October 3, 2024
Top 10 Stock Nippon Telegraph and Telephone Sell Recommendation
How to read the ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Snapshot: Nippon Telegraph and Telephone – Top 10 Stock in Telecommunications
Nippon Telegraph and Telephone is listed as a top 10 stock on October 03, 2024 in the market index Telecommunications because of its high performance in at least one of the Obermatt investment strategies. While half the consolidated Obermatt Ranks are above-average, investor sentiment is negative and growth performance is below market average, both a sign for caution. Based on the Obermatt 360° View of 16 (16% performer), Obermatt issues an overall sell recommendation for Nippon Telegraph and Telephone on October 03, 2024.
Snapshot: Obermatt Ranks
| Country | Japan |
| Industry | Integrated Telecommunication |
| Index | TOPIX 100, Low Waste, Recycling, Telecommunications, Nikkei 225 |
| Size class | XX-Large |
When Obermatt identifies the Top 10 stocks in a market, it’s based on a certain investment strategy. The best performing stocks usually aren’t the ones that everyone is talking about (those are often "over-priced" and have low Value ranks).
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 Sell
| 360 METRICS | October 3, 2024 | |||||||
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| VALUE | ||||||||
| VALUE | 75 |
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| GROWTH | ||||||||
| GROWTH | 7 |
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| SAFETY | ||||||||
| SAFETY | 54 |
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| SENTIMENT | ||||||||
| SENTIMENT | 6 |
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| 360° VIEW | ||||||||
| 360° VIEW | 16 |
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ANALYSIS: With an Obermatt 360° View of 16 (better than 16% compared with alternatives), overall professional sentiment and financial characteristics for the stock Nippon Telegraph and Telephone are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with half the metrics below and half above average for Nippon Telegraph and Telephone. The consolidated Value Rank has an attractive rank of 75, 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 75% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 54. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of 6. Professional investors are more confident in 94% other stocks. The consolidated Growth Rank also has a low rank of 7, which means that the company is below average in terms of growth momentum when looking at financial metrics such as revenue, profit, invested capital growth, and stock returns. 93 of its competitors have better growth. ...read more
RECOMMENDATION: With a consolidated 360° View of 16, Nippon Telegraph and Telephone is worse than 84% of all alternative stock investment opportunities based on the Obermatt Method. This means that Nippon Telegraph and Telephone shares are on the riskier side for investors. The picture is mixed here. The stock seems to be a good value (Value Rank of 75), and the financing structure is on the safer side (Safety Rank of 54). However, sentiment in the professional investor community is below-average (Sentiment Rank of 6), as is the growth momentum for the company (Growth Rank of 7). Since the company is good value and the share price low, it should attract investors, yet professionals are skeptical. Even though the financing structure is not as important as Value, Growth, and Sentiment, investors should still be careful with this decision and conduct further research if they are serious about investing in this company. ...read more
Sentiment Strategy: Professional Market Sentiment for Nippon Telegraph and Telephone negative
ANALYSIS: With an Obermatt Sentiment Rank of 6 (better than 6% compared with alternatives), overall professional sentiment and engagement for the stock Nippon Telegraph and Telephone is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with three out of four metrics below average for Nippon Telegraph and Telephone. Analyst Opinions are at a rank of 58 (better than 58% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. This is a good sign, were it not for Analyst Opinions Change with a low rank of 17, which means that currently, stock research experts are changing their opinions for the worse. In other words, they are getting more critical of a stock investment in Nippon Telegraph and Telephone. The Professional Investors rank is also low at 13, meaning that professional investors hold less stock in this company than in 87% of alternative investment opportunities. Pros tend to invest in other companies. Even worse, Market Pulse has a low rank of 21, which means that the current professional news and professional social networks are critical of this company (more negative news than for 79% of competitors). ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 6 (less encouraging than 94% compared with investment alternatives), Nippon Telegraph and Telephone has a reputation among professional investors that is far below that of its competitors. There are several negative sentiment signals, with only the Analyst Opinions Rank above average. This could be a stock with a long reputation for being positive but where things are worsening. Most analysts may not see it yet, but some have, and the professionals are already quite pessimistic. Proceed with caution when investing in this stock. ...read more
Value Strategy: Nippon Telegraph and Telephone Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 75 (better than 75% compared with alternatives) for 2024, Nippon Telegraph and Telephone shares are significantly less expensive than 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 62, which means that the stock price compared with what market professionals expect for future sales is lower than for 62% 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 80% 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 61. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 43% of all competitors have even lower dividend yields than Nippon Telegraph and Telephone (a Dividend Yield Rank of 43). 57% alternative investments in the same business provide a higher dividend yield. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 75, 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
Growth Strategy: Nippon Telegraph and Telephone Growth Momentum negative
ANALYSIS: With an Obermatt Growth Rank of 7 (better than 7% compared with alternatives), Nippon Telegraph and Telephone shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Nippon Telegraph and Telephone. While Sales Growth ranks at 52, professionals currently expect the company to grow more than 52% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 14, which means that, currently, professionals expect the company to grow its profits less than 86% of its competitors, and Capital Growth has a low rank of 33. Historic stock returns were also below average with a current Stock Returns rank of 15 which means that the stock returns have recently been below 85% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 7, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. ...read more
Safety Strategy: Nippon Telegraph and Telephone Debt Financing Safety above-average
| SAFETY METRICS | October 3, 2024 | |||||||
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| LEVERAGE | ||||||||
| LEVERAGE | 34 |
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| REFINANCING | ||||||||
| REFINANCING | 27 |
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| LIQUIDITY | ||||||||
| LIQUIDITY | 82 |
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| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 54 |
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ANALYSIS: With an Obermatt Safety Rank of 54 (better than 54% 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 82, meaning the company generates more profit to service its debt than 82% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 27, 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 73% 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 54 (better than 54% 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
Combined financial peformance: Nippon Telegraph and Telephone Below-Average Financial Performance
| COMBINED PERFORMANCE | October 3, 2024 | |||||||
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| VALUE | ||||||||
| VALUE | 75 |
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| GROWTH | ||||||||
| GROWTH | 7 |
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| SAFETY | ||||||||
| SAFETY | 82 |
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| COMBINED | ||||||||
| COMBINED | 40 |
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ANALYSIS: With an Obermatt Combined Rank of 40 (worse than 60% compared with investment alternatives), Nippon Telegraph and Telephone (Integrated Telecommunication, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Nippon Telegraph and Telephone are a good value (attractively priced) with a consolidated Value Rank of 75 (better than 75% of alternatives), are safely financed (Safety Rank of 54, which means low debt burdens), but show below-average growth (Growth Rank of 7). ...read more
RECOMMENDATION: A Combined Rank of 40, is a hold recommendation based on Nippon Telegraph and Telephone's financial characteristics. As the company Nippon Telegraph and Telephone's key financial metrics exhibit good value (Obermatt Value Rank of 75) but low growth (Obermatt Growth Rank of 7) while being safely financed (Obermatt Safety Rank of 54), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 75% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. ...read more
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