9432:TSENTT Inc Analysis
Data as of 2026-03-10 - not real-time
¥154.10
Latest Price
4/10Risk
Risk Level: Medium
Executive Summary
NTT, Inc. is trading at ¥154.1, sitting just above its 20‑day SMA (¥152.5) but below the 50‑day (¥155.2) and 200‑day (¥155.5) averages, indicating a short‑term bounce within a broader bearish backdrop. The RSI of 53.5 suggests neutral momentum, while the MACD histogram is positive and the MACD signal is flagged as bullish, hinting at a potential upside toward the nearby resistance at ¥155.8. Recent earnings beat and a rising volume trend add further support to this modest upside case.
Fundamentally, the stock appears undervalued with a trailing P/E of 12.3 versus an industry average of 18.3 and an upside potential of roughly 14% based on analyst targets. A solid dividend yield of 3.44% and a payout ratio of 42% make the dividend sustainable, backed by strong operating cash flow despite negative free cash flow. However, the balance sheet is heavily leveraged (debt‑to‑equity ~281) and free cash flow remains negative, which tempers the upside. The low beta (~0.11) and extreme‑greed market sentiment (Fear‑Greed Index 80.9) further shape the risk‑return profile, positioning NTT as an attractive value play with moderate risk.
Fundamentally, the stock appears undervalued with a trailing P/E of 12.3 versus an industry average of 18.3 and an upside potential of roughly 14% based on analyst targets. A solid dividend yield of 3.44% and a payout ratio of 42% make the dividend sustainable, backed by strong operating cash flow despite negative free cash flow. However, the balance sheet is heavily leveraged (debt‑to‑equity ~281) and free cash flow remains negative, which tempers the upside. The low beta (~0.11) and extreme‑greed market sentiment (Fear‑Greed Index 80.9) further shape the risk‑return profile, positioning NTT as an attractive value play with moderate risk.
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 7/10
Key Factors
- Price hovering above 20‑day SMA with bullish MACD histogram
- Increasing volume and recent earnings beat
- Proximity to short‑term resistance at ¥155.8
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Undervalued P/E relative to industry peers
- Stable dividend yield of 3.44% with a 42% payout ratio
- Analyst consensus (14 analysts) recommending a buy with target price ~¥175
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Strong market position in Japan's telecom sector
- Consistent revenue growth (~5.5% YoY) and solid operating cash flow
- Low systematic risk (beta ~0.11) and attractive dividend income
Key Metrics & Analysis
Financial Health
Revenue Growth5.50%
Profit Margin7.64%
P/E Ratio12.3
ROE10.72%
ROA2.99%
Debt/Equity281.54
P/B Ratio1.3
Op. Cash Flow¥2242.8B
Free Cash Flow¥-436653490176
Industry P/E18.3
Technical Analysis
TrendBearish
RSI53.5
Support¥150.10
Resistance¥155.80
MA 20¥152.51
MA 50¥155.25
MA 200¥155.53
MACDBullish
VolumeIncreasing
Fear & Greed Index80.89
Valuation
Fair Value¥27.14
Target Price¥176.21
Upside/Downside14.35%
GradeUndervalued
TypeBlend
Dividend Yield3.44%
Risk Assessment
Beta0.11
Volatility12.88%
Sector RiskLow
Reg. RiskMedium
Geo RiskLow
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.