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Socionext Inc.
(6526)
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Rating:54Neutral
Price Target:
¥2,063.00
▼(-13.77% Downside)
Action:Downgraded
Date:07/30/26
The score is mainly held back by weak cash generation (negative free cash flow and poor cash conversion) and a bearish technical setup (price below key moving averages). Strong revenue momentum and a low-leverage balance sheet provide support, while the high P/E keeps valuation from scoring higher despite a moderate dividend yield.
Positive Factors
Strong revenue growth
Sustained TTM revenue growth (~223%) indicates robust demand for SoC programs and successful program ramps. Over a 2–6 month horizon this supports recurring chip-sales upside, strengthens customer relationships, and provides runway for scaling engineering efforts and platform reuse.
Negative Factors
Negative free cash flow
Persistently negative free cash flow (~-¥13.8B TTM) constrains reinvestment and strategic optionality. Even with revenue growth, negative FCF pressures liquidity, may force external financing for R&D or program support, and reduces the margin for execution missteps over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Sustained TTM revenue growth (~223%) indicates robust demand for SoC programs and successful program ramps. Over a 2–6 month horizon this supports recurring chip-sales upside, strengthens customer relationships, and provides runway for scaling engineering efforts and platform reuse.
Read all positive factors
Socionext Inc. (6526) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥383.56B
Dividend Yield2.48%
Average Volume (3M)14.71M
Price to Earnings (P/E)48.2
Beta (1Y)2.13
Revenue Growth20.56%
EPS Growth-37.31%
CountryJP
Employees2,469
SectorIndustrials
Sector Strength72
IndustrySemiconductors
Share Statistics
EPS (TTM)43.87
Shares Outstanding179,989,260
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)79.91
Revenue Forecast (FY)¥235.32B
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 primarily makes money by providing custom SoC solutions and associated development services to corporate customers. Its revenue model is generally project- and product-based: (1) Custom SoC development and non-recurring engineering (NRE)...
Socionext Inc. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
78
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 205.32B | 200.83B | 188.53B | 221.25B | 192.77B | 117.01B |
| Gross Profit | 90.95B | 89.78B | 103.92B | 110.00B | 88.84B | 58.44B |
| EBITDA | 27.98B | 28.66B | 41.61B | 50.52B | 35.52B | 17.87B |
| Net Income | 7.69B | 8.73B | 19.60B | 26.13B | 19.76B | 7.48B |
Balance Sheet | ||||||
| Total Assets | 173.42B | 167.62B | 170.31B | 186.84B | 193.94B | 118.43B |
| Cash, Cash Equivalents and Short-Term Investments | 37.32B | 44.54B | 72.84B | 69.74B | 45.14B | 46.27B |
| Total Debt | 1.69B | 0.00 | 1.63B | 2.04B | 1.13B | 0.00 |
| Total Liabilities | 44.91B | 34.57B | 33.27B | 55.82B | 84.08B | 28.82B |
| Stockholders Equity | 128.51B | 133.06B | 137.05B | 131.02B | 109.86B | 89.61B |
Cash Flow | ||||||
| Free Cash Flow | -13.77B | -7.16B | 19.11B | 41.00B | 5.39B | 8.81B |
| Operating Cash Flow | 941.00M | 7.69B | 31.87B | 52.88B | 18.02B | 16.36B |
| Investing Cash Flow | -25.77B | -22.88B | -14.55B | -23.16B | -19.73B | -7.94B |
| Financing Cash Flow | -9.19B | -14.24B | -13.82B | -6.62B | -333.00M | -458.00M |
Socionext Inc. Technical Analysis
Negative
2392.50
Price Trends
2390.07
Negative
2288.73
Negative
2235.60
Negative
Market Momentum
-116.27
Negative
40.73
Neutral
75.24
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 2392.5 is above the 20-day moving average (MA) of 2128.70, above the 50-day MA of 2390.07, and above the 200-day MA of 2235.60, indicating a bearish trend. The MACD of -116.27 indicates Negative momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 75.24 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥2.14T | 20.43 | 13.23% | 1.41% | 10.40% | 15.01% | |
68 Neutral | ¥12.87T | 29.54 | 9.80% | 1.19% | 9.57% | 18.11% | |
68 Neutral | ¥10.67T | 48.78 | 32.23% | 0.82% | 27.94% | 99.60% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥3.02T | 33.76 | 19.52% | 0.62% | 12.86% | 165.14% | |
54 Neutral | ¥383.56B | 48.15 | ― | 2.09% | 20.56% | -37.31% | |
54 Neutral | ¥1.43T | 41.55 | 7.18% | 1.29% | 4.62% | -38.12% |
* Industrials Sector Average
JP:6526
Socionext Inc.
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Socionext Inc. Corporate Events
Socionext Posts Quarterly Loss but Maintains Full-Year Forecast and Dividend Plan
Jul 29, 2026
Socionext reported consolidated net sales of ¥39.0 billion for the three months ended June 30, 2026, up 13.0% year on year, but swung to an operating loss of ¥662 million and a net loss attributable to owners of the parent of ¥580 m...
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...
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.