Nippon Telegraph and Telephone Corporation
Nippon Telegraph and Telephone Corporation Fundamental Analysis
Nippon Telegraph and Telephone Corporation (NPPXF) shows moderate financial fundamentals with a PE ratio of 11.55, profit margin of 7.65%, and ROE of 14.80%. The company generates $14064.2B in annual revenue with weak year-over-year growth of 2.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NPPXF's fundamental strength across five key dimensions:
Efficiency Score
WeakNPPXF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNPPXF trades at attractive valuation levels.
Growth Score
WeakNPPXF faces weak or negative growth trends.
Financial Health Score
WeakNPPXF carries high financial risk with limited liquidity.
Profitability Score
WeakNPPXF struggles to sustain strong margins.
Key Financial Metrics
Is NPPXF Expensive or Cheap?
P/E Ratio
NPPXF trades at 11.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NPPXF's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Nippon Telegraph and Telephone Corporation at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.83 times EBITDA. This is generally considered low.
How Well Does NPPXF Make Money?
Net Profit Margin
For every $100 in sales, Nippon Telegraph and Telephone Corporation keeps $7.65 as profit after all expenses.
Operating Margin
Core operations generate 12.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.80 in profit for every $100 of shareholder equity.
ROA
Nippon Telegraph and Telephone Corporation generates $2.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Telegraph and Telephone Corporation produces operating cash flow of $2.24T, showing steady but balanced cash generation.
Free Cash Flow
Nippon Telegraph and Telephone Corporation generates weak or negative free cash flow of $-14.66B, restricting financial flexibility.
FCF Per Share
Each share generates $-0.18 in free cash annually.
FCF Yield
NPPXF converts -0.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How NPPXF Stacks Against Its Sector Peers
| Metric | NPPXF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.55 | 21.66 | Better (Cheaper) |
| ROE | 14.80% | 1190.00% | Weak |
| Net Margin | 7.65% | -55754.00% (disorted) | Weak |
| Debt/Equity | 1.92 | 1.32 | Weak (High Leverage) |
| Current Ratio | 0.59 | 1.59 | Weak Liquidity |
| ROA | 2.30% | -202359.00% (disorted) | Weak |
NPPXF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nippon Telegraph and Telephone Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.47%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
28.39%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-13.33%
Industry Style: Growth, Technology, Streaming
Declining