Socionext Inc. (JP:6526)
:6526
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Socionext Inc.
(6526)
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Rating:60Neutral
Price Target:
¥1,901.00
▼(-13.18% Downside)
Action:ReiteratedDate: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
Low Leverage / Strong Balance Sheet
Very low leverage provides durable financial flexibility: the company can fund R&D, absorb product ramp delays, and support multi-year SoC programs without forcing distress sales or near-term financing. This underpins resilience through industry cycles and capital-intensive design timelines.
Negative Factors
Negative TTM Free Cash Flow / Weakened Cash Conversion
A reversal to negative TTM free cash flow reduces internal funding for new NRE programs and increases sensitivity to working-capital swings. Over months this can constrain discretionary R&D or require external financing despite a strong balance sheet, raising execution risk on multi-year projects.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Balance Sheet
Very low leverage provides durable financial flexibility: the company can fund R&D, absorb product ramp delays, and support multi-year SoC programs without forcing distress sales or near-term financing. This underpins resilience through industry cycles and capital-intensive design timelines.
Read all positive factors
Socionext Inc. (6526) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥331.40B
Dividend Yield2.29%
Average Volume (3M)14.71M
Price to Earnings (P/E)35.2
Beta (1Y)1.93
Revenue Growth-13.21%
EPS Growth-54.83%
CountryJP
Employees2,534
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)15.52
Shares Outstanding179,961,880
10 Day Avg. Volume13,799,260
30 Day Avg. Volume14,706,146
Financial Highlights & Ratios
PEG Ratio-0.62
Price to Book (P/B)2.32
Price to Sales (P/S)1.69
P/FCF Ratio16.67
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)105.36
Revenue Forecast (FY)¥236.96B
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 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
Summary
Income Statement
66
Positive
Balance Sheet
88
Very Positive
Cash Flow
58
Neutral
| 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 | 58.44B | 48.12B |
| EBITDA | 28.34B | 41.24B | 48.91B | 33.79B | 17.28B | 9.95B |
| 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
Negative
2189.50
Price Trends
1889.37
Negative
2045.84
Negative
2382.36
Negative
Market Momentum
-16.19
Positive
45.83
Neutral
36.80
Neutral
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 2189.5 is above the 20-day moving average (MA) of 1861.74, above the 50-day MA of 1889.37, and below the 200-day MA of 2382.36, indicating a bearish trend. The MACD of -16.19 indicates Positive momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 36.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | ¥9.97T | 26.86 | 32.32% | 0.91% | 27.53% | 137.34% | |
75 Outperform | ¥3.11T | 7.80 | 10.06% | 1.21% | 10.52% | 60.75% | |
71 Outperform | ¥12.21T | 21.58 | 9.29% | 1.19% | 4.62% | 40.65% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥1.64T | 19.95 | 12.05% | 1.50% | 5.44% | -5.19% | |
60 Neutral | ¥331.40B | 35.22 | ― | 2.29% | -13.21% | -54.83% | |
58 Neutral | ¥1.38T | 40.59 | 8.39% | 1.49% | -2.18% | 30.16% |
* Industrials Sector Average
JP:6526
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Socionext Inc. Corporate Events
Socionext Profit Slumps Despite Stable Sales, Keeps Full-Year Outlook and Dividend
Jan 30, 2026
Socionext reported consolidated net sales of ¥142.1 billion for the nine months ended December 31, 2025, down 2.2% year-on-year, while operating income dropped 65.1% to ¥7.2 billion and profit attributable to owners of parent fell 71.0% ...
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.