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KDDI (TSE:9433) Posted Higher Half Year Earnings And Raised Its Dividend, Is It Still Undervalued?

Simply Wall St · 1d ago

KDDI (TSE:9433) just put fresh numbers on the table, pairing half year results through September 30, 2026 with a slightly higher interim dividend that may interest income focused investors.

The fresh half-year figures and dividend lift arrive after a mixed few months for KDDI’s share price. The stock has slipped in recent weeks but still carries a 3.9% year-to-date share price gain and an 11.31% 1-year total shareholder return, hinting that momentum has cooled in the near term while longer-term holders have fared better.

See how KDDI compares with other income-focused opportunities by reviewing our hand picked 27 dividend fortresses that pair higher yields with robust underlying businesses.

KDDI has nudged its dividend higher while the share price has cooled in recent weeks, which puts a clear choice in front of you. Is this a reasonable entry now, or is it worth waiting for a cheaper setup before committing fresh capital?

Most Popular Narrative: 7% Undervalued

KDDI last traded at ¥2,840, while the analyst consensus Narrative on Simply Wall St suggests a fair value of about ¥3,064 based on a 5.0% discount rate. That gap frames the stock as modestly undervalued and puts more weight on how the business executes from here.

Expansion of AI-centric infrastructure and services, including cloud infrastructure revenue growth of around 30%, AI integration and cybersecurity revenue growth of 19.2% and connectivity data center revenue growth of 20.6% with EBITDA margin above 40%, provides additional levers for higher group revenue and operating income.

See why 4 investors see KDDI as 7% undervalued.

Result: Fair Value of ¥3,064.53 (UNDERVALUED)

Still, the story can break if KDDI’s ARPU progress stalls, or if financial services pressure and lost Rakuten roaming income drag on group profitability.

Find out about the key risks to this KDDI narrative.

Next Steps

Mixed sentiment runs through the KDDI story, and a direct way to cut through that noise is to review the data yourself and decide where you stand based on the 5 key rewards and 1 important warning sign.

Looking for more investment ideas beyond KDDI?

If KDDI is on your radar, you can broaden your opportunity set by lining it up against other stocks that match your risk, income, and quality preferences.