NEC · Communication Services
$1.15
Profit generated per $1 of shareholder investment
Annual dividends as percentage of stock price
15.65% yield meets Barsi's 6% minimum. Based on 6-year average, not one-time spikes.
Yield (TTM)
6.88%
P/E Ratio
16.36
P/B Ratio
1.15
52W Low
$1.07
52W High
$1.90
Owner Earnings
$0.13B
Intrinsic Value
$2.50B
EPS CAGR
-27.1%
Analysis based on Warren Buffett and Luiz Barsi methodologies. Not financial advice. Learn how we analyze stocks →
Buffett analysis may be affected.
ROE dropped to 6.6% in a weak year. Buffett requires consistency - one bad year can reveal underlying vulnerability.
Net Income ÷ Shareholders' Equity × 100How much the company owes vs. what it owns
Debt-to-equity of 0.67 is 1.3x over Buffett's limit. High leverage increases risk during downturns.
Total Debt ÷ Shareholders' EquityProfit after production costs, before overhead
Healthy 40.5% average margin suggests sustainable competitive advantage.
(Revenue - Cost of Goods Sold) ÷ Revenue × 100Short-term assets vs. short-term debts
Current ratio of 0.98 is below 1.0 - company may struggle to pay short-term obligations.
Current Assets ÷ Current LiabilitiesReal cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Operating Cash Flow - Capital ExpendituresProfit generated per $1 of capital invested in the business
4.9% ROIC is below the 11.0% threshold. Company may not be creating value above cost of capital.
NOPAT ÷ Invested Capital × 100, where NOPAT = Operating Income × (1 - Tax Rate)Consistency of profits over time
Only 4/10 positive EPS years. Buffett requires predictable earnings he can forecast 5-10 years out.
Count of positive EPS years in 10-year historyReturn on investment at current price (inverse of P/E)
5.8% earnings yield is below required 7.5% (4.5% Treasury + 745.5% risk premium).
(EPS ÷ Stock Price) × 100Discount to intrinsic value (Two-Stage DCF)
27% margin is below the 30% minimum required for this sector.
(Intrinsic Value - Market Cap) ÷ Intrinsic Value × 100. Intrinsic Value = PV of 10-year growth period + PV of terminal value (perpetuity at 2.5% growth), discounted at Treasury rate + industry risk premium (6-9%).15.65% yield is unusually high - verify the dividend is sustainable and not a sign of financial distress.
Annual Dividends per Share ÷ Stock Price × 100Track record of consistent dividend payments
Excellent track record. 10 years of consistent dividends through multiple market cycles.
Highest price to lock in 6% yield
Excellent entry point. 62% below ceiling means you're locking in well over 6% yield.
6-Year Average Annual Dividend ÷ 0.06Industry category of the business
Telecom is an essential service sector with stable, predictable cash flows - ideal for dividend investing.