Socionext Inc. (JP:6526)
:6526
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Socionext Inc.
(6526)
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Rating:76Outperform
Price Target:
¥2,980.00
▲(36.10% Upside)
Action:Reiterated
Date:05/22/26
The score is primarily driven by strong technical momentum (price above key moving averages with positive MACD) and a high-quality, low-leverage balance sheet. Offsetting these positives are weaker recent profitability and a sharp deterioration in cash generation, including negative free cash flow in 2026, while valuation is fair rather than compelling.
Positive Factors
Strong Balance Sheet
Minimal leverage and a sizable, stable equity base give Socionext durable financial resilience. Low debt reduces refinancing and interest risk, supports R&D and multi-year design programs, and provides capacity to absorb cyclical downturns without forcing disruptive cuts to engineering or customer commitments.
Negative Factors
Volatile cash generation; negative FCF in 2026
Sharp swings to negative free cash flow impair the company's ability to fund R&D, sustain dividends, or invest in capacity without external financing. Volatile cash from working-capital swings undermines planning for multi-year design cycles and raises the chance of funding-driven delays to customer programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
Minimal leverage and a sizable, stable equity base give Socionext durable financial resilience. Low debt reduces refinancing and interest risk, supports R&D and multi-year design programs, and provides capacity to absorb cyclical downturns without forcing disruptive cuts to engineering or customer commitments.
Read all positive factors
Socionext Inc. (6526) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥398.91B
Dividend Yield2.29%
Average Volume (3M)14.71M
Price to Earnings (P/E)20.7
Beta (1Y)1.86
Revenue Growth6.52%
EPS Growth-54.63%
CountryJP
Employees2,534
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)49.79
Shares Outstanding179,974,880
10 Day Avg. Volume13,799,260
30 Day Avg. Volume14,706,146
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)2.47
Price to Sales (P/S)1.63
P/FCF Ratio-45.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)87.6
Revenue Forecast (FY)¥233.81B
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 proc...
How the Company Makes Money
Socionext makes money primarily by providing custom and semi-custom SoC/ASIC solutions to customers and recognizing revenue from (1) non-recurring engineering (NRE) and design-related services and (2) ongoing sales of finished chips once a custome...
Socionext Inc. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
90
Very Positive
Cash Flow
52
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 200.83B | 188.53B | 221.25B | 192.77B | 117.01B |
| Gross Profit | 89.78B | 103.92B | 110.00B | 88.84B | 58.44B |
| EBITDA | 29.26B | 41.24B | 48.91B | 33.79B | 17.28B |
| Net Income | 8.73B | 19.60B | 26.13B | 19.76B | 7.48B |
Balance Sheet | |||||
| Total Assets | 167.62B | 170.31B | 186.84B | 193.94B | 118.43B |
| Cash, Cash Equivalents and Short-Term Investments | 44.54B | 72.84B | 69.74B | 45.14B | 46.27B |
| Total Debt | 0.00 | 1.63B | 2.04B | 1.13B | 0.00 |
| Total Liabilities | 34.57B | 33.27B | 55.82B | 84.08B | 28.82B |
| Stockholders Equity | 133.06B | 137.05B | 131.02B | 109.86B | 89.61B |
Cash Flow | |||||
| Free Cash Flow | -7.16B | 19.11B | 41.00B | 5.39B | 8.81B |
| Operating Cash Flow | 7.69B | 31.87B | 52.88B | 18.02B | 16.36B |
| Investing Cash Flow | -22.88B | -14.55B | -23.16B | -19.73B | -7.94B |
| Financing Cash Flow | -14.24B | -13.82B | -6.62B | -333.00M | -458.00M |
Socionext Inc. Technical Analysis
Positive
2189.50
Price Trends
1956.01
Positive
2035.73
Positive
2333.85
Positive
Market Momentum
139.24
Negative
68.67
Neutral
63.21
Neutral
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 2189.5 is above the 20-day moving average (MA) of 2146.70, above the 50-day MA of 1956.01, and below the 200-day MA of 2333.85, indicating a bullish trend. The MACD of 139.24 indicates Negative momentum. The RSI at 68.67 is Neutral, neither overbought nor oversold. The STOCH value of 63.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6526.
Socionext Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥398.91B | 20.75 | ― | 2.29% | 6.52% | -54.63% | |
76 Outperform | ¥2.01T | 7.87 | 12.05% | 1.50% | 9.27% | 3.50% | |
75 Outperform | ¥12.07T | 22.92 | 9.29% | 1.19% | 6.76% | 27.25% | |
69 Neutral | ¥7.54T | 43.08 | 32.32% | 0.91% | 20.73% | 72.44% | |
68 Neutral | ¥3.58T | 27.94 | 10.06% | 1.21% | 8.80% | 117.61% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥1.59T | 36.88 | 8.39% | 1.49% | 0.83% | -37.84% |
* Industrials Sector Average
JP:6526
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Socionext Inc. Corporate Events
Socionext Revamps Audit Board Lineup Ahead of June Shareholders’ Meeting
May 19, 2026
Socionext Inc. has proposed a slate of board directors for approval at its 12th Ordinary General Shareholders’ Meeting on June 25, 2026, including the reappointment of Representative Director, Chairman and CEO Masahiro Koezuka, President and...
Socionext Holds Annual Dividend Steady at 50 Yen Per Share
May 19, 2026
Socionext Inc. has approved a year-end dividend of 25 yen per share for shareholders of record as of March 31, 2026, matching both its latest forecast and the prior fiscal year’s payout. The total distribution will amount to 4,412 million ye...
Socionext Keeps Dividend as Profit Halves, Signals Earnings Rebound in FY 2027
Apr 28, 2026
Socionext reported fiscal 2026 net sales of ¥200.8 billion, up 6.5% year on year, but saw operating income halved to ¥12.4 billion and profit attributable to owners drop 55.4% to ¥8.7 billion, compressing margins and returns. The ba...
Socionext Tops Fiscal 2026 Forecasts on Strong Product Demand and Weaker Yen
Apr 28, 2026
Socionext reported that its consolidated results for the fiscal year ended March 31, 2026, exceeded its prior forecasts, with net sales, operating income, ordinary income, and profit attributable to owners of the parent all coming in above guidanc...
Socionext Swiftly Fills Audit Committee Vacancy After Director’s Death
Apr 28, 2026
Socionext Inc. announced the death of outside director and Audit Supervisory Committee member Morimasa Ikemoto on April 26, 2026, which immediately ended his term. His passing temporarily reduced the number of audit committee directors below the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.