin: NPPX.F's current net profit margins (7.2%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: NPPX.F's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: NPPX.F's earnings growth over the past year (0.2%) is below its 5-year average (5.5% per year).

Earnings vs Industry: NPPX.F earnings growth over the past year (0.2%) exceeded the Telecom industry -13.5%.


Return on Equity

High ROE: NPPX.F's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Nippon Telegraph and Telephone's financial position?


Financial Position Analysis

Short Term Liabilities: NPPX.F's short term assets (¥6,746.0B) exceed its short term liabilities (¥6,449.1B).

Long Term Liabilities: NPPX.F's short term assets (¥6,746.0B) exceed its long term liabilities (¥5,135.0B).


Debt to Equity History and Analysis

Debt Level: NPPX.F's debt to equity ratio (39.6%) is considered satisfactory.

Reducing Debt: NPPX.F's debt to equity ratio has reduced from 42.4% to 39.6% over the past 5 years.

Debt Coverage: NPPX.F's debt is well covered by operating cash flow (63.9%).

Interest Coverage: NPPX.F's interest payments on its debt are well covered by EBIT (40.1x coverage).


Balance Sheet


Next Steps

Dividend

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

3.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NPPX.F's dividend (3.79%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: NPPX.F's dividend (3.79%) is low compared to the top 25% of dividend payers in the US market (4.29%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.2%), NPPX.F'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?

0.6yrs

Average management tenure


CEO

Jun Sawada (65 yo)

2.17yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Jun Sawada
President2.17yrsno data0.00093%
¥ 853.5k
Akira Shimada
Senior EVP8.17yrsno data0.00059%
¥ 541.5k
Kazuhiko Nakayama
Senior VP & Head of Finance and Accounting0.58yrno datano data
Naoki Shibutani
Senior EVP0.17yrno datano data
Natsuko Fujiki
Head of IRno datano datano data
Hiroki Kuriyama
Senior Vice President6.17yrsno data0.00028%
¥ 257.0k
Eiichi Sakamoto
Senior VP & Head of General Affairs4.17yrsno data0.00022%
¥ 201.9k
Ryota Kitamura
Senior VP & Head of Corporate Strategy Planning2.17yrsno data0.00010%
¥ 91.8k
Katsuhiko Kawazoe
Executive VP2.17yrsno data0.00012%
¥ 110.1k
Atsuko Oka
Head of Technology Planning & Senior VP0.58yrno datano data
Tadao Yanase
Senior Vice President0.58yrno datano data
Shinichi Yokohama
Senior VP0.58yrno datano data

0.6yrs

Average Tenure

58yo

Average Age

Experienced Management: NPPX.F's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jun Sawada
President2.17yrsno data0.00093%
¥ 853.5k
Akira Shimada
Senior EVP8.17yrsno data0.00059%
¥ 541.5k
Naoki Shibutani
Senior EVP0.17yrno datano data
Katsuhiko Kawazoe
Executive VP2.17yrsno data0.00012%
¥ 110.1k
Sadayuki Sakakibara
Independent Outside Director8.17yrsno data0.00055%
¥ 504.8k
Takashi Iida
Outside Audit & Supervisory Board Member6.17yrsno data0.00019%
¥ 174.4k
Hiromichi Shinohara
Chairman of the Board2.17yrsno data0.0012%
¥ 1.1m
Takao Maezawa
Full Time Audit & Supervisory Board Member4.17yrsno data0.00054%
¥ 495.6k
Katsuhiko Shirai
Independent Outside Director8.17yrsno data0.00026%
¥ 238.6k
Hideki Kanda
Outside Audit & Supervisory Board Member1.17yrsno datano data
Ken Sakamura
Independent Outside Director1.17yrsno data0.000020%
¥ 18.4k
Keiko Takegawa
Independent Outside Director1.17yrsno data0.000020%
¥ 18.4k

3.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: NPPX.F's board of directors are considered experienced (3.2 years average tenure).


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

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¥9.810t
  • Listing Market Cap: JP¥91.774b
  • Shares outstanding: 3.72b
  • 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 Analysis2020/08/14 00:03
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.