Nippon Telegraph & Telephone Corp. (9432) 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

ASAHI Net, Inc.

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Nippon Telegraph & Telephone Corp.

ARTERIA Networks Corp.

Broad Enterprise Co., Ltd.

Why is Nippon Telegraph & Telephone Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.87% and Operating profit at 0.46% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.87% and Operating profit at 0.46% over the last 5 years

The company has declared Negative results for the last 11 consecutive quarters

INTEREST(HY) At JPY 120,139 MM has Grown at 37.53%
INTEREST COVERAGE RATIO(Q) Lowest at 1,655.28
DEBT-EQUITY RATIO (HY) Highest at 152.33 %

Underperformed the market in the last 1 year

The stock has generated a return of 6.78% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.94%

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 - Services)

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

Is Nippon Telegraph & Telephone Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Nippon Telegraph & Telephone Corp.

-100.0%

12.70

17.17%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.87%

EBIT Growth (5y)

0.46%

EBIT to Interest (avg)

24.40

Debt to EBITDA (avg)

2.19

Net Debt to Equity (avg)

0.90

Sales to Capital Employed (avg)

0.66

Tax Ratio

31.33%

Dividend Payout Ratio

43.48%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

11.70%

ROE (avg)

14.07%

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

1.39

EV to EBIT

13.09

EV to EBITDA

6.68

EV to Capital Employed

1.21

EV to Sales

1.71

PEG Ratio

Dividend Yield

318.47%

ROCE (Latest)

9.20%

ROE (Latest)

10.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.07% (YoY

CASH AND EQV(HY)

Highest at JPY 6,134,922 MM

-15What is not working for the Company

INTEREST(HY)

At JPY 120,139 MM has Grown at 37.53%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,655.28

DEBT-EQUITY RATIO (HY)

Highest at 152.33 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 18.96 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.48 times

Here's what is working for Nippon Telegraph & Telephone Corp.

Cash and Eqv

Highest at JPY 6,134,922 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.07% (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 448,764 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 Nippon Telegraph & Telephone Corp.

Interest

At JPY 120,139 MM has Grown at 37.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,655.28 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 152.33 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 18.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.48 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio