Analysis of business results & financial statements · Quý 1/2026
▼ Under pressure
Trailing net profit reached 37.2bn, fell 5.4bn compared with the same period last year. Key positives came from higher gross profit, better other profit, and lower administrative expenses. Offsetting pressure came mainly from higher finance costs, lower financial income, and higher selling expenses. Detailed impact is shown below:
See what is changing ↓- P/E
- 6.58x
- P/B
- 1.01x
- EPS
- 1,580
- BVPS
- 10,335
- ROE
- 16.6%
- ROA
- 2.9%
- Market price
- 10,400 02 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q1 basis, NTT is maintaining revenue, but margins are compressing slightly — profit is at an all-time high. More notably, operating cash flow is significantly negative relative to profit — this is pressure that needs close monitoring.
Profit bridge
Vs last year · TTM
- Gross profit
- Other profit
- Administrative expenses
- Finance costs
- Financial income
- Selling expenses
- Other
Across periods
A single data point, or a trajectory?
Latest eight quarters · Quý 1/2026
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 322.3 | 372.1 | 339.9 | 417.7 | 396.5 | 385.1 | 285.2 | 303.9 |
| LNST | 15.6 | 5.5 | 4.8 | 11.2 | 17.5 | 2.6 | 4.5 | 17.8 |
| Net margin | 4.84% | 1.48% | 1.43% | 2.67% | 4.42% | 0.69% | 1.60% | 5.86% |
Revenue
322bnNet income
16bnNet margin
4.84%Inside the statements
A closer look at what is happening inside the business
A company's statements are read with the questions that fit its type of business.
Is the profit sustainable?
Margins narrowed but earnings quality remains clean — pressure is mainly operational.
What is driving the margin?
▼Net margin narrowed to 2.56%, falling 0.5pp. Gross margin rose 0.1pp and SG&A / Revenue fell 0.0pp improved but not enough to offset the weakness in Net financial result / Revenue fell 0.5pp (Other profit / Revenue rose 0.3pp still added support).
Margin is under pressure from multiple sides — temporary and structural components need to be separated to properly assess the risk.
- Net Margin
- 2.56% −0.5pp
- Gross Margin
- 8.54% +0.1pp
- SG&A / Revenue
- 3.20% −0.0pp
TTM YoY · 2025Q1 -> 2026Q1
Is capital being used efficiently?
Capital efficiency should be read in industry context — ROIC may fluctuate with business specifics.
Is capital being deployed efficiently?
●Track how much operating profit the business generates on invested capital.
Industry characteristics make ROIC cyclical — this is a reference signal and should be read with the business context.
Balance Sheet
▼▼ROIC above should be read with industry context — the balance sheet below adds perspective. Leverage is very high, with clear pressure on the capital structure — liabilities at 3.95x equity, net debt at 2.67x equity.
Inventory ended the period at 239.4bn, roughly 21.3% of total assets.
Over the last 12 months, working capital released 0.0bn of cash.
Working Capital Efficiency
▼▼Cash conversion cycle lengthened by 41.0 days versus the same period last year. The main moves came from DIO rose 1.4 days, DSO rose 3.1 days, and DPO fell 36.5 days.
All 3 drivers are deteriorating — working capital is becoming more deeply tied up in the operating cycle.
CCC is up by +41.0 days, indicating weaker working-capital turnover versus the prior year.
DSO increased by +3.1 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE fell from 22.9% to 16.6% — all three components weakened, with net margin being the main drag.
Is financial risk significant?
High leverage combined with negative operating cash flow — this area needs close monitoring.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 2.67x and interest coverage only at 0.92x.
At present, short-term debt accounts for 70.1% of total debt, cash equals 13.7% of debt, and total debt stands at 751.1bn.
Net debt / equity stands at 2.67x, increasing balance-sheet pressure.
Interest coverage is 0.92x, leaving limited room to absorb financing costs.
- Net Debt / Equity
- 2.67x +0.12x
- Interest Coverage
- 0.92x −0.15x
- Cash / Debt
- 13.7% +4.6pp
- Short-term Debt / Total Debt
- 70.1% −1.3pp
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
▼▼High leverage combined with cash flow below reveals the actual liquidity pressure. Operating cash flow reached -36.9bn in 2025, against investing cash flow of -13.2bn.
Post-investment cash flow was negative +50.1bn. Financing cash flow was positive +67.0bn.
CFO / net income was −4,31 lần.
After spending +44.1bn on fixed-asset investment, the business generated trailing free cash flow of −204.3bn.
In summary
Research synthesis
What this reporting period is showing
The business is showing a few weaker signals, but the current magnitude is not yet clear enough to conclude that this is a broader weakening phase. The next item to monitor is capital efficiency. The main risk still sits in leverage and liquidity, with interest coverage at 0.92x.
- Watchpoint: Capital efficiency needs cycle context.
- Key risk: leverage and liquidity still require discipline, with interest coverage only at 0.92x.
What to verify next
Questions for the next period
Durability of revenue growth after the current +5,9% YoY pace.
Ability to hold margins around the current 2.56% level.
Cash-flow quality, with operating cash flow currently at -36.9bn in 2025.
From one stock to the whole portfolio
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among the rest of your investments?
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How much does this stock
contribute to the portfolio?
Its weight and influence across the assets held for investment.
Is the portfolio
well balanced?
How holdings, sectors and asset groups are distributed in relation to overall risk.
What other opportunities
or risks may be present?
What becomes visible only when investments are viewed together rather than one ticker at a time.