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Socionext Inc. (JP:6526)
:6526
Japanese Market
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Socionext Inc. (6526) AI Stock Analysis

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JP:6526

Socionext Inc.

(6526)

Rating:76Outperform
Price Target:
¥3,232.00
▲(11.26%Upside)
Socionext Inc. has a robust financial foundation and technical indicators that suggest strong market momentum. However, its valuation metrics indicate limited growth expectations, reflecting recent revenue and cash flow challenges. The absence of earnings call data or corporate events does not impact the overall score.

Socionext Inc. (6526) vs. iShares MSCI Japan ETF (EWJ)

Socionext Inc. Business Overview & Revenue Model

Company DescriptionSocionext 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 MoneySocionext Inc. generates revenue primarily through the sale of its SoC products and related services. The company collaborates closely with its clients to provide customized semiconductor solutions that meet specific application needs, which allows them to command premium pricing for their tailored offerings. Revenue streams include direct sales of SoC products to manufacturers and businesses in the automotive, consumer electronics, and industrial sectors. Additionally, Socionext benefits from strategic partnerships and collaborations with technology and manufacturing firms, which help expand its market reach and enhance its product offerings. The company's ability to innovate and deliver high-performance, energy-efficient solutions also contributes significantly to its earnings.

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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue188.53B221.25B192.77B117.01B99.75B
Gross Profit103.92B110.00B88.84B58.44B48.12B
EBITDA41.61B48.91B33.79B17.28B9.95B
Net Income19.60B26.13B19.76B7.48B1.47B
Balance Sheet
Total Assets170.31B186.84B193.94B118.43B104.23B
Cash, Cash Equivalents and Short-Term Investments72.84B69.74B45.14B46.27B42.66B
Total Debt1.30B2.04B1.13B0.000.00
Total Liabilities33.27B55.82B84.08B28.82B22.56B
Stockholders Equity137.05B131.02B109.86B89.61B81.57B
Cash Flow
Free Cash Flow19.11B29.82B-1.75B3.58B311.00M
Operating Cash Flow31.87B52.88B18.02B16.36B10.70B
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 Price2905.00
Price Trends
50DMA
2543.21
Positive
100DMA
2140.24
Positive
200DMA
2307.17
Positive
Market Momentum
MACD
94.44
Negative
RSI
65.34
Neutral
STOCH
79.82
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 2905 is above the 20-day moving average (MA) of 2723.50, above the 50-day MA of 2543.21, and above the 200-day MA of 2307.17, indicating a bullish trend. The MACD of 94.44 indicates Negative momentum. The RSI at 65.34 is Neutral, neither overbought nor oversold. The STOCH value of 79.82 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥505.18B25.58
1.75%-14.78%-26.29%
61
Neutral
C$6.54B7.692.76%2.70%6.30%-23.25%
€40.17B20.258.40%1.61%
$7.26B12.0914.10%2.06%
$3.85B17.699.85%1.03%
$5.88B15.0213.09%2.05%
€14.48B25.7724.26%1.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6526
Socionext Inc.
2,905.00
-250.76
-7.95%
DE:MIE1
Mitsubishi Electric
19.26
5.17
36.69%
FELTF
Fuji Electric Co
51.12
-0.63
-1.22%
FUWAF
Furukawa Electric Co
58.28
33.12
131.64%
YASKF
Yaskawa Electric
21.00
-12.41
-37.14%
DE:FJK
Fujikura Ltd
52.00
34.32
194.12%

Socionext Inc. Corporate Events

Socionext Inc. Reports Significant Decline in Q1 2025 Financial Performance
Jul 31, 2025

Socionext Inc. reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 34.5% compared to the previous year. The company’s operating and ordinary income also saw substantial decreases, impacting its overall profitability and market position.

The most recent analyst rating on (JP:6526) stock is a Hold with a Yen2200.00 price target. To see the full list of analyst forecasts on Socionext Inc. stock, see the JP:6526 Stock Forecast page.

Socionext Completes Treasury Shares Disposition for Stock Compensation
Jul 31, 2025

Socionext Inc. has completed the payment procedures for the disposition of treasury shares as part of its performance-based restricted stock compensation plan. This move, resolved by the Board of Directors on June 26, 2025, involves the disposition of 50,983 shares at a price of 2,747.5 yen per share, totaling 140,075,788 yen. The shares are allocated to select board directors, executive officers, and employees, potentially impacting the company’s governance and stakeholder alignment.

The most recent analyst rating on (JP:6526) stock is a Buy with a Yen3900.00 price target. To see the full list of analyst forecasts on Socionext Inc. stock, see the JP:6526 Stock Forecast page.

Socionext Inc. Announces Treasury Shares Disposition for Performance-Based Compensation
Jun 26, 2025

Socionext Inc. has announced a resolution to dispose of treasury shares as part of a performance-based restricted stock compensation plan. This move aims to align the interests of its directors and executive officers with corporate performance and shareholder value, fostering long-term corporate value enhancement. The plan involves issuing common stock to eligible directors and executive officers based on performance targets, with transfer restrictions applied to the allotted shares. This strategic initiative is expected to strengthen the company’s market position and incentivize sustainable growth.

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 Completes Treasury Share Acquisition
Jun 2, 2025

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
May 19, 2025

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
May 19, 2025

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
May 7, 2025

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.

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.Date of analysis: Jul 26, 2025