Socionext Inc. (6526) AI Stock Analysis

• Market Cap: ¥307.38B
• Dividend Yield: 2.92%
• Average Volume (3M): 5.37M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.98
• Revenue Growth: -14.78%
• EPS Growth: -26.23%
• Country: JP
• Employees: 2,534
• Sector: Industrials
• Sector Strength: 83
• Industry: Electrical Equipment & Parts
• EPS (TTM): 109.77
• Shares Outstanding: 179,756,410
• 10 Day Avg. Volume: 6,374,550
• 30 Day Avg. Volume: 5,374,203
• PEG Ratio: -21.60
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.18
• 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: ¥2,400.00
• Price Target Upside: 40.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Socionext Inc. demonstrates strong financial stability and reasonable valuation, making it a resilient choice in the Electrical Equipment & Parts industry. While the company faces challenges in revenue growth and cash flow consistency, its operational efficiency and profitability remain robust. Technical indicators suggest a bearish trend, but the stock's fair valuation and attractive dividend yield offer potential for long-term investors.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
196.87B	221.25B	192.77B	117.01B	99.75B
	Gross Profit
103.22B	110.00B	88.84B	58.44B	48.12B
	EBIT
28.23B	35.51B	21.71B	8.46B	1.55B
	EBITDA
42.40B	48.91B	33.79B	17.28B	9.95B
	Net Income Common Stockholders
22.31B	26.13B	19.76B	7.48B	1.47B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
69.93B	69.74B	45.14B	46.27B	42.66B
	Total Assets
168.62B	186.84B	193.94B	118.43B	104.23B
	Total Debt
1.43B	2.04B	1.13B	0.00	0.00
	Net Debt
-68.50B	-67.70B	-44.01B	-46.27B	-37.66B
	Total Liabilities
34.25B	55.82B	84.08B	28.82B	22.56B
	Stockholders Equity
134.37B	131.02B	109.86B	89.61B	81.57B
Cash Flow		Free Cash Flow
27.85B	29.82B	-1.75B	3.58B	311.00M
	Operating Cash Flow
40.86B	52.88B	18.02B	16.36B	10.70B
	Investing Cash Flow
-14.24B	-23.16B	-19.73B	-7.94B	-1.45B
	Financing Cash Flow
-13.76B	-6.62B	-333.00M	-458.00M	-410.00M

Socionext Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1710.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1710 is above the 20-day moving average (MA) of 1515.65, below the 50-day MA of 1773.31, and below the 200-day MA of 2463.03, indicating a neutral trend. The MACD of -30.89 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 83.57 is Negative, 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
6758	79 Outperform	$22.80T	19.98	14.40%	0.53%	9.56%	26.52%
6501	77 Outperform	$17.77T	29.06	10.50%	1.06%	0.56%	5.32%
6702	73 Outperform	$6.18T	27.77	11.70%	0.83%	-5.48%	-11.96%
6723	72 Outperform	$3.22T	19.65	7.22%	1.51%	-10.70%	-47.63%
6752	70 Outperform	¥4.05T	11.06	7.85%	2.15%	1.72%	-33.60%
6526	68 Neutral	¥307.38B	15.58		2.92%	-14.78%	-26.23%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%

Socionext Inc. Corporate Events

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.

Socionext Inc. Announces Leadership Changes to Strengthen Management

Socionext Inc. announced changes in its leadership, with Masahiro Koezuka stepping down from the role of President while retaining his position as Chairman. Hisato Yoshida, previously a Board Director, will take over as the new President from June 26, 2025, pending shareholder approval. The change aims to enhance corporate value by strengthening the management structure, signaling a strategic shift to bolster the company’s market positioning.