Nippon Telegraph and Telephone (9432) AI Stock Analysis

• Market Cap: $13.25T
• Dividend Yield: 3.31%
• Average Volume (3M): 163.51M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.48
• Revenue Growth: 2.10%
• EPS Growth: -9.29%
• Country: JP
• Employees: 338,467
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 4.06
• Shares Outstanding: 90,550,310,000
• 10 Day Avg. Volume: 184,869,517
• 30 Day Avg. Volume: 163,509,546
• PEG Ratio: -0.58
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 52.21
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 12.42
• Enterprise Value/Ebitda: 7.40
• 1Y Price Target: $150.98
• Price Target Upside: 0.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥174.00 ▲(15.46% Upside)

The overall stock score of 73 reflects strong financial performance and attractive valuation, which are the most significant factors. The technical analysis suggests a neutral to slightly bearish trend, which slightly offsets the positive financial and valuation aspects.

Nippon Telegraph and Telephone Business Overview & Revenue Model

Company Description

NTT, Inc. operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. Its Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers system integration, network system, cloud, global center, and related services, as well as consulting, managed, and system and software development services. Its Others segment engages in the real estate and construction, energy, and other businesses. The company was formerly known as Nippon Telegraph and Telephone Corporation and changed its name to NTT, Inc. in July 2025. NTT, Inc. was founded in 1952 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NTT generates revenue primarily through its diverse telecommunications services, including fixed-line and mobile voice services, broadband internet, and data communications. Key revenue streams include subscription fees from residential and business clients, mobile service charges, and enterprise solutions. The company also earns income from its IT services through NTT Data, which provides consulting, system integration, and managed services. Significant partnerships with global technology firms and its investments in advanced technologies such as 5G networks and cloud computing further contribute to its earnings by expanding service offerings and enhancing operational efficiency.

Nippon Telegraph and Telephone Financial Statement Overview

Summary

Nippon Telegraph and Telephone demonstrates strong revenue growth and cash flow generation, which are positive indicators for future performance. However, the increasing leverage and declining gross profit margins are areas of concern that need to be addressed to ensure long-term financial stability and profitability.

Income Statement

The company shows a strong revenue growth rate of 16.1% in the TTM, indicating robust expansion. However, the gross profit margin has decreased compared to previous years, suggesting rising costs. The net profit margin is stable, but lower than the industry average, indicating room for improvement in profitability.

Balance Sheet

The debt-to-equity ratio has increased to 1.48 in the TTM, reflecting higher leverage which could pose a risk if not managed properly. The return on equity is solid at 9.91%, though it has declined from previous years, indicating a slight decrease in efficiency in generating returns from equity.

Cash Flow

The free cash flow growth rate is impressive at 132.24% in the TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating good cash conversion from earnings. However, the free cash flow to net income ratio suggests that not all earnings are being converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.73T	13.70T	13.37T	13.14T	12.16T	11.94T
Gross Profit	2.04T	2.39T	2.63T	2.50T	2.46T	2.36T
EBITDA	3.42T	3.42T	3.70T	3.46T	3.39T	3.20T
Net Income	985.59B	1.00T	1.28T	1.21T	1.18T	916.18B
Balance Sheet
Total Assets	31.00T	30.93T	30.43T	25.76T	23.86T	22.97T
Cash, Cash Equivalents and Short-Term Investments	2.03T	1.61T	1.05T	859.65B	888.65B	965.09B
Total Debt	13.90T	11.29T	10.71T	9.15T	8.21T	8.37T
Total Liabilities	20.92T	19.59T	19.54T	16.41T	14.84T	14.76T
Stockholders Equity	9.40T	10.22T	9.84T	8.56T	8.28T	7.56T
Cash Flow
Free Cash Flow	538.20B	231.74B	290.15B	409.13B	1.25T	1.21T
Operating Cash Flow	2.70T	2.36T	2.37T	2.26T	3.01T	3.01T
Investing Cash Flow	-3.39T	-2.01T	-1.99T	-1.74T	-1.70T	-1.42T
Financing Cash Flow	1.63T	-328.64B	-234.45B	-590.20B	-1.44T	-1.69T

Nippon Telegraph and Telephone Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 150.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9432, the sentiment is Negative. The current price of 150.7 is below the 20-day moving average (MA) of 156.64, below the 50-day MA of 156.23, and above the 200-day MA of 150.19, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 34.75 is Neutral, neither overbought nor oversold. The STOCH value of 3.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9432.

Nippon Telegraph and Telephone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3774	76 Outperform	$489.14B	23.55	15.20%	1.35%	12.19%	4.12%
9432	73 Outperform	$13.25T	12.38	10.59%	3.31%	2.10%	-9.29%
9433	72 Outperform	$9.28T	14.46	13.28%	3.17%	3.34%	20.36%
9436	66 Neutral	€241.55B	25.29	13.42%	2.41%	5.10%	-16.27%
9434	65 Neutral	¥10.32T	20.53	―	3.94%	7.79%	5.53%
9984	61 Neutral	¥33.10T	19.54	15.53%	0.19%	6.69%	2988.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Nippon Telegraph and Telephone Corporate Events

NTT Reports Progress on Stock Repurchase Program

NTT announced the status of its stock repurchase program, revealing that it has repurchased 224,951,900 shares of its common stock for a total of 35,845,601,350 yen between September 1 and September 22, 2025. This move is part of a larger initiative approved by the Board of Directors to repurchase up to 1.5 billion shares, with the aim of enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Acquires SBI Sumishin Net Bank as a Wholly Owned Subsidiary

NTT has announced the acquisition of SBI Sumishin Net Bank, Ltd., making it a wholly owned subsidiary as of October 1, 2025. This acquisition, executed through NTT’s subsidiary NTT DOCOMO, is part of a strategic move to enhance NTT’s position in the financial services industry by taking SBI Sumishin Net Bank private, thereby consolidating its banking services under NTT’s umbrella.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT DOCOMO Completes Acquisition of CARTA HOLDINGS

NTT DOCOMO, a subsidiary of NTT, successfully completed a tender offer to acquire shares of CARTA HOLDINGS, INC., resulting in CARTA becoming an affiliate of NTT DOCOMO. This acquisition, effective September 24, 2025, strengthens NTT DOCOMO’s market position and expands its influence in the telecommunications sector.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen184.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Amends Tender Offer for CARTA HOLDINGS Shares

NTT, Inc. announced amendments to its tender offer for the shares of CARTA HOLDINGS Inc., initially launched by its subsidiary NTT DOCOMO, Inc. The changes, approved by the State Administration for Market Regulation of China, do not affect the terms of purchase but involve updates to the tender offer registration and related notices. This move is part of NTT’s strategic efforts to strengthen its market position and expand its business operations.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen184.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT DOCOMO Initiates Tender Offer for CARTA HOLDINGS

NTT DOCOMO, a subsidiary of NTT, Inc., announced the commencement of a tender offer to acquire CARTA HOLDINGS Inc. shares, aiming to delist the company and form a business and capital alliance with Dentsu Group Inc. The tender offer is part of a strategic move to consolidate ownership and enhance market positioning, with regulatory procedures in Japan and South Korea completed, and pending in China.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Reports Mixed Q2 2025 Financial Results

Nippon Telegraph and Telephone Corporation (NTT) is a leading Japanese telecommunications company providing a wide range of services including fixed and mobile voice-related services, IP/packet communications, and system integration services.

NTT Reports Mixed Financial Results for Q2 2025

NTT reported a slight increase in operating revenues for the three months ended June 30, 2025, compared to the same period in 2024, but experienced declines in operating profit, profit before taxes, and profit attributable to NTT. The company’s equity ratio also decreased, indicating a shift in its financial position. Despite these declines, NTT has maintained its dividend forecasts for the fiscal year ending March 31, 2026, suggesting confidence in its long-term financial stability. The announcement highlights the challenges NTT faces in maintaining profitability amidst changing market conditions.

The most recent analyst rating on (JP:9432) stock is a Hold with a Yen150.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.