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KDDI (KDDIY) AI Stock Analysis
KDDI
(Other OTC:KDDIY)
The score is anchored by solid operating profitability but held back by rising leverage and weakening recent free-cash-flow momentum. Valuation is reasonable with a moderate P/E and dividend support, while technicals are neutral-to-mixed with a negative MACD. Earnings-call commentary was net positive (strong first half and confident guidance), but offset by second-half profit headwinds and execution/interest-rate related risks.
KDDI (KDDIY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $72.96B
- Dividend Yield
- 2.56%
- Average Volume (3M)
- 153.78K
- Price to Earnings (P/E)
- 14.4
- Beta (1Y)
- 0.13
- Revenue Growth
- 0.91%
- EPS Growth
- 15.30%
- Country
- US
- Employees
- 73,198
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Telecommunications Services
KDDI Business Overview & Revenue Model
Company Description
KDDI Corporation is a prominent telecommunications firm headquartered in Tokyo, Japan, offering a broad spectrum of communication solutions to both domestic and international markets. Its business is strategically divided into two core segments: Pers...
How the Company Makes Money
KDDI makes money primarily by charging recurring service fees for connectivity and related digital services across consumer and business customers. The largest revenue stream is mobile service revenue, which includes monthly subscription charges for...
KDDI Earnings Call Summary
The call was predominantly positive, supported by first-half revenue and profit exceeding plan, double-digit growth in Telecom Core and Business Growth, improving subscriber and churn metrics, growing ARPU, and expanding AI and data center initiatives. The main negatives were declines in finance and energy profit, a second-half year-on-year profit decline, profit below consensus, accounting-profit adjustments, and challenges in M&A execution. Highlights significantly outweighed lowlights.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Management said the fiscal-year profit plan was “plus JPY 40 billion in the first half and JPY 20 billion in the second half,” with “over JPY 30 billion of overachievement” in the first half, including about JPY 10 billion of technological cost delayed to the second half, and JPY 30 billion of total investment considered for the second half; Rakuten roaming revenue is expected to contribute JPY 10 billion in the second half, and management is confident of achieving this fiscal year’s operating income target. The medium-term target is “5% plus alpha organic growth,” while Telecom Core is expected to deliver 3% annual profit growth, or about JPY 20 billion year-on-year; Personal Growth finance profit is expected to increase in Q4 and energy profit in Q3. The interim dividend is JPY 42, up 5% year-on-year, with the situation to be reassessed at fiscal year-end. Management expects Rubin by next year, Japan AI investment of JPY 100 billion to start generating value by FY '30, and R&D investment of JPY 30 billion at least until 2030.
KDDI Financial Statement Overview
Summary
Solid core profitability and steady revenue profile (telecom-like margins and consistent earnings power), but the balance sheet is increasingly levered (debt-to-equity rising to ~1.03 TTM) and cash-flow momentum weakened (TTM free cash flow down sharply and lower cash coverage vs. debt).
Income Statement
78PositiveBalance Sheet
62PositiveCash Flow
55Neutral| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.27T | 6.44T | 5.92T | 5.75T | 5.67T | 5.45T |
| Gross Profit | 2.68T | 2.75T | 2.51T | 2.43T | 2.41T | 2.46T |
| EBITDA | 1.86T | 1.86T | 1.78T | 1.62T | 1.71T | 1.78T |
| Net Income | 761.79B | 749.76B | 685.68B | 637.87B | 679.11B | 672.49B |
Balance Sheet | ||||||
| Total Assets | 18.73T | 19.15T | 16.88T | 14.15T | 11.92T | 11.08T |
| Cash, Cash Equivalents and Short-Term Investments | 781.73B | 1.08T | 921.17B | 887.21B | 844.97B | 1.12T |
| Total Debt | 5.26T | 5.40T | 4.55T | 2.39T | 1.65T | 1.74T |
| Total Liabilities | 13.12T | 13.53T | 11.23T | 8.35T | 6.25T | 5.57T |
| Stockholders Equity | 5.09T | 5.10T | 5.13T | 5.25T | 5.12T | 4.98T |
Cash Flow | ||||||
| Free Cash Flow | 642.39B | 1.28T | 958.47B | 956.97B | 444.74B | 793.08B |
| Operating Cash Flow | 1.05T | 1.71T | 1.25T | 1.71T | 1.08T | 1.47T |
| Investing Cash Flow | -1.01T | -1.15T | -1.18T | -832.43B | -732.48B | -761.59B |
| Financing Cash Flow | -404.67B | -577.29B | -33.55B | -476.48B | -669.84B | -727.26B |
KDDI Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KDDIY, the sentiment is Positive. The current price of 17.91 is below the 20-day moving average (MA) of 18.19, below the 50-day MA of 18.68, and above the 200-day MA of 17.48, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 54.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KDDIY.
KDDI Peers Comparison
Overall Rating
CHT80Outperform- KDDIY67Neutral
KT66Neutral
TLK63Neutral
VOD63Neutral
SKM56Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CHT | 80Outperform | $38.23B | 36.74 | 8.91% | 3.23% | 7.69% | 9.46% |
| KDDIY | 67Neutral | $68.54B | 14.42 | 14.91% | 2.56% | 0.91% | 15.30% |
| KT | 66Neutral | $9.16B | 9.23 | 7.21% | 4.42% | 5.40% | 39.37% |
| TLK | 63Neutral | $10.89B | 12.11 | 12.77% | 11.04% | -3.29% | -28.64% |
| VOD | 63Neutral | $36.95B | -67.65 | -0.79% | 3.45% | 16.69% | 87.12% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| SKM | 56Neutral | $11.99B | 12.97 | 10.12% | 2.04% | -1.72% | 125.64% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KDDIY | Kddi Corp. | 17.91 | 0.81 | 4.73% | |
| CHT | Chunghwa Telecom | 49.85 | 8.62 | 20.89% | |
| KT | KT Corporation | 18.94 | 0.84 | 4.64% | |
| TLK | P.t. Telekomunikasi Indonesia Tbk. | 11.12 | -8.37 | -42.93% | |
| SKM | Sk Telecom | 31.23 | 10.91 | 53.69% | |
| VOD | Vodafone Group Plc | 15.58 | 4.32 | 38.35% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 06, 2026