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KDDI Corp ADR KDDIY

Morningstar Rating
$13.86 +0.09 (0.65%)
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Company Report

KDDI Earnings: Slight Miss on Guidance as Expected

Narrow-moat KDDI’s fiscal 2023 result (ending March 2024) was in line with our expectations on an underlying basis despite narrowly missing its full-year guidance and pushing out its previous midterm earnings per share growth target by one year. We retain our fair value estimate for KDDI of JPY 4,500 and see KDDI shares as fairly valued following a share price correction since late January 2024.

Price vs Fair Value

KDDIY is trading at a 384% premium.
Price
$13.77
Fair Value
$51.00
Uncertainty
Low
1-Star Price
$43.66
5-Star Price
$31.00
Economic Moat
Rhlmylj
Capital Allocation
Vyjxldfkb

Bulls Say, Bears Say

Bulls

KDDI has increased its dividend each year for 21 years until fiscal 2022 and it is forecasting this streak to continue for fiscal 2023.

Bears

All Japanese operators now have access to the iPhone and offer fixed/wireless bundles. Homogeneous service offerings could lead to excessive competition.

Is it the right time to buy, sell, or hold?
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Trading Information

Previous Close Price
$13.77
Day Range
$13.7813.89
52-Week Range
$13.3617.15
Bid/Ask
$13.86 / $13.87
Market Cap
$57.72 Bil
Volume/Avg
121,750 / 237,125

Key Statistics

Price/Earnings (Normalized)
11.85
Price/Sales
1.46
Dividend Yield (Trailing)
1.73%
Dividend Yield (Forward)
1.73%
Total Yield
5.29%

Company Profile

KDDI is Japan's second-largest wireless operator (31% market share), the largest pay-TV operator (53% market share) and the second-largest provider of fibre-to-the-home broadband (12% market share). It has grown through acquisition and is focusing on increasing the number of customers who subscribe to more than one telecommunication service. It is also looking to grow its Life Design business which includes commerce, energy, and finance and had over 45 million Internet of Things connections by the end of December 2023.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
86,331

Competitors

Valuation

Metric
KDDIY
9434
9432
Price/Earnings (Normalized)
11.8520.2311.27
Price/Book Value
1.653.801.38
Price/Sales
1.461.520.98
Price/Cash Flow
5.907.514.39
Price/Earnings
KDDIY
9434
9432

Financial Strength

Metric
KDDIY
9434
9432
Quick Ratio
0.710.700.75
Current Ratio
0.760.750.98
Interest Coverage
122.219.4816.23
Quick Ratio
KDDIY
9434
9432

Profitability

Metric
KDDIY
9434
9432
Return on Assets (Normalized)
6.15%3.66%4.84%
Return on Equity (Normalized)
14.87%24.19%14.22%
Return on Invested Capital (Normalized)
9.86%5.95%6.31%
Return on Assets
KDDIY
9434
9432
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