KDDI (KDDIY) AI Stock Analysis

• Market Cap: $60.25B
• Dividend Yield: 1.51%
• Average Volume (3M): 79.00K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.17
• Revenue Growth: 2.22%
• EPS Growth: 43.84%
• Country: US
• Employees: 61,288
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 4,187,847,700
• 10 Day Avg. Volume: 206,714
• 30 Day Avg. Volume: 79,005
• PEG Ratio: -0.64
• Price to Book (P/B): 3.73
• Price to Sales (P/S): 3.23
• P/FCF Ratio: 19.96
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: 0.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $18.50 ▲(15.48% Upside)

KDDI's overall stock score reflects strong financial performance and positive earnings call highlights, tempered by technical indicators suggesting neutral momentum and a relatively high valuation. The company's solid revenue growth and operational efficiency are key strengths, but increased debt levels and challenges in certain business segments pose risks.

KDDI Business Overview & Revenue Model

Company Description

KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers smartphone, mobile phone, and other mobile communication services, as well as fixed-line services under the au Hikari brand; MVNO services; mobile services under the au brand; and voice communications, data transmission, FTTH services, and CATV services. It also provides smartphone-centric payment, financial, and other services through au PAY gateway; au HOME, an IoT service that watches over pets using sensors and cameras; au Denki to conserve energy usage; AEON, an English conversation school. The Business Services segment offers data center services to corporate customers under the TELEHOUSE brand; and various solutions for network and cloud services, smartphones, and other devices. It is also involved in the provision of broadcasting, wireless broadband, mail order, IT support, call center, and temporary personnel services; and design, construction, maintenance, and operation support for communication equipment and submarine cable. The company was founded in 1953 and is headquartered in Tokyo, Japan.

How the Company Makes Money

KDDI generates revenue through multiple streams, primarily from its mobile communications segment, which includes subscription fees from its au mobile services and prepaid plans. The company also earns money from fixed-line services, broadband internet subscriptions, and data center operations. In addition, KDDI has ventured into the IoT space, providing services that connect devices and enhance smart solutions for various industries. Strategic partnerships with global tech companies and local enterprises further bolster its revenue through collaborative projects and joint ventures. Furthermore, KDDI's focus on expanding its digital services, including content delivery and cloud solutions, contributes to its overall earnings, allowing the company to diversify its income sources.

KDDI Financial Statement Overview

Summary

KDDI demonstrates strong financial health with consistent profitability and a solid equity base. The company shows effective revenue growth and operational efficiency. However, the increase in debt levels and fluctuations in free cash flow warrant careful monitoring to ensure long-term financial stability.

Income Statement

KDDI's income statement shows strong profitability with a consistent gross profit margin around 42-45% and a stable net profit margin of approximately 11-12%. The company has demonstrated steady revenue growth, with a notable increase in the TTM period. EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in EBIT margin in the TTM period suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio below 1, indicating moderate leverage. Return on equity is robust, consistently above 12%, showcasing effective use of equity capital. However, the increase in total debt over recent periods could pose a risk if not managed carefully.

Cash Flow

KDDI's cash flow statement reveals a mixed picture. While operating cash flow remains strong, free cash flow has experienced significant fluctuations, with a notable decline in the TTM period. The operating cash flow to net income ratio is stable, but the free cash flow to net income ratio has decreased, indicating potential challenges in maintaining free cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	5.97T	5.92T	5.75T	5.75T	5.75T	5.75T
Gross Profit	2.51T	2.51T	2.43T	2.43T	2.43T	2.43T
EBITDA	1.77T	1.78T	1.62T	1.62T	1.62T	1.62T
Net Income	679.85B	685.68B	637.87B	637.87B	637.87B	637.87B
Balance Sheet
Total Assets	17.59T	16.88T	14.15T	14.15T	14.15T	14.15T
Cash, Cash Equivalents and Short-Term Investments	963.51B	921.17B	887.21B	887.21B	887.21B	887.21B
Total Debt	5.10T	4.44T	2.43T	2.43T	2.43T	2.43T
Total Liabilities	11.94T	11.23T	8.35T	8.35T	8.35T	8.35T
Stockholders Equity	5.15T	5.13T	5.25T	5.25T	5.25T	5.25T
Cash Flow
Free Cash Flow	551.95B	958.47B	956.97B	956.97B	956.97B	956.97B
Operating Cash Flow	942.49B	1.36T	1.71T	1.71T	1.71T	1.71T
Investing Cash Flow	-925.28B	-1.18T	-832.43B	-832.43B	-832.43B	-832.43B
Financing Cash Flow	-438.27B	-33.55B	-476.48B	-476.48B	-476.48B	-476.48B

KDDI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KDDIY, the sentiment is Negative. The current price of 16.02 is above the 20-day moving average (MA) of 15.81, below the 50-day MA of 16.52, and below the 200-day MA of 16.73, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 91.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KDDIY.

KDDI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMX	―	$69.93B	18.60	17.70%	2.29%	1.14%	83.48%
TLK	―	$19.39B	13.93	17.71%	6.60%	-5.13%	-5.90%
CHT	―	$33.19B	27.20	―	3.90%	5.74%	7.10%
KDDIY	―	$60.25B	18.98	13.28%	1.51%	2.22%	43.84%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TEF	―	$29.50B	―	-3.55%	6.40%	-4.73%	-251.31%
VOD	―	$28.72B	-6.70	-7.17%	4.14%	0.89%	-494.16%

KDDI Corporate Events

KDDI Corporation Reports Modest Revenue Growth Amid Challenges

KDDI Corporation is a leading telecommunications company in Japan, providing a wide range of services including mobile communication, financial services, and energy solutions. The company is known for its innovative approach and commitment to connecting people through advanced technology.

KDDI Corp’s Earnings Call: Growth Amid Challenges

The recent earnings call for KDDI Corporation painted a mixed picture, with the company experiencing both notable successes and significant challenges. While there was commendable revenue growth and achievements in the financial services sector, the company faced hurdles with declining profits and slower smartphone subscription growth. The sentiment expressed during the call was balanced, reflecting both positive developments and areas needing improvement.