Socionext Inc. (6526) AI Stock Analysis

• Market Cap: ¥438.96B
• Dividend Yield: 2.05%
• Average Volume (3M): 9.84M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.90
• Revenue Growth: -14.78%
• EPS Growth: -26.23%
• Country: JP
• Employees: 2,534
• Sector: Industrials
• Sector Strength: 85
• Industry: Electrical Equipment & Parts
• EPS (TTM): 17.68
• Shares Outstanding: 179,865,480
• 10 Day Avg. Volume: 14,467,780
• 30 Day Avg. Volume: 9,844,526
• PEG Ratio: 0.10
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -186.76
• 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: ¥2,200.00
• Price Target Upside: -9.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥2,454.00 ▲(0.55%Upside)

Socionext Inc.'s stock is supported by strong financial performance and technical momentum. Despite recent revenue and cash flow challenges, operational efficiency remains a key strength. Valuation is fair, with growth potential balanced by a healthy dividend yield. However, technical indicators suggest caution due to overbought conditions.

Socionext Inc. Business Overview & Revenue Model

Company Description

Socionext Inc. (6526) is a leading provider in the semiconductor industry, specializing in the design and development of system-on-chip (SoC) solutions. The company operates primarily in the electronics sector, delivering innovative products that cater to a range of applications including automotive, data center, networking, and consumer electronics. Socionext leverages its expertise in imaging, networking, and computing to offer high-performance and energy-efficient semiconductor products tailored to meet the needs of its global clientele.

How the Company Makes Money

Socionext Inc. generates revenue through the sale of its custom-designed semiconductor products and solutions. The company focuses on providing system-on-chip (SoC) solutions, which are integral to various technologies in automotive systems, data centers, networking equipment, and consumer electronics. Revenue streams are primarily derived from the design and sale of these semiconductors to original equipment manufacturers (OEMs) and technology companies. Additionally, Socionext engages in strategic partnerships and collaborations with other industry leaders to enhance its product offerings and expand its market reach. The company’s ability to innovate and deliver high-performance, energy-efficient solutions is a significant factor contributing to its financial success.

Socionext Inc. Financial Statement Overview

Summary

Socionext Inc. shows strong financial performance with solid profitability and financial stability. The company maintains an efficient cost structure, reflected in improved profit margins. Despite a decline in revenue and free cash flow from 2024 to 2025, operational efficiency remains robust.

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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
188.53B	221.25B	192.77B	117.01B	99.75B
	Gross Profit
103.92B	110.00B	88.84B	58.44B	48.12B
	EBIT
25.00B	35.51B	21.71B	8.46B	1.55B
	EBITDA
41.61B	48.91B	33.79B	17.28B	9.95B
	Net Income Common Stockholders
19.60B	26.13B	19.76B	7.48B	1.47B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
72.84B	69.74B	45.14B	46.27B	42.66B
	Total Assets
170.31B	186.84B	193.94B	118.43B	104.23B
	Total Debt
1.30B	2.04B	1.13B	0.00	0.00
	Net Debt
-71.54B	-67.70B	-44.01B	-46.27B	-37.66B
	Total Liabilities
33.27B	55.82B	84.08B	28.82B	22.56B
	Stockholders Equity
137.05B	131.02B	109.86B	89.61B	81.57B
Cash Flow		Free Cash Flow
19.11B	29.82B	-1.75B	3.58B	311.00M
	Operating Cash Flow
31.87B	52.88B	18.02B	16.36B	10.70B
	Investing Cash Flow
-14.55B	-23.16B	-19.73B	-7.94B	-1.45B
	Financing Cash Flow
-13.82B	-6.62B	-333.00M	-458.00M	-410.00M

Socionext Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2440.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6526, the sentiment is Positive. The current price of 2440.5 is above the 20-day moving average (MA) of 2157.85, above the 50-day MA of 1810.00, and above the 200-day MA of 2340.36, indicating a bullish trend. The MACD of 170.28 indicates Negative momentum. The RSI at 71.24 is Negative, neither overbought nor oversold. The STOCH value of 86.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6526.

Socionext Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5803	76 Outperform	¥1.87T	20.53	24.26%	1.96%	22.46%	78.59%
6503	75 Outperform	€6.13T	18.73	8.40%	2.06%	5.02%	14.73%
6504	73 Outperform	¥920.45B	10.03	14.10%	2.64%	1.83%	21.82%
6526	70 Outperform	¥438.96B	22.23		2.05%	-14.78%	-26.23%
6506	70 Outperform	$839.92B	14.70	13.62%	2.12%	-6.60%	12.74%
5801	70 Neutral	$472.56B	14.18	9.85%	2.06%	13.75%	412.79%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%

Socionext Inc. Corporate Events

Socionext Completes Treasury Share Acquisition

Socionext Inc. has completed the acquisition of 2,722,400 treasury shares, valued at approximately 4.99 billion yen, as per the resolution passed by its Board of Directors on April 28, 2025. This acquisition, conducted through market purchases on the Tokyo Stock Exchange, marks the conclusion of the company’s planned buyback program, which aimed to acquire up to 4.4 million shares.

The most recent analyst rating on (JP:6526) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on Socionext Inc. stock, see the JP:6526 Stock Forecast page.

Socionext Inc. Revamps Stock Compensation Plan

Socionext Inc. has announced an amendment to its performance-based restricted stock compensation plan, introducing a new officer compensation BIP trust. This change aims to align with market standards and enhance corporate value by offering a mix of basic, cash, and stock incentive compensation to eligible directors and executive officers, pending shareholder approval.

The most recent analyst rating on (JP:6526) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on Socionext Inc. stock, see the JP:6526 Stock Forecast page.

Socionext Inc. Declares Stable Dividend Amid Growth Investments

Socionext Inc. announced a dividend of 25 yen per share for the fiscal year ending March 2025, maintaining the same dividend as the previous year. This decision aligns with the company’s policy of balancing stable dividend payments with necessary development investments for future growth, and reflects a slight increase in annual dividend per share due to a stock split implemented in January 2024.

The most recent analyst rating on (JP:6526) stock is a Hold with a Yen2800.00 price target. To see the full list of analyst forecasts on Socionext Inc. stock, see the JP:6526 Stock Forecast page.

Socionext Inc. Initiates Share Buyback Program

Socionext Inc. has announced the acquisition of 178,100 shares of its common stock for a total of 273,833,398 yen through a market purchase at the Tokyo Stock Exchange. This move is part of a broader plan authorized by the Board of Directors to acquire up to 4.4 million shares, representing 2.48% of the total issued shares, with a total acquisition price of up to 5 billion yen, aiming to enhance shareholder value.

Socionext Inc. Reports Decline in Fiscal Year 2025 Financial Results

Socionext Inc. reported a decline in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales decreasing by 14.8% and operating income dropping by 29.6% compared to the previous year. The company also announced a reduction in dividends per share, reflecting a challenging market environment and impacting shareholder returns.

Socionext Inc. Announces Treasury Share Acquisition for Strategic Compensation Plan

Socionext Inc. announced its decision to acquire up to 4.4 million treasury shares, representing 2.48% of its total issued shares, as part of a strategic move to introduce a stock-based compensation system aimed at attracting and retaining key personnel. This acquisition, valued at up to 5 billion yen and set to occur through market purchases on the Tokyo Stock Exchange between April 30 and May 30, 2025, is intended to provide flexibility in business management and adapt to future market changes.