February 22, 2024
Top 10 Stock Nippon Telegraph and Telephone Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Nippon Telegraph and Telephone Strong Buy

360 METRICS	February 22, 2024
VALUE
VALUE	59
GROWTH
GROWTH	57
SAFETY
SAFETY	67
SENTIMENT
SENTIMENT	57
360° VIEW
360° VIEW	77

ANALYSIS: With an Obermatt 360° View of 77 (better than 77% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Nippon Telegraph and Telephone are very positive. The 360° View is based on consolidating four consolidated indicators, with all four indicators above average for Nippon Telegraph and Telephone. The consolidated Value Rank has an attractive rank of 59, which means that the share price of Nippon Telegraph and Telephone is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 59% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 57, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. The company is also safely financed with a Safety rank of 67. Finally, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 57. ...read more

RECOMMENDATION: With a consolidated 360° View of 77, Nippon Telegraph and Telephone is better positioned than 77% of all alternative stock investment opportunities based on the Obermatt Method. As all consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 59), above-average growth (Growth Rank of 57), safe financing practices (Safety Rank of 67), and a positive market sentiment in the professional investor community (Sentiment Rank of 57), it is a solid stock investment where the risk of paying too much for the shares is limited and disappointments are less likely to occur, unless information not publicly available. High-Value Ranks sometimes indicate that the company's future is challenging. If they are safely financed and have above average growth, and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Nippon Telegraph and Telephone is as difficult as the stock’s low price, despite what good growth and safe financing practice suggest. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible, which may indicate good timing right now. ...read more

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Sentiment Strategy: Professional Market Sentiment for Nippon Telegraph and Telephone positive

SENTIMENT METRICS	February 22, 2024
ANALYST OPINION
ANALYST OPINION	64
OPINIONS CHANGE
OPINIONS CHANGE	60
PRO HOLDINGS
PRO HOLDINGS	81
MARKET PULSE
MARKET PULSE	26
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	57

ANALYSIS: With an Obermatt Sentiment Rank of 57 (better than 57% compared with alternatives), overall professional sentiment and engagement for the stock Nippon Telegraph and Telephone is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Nippon Telegraph and Telephone. Analyst Opinions are at a rank of 64 (better than 64% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. In addition, Analyst Opinions Change has a rank of 60, which means that stock research experts are changing their opinions for the better in recommending investing in the company. In other words, they are getting even more optimistic about investments in Nippon Telegraph and Telephone. Finally, the Professional Investors rank is 81, which means that currently, professional investors hold more stock in this company than in 81% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 57 (more positive than 57% compared with investment alternatives), Nippon Telegraph and Telephone has a reputation among professional investors that is above-average compared with that of its competitors. Pros tend to favor investing in this company. But there is also a signal for caution. Market Pulse has a rank of 26, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 74% of competitors). This could mean future risks and should make investors careful. Attention to negative news for Nippon Telegraph and Telephone is worthwhile because they may be early warning signals. Without those, all other professional signals are encouraging, especially since analysts are getting more optimistic. ...read more

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Value Strategy: Nippon Telegraph and Telephone Stock Price Value better than average

VALUE METRICS	February 22, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	53
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	78
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	51
DIVIDEND YIELD
DIVIDEND YIELD	33
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	59

ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% compared with alternatives), Nippon Telegraph and Telephone shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Nippon Telegraph and Telephone. Price-to-Sales (P/S) is 53, which means that the stock price compared with what market professionals expect for future sales is lower than for 53% of comparable companies, indicating a good value regarding Nippon Telegraph and Telephone's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 78% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 51. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 33% of all competitors have even lower dividend yields than Nippon Telegraph and Telephone (a Dividend Yield Rank of 33). 67% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 59, is a buy recommendation based on Nippon Telegraph and Telephone's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. ...read more

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Growth Strategy: Nippon Telegraph and Telephone Growth Momentum good

GROWTH METRICS	February 22, 2024
REVENUE GROWTH
REVENUE GROWTH	37
PROFIT GROWTH
PROFIT GROWTH	44
CAPITAL GROWTH
CAPITAL GROWTH	66
STOCK RETURNS
STOCK RETURNS	73
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	57

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Nippon Telegraph and Telephone shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Nippon Telegraph and Telephone. Capital Growth has a rank of 66, which means that currently professionals expect the company to grow its invested capital more than 44% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 73 (above 73% of alternative investments). But Sales Growth has only a rank of 37, which means that, currently, professionals expect the company to grow less than 63% of its competitors, and Profit Growth is also low at a rank of 44. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Nippon Telegraph and Telephone, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. ...read more

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Safety Strategy: Nippon Telegraph and Telephone Debt Financing Safety above-average

SAFETY METRICS	February 22, 2024
LEVERAGE
LEVERAGE	34
REFINANCING
REFINANCING	37
LIQUIDITY
LIQUIDITY	83
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	67

ANALYSIS: With an Obermatt Safety Rank of 67 (better than 67% compared with alternatives), the company Nippon Telegraph and Telephone has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Nippon Telegraph and Telephone is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Nippon Telegraph and Telephone. Liquidity is at 83, meaning the company generates more profit to service its debt than 83% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 37, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 63% of its competitors. Leverage is also high at a rank of 34, which means that the company has an above-average debt-to-equity ratio. It has more debt than 66% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 67 (better than 67% compared with alternatives), Nippon Telegraph and Telephone has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. ...read more

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Combined financial peformance: Nippon Telegraph and Telephone Top Financial Performance

COMBINED PERFORMANCE	February 22, 2024
VALUE
VALUE	59
GROWTH
GROWTH	57
SAFETY
SAFETY	83
COMBINED
COMBINED	80

ANALYSIS: With an Obermatt Combined Rank of 80 (better than 80% compared with investment alternatives), Nippon Telegraph and Telephone (Integrated Telecommunication, Japan) shares have much better financial characteristics than comparable stocks. Shares of Nippon Telegraph and Telephone are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives), show above-average growth (Growth Rank of 57), and are safely financed (Safety Rank of 67), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 80, is a strong buy recommendation based on Nippon Telegraph and Telephone's financial characteristics. As the company Nippon Telegraph and Telephone's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 59), above-average growth (Obermatt Growth Rank of 57), and indicate that the company is safely financed (Obermatt Safety Rank of 67), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Nippon Telegraph and Telephone. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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