OTCPK:NTTY.Y

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

-3.2%

NTTY.Y

2.2%

US Telecom

0.5%

US Market


1 Year Return

9.9%

NTTY.Y

11.0%

US Telecom

6.8%

US Market

Return vs Industry: NTTY.Y underperformed the US Telecom industry which returned 11% over the past year.

Return vs Market: NTTY.Y exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

NTTY.YIndustryMarket
7 Day-3.2%2.2%0.5%
30 Day0.3%1.1%-0.8%
90 Day3.6%13.7%-0.9%
1 Year9.9%9.9%16.7%11.0%9.2%6.8%
3 Year10.2%9.1%27.2%8.6%45.6%36.2%
5 Year70.8%63.9%42.7%10.2%63.2%45.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTTY.Y ($48.62) is trading below our estimate of fair value ($102.26)

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


Price To Earnings Ratio

PE vs Industry: NTTY.Y is good value based on its PE Ratio (12x) compared to the Telecom industry average (18.9x).

PE vs Market: NTTY.Y is good value based on its PE Ratio (12x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: NTTY.Y is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: NTTY.Y is good value based on its PB Ratio (1.1x) 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 15 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTTY.Y's forecast earnings growth (4.7% per year) is above the savings rate (2.7%).

Earnings vs Market: NTTY.Y's earnings (4.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: NTTY.Y's revenue (0.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NTTY.Y's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTTY.Y's Return on Equity is forecast to be low in 3 years time (9.5%).


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

Earnings Trend: NTTY.Y's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: NTTY.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NTTY.Y had negative earnings growth (-7.1%) over the past year, making it difficult to compare to the Telecom industry average (-23%).


Return on Equity

High ROE: NTTY.Y's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: NTTY.Y's Return on Assets is below or equal to the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: NTTY.Y has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Nippon Telegraph and Telephone's financial position?


Financial Position Analysis

Short Term Liabilities: NTTY.Y's short term assets (¥6,355.9B) exceeds its short term liabilities (¥5,308.5B)

Long Term Liabilities: NTTY.Y's short term assets (6,355.9B) exceeds its long term liabilities (5,617.7B)


Debt to Equity History and Analysis

Debt Level: NTTY.Y's debt to equity ratio (40.9%) is considered high

Reducing Debt: NTTY.Y's debt to equity ratio has reduced from 41.6% to 40.9% over the past 5 years.

Debt Coverage: NTTY.Y's debt is well covered by operating cash flow (51.5%).

Interest Coverage: NTTY.Y earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: NTTY.Y's debt is covered by short term assets (assets are 1.336050x debt).


Next Steps

Dividend

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

3.60%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NTTY.Y's dividend (3.6%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NTTY.Y's dividend (3.6%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.1%), NTTY.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 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

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


Board Age and Tenure

3.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: NTTY.Y's board of directors are considered experienced (3.8 years average tenure).


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


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)

    Head of Strategic Business Development

    • 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)

    Head of Strategic Business Development

    • 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: NTTY.Y
  • Exchange: OTCPK
  • Founded: 1952
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥9.592t
  • Listing Market Cap: JP¥88.389b
  • 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 Analysis2019/10/20 23:40
End of Day Share Price2019/10/18 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.