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Nippon Telegraph And Telephone
(OTC:NTTYY)
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Rating:64Neutral
Price Target:
$30.00
â–²(12.95% Upside)
Action:Reiterated
Date:08/10/26
The score is held back primarily by financial quality risks—especially negative trailing free cash flow and a higher leverage trend—despite otherwise steady profitability. Offsetting that, technicals are supportive (price above major moving averages with positive MACD) and valuation is reasonable (P/E ~12.2 with ~2.94% yield).
Positive Factors
Resilient profitability
Stable profitability despite modest revenue growth indicates that NTT retains a durable earnings base across its telecommunications and ICT operations. Consistent margins support ongoing investment, customer service, and strategic flexibility, although the company must manage the reported cost and mix pressures.
Negative Factors
Negative free cash flow
The shift to materially negative free cash flow is the clearest near-term fundamental weakness because it reduces internally generated funds available for network investment, dividends, debt reduction, or acquisitions. If sustained, weaker cash conversion could limit strategic flexibility despite positive operating cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient profitability
Stable profitability despite modest revenue growth indicates that NTT retains a durable earnings base across its telecommunications and ICT operations. Consistent margins support ongoing investment, customer service, and strategic flexibility, although the company must manage the reported cost and mix pressures.
Read all positive factors
Nippon Telegraph And Telephone (NTTYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$91.75B
Dividend Yield3.11%
Average Volume (3M)19.44K
Price to Earnings (P/E)13.2
Beta (1Y)0.16
Revenue Growth4.27%
EPS Growth5.47%
CountryUS
Employees344,196
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)326.50
Shares Outstanding3,622,012,700
10 Day Avg. Volume0
30 Day Avg. Volume19,437
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)1.33
Price to Sales (P/S)0.85
P/FCF Ratio-15.94
Enterprise Value/Market Cap1.83
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.07
Enterprise Value/Ebitda0.04
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.02
Revenue Forecast (FY)$96.57B
Nippon Telegraph And Telephone Business Overview & Revenue Model
Company Description
NTT, Inc. stands as a leading telecommunications enterprise, serving customers both within Japan and across global territories. The company's multifaceted operations are categorized into four primary divisions: the Integrated ICT Business, the Reg...
How the Company Makes Money
NTT makes money primarily by selling communications connectivity and enterprise IT services across consumer, business, and public-sector markets. (1) Mobile services (primarily via NTT Docomo): revenue is generated from monthly service charges for...
Nippon Telegraph And Telephone Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: top-line strength (record operating revenue) and strategic progress (tsuzumi 2 LLM, NTT DC REIT listing, fiber/net additions, IOWN demo, Urban Solutions growth) underpin long-term growth potential. However, near-term profitability was hit by declines in EBITDA, operating profit and net profit driven principally by DOCOMO mobile-business cost investments and structural pressure in NTT DATA's overseas operations, together with a meaningful FX headwind (~JPY 50 billion). Management emphasized active measures (cost reduction, investment in growth areas, and improving disclosures) and remains confident in achieving the annual consolidated plan, but execution and near-term absorption of higher marketing/network costs are key risks.Positive Updates
Record Operating Revenue
Operating revenue reached a record JPY 3,262 billion in Q1, up JPY 22 billion year-on-year despite an adverse foreign exchange headwind of approximately JPY 50 billion.
Negative Updates
Decline in EBITDA, Operating Profit and Net Profit
EBITDA decreased to JPY 801.4 billion (down JPY 13.9 billion year-on-year), operating profit fell to JPY 405.2 billion (down JPY 30.6 billion year-on-year), and profit declined to JPY 259.7 billion (down JPY 14.4 billion year-on-year).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Operating Revenue
Operating revenue reached a record JPY 3,262 billion in Q1, up JPY 22 billion year-on-year despite an adverse foreign exchange headwind of approximately JPY 50 billion.
Read all positive updates
Company Guidance
Management reiterated guidance to achieve the full‑year consolidated plan by continuing cost reductions and expanding enterprise and Smart Life businesses, while noting Q1 results of record operating revenue of ¥3,262 billion (up ¥22 billion YoY but with an ~¥50 billion FX headwind), EBITDA ¥801.4 billion (down ¥13.9 billion YoY), operating profit ¥405.2 billion (down ¥30.6 billion YoY) and profit ¥259.7 billion (down ¥14.4 billion YoY); they highlighted operational positives including cumulative Q1 MNP turning positive, rollout plans (tsuzumi 2 LLM due in October with ~4x improvement on accounting‑manual queries and single‑GPU/on‑prem capability), the NTT DC REIT listing (Singapore Exchange 14 July 2025 with six DC assets transferred to accelerate investment recycling), IOWN demonstrator using 1/8 the power of conventional computers with a FY2026 commercial target at 2× EXPO capacity, and a planned phased migration of fixed‑line copper to fiber/wireless by 2035 with basic policy details due in late September.Nippon Telegraph And Telephone Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.01T | 15.28T | 13.70T | 13.37T | 13.14T | 12.16T |
| Gross Profit | 2.26T | 2.33T | 3.79T | 1.92T | 1.83T | 1.77T |
| EBITDA | 3.78T | 3.92T | 3.51T | 3.74T | 3.41T | 3.33T |
| Net Income | 1.07T | 1.10T | 1.00T | 1.28T | 1.21T | 1.18T |
Balance Sheet | ||||||
| Total Assets | 47.15T | 46.92T | 30.06T | 29.60T | 25.31T | 23.86T |
| Cash, Cash Equivalents and Short-Term Investments | 2.37T | 1.93T | 1.00T | 1.05T | 892.57B | 923.00B |
| Total Debt | 17.31T | 16.99T | 11.17T | 10.71T | 9.15T | 8.21T |
| Total Liabilities | 36.87T | 36.66T | 18.72T | 18.71T | 15.96T | 14.84T |
| Stockholders Equity | 9.79T | 9.77T | 10.22T | 9.84T | 8.56T | 8.28T |
Cash Flow | ||||||
| Free Cash Flow | -788.41B | -817.01B | 231.74B | 290.15B | 409.13B | 1.25T |
| Operating Cash Flow | 1.54T | 1.57T | 2.36T | 2.37T | 2.26T | 3.01T |
| Investing Cash Flow | -1.99T | -3.53T | -2.00T | -1.99T | -1.74T | -1.70T |
| Financing Cash Flow | 654.30B | 2.91T | -343.03B | -234.45B | -590.20B | -1.44T |
Nippon Telegraph And Telephone Technical Analysis
Positive
26.56
Price Trends
26.41
Positive
24.77
Positive
24.69
Positive
Market Momentum
0.17
Positive
44.32
Neutral
4.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTTYY, the sentiment is Positive. The current price of 26.56 is below the 20-day moving average (MA) of 27.99, above the 50-day MA of 26.41, and above the 200-day MA of 24.69, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 4.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTTYY.
Nippon Telegraph And Telephone Risk Analysis
Nippon Telegraph And Telephone disclosed 17 risk factors in its most recent earnings report. Nippon Telegraph And Telephone reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nippon Telegraph And Telephone Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $35.59B | 28.63 | 10.22% | 3.49% | 8.46% | 7.38% | |
75 Outperform | $166.51B | 8.02 | 19.48% | 4.57% | 2.63% | 72.35% | |
72 Outperform | $76.54B | 7.00 | 12.04% | 6.12% | 0.58% | -48.94% | |
65 Neutral | $190.79B | 11.96 | 15.52% | 6.09% | 1.38% | -10.78% | |
64 Neutral | $91.75B | 13.23 | 10.99% | 3.11% | 4.27% | 5.47% | |
63 Neutral | $38.81B | -75.75 | -0.79% | 3.19% | 16.69% | 87.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
NTTYY
Nippon Telegraph And Telephone
26.94
0.90
3.46%
T
AT&T
24.30
-0.41
-1.65%
CHT
Chunghwa Telecom Co
46.16
4.21
10.03%
CMCSA
Comcast
21.57
-6.50
-23.17%
VZ
Verizon
45.92
7.13
18.38%
VOD
Vodafone
16.82
5.95
54.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.