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NTTYY · OTC · United States · Telephone Communications (No Radiotelephone)

NIPPON TELEGRAPH & TELEPHONE CORP

Tokyo Japan, Japan · Fiscal year ends in March · Figures in JPY

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In shortNIPPON TELEGRAPH & TELEPHONE CORP is profitable, generates cash and carries moderate debt, with revenue stable (−1.3% last year).

Financial health

Solid

Built from five areas over the last five annual reports. Tap an area to see the figures behind it.

How is this score calculated? →

Profitability53

Operating marginShare of each sale left after running the business, before interest and tax.	13.5%	62/100
Net marginShare of each sale left as profit after every cost, interest and tax.	7.0%	48/100
Return on equityProfit earned on the money shareholders put in. Above 15% is strong.	8.9%	45/100
Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge.	8.3%	55/100

Weight in the score: 25%

Balance sheet63

Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash.	1.29×	40/100
Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted.	0.43×	87/100
Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable.	0.95×	87/100
Interest coverageHow many times operating profit covers interest. Below 2 is risky.	–	n/a
Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress.	2.49	36/100

Weight in the score: 25%

Cash generation92

Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt.	14.2%	77/100
Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy.	2.02×	100/100
Years with positive free cash flow (last 5)	5 of 5	100/100

Weight in the score: 20%

Stability91
Profitable years (last 5) 5 of 5 100/100
Years of revenue decline (last 5) 1 of 5 67/100
Revenue growth volatility 1.9% 100/100
Operating margin volatility 1.4% 97/100
Weight in the score: 20%
Growth62
Revenue growth, 3-year average 1.4% 24/100
EPS growth, 3-year average 15.4% 100/100
Weight in the score: 10%

Profitable years (last 5)	5 of 5	100/100
Years of revenue decline (last 5)	1 of 5	67/100
Revenue growth volatility	1.9%	100/100
Operating margin volatility	1.4%	97/100

Revenue growth, 3-year average	1.4%	24/100
EPS growth, 3-year average	15.4%	100/100

Fiscal year 2017 · change vs prior year

Revenue: ¥11.4T; ▼ 1.3%
Net income: ¥800.1B; ▲ 8.5%
Free cash flow: ¥1.6T; ▲ 11.7%
Operating margin: 13.5%; +1.8 pts
Cash & investments: ¥989.1B; –
Total debt: ¥3.9T; ▼ 4.3%
Diluted EPS: ¥390.94; ▲ 11.6%
Return on equity: 8.9%; –

Trends

Annual figures as reported. Hover a bar or point for the exact value.

5 older years available with the 10-year history. Essential plan, from €8.25/month →

Revenue and net income

RevenueNet income

Margins

Statements

The last 5 fiscal years from the company's annual reports.

JPY millions; negative values in parentheses.

Fiscal year	FY13	FY14	FY15	FY16	FY17
Revenue	10,700,740	10,925,174	11,095,317	11,540,997	11,391,016
Cost of revenue	864,251	885,288	948,903	970,478	879,725
Gross profit	9,836,489	10,039,886	10,146,414	10,570,519	10,511,291
Research & development	269,192	249,295	233,752	213,435	211,616
Selling, general & admin	2,992,588	2,929,111	2,856,458	2,767,761	2,786,820
Operating income	1,201,968	1,213,653	1,084,566	1,348,149	1,539,789
Pre-tax income	1,197,647	1,294,195	1,066,629	1,329,259	1,527,769
Income tax	473,954	486,546	397,349	354,825	468,370
Net income	521,932	585,473	518,066	737,738	800,129
Diluted EPS	¥430.68	¥254.61	¥236.85	¥350.34	¥390.94
Diluted shares (millions)	1,212	2,300	2,187	2,106	2,047

5 older years available with the 10-year history. Essential plan, from €8.25/month →

Risk checks

Altman Z'' score

2.49 Grey zone

Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.

Piotroski F-score

7/9

Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.

Positive net income: passed
Positive operating cash flow: passed
Return on assets improved: passed
Cash flow exceeds net income: passed
Long-term debt ratio fell: passed
Current ratio improved: failed
No share dilution: passed
Gross margin improved: passed
Asset turnover improved: failed

Sources

20-FPeriod ending Mar 31, 2017Filed Jun 28, 2017Open the report ↗
20-FPeriod ending Mar 31, 2016Filed Jun 30, 2016Open the report ↗
20-FPeriod ending Mar 31, 2015Filed Jun 30, 2015Open the report ↗
20-FPeriod ending Mar 31, 2014Filed Jun 30, 2014Open the report ↗
20-FPeriod ending Mar 31, 2013Filed Jun 28, 2013Open the report ↗
20-FPeriod ending Mar 31, 2012Filed Jun 29, 2012Open the report ↗
20-FPeriod ending Mar 31, 2011Filed Jun 30, 2011Open the report ↗
20-FPeriod ending Mar 31, 2010Filed Jun 30, 2010Open the report ↗

NIPPON TELEGRAPH & TELEPHONE CORP (NTTYY) financial health, profit and balance sheet · Scorvest