KDDI Corp. (9433) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vision, Inc. ( Japan)

Forval Telecom, Inc.

WirelessGate, Inc.

Okinawa Cellular Telephone Co.

SoftBank Corp.

KDDI Corp.

Japan Communications Inc.

Why is KDDI Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.76% and Operating profit at 1.06% over the last 5 years

Flat results in Mar 26

INVENTORY TURNOVER RATIO(HY) Lowest at 25.5 times
INTEREST(Q) At JPY 10,253 MM has Grown at 25.27%
DIVIDEND PAYOUT RATIO(Y) Lowest at 94.25%

With ROCE of 0.00%, it has a very attractive valuation with a 0.00 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 11.99%, its profits have risen by 12.5%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 11.99% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is KDDI Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

KDDI Corp.

11.99%

404.60

23.41%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.76%

EBIT Growth (5y)

1.06%

EBIT to Interest (avg)

85.59

Debt to EBITDA (avg)

0.76

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

0.69

Tax Ratio

31.43%

Dividend Payout Ratio

44.79%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

16.29%

ROE (avg)

14.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

EV to EBIT

10.30

EV to EBITDA

6.99

EV to Capital Employed

EV to Sales

1.87

PEG Ratio

Dividend Yield

ROCE (Latest)

ROE (Latest)

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 1,718,893 MM

ROCE(HY)

Highest at 13.99%

RAW MATERIAL COST(Y)

Fallen by -2.7% (YoY

CASH AND EQV(HY)

Highest at JPY 1,843,399 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 1.6

NET SALES(Q)

Highest at JPY 1,600,119 MM

-13What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 25.5 times

INTEREST(Q)

At JPY 10,253 MM has Grown at 25.27%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 94.25%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.6 times

OPERATING PROFIT(Q)

Lowest at JPY 400,070 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 25 %

Here's what is working for KDDI Corp.

Operating Cash Flow

Highest at JPY 1,718,893 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 1,600,119 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 1,843,399 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 1.6

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -2.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 172,801 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for KDDI Corp.

Interest

At JPY 10,253 MM has Grown at 25.27%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 25.5 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at JPY 400,070 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 25 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 1.6 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 94.25%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)