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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

ASAHI Net, Inc.

Internet Initiative Japan, Inc.

Nippon Telegraph & Telephone Corp.

ARTERIA Networks Corp.

Broad Enterprise Co., Ltd.

Why is Nippon Telegraph & Telephone Corp. ?

High Management Efficiency with a high ROCE of 11.65%

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

ROCE(HY) Lowest at 10.18%
DEBT-EQUITY RATIO (HY) Highest at 126.27 %
INTEREST COVERAGE RATIO(Q) Lowest at 1,755.12

With ROCE of 9.20%, it has a very attractive valuation with a 1.21 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 0.06%, its profits have fallen by -19%
At the current price, the company has a high dividend yield of 318.5

Underperformed the market in the last 1 year

The stock has generated a return of 0.06% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nippon Telegraph & Telephone Corp. should be less than 10%
Overall Portfolio exposure to Telecom - Services should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nippon Telegraph & Telephone Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Nippon Telegraph & Telephone Corp.

0.06%

12.63

16.88%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

0.68

Tax Ratio

31.33%

Dividend Payout Ratio

43.48%

Pledged Shares

Institutional Holding

0.04%

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

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 2,695,152 MM

CASH AND EQV(HY)

Highest at JPY 3,630,516 MM

-16What is not working for the Company

ROCE(HY)

Lowest at 10.18%

DEBT-EQUITY RATIO (HY)

Highest at 126.27 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,755.12

RAW MATERIAL COST(Y)

Grown by 7.12% (YoY

INTEREST(Q)

Highest at JPY 49,281 MM

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

Operating Cash Flow

Highest at JPY 2,695,152 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 3,630,516 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Nippon Telegraph & Telephone Corp.

Interest

At JPY 49,281 MM has Grown at 23.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,755.12

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 126.27 % 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

Interest

Highest at JPY 49,281 MM

in the last five periods and Increased by 23.99% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Raw Material Cost

Grown by 7.12% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales