Socionext Inc. (6526) AI Stock Analysis

• Market Cap: ¥357.58B
• Dividend Yield: 2.29%
• Average Volume (3M): 14.71M
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.87
• Revenue Growth: -13.21%
• EPS Growth: -54.83%
• Country: JP
• Employees: 2,534
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 15.52
• Shares Outstanding: 179,961,880
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 47.75
• Revenue Forecast (FY): ¥200.02B

• Rating: 60 Neutral
• Price Target: ¥1,832.00 ▼(-16.33% Downside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is supported primarily by a very strong, low-leverage balance sheet, but it is held back by weakened near-term profitability and negative TTM free cash flow. Technicals are notably bearish with price below all major moving averages and negative momentum, and valuation is relatively expensive given the high P/E despite a moderate dividend yield.

Positive Factors

Very low leverage / strong balance sheet

Exceptionally low leverage and a large equity base give Socionext durable financial flexibility. This supports multi-year, capital-intensive SoC development cycles, cushions cyclical demand swings, and enables funding of R&D or temporary working-capital needs without refinancing pressure.

Negative Factors

Recent margin compression

A sharp drop in operating and net margins signals structural pressure on profitability—whether from pricing, cost inflation, or mix shifts. Sustained lower margins would reduce internally available funds for R&D and weaken returns on long SoC development investments, affecting competitiveness.

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...

Read more

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 chip (ASIC/SoC) development and related services and then earning revenue when those chips enter production and ship in volume. Key revenue streams typically include: (1) Non-recurring engineerin...

Read more

Socionext makes money primarily by providing custom chip (ASIC/SoC) development and related services and then earning revenue when those chips enter production and ship in volume. Key revenue streams typically include: (1) Non-recurring engineerin...

Socionext Inc. Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	185.41B	188.53B	221.25B	192.77B	117.01B	99.75B
Gross Profit	90.22B	103.92B	110.00B	88.84B	67.26B	56.52B
EBITDA	25.91B	41.61B	50.52B	35.52B	587.00M	417.00M
Net Income	7.91B	19.60B	26.13B	19.76B	7.48B	1.47B
Balance Sheet
Total Assets	163.34B	170.31B	186.84B	193.94B	118.43B	104.23B
Cash, Cash Equivalents and Short-Term Investments	43.79B	72.84B	69.74B	45.14B	46.27B	42.66B
Total Debt	1.24B	1.63B	2.04B	1.13B	0.00	0.00
Total Liabilities	34.41B	33.27B	55.82B	84.08B	28.82B	22.56B
Stockholders Equity	128.93B	137.05B	131.02B	109.86B	89.61B	81.57B
Cash Flow
Free Cash Flow	-3.79B	19.11B	41.00B	5.39B	8.81B	6.86B
Operating Cash Flow	11.17B	31.87B	52.88B	18.02B	16.36B	10.70B
Investing Cash Flow	-23.36B	-14.55B	-23.16B	-19.73B	-7.94B	-1.45B
Financing Cash Flow	-14.08B	-13.82B	-6.62B	-333.00M	-458.00M	-410.00M

Socionext Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2189.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6526, the sentiment is Neutral. The current price of 2189.5 is above the 20-day moving average (MA) of 1824.37, above the 50-day MA of 2006.42, and below the 200-day MA of 2451.07, indicating a neutral trend. The MACD of -62.14 indicates Negative momentum. The RSI at 49.76 is Neutral, neither overbought nor oversold. The STOCH value of 62.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6526.

Socionext Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6506	72 Outperform	¥1.15T	35.76	8.39%	1.49%	-2.18%	30.16%
5803	72 Outperform	¥7.75T	26.86	32.32%	0.91%	27.53%	137.34%
6503	71 Outperform	¥11.46T	21.58	9.29%	1.19%	4.62%	40.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6504	63 Neutral	¥1.63T	19.95	12.05%	1.50%	5.44%	-5.19%
5801	61 Neutral	¥2.27T	7.80	10.06%	1.21%	10.52%	60.75%
6526	60 Neutral	¥357.58B	35.22	―	2.29%	-13.21%	-54.83%

Socionext Inc. Corporate Events