Nippon Telegraph & Telephone Corp (NPPXF) stock analysis
NPPXFOTCTelephone Communications (No Radiotelephone)Fiscal year ends March 31Also trades as NTTYY
Financials through fiscal 2017, year ended Mar 31, 2017Last filing: 20-F on Jun 28, 2017
$1.00−0.06 (-5.66%)
Close on Oct 19, 2026
Margins
Share of revenue, fiscal years 2007 to 2017
Gross margin
92.3%−0.2 pts over 5 years
Operating margin
13.5%+1.9 pts over 5 years
Net margin
7.0%+2.6 pts over 5 years
Growth rates
Compound annual growth to fiscal 2017
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -1.3% | +1.4% | +1.6% | – | |
| Gross profit | -0.6% | +1.5% | +1.6% | – | |
| Operating income | +14.2% | +8.3% | +4.7% | – | |
| Net income | +8.5% | +11.0% | +11.3% | – | |
| EPS, diluted | +11.6% | +15.4% | +16.4% | – | |
| Free cash flow | +11.7% | +9.2% | +7.7% | – | |
| Dividend per share | +9.1% | +12.2% | +11.4% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2008 | FY2012 | FY2017 | Trend |
|---|---|---|---|---|
| Return on equity | – | 5.9% | 8.9% | |
| Return on assets | – | 2.4% | 3.8% | |
| Current ratio | – | 1.35 | 1.29 | |
| Debt to equity | – | 0.54 | 0.45 | |
| Net debt to EBITDA | – | 1.03× | 1.05× | |
| Inventory turnover | – | 2.4× | 2.3× | |
| Capex to revenue | 11.8% | 13.3% | 11.4% | |
| Diluted shares | – | 2.55B | 2.05B |
Where the cash went
Fiscal 2013 to 2017, five years combined
Nippon Telegraph & Telephone generated ¥13.20T from operations and spent ¥8.08T on capital expenditure, dividends and share buybacks. 87% of that went back into the business.
Generated
¥13.20T
Used
¥8.08T
Capital expenditure¥7.04T87%Dividends¥1.02T13%Share buybacks¥21.39B0%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin7.0%
×Asset turnover0.54×
×Equity multiplier2.36×
=Return on equity, FY20178.9%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2017 | 7.0% | 0.54× | 2.36× | 8.9% |
| FY2016 | 6.4% | 0.55× | 2.38× | 8.4% |
| FY2015 | 4.7% | 0.54× | 2.38× | 6.0% |
| FY2014 | 5.4% | 0.55× | 2.38× | 7.0% |
| FY2013 | 4.9% | 0.55× | 2.42× | 6.5% |
| FY2012 | 4.5% | 0.54× | 2.46× | 5.9% |
| FY2011 | 4.9% | 0.53× | 2.44× | 6.4% |
| FY2010 | 4.8% | 0.54× | 2.50× | 6.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2017 against fiscal 2016
7of 9 tests passed in fiscal 2017. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero¥800.13B
- Cash generatingOperating cash flow above zero¥2.92T
- Return on assets improvedROA up on the prior year3.6% → 3.8%
- Earnings backed by cashOperating cash flow above net income¥2.92T vs ¥800.13B
- Less leverageLong-term debt to assets fell16.9% → 14.9%
- Better liquidityCurrent ratio rose1.45 → 1.29
- No dilutionShare count did not rise2.11B → 2.05B
- Gross margin improvedGross margin up on the prior year91.59% → 92.28%
- More efficientAsset turnover rose0.56 → 0.54