# NTT (9432.JP)

Canonical: https://gigainvestors.com/s/9432.JP

Analysis as of: 2026-10-15T07:12:00.616Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 173.30 per share; close as of 2026-10-15.

Estimated value: low JPY 132.41 per share, central JPY 147.93 per share, high JPY 168.58 per share. Buy at or below the central value JPY 147.93 per share. Valuation as of 2026-10-15T07:12:00.616Z; scenarios are not confidence intervals.

Expected annual return: 8.8% at the stated quote. About 8.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.07×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.14×

- FY2019: 0.14×

- FY2020: 0.13×

- FY2021: 0.14×

- FY2022: 0.15×

- FY2023: 0.14×

- FY2024: 0.14×

- FY2025: 0.12×

- FY2026: 0.12×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 16.3%

- ROIC, second-lowest year: 9.8%

- Typical minus recent gross margin: 0.8 pp

- Typical gross margin (annual median): 78.5%

- Recent gross margin (lower of latest and 3-year median): 77.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 14.7%

- ROIC including acquisitions, ten-year median: 7.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 9.8%

- FY2018: 9.7%

- FY2019: 9.9%

- FY2020: 15.7%

- FY2021: 20.5%

- FY2022: 19.8%

- FY2023: 20.1%

- FY2024: 18.2%

- FY2025: 13.2%

- FY2026: 16.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.72×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 4.13T

- Net income, five-year total: JPY 5.71T

- Return on incremental invested capital: 3.9%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.5 pp

- Working capital / revenue, final three-year average: 19.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.82×

- FY2023: 0.82×

- FY2024: 0.61×

- FY2025: 0.63×

- FY2026: 0.73×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 9.8% vs 16.8%

- Per-share earnings: 7.82 to 12.61 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.4%

- Ordinary dilution, 5-year annual growth: -2.3%

- Market cap gain: JPY 3.20T

- Cumulative retained earnings: JPY 3.46T

- Diluted shares, 10-year annual growth: -2.4%

- Diluted shares, 5-year annual growth: -2.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 6.2%

- Per-share value change: JPY 4.79

- Per-share value, starting three-year median: JPY 7.82

- Per-share value, ending three-year median: JPY 12.61

- Buybacks concentrated in cheaper years (correlation): -0.46

- Average buyback yield: 3.2%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 1.05T

- Cumulative net income, 10 years: JPY 10.05T

- ROIC, first three-year median: 9.8%

- ROIC, last three-year median: 16.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 7.82

- FY2018: JPY 9.00

- FY2019: JPY 8.81

- FY2020: JPY 9.25

- FY2021: JPY 9.93

- FY2022: JPY 13.17

- FY2023: JPY 13.92

- FY2024: JPY 15.09

- FY2025: JPY 11.96

- FY2026: JPY 12.61

### accounting: pass

- Sloan accruals: -1.0%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.43×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.51×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -10.0%

- FY2018: -8.0%

- FY2019: -7.0%

- FY2020: -9.3%

- FY2021: -9.1%

- FY2022: -7.7%

- FY2023: -4.1%

- FY2024: -3.7%

- FY2025: -4.5%

- FY2026: -1.0%

## Holders

## Price story

Down 2% since Oct 2023 · sales +5.1%

Story as of 2026-10-16T10:00:14.901Z; price observation 2026-10-15.

Price needs cash profits to grow 3.2% a year for ten years

### Sales · FY2025–2026

sales +5.1%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCP3.pdf; observed 2026-06-16.

- FY2017: JPY 11.39T 

- FY2018: JPY 11.78T 

- FY2019: JPY 11.88T 

- FY2020: JPY 11.90T 

- FY2021: JPY 11.94T 

- FY2022: JPY 12.16T 

- FY2023: JPY 13.14T 

- FY2024: JPY 13.37T 

- FY2025: JPY 13.70T 

- FY2026: JPY 14.41T 

### Gross margin · FY2026

gross margin 77.7%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCP3.pdf; observed 2026-06-16.

- FY2017: 51.5% 

- FY2018: 51.5% 

- FY2019: 79.9% 

- FY2020: 79.6% 

- FY2021: 79.4% 

- FY2022: 78.9% 

- FY2023: 78.9% 

- FY2024: 78.1% 

- FY2025: 77.4% 

- FY2026: 77.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are JPY 14.4 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCP3.pdf (filed 2026-06-16); FY2026: revenue 14409121000000; grossProfit 11194234000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 77.4% to 78.1% during 2024–26; it earns 16.3% on its capital.

- Source: https://eodhd.com/api/fundamentals/NTT.F.json#2024-03-31 (filed 2026-06-16); FY2024: grossProfit / revenue = 78.1%.

- Source: https://eodhd.com/api/fundamentals/NTT.F.json#2025-03-31 (filed 2026-06-16); FY2025: grossProfit / revenue = 77.4%.

- Source: https://eodhd.com/api/fundamentals/NTT.F.json#2026-03-31 (filed 2026-06-16); FY2026: grossProfit / revenue = 77.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); 10-year return on capital observations [[2017,0.09846782329457342],[2018,0.09726361343197272],[2019,0.09864510163550852],[2020,0.15690927099103],[2021,0.2047639571217469],[2022,0.1984246860886281],[2023,0.2006170093818982],[2024,0.1823448718853707],[2025,0.1317332961505219],[2026,0.16840391753748762]]; median 0.16265659426425882. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 79% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCP3.pdf (filed 2026-06-16); Gross margin observations: [[2021,0.7939202104225682],[2022,0.7889081406763012],[2023,0.7892303508915901]]; range within 2 percentage points.

### Where the cash goes

Reinvests 70.5% of cash earnings; earns 3.9% on new investment.

- Source: https://eodhd.com/api/fundamentals/NTT.F.json#2018-03-31 (filed 2026-06-16); FY2018: growth capex 305222629028.697; upkeep 1442890370971.303; owner earnings 837354043410.3787. Growth capex / owner earnings = 0.36450845545043903.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); FY2019: growth capex 75706669150.76611; upkeep 1621251330849.234; owner earnings 638719908835.4814. Growth capex / owner earnings = 0.11852874492169038.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); FY2020: growth capex 15123809798.753418; upkeep 1791525190201.2466; owner earnings 462342376633.1391. Growth capex / owner earnings = 0.03271127753611455.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); FY2021: growth capex 33974042740.619873; upkeep 1694345957259.3801; owner earnings 533205042740.6199. Growth capex / owner earnings = 0.06371665685304988.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); FY2022: growth capex 126416000000; upkeep 1561183000000; owner earnings 972851000000. Growth capex / owner earnings = 0.12994384546040452.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); FY2023: growth capex 279779000000; upkeep 1582625000000; cash acquisitions 26970000000; owner earnings 989209000000. Growth capex plus acquisitions / owner earnings = 0.31009523771013003.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); FY2024: growth capex 182454106695.43726; upkeep 1880658893304.5627; cash acquisitions 212656000000; owner earnings 785975106695.4373. Growth capex plus acquisitions / owner earnings = 0.5027005350801029.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); FY2025: growth capex 253650643489.2246; upkeep 1833705356510.7754; cash acquisitions 19704000000; owner earnings 626658643489.2246. Growth capex plus acquisitions / owner earnings = 0.436209803102995.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCP3.pdf (filed 2026-06-16); FY2026: growth capex 535021000000; upkeep 1790983000000; cash acquisitions 0; owner earnings 758958000000. Growth capex plus acquisitions / owner earnings = 0.7049415119150203.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); Incremental return on capital 0.038785019651957256, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); Dividend observations: [[2017,247994000000],[2018,271405000000],[2019,313605000000],[2020,354827000000],[2021,358470000000],[2022,396963000000],[2023,419525000000],[2024,417438000000],[2025,436766000000],[2026,433963000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price assumes cash profits grow 3.2% yearly over ten years; actual decline was 2.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-16); Ten-year compound average after fade. Initial solved rate 0.032265595962605365. Price 173.3000030517578; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 11.762317243791156 → FY2026 9.228703048700522. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 92.50 per share

- 2016-12: JPY 98.24 per share

- 2017-01: JPY 99.58 per share

- 2017-02: JPY 95.02 per share

- 2017-03: JPY 95.04 per share

- 2017-04: JPY 95.38 per share

- 2017-05: JPY 106.16 per share

- 2017-06: JPY 106.20 per share

- 2017-07: JPY 107.80 per share

- 2017-08: JPY 109.36 per share

- 2017-09: JPY 103.14 per share

- 2017-10: JPY 109.46 per share

- 2017-11: JPY 117.58 per share

- 2017-12: JPY 106.02 per share

- 2018-01: JPY 103.82 per share

- 2018-02: JPY 99.64 per share

- 2018-03: JPY 98.00 per share

- 2018-04: JPY 104.10 per share

- 2018-05: JPY 102.12 per share

- 2018-06: JPY 100.72 per share

- 2018-07: JPY 103.36 per share

- 2018-08: JPY 99.00 per share

- 2018-09: JPY 102.64 per share

- 2018-10: JPY 95.00 per share

- 2018-11: JPY 93.60 per share

- 2018-12: JPY 89.64 per share

- 2019-01: JPY 93.42 per share

- 2019-02: JPY 96.02 per share

- 2019-03: JPY 94.06 per share

- 2019-04: JPY 92.32 per share

- 2019-05: JPY 97.32 per share

- 2019-06: JPY 100.34 per share

- 2019-07: JPY 98.44 per share

- 2019-08: JPY 101.92 per share

- 2019-09: JPY 103.12 per share

- 2019-10: JPY 107.52 per share

- 2019-11: JPY 110.54 per share

- 2019-12: JPY 110.28 per share

- 2020-01: JPY 111.46 per share

- 2020-02: JPY 101.18 per share

- 2020-03: JPY 103.02 per share

- 2020-04: JPY 97.72 per share

- 2020-05: JPY 97.76 per share

- 2020-06: JPY 100.62 per share

- 2020-07: JPY 97.74 per share

- 2020-08: JPY 96.46 per share

- 2020-09: JPY 86.00 per share

- 2020-10: JPY 87.84 per share

- 2020-11: JPY 98.60 per share

- 2020-12: JPY 105.82 per share

- 2021-01: JPY 104.72 per share

- 2021-02: JPY 110.32 per share

- 2021-03: JPY 113.68 per share

- 2021-04: JPY 110.20 per share

- 2021-05: JPY 117.26 per share

- 2021-06: JPY 115.78 per share

- 2021-07: JPY 112.10 per share

- 2021-08: JPY 117.44 per share

- 2021-09: JPY 123.40 per share

- 2021-10: JPY 127.52 per share

- 2021-11: JPY 125.00 per share

- 2021-12: JPY 126.00 per share

- 2022-01: JPY 130.68 per share

- 2022-02: JPY 131.72 per share

- 2022-03: JPY 141.80 per share

- 2022-04: JPY 153.88 per share

- 2022-05: JPY 156.44 per share

- 2022-06: JPY 155.84 per share

- 2022-07: JPY 152.28 per share

- 2022-08: JPY 150.76 per share

- 2022-09: JPY 156.24 per share

- 2022-10: JPY 163.76 per share

- 2022-11: JPY 152.80 per share

- 2022-12: JPY 150.48 per share

- 2023-01: JPY 155.68 per share

- 2023-02: JPY 157.88 per share

- 2023-03: JPY 158.48 per share

- 2023-04: JPY 165.96 per share

- 2023-05: JPY 158.20 per share

- 2023-06: JPY 170.50 per share

- 2023-07: JPY 162.90 per share

- 2023-08: JPY 168.30 per share

- 2023-09: JPY 176.60 per share

- 2023-10: JPY 176.80 per share

- 2023-11: JPY 173.10 per share

- 2023-12: JPY 172.30 per share

- 2024-01: JPY 186.30 per share

- 2024-02: JPY 182.30 per share

- 2024-03: JPY 179.90 per share

- 2024-04: JPY 170.80 per share

- 2024-05: JPY 154.30 per share

- 2024-06: JPY 151.80 per share

- 2024-07: JPY 160.40 per share

- 2024-08: JPY 155.70 per share

- 2024-09: JPY 146.80 per share

- 2024-10: JPY 147.70 per share

- 2024-11: JPY 153.40 per share

- 2024-12: JPY 158.00 per share

- 2025-01: JPY 152.70 per share

- 2025-02: JPY 145.40 per share

- 2025-03: JPY 144.70 per share

- 2025-04: JPY 149.30 per share

- 2025-05: JPY 160.40 per share

- 2025-06: JPY 154.00 per share

- 2025-07: JPY 152.70 per share

- 2025-08: JPY 155.80 per share

- 2025-09: JPY 154.70 per share

- 2025-10: JPY 158.40 per share

- 2025-11: JPY 155.80 per share

- 2025-12: JPY 157.70 per share

- 2026-01: JPY 154.90 per share

- 2026-02: JPY 153.30 per share

- 2026-03: JPY 157.20 per share

- 2026-04: JPY 152.50 per share

- 2026-05: JPY 149.50 per share

- 2026-06: JPY 145.00 per share

- 2026-07: JPY 152.40 per share

- 2026-08: JPY 172.50 per share

- 2026-09: JPY 171.60 per share

- 2026-10: JPY 172.20 per share

## Annual estimated value (JPY per share)

- FY2022: low JPY 86.26 per share, central JPY 97.24 per share, high JPY 111.86 per share

- FY2023: low JPY 109.01 per share, central JPY 143.11 per share, high JPY 166.51 per share

- FY2024: low JPY 109.75 per share, central JPY 123.72 per share, high JPY 142.32 per share

- FY2025: low JPY 113.98 per share, central JPY 128.49 per share, high JPY 147.82 per share

- FY2026: low JPY 132.41 per share, central JPY 147.93 per share, high JPY 168.58 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCP3.pdf); period 2026-03-31, filed 2026-06-16.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations