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Sony Corporation (JP:6758)
:6758
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Sony
(OTC:6758)
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Rating:74Outperform
Price Target:
¥4,668.00
▲(9.37% Upside)
Sony's strong financial performance is the most significant factor, supported by robust revenue growth and a stable balance sheet. Technical analysis shows bullish momentum, though caution is advised due to potential overbought conditions. Valuation metrics suggest the stock may be overvalued, impacting the overall score.
Positive Factors
Negative Factors
Sony (6758) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥26.08T
Dividend Yield0.53%
Average Volume (3M)12.10M
Price to Earnings (P/E)22.4
Beta (1Y)1.21
Revenue Growth-3.84%
EPS Growth18.55%
CountryJP
Employees113,000
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)40.85
Shares Outstanding6,149,810,500
10 Day Avg. Volume14,159,809
30 Day Avg. Volume12,100,060
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)2.83
Price to Sales (P/S)1.79
P/FCF Ratio13.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,805.23Price Target Upside12.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Sony Business Overview & Revenue Model
Company DescriptionSony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home and portable game consoles, packaged software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operates a visual effects and animation unit; manages a studio facility; and operates television and digital networks, and post-production facilities. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, tablets, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.
How the Company Makes MoneySony generates revenue through a variety of streams across its multiple business segments. The electronics segment earns money from the sale of consumer and professional electronics, which include televisions, audio devices, and cameras. Sony's gaming segment, anchored by the PlayStation brand, profits from hardware sales, game software, and network services subscriptions. The entertainment segment contributes through Sony Pictures and Sony Music, which earn from box office sales, home entertainment, licensing, and music streaming. Additionally, Sony's financial services, primarily operated through Sony Financial Holdings, provide insurance and banking services, contributing to the company's earnings. Significant partnerships, such as collaborations for content distribution and technology development, also play a role in enhancing Sony's revenue.
Sony Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q4-2025)
| Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a strong financial performance with record highs in several segments, such as Game and Network Services and Music. However, the potential impact of U.S. tariffs and challenges in the Pictures and Financial Services segments present significant concerns.Q4-2025 Updates
Positive Updates
Record High Financial Performance
Consolidated sales excluding the Financial Service segment for FY '24 reached ¥12,043.9 billion, and operating income was ¥1,276.6 billion, both record highs.
Strong Performance in Game and Network Services
The Game and Network Services segment saw sales increase by 9% year-on-year to ¥4,670 billion, with operating income increasing by 43% year-on-year to ¥414.8 billion, setting a new record for the segment.
Music Segment Growth
The Music segment saw a 14% year-on-year increase in sales to ¥1,842.6 billion, with operating income increasing by 18% to ¥357.3 billion, marking a new record high for the segment.
Innovative Technology and Strategic Investments
Sony is focusing on expanding its imaging ecosystem and investing in technologies like AI to enhance content creation and protect artist rights, indicating a strong commitment to future growth.
Negative Updates
Potential Impact of U.S. Tariffs
The U.S. tariffs are expected to impact profitability by approximately ¥100 billion, affecting the G&NS, ET&S, and I&SS segments.
Challenges in Pictures Segment
Despite slight sales increase primarily due to Forex impact, the Pictures segment's operating income was essentially flat year-on-year at ¥117.3 billion.
Financial Services Segment Decline
Financial Services revenues for FY '24 decreased by ¥838.6 billion year-on-year to ¥931.4 billion, primarily due to a decrease in net gains on investments at Sony Life.
Company Guidance
During the Sony Group Corporation's Corporate Strategy and Earnings Announcement Presentation for 2025, several key metrics and strategic directions were highlighted. Sony's consolidated sales excluding the Financial Service segment for FY '24 reached ¥12,043.9 billion, with an operating income of ¥1,276.6 billion, marking record highs for the company. Including the Financial Service segment, consolidated sales were ¥12,957.1 billion, with an operating income of ¥1,407.2 billion and a net income of ¥1,141.6 billion. The entertainment business accounted for 61% of Sony's consolidated sales, demonstrating its resilience during economic downturns. For FY '25, the forecasted sales are ¥11,700 billion with an operating income of ¥1,380 billion. The company is also focusing on increasing average revenue per user (ARPU) through the PlayStation Store. The Music segment saw sales of ¥1,842.6 billion and operating income of ¥357.3 billion, both of which were record highs. Sony expects stable growth in the Pictures segment, with forecasted sales of ¥1,500 trillion and an operating income of ¥125 billion. Anime is projected to be a significant growth driver, with the market size expected to grow at a high single-digit CAGR from 2023 to 2030. The Imaging & Sensing Solutions segment anticipates growth in sales and profit due to an expansion of mobile sensor sizes. Sony announced a strategic focus on leveraging its diverse business portfolio and cross-company collaborations to drive future growth.Sony Financial Statement Overview
Summary
Sony demonstrates strong financial health with impressive revenue growth and profitability metrics. The balance sheet is stable with low leverage, and cash flow generation is robust. Some fluctuations in growth rates are noted, but the overall financial position is solid.Income Statement
Sony's income statement shows strong performance with a significant revenue growth rate of 45% in the TTM period. The gross profit margin is healthy at 29.43%, and the net profit margin is solid at 9.13%. The EBIT and EBITDA margins are also robust, indicating efficient operations. However, the slight decline in annual revenue growth in the previous year suggests some volatility.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.19 in the TTM period, indicating low leverage. The return on equity is strong at 14.17%, showcasing effective use of equity. The equity ratio is not explicitly provided, but the overall equity position appears solid. The reduction in total debt over time is a positive sign.78
Positive
Cash Flow
Sony's cash flow statement is strong, with a notable free cash flow growth rate of 17.11% in the TTM period. The operating cash flow to net income ratio is moderate, suggesting reasonable cash generation relative to net income. The free cash flow to net income ratio is healthy at 77.99%, indicating good cash conversion. However, past fluctuations in free cash flow growth highlight potential volatility.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.57T | 12.96T | 13.02T | 10.97T | 9.92T | 9.00T |
| Gross Profit | 3.70T | 4.40T | 4.07T | 3.97T | 3.32T | 2.98T |
| EBITDA | 2.75T | 2.71T | 2.46T | 2.29T | 2.03T | 1.74T |
| Net Income | 1.15T | 1.14T | 970.57B | 1.01T | 882.18B | 1.03T |
Balance Sheet | ||||||
| Total Assets | 35.13T | 35.29T | 34.11T | 31.15T | 29.65T | 27.51T |
| Cash, Cash Equivalents and Short-Term Investments | 1.63T | 3.45T | 2.33T | 1.83T | 2.47T | 2.22T |
| Total Debt | 1.61T | 4.20T | 4.09T | 4.06T | 3.57T | 2.65T |
| Total Liabilities | 26.55T | 26.78T | 26.35T | 24.50T | 23.95T | 20.78T |
| Stockholders Equity | 8.30T | 8.18T | 7.59T | 6.60T | 5.65T | 6.68T |
Cash Flow | ||||||
| Free Cash Flow | 1.97T | 1.67T | 749.27B | -298.94B | 792.55B | 662.29B |
| Operating Cash Flow | 2.53T | 2.32T | 1.37T | 314.69B | 1.23T | 1.14T |
| Investing Cash Flow | -744.32B | -930.12B | -818.89B | -1.05T | -728.78B | -960.61B |
| Financing Cash Flow | -512.39B | -298.24B | -210.71B | 84.30B | -336.58B | 58.16B |
Sony Technical Analysis
Positive
4268.00
Price Trends
3824.09
Positive
3671.42
Positive
3478.30
Positive
Market Momentum
108.59
Negative
64.36
Neutral
8.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6758, the sentiment is Positive. The current price of 4268 is above the 20-day moving average (MA) of 4032.15, above the 50-day MA of 3824.09, and above the 200-day MA of 3478.30, indicating a bullish trend. The MACD of 108.59 indicates Negative momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 8.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6758.
Sony Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥26.08T | 22.45 | 14.70% | 0.53% | -3.84% | 18.55% | |
73 Outperform | ¥3.89T | 10.59 | 8.00% | 2.40% | -4.14% | 16.99% | |
70 Outperform | ¥179.18B | 9.73 | 16.21% | 1.26% | 0.31% | 23.47% | |
69 Neutral | ¥283.22B | 50.55 | 3.68% | 3.62% | -4.66% | -61.05% | |
60 Neutral | ¥558.29B | 8.64 | 37.03% | ― | -9.17% | ― | |
58 Neutral | ¥2.87T | 117.46 | 0.74% | 2.45% | -1.48% | -75.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:6758
Sony
4,268.00
1,580.91
58.83%
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JVCKENWOOD Corporation
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Sharp Corporation
831.00
-140.00
-14.42%
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.