Morningstar - NTT DoCoMo Inc. (9437) NTT DoCoMo Moat Trend Reduced to Negative on Pricing Pressure from Rakuten and Government

Report

Morningstar

Dan Baker

EUR 100.00 For Business Accounts Only

NTT DoCoMo Moat Trend Reduced to Negative on Pricing Pressure from Rakuten and Government

We retain NTT DoCoMoâ€™s narrow moat based on efficient scale but reduce its moat trend to negative. We expect some pricing pressure in the foreseeable future, with Rakuten entering the key mobile market and the Government also pushing for price decreases. We make no changes to our fair value estimate of JPY 2,500 and USD 22 per ADS. NTT DoCoMoâ€™s current share price is now broadly in line with our fair value after briefly falling below immediately post the result.
In August 2018, Chief Cabinet Sec...

06/12/2018 13 EN

Underlying

NTT DoCoMo Inc.

NTT DOCOMO is a mobile telecommunications carrier. Co. has three operating segments. The telecommunications segment includes mobile phone services (LTE(Xi) services and FOMA services), optical-fiber broadband service, satellite mobile communications services, international services and the equipment sales related to these services. The smart life segment includes video and music distribution, electronic books and other services offered through DOCOMO's "dmarket" portal, as well as finance/payment services, shopping services and various other services. The others segment primarily includes "Mobile Device Protection Service," as well as development, sales and maintenance of IT systems.

See profile

JP3165650007 Japan

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

See profile

Analysts

Dan Baker

Other Reports on these Companies

New Street Research

Takeaways from Meetings with the Japanese Telcos + Rakuten in Tokyo. Downgrade SoftBank to Neutral, stay Buyers of NTT and KDDI.

We met with all 3 of the incumbent Japanese Telcos & Rakuten in Tokyo last week, as well as visiting Osaka to talk to NTT in more depth about IOWN. Overall, we remain bullish on Japanese telcos operationally and buyers of all three incumbents. NTT remains our top pick followed by KDDI.

EUR 8590.00

May 19, 2025 May 19, 2025 1 EN

New Street Research

Japanese Telcos Q3 FY24 review: Diverging expectations; NTT still preferred

Aggregate service revenue trended better on higher contribution from non-mobile, coupled with mobile improvement. Industry mobile was primarily driven by Softbank’s outperformance. Q3 EBITDA dropped on higher mobile marketing costs at NTT which the company seeks to offset through cost efficiencies. DOCOMO is the clear mobile underperformer, but we believe expectations for Fixed recovery is still low, plus there is IOWN optionality. NTT remains our preferred pick.

EUR 8590.00

February 19, 2025 February 19, 2025 1 EN

New Street Research

Asia Telco Tour Feedback, Improving growth, ROCE and shareholder remuneration

We ran our Asia Telco tour last week. This time we met 12 companies in 3 countries (Korea, Japan, Thailand). Telco share prices in all 3 of these countries have been pretty strong recently as telcos continue to benefit from generally positive themes: growth, return on capital and shareholder remuneration are all typically improving.

EUR 8590.00

March 18, 2024 March 18, 2024 1 EN

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Contract manufacturer Lonza reported solid half-year results, with over CHF 2.9 billion in total sales year to date, up about 6.4% from last year and boosted by foreign exchange tailwinds. Core EBITDA margin expanded 30 basis points from last year to about 27.8%, helped slightly by new accounting standards. Management indicated that it continues to expect mid- to high-single-digit sales growth in 2019. We are maintaining our fair value estimate of CHF 210 per share and our no-moat rating. The ph...

EUR 100.00

July 25, 2019 July 25, 2019 13 EN

Joe Gemino

Joe Gemino

Sasol Provides Full-Year Production Update

No-moat Sasol provided an update on its full-year fiscal 2019 production metrics that included relatively stable liquids production. For the full year ended June 30, Sasol produced 1,470 thousand barrels of crude oil and condensate a day compared with 1,469 mboe/d in the year-ago period. However, declines continued with the companyâ€™s natural gas production, down 4% to 130.3 billion cubic feet compared with the period ended June 30, 2018. Sasol also reported flat refined products of 31.4 mmboe/d ...

EUR 100.00

July 25, 2019 July 25, 2019 12 EN

Joe Gemino

Joe Gemino

Sasol Provides Full-Year Production Update

EUR 100.00

July 25, 2019 July 25, 2019 12 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

NTT DoCoMo Moat Trend Reduced to Negative on Pricing Pressure from Rakuten and Government

Takeaways from Meetings with the Japanese Telcos + Rakuten in Tokyo. Downgrade SoftBank to Neutral, stay Buyers of NTT and KDDI.

Japanese Telcos Q3 FY24 review: Diverging expectations; NTT still preferred

Asia Telco Tour Feedback, Improving growth, ROCE and shareholder remuneration

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Sasol Provides Full-Year Production Update

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe