Socionext Inc. (6526) AI Stock Analysis

• Market Cap: ¥388.66B
• Dividend Yield: 2.33%
• Average Volume (3M): 14.71M
• Price to Earnings (P/E): 38.1
• Beta (1Y): 1.98
• Revenue Growth: -13.21%
• EPS Growth: -54.83%
• Country: JP
• Employees: 2,534
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 9.09
• Shares Outstanding: 179,933,140
• 10 Day Avg. Volume: 13,799,260
• 30 Day Avg. Volume: 14,706,146
• PEG Ratio: -0.62
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 16.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥2,214.00 ▲(3.85% Upside)

Socionext Inc.'s overall stock score is primarily influenced by its solid financial performance, which is offset by bearish technical indicators and a high valuation. The company's strong financial stability and profitability are positive factors, but the technical analysis suggests caution due to negative momentum. The high P/E ratio further indicates potential overvaluation, warranting careful consideration for investors.

Positive Factors

Financial Stability

A strong balance sheet with a high equity ratio and low debt-to-equity ratio provides resilience against economic downturns, ensuring long-term stability.

Profitability

Consistent improvement in profit margins indicates effective cost management and strong profitability, supporting sustainable long-term growth.

Cash Flow Management

Efficient cash flow management with positive free cash flow supports operational flexibility and the ability to invest in growth opportunities.

Negative Factors

Revenue Decline

A decline in revenue growth can impact future earnings potential and market competitiveness, requiring strategic adjustments to regain momentum.

Free Cash Flow Fluctuations

Fluctuations in free cash flow can strain financial resources, limiting the company's ability to fund new projects and respond to market changes.

Asset Growth

A decrease in total assets could hinder the company's capacity to expand operations and invest in new technologies, affecting long-term growth prospects.

Socionext Inc. Business Overview & Revenue Model

Company Description

Socionext Inc. designs, develops, manufactures, and sells system-on-chip (SoC), and solutions/services centering on SoC worldwide. It offers application specific standard products in the areas of radar sensor, servers, image processing, video processing, digital TV, digital signage, automotive, medical healthcare, HDMI module, and IoT communication. The company also provides custom SoC solutions, as well as development support, subsystem service, IP macro service, design technology, and manufacturing technology package services. It serves the automotive, data center & networking, and smart device sectors. The company was incorporated in 2014 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Socionext Inc. generates revenue primarily through the sale of its semiconductor products, including custom SoCs and application-specific integrated circuits (ASICs). The company operates on a B2B model, providing tailored solutions to manufacturers in various industries, which allows for high-value contracts. Key revenue streams include direct sales to OEMs (original equipment manufacturers) and ODMs (original design manufacturers), as well as licensing fees for technology and intellectual property. Additionally, partnerships with automotive and consumer electronics companies help to secure long-term contracts and collaborations, further stabilizing the company’s revenue base. The increasing demand for advanced semiconductor technology in emerging markets, such as autonomous driving and IoT (Internet of Things), is also a significant factor contributing to Socionext's earnings.

Socionext Inc. Financial Statement Overview

Summary

Socionext Inc. presents a solid financial position with strengths in profitability and financial stability. The company effectively manages its leverage and maintains strong equity, providing a cushion against market volatility. However, recent revenue declines and free cash flow fluctuations pose challenges.

Income Statement

Socionext Inc. has shown a solid performance in its income statement metrics. The Gross Profit Margin and Net Profit Margin have consistently improved over the years, indicating efficient cost management and strong profitability. Despite a decline in total revenue in 2025, the company maintained healthy EBIT and EBITDA margins, showcasing resilience in operational efficiency. However, the negative revenue growth from 2024 to 2025 highlights a potential area of concern for future growth prospects.

Balance Sheet

The balance sheet of Socionext Inc. is robust, characterized by a high equity ratio, indicating strong financial stability. The company has maintained a low debt-to-equity ratio over the years, reflecting conservative leverage usage. Additionally, the Return on Equity has shown consistent improvement, highlighting effective capital utilization. The company's strong equity position suggests resilience against economic downturns. However, the decrease in total assets over time may require attention for future asset growth.

Cash Flow

Socionext Inc. has demonstrated strong cash flow management with positive free cash flow figures in recent years. The Operating Cash Flow to Net Income ratio indicates efficient cash conversion. While there was a decline in free cash flow from 2024 to 2025, the company managed to maintain a positive free cash flow to net income ratio. Challenges in sustaining free cash flow growth highlight potential areas for operational improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	176.56B	188.53B	221.25B	192.77B	117.01B	99.75B
Gross Profit	91.86B	103.92B	110.00B	88.84B	58.44B	48.12B
EBITDA	26.83B	41.61B	48.91B	33.79B	17.28B	9.95B
Net Income	10.07B	19.60B	26.13B	19.76B	7.48B	1.47B
Balance Sheet
Total Assets	168.13B	170.31B	186.84B	193.94B	118.43B	104.23B
Cash, Cash Equivalents and Short-Term Investments	45.68B	72.84B	69.74B	45.14B	46.27B	42.66B
Total Debt	1.19B	1.30B	2.04B	1.13B	0.00	0.00
Total Liabilities	38.16B	33.27B	55.82B	84.08B	28.82B	22.56B
Stockholders Equity	129.97B	137.05B	131.02B	109.86B	89.61B	81.57B
Cash Flow
Free Cash Flow	-3.07B	19.11B	41.00B	5.39B	8.81B	6.86B
Operating Cash Flow	11.12B	31.87B	52.88B	18.02B	16.36B	10.70B
Investing Cash Flow	-20.78B	-14.55B	-23.16B	-19.73B	-7.94B	-1.45B
Financing Cash Flow	-19.13B	-13.82B	-6.62B	-333.00M	-458.00M	-410.00M

Socionext Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2132.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6526, the sentiment is Negative. The current price of 2132 is below the 20-day moving average (MA) of 2224.55, below the 50-day MA of 2516.36, and below the 200-day MA of 2366.38, indicating a bearish trend. The MACD of -66.73 indicates Negative momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 11.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6526.

Socionext Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6504	76 Outperform	¥1.60T	19.50	12.05%	1.58%	5.44%	-5.19%
5801	73 Outperform	¥647.75B	18.46	10.06%	1.32%	10.52%	60.75%
6503	72 Outperform	¥9.66T	24.11	10.23%	1.21%	4.62%	40.65%
6506	70 Outperform	¥1.19T	20.56	13.26%	1.50%	-2.18%	30.16%
5803	63 Neutral	¥4.56T	35.20	32.32%	0.98%	27.53%	137.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6526	58 Neutral	¥388.66B	38.10	―	2.33%	-13.21%	-54.83%

Socionext Inc. Corporate Events

Socionext Inc. Reports Decline in Financial Performance for H1 2025

Socionext Inc. reported a significant decline in its financial performance for the six months ending September 30, 2025, with net sales decreasing by 12.1% and profit attributable to owners of the parent dropping by 82.2% compared to the previous year. The company has revised its earnings forecast for the fiscal year ending March 31, 2026, anticipating a slight increase in net sales but a substantial decrease in operating and ordinary income, reflecting ongoing challenges in the semiconductor market.

Socionext Revises Financial Forecasts Amid Strong Product Demand

Socionext Inc. has revised its financial forecasts for the fiscal year ending March 2026, anticipating an increase in net sales due to strong demand for a newly mass-produced product and a weaker Japanese yen. However, despite the rise in sales, the company expects a decrease in operating income and profit attributable to owners due to changes in product mix and increased advance development costs, impacting gross margins.