NTT DATA Corporation
NTT DATA Corporation Fundamental Analysis
NTT DATA Corporation (NTDTY) shows weak financial fundamentals with a PE ratio of 37.76, profit margin of 3.07%, and ROE of 7.89%. The company generates $4632.2B in annual revenue with moderate year-over-year growth of 6.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -203.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NTDTY's fundamental strength across five key dimensions:
Efficiency Score
WeakNTDTY struggles to generate sufficient returns from assets.
Valuation Score
ModerateNTDTY shows balanced valuation metrics.
Growth Score
ModerateNTDTY shows steady but slowing expansion.
Financial Health Score
WeakNTDTY carries high financial risk with limited liquidity.
Profitability Score
WeakNTDTY struggles to sustain strong margins.
Key Financial Metrics
Is NTDTY Expensive or Cheap?
P/E Ratio
NTDTY trades at 37.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NTDTY's PEG of -2.18 indicates potential undervaluation.
Price to Book
The market values NTT DATA Corporation at 2.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.40 times EBITDA. This is generally considered low.
How Well Does NTDTY Make Money?
Net Profit Margin
For every $100 in sales, NTT DATA Corporation keeps $3.07 as profit after all expenses.
Operating Margin
Core operations generate 10.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.89 in profit for every $100 of shareholder equity.
ROA
NTT DATA Corporation generates $1.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NTT DATA Corporation produces operating cash flow of $493.97B, showing steady but balanced cash generation.
Free Cash Flow
NTT DATA Corporation generates weak or negative free cash flow of $-214.22B, restricting financial flexibility.
FCF Per Share
Each share generates $-152.74 in free cash annually.
FCF Yield
NTDTY converts -3.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NTDTY Stacks Against Its Sector Peers
| Metric | NTDTY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.76 | 34.43 | Neutral |
| ROE | 7.89% | 1135.00% | Weak |
| Net Margin | 3.07% | -134808.00% (disorted) | Weak |
| Debt/Equity | 1.55 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 0.96 | 5.77 | Weak Liquidity |
| ROA | 1.85% | -310795.00% (disorted) | Weak |
NTDTY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NTT DATA Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
104.70%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
89.62%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
41.87%
Industry Style: Growth, Innovation, High Beta
High Growth