NTT Inc

NTT Inc maintains a debt-to-equity ratio of 1.09, indicating a moderate reliance on debt financing, while its current ratio of 0.94 suggests limited short-term liquidity coverage. The company's cash and equivalents of ¥982.87 billion are insufficient to cover its long-term debt of ¥10.71 trillion, resulting in a net cash position that is negative after subtracting total debt. This liquidity profile is categorized as medium risk, with the company's free cash flow of ¥55.83 billion providing limited flexibility for debt servicing or shareholder returns.

Profitability metrics show a return on equity (ROE) of 2.73% and a return on assets (ROA) of 0.91%, both below the industry median for integrated telecommunications services. These figures suggest that NTT Inc is underperforming in terms of capital efficiency and asset utilization compared to its peers. Operating income of ¥436.72 billion and net income of ¥268.41 billion reflect a stable but modest profit margin, with operating cash flow of ¥237.42 billion supporting ongoing operations.

The company's revenue is concentrated in its core wired telecommunications services, with no disclosed segment breakdown. Geographically, NTT Inc is primarily focused on the Japanese market, with no material international revenue disclosed in the latest financials. This concentration increases exposure to domestic economic conditions and regulatory changes.

Outlook data indicates a projected revenue growth of 1.2% for the current fiscal year and 1.5% for the next fiscal year, reflecting a conservative growth trajectory. This aligns with the broader industry trend of stable but low-growth markets in mature telecommunications sectors. The company's capital expenditure of ¥2.08 trillion underscores its ongoing investment in infrastructure, which is necessary to maintain service quality and competitive positioning.

Risk factors include medium liquidity risk due to the negative net cash position and a debt-to-equity ratio above 1.0. The risk assessment also notes low dilution potential, with shares outstanding remaining unchanged between basic and diluted measures. No recent events, such as major filings or earnings transcripts, have been disclosed in the latest data, suggesting a stable but uneventful operational environment.

Analyst sentiment is mixed, with a mean recommendation of 2.36 (on a 1-5 scale) and a price target range of ¥156.00 to ¥210.00. The median price target of ¥182.50 suggests a moderate upside from the current market price.

Analysts project 22.8% upside to a mean price target of 180.7 JPY from the current 147.1 JPY.

Revenue grew at a 3.5% CAGR over four years, reaching 13.7 trillion JPY in fiscal 2025.

Cash conversion ratio of 8.85 is best-in-class compared to the 1.64 cohort median.

Debt-to-equity ratio of 1.09 places NTT in the bottom quartile of its peer cohort.

Long-term debt increased to 11.2 trillion JPY in fiscal 2025, up from 8.4 trillion in 2021.

Revenue ¥3.65T, +5,5% YoY; Operating income +6,9% YoY.

• ▍Revenue ¥3.65T, +5,5% YoY
• ▍Operating income +6,9% YoY
• ▍Net income +11,7% YoY
• ▍Free cash flow −10 838,0% YoY
• ▍Net margin 9.1%

Revenue ¥3.51T, +4,8% YoY; Operating income +11,4% YoY.

• ▍Revenue ¥3.51T, +4,8% YoY
• ▍Operating income +11,4% YoY
• ▍Net income +19,7% YoY
• ▍Free cash flow +28,8% YoY
• ▍Net margin 9.6%

Revenue ¥3.26T, +0,7% YoY; Operating income −7,0% YoY.

• ▍Revenue ¥3.26T, +0,7% YoY
• ▍Operating income −7,0% YoY
• ▍Net income −5,3% YoY
• ▍Free cash flow −25,1% YoY
• ▍Net margin 8.0%

Revenue ¥3.66T, −0,1% YoY; Operating income −42,7% YoY.

• ▍Revenue ¥3.66T, −0,1% YoY
• ▍Operating income −42,7% YoY
• ▍Net income −44,4% YoY
• ▍Free cash flow −111,5% YoY
• ▍Net margin 4.1%

Revenue ¥3.46T; Operating income ¥478.98B.

• ▍Revenue ¥3.46T
• ▍Operating income ¥478.98B
• ▍Net margin 8.6%

Revenue ¥3.35T; Operating income ¥484.44B.

• ▍Revenue ¥3.35T
• ▍Operating income ¥484.44B
• ▍Net margin 8.4%

Revenue ¥3.24T; Operating income ¥435.82B.

• ▍Revenue ¥3.24T
• ▍Operating income ¥435.82B
• ▍Net margin 8.5%

Revenue ¥3.66T; Operating income ¥436.72B.

• ▍Revenue ¥3.66T
• ▍Operating income ¥436.72B
• ▍Net margin 7.3%

Revenue ¥13.70T, +2,5% YoY; Operating income −14,2% YoY.

• ▍Revenue ¥13.70T, +2,5% YoY
• ▍Operating income −14,2% YoY
• ▍Net income −21,8% YoY
• ▍Free cash flow −53,3% YoY
• ▍Net margin 7.3%

Revenue ¥13.37T, +1,8% YoY; Operating income +5,1% YoY.

• ▍Revenue ¥13.37T, +1,8% YoY
• ▍Operating income +5,1% YoY
• ▍Net income +5,5% YoY
• ▍Free cash flow −23,1% YoY
• ▍Net margin 9.6%

Revenue ¥13.14T, +8,1% YoY; Operating income +2,9% YoY.

• ▍Revenue ¥13.14T, +8,1% YoY
• ▍Operating income +2,9% YoY
• ▍Net income +2,7% YoY
• ▍Free cash flow −9,3% YoY
• ▍Net margin 9.2%

Revenue ¥12.16T, +1,8% YoY; Operating income +6,5% YoY.

• ▍Revenue ¥12.16T, +1,8% YoY
• ▍Operating income +6,5% YoY
• ▍Net income +28,9% YoY
• ▍Free cash flow +40,3% YoY
• ▍Net margin 9.7%