9432:TSENTT Inc Analysis

NTT, Inc. posted a record‑high operating revenue of ¥14.4 trillion for FY 2026, reflecting a 9.1% YoY growth and a solid EBITDA expansion. Fundamentally, the stock trades at a forward PE of about 10x, well below the telecom industry average of 17x, and its price‑to‑book ratio of 1.24 suggests modest valuation headroom. Cash generation is robust, with free cash flow exceeding ¥10 trillion and a payout ratio of just 42%, supporting the attractive 3.65% dividend yield. The technical picture remains mixed: price sits beneath the 20‑day (≈¥150) and 50‑day (≈¥152) SMAs, indicating short‑term bearish pressure, while the MACD histogram turned positive and the RSI hovers near 44, hinting at potential stabilization. Support at ¥144 and resistance near ¥157 frame a modest upside corridor, aligning with the model‑derived upside of roughly 17%. Overall, the combination of undervaluation, strong earnings momentum, and a sustainable dividend makes NTT a compelling candidate for medium‑to‑long‑term accumulation, though traders should remain cautious of near‑term price weakness.