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SoftBank Corp. (JP:9434)
:9434
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SoftBank Corp.
(9434)
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Rating:69Neutral
Price Target:
¥255.00
▲(12.88% Upside)
SoftBank Corp. shows strong financial performance with stable revenue growth and operational efficiency, despite high leverage. The earnings call provided positive guidance with ambitious growth targets, particularly in AI and technology investments. However, the stock's valuation appears high, and technical indicators suggest only moderate momentum. The dividend yield remains a strong point for income-focused investors.
Positive Factors
Revenue Growth
Achieving revenue targets ahead of schedule indicates strong demand for SoftBank's services and effective execution of its growth strategy, suggesting continued market expansion.
Enterprise Business Expansion
Significant growth in enterprise business reflects SoftBank's successful penetration into corporate markets, enhancing its revenue base and diversification.
Advancements in AI and Technology
Investments in AI and technology infrastructure position SoftBank as a leader in innovation, potentially driving future growth and competitive advantage.
Negative Factors
High Leverage
High leverage increases financial risk and limits flexibility, potentially impacting SoftBank's ability to invest in growth opportunities or weather economic downturns.
Net Income Shortfall
Failure to meet net income expectations highlights potential volatility in earnings, which could affect investor confidence and financial stability.
Churn Rate Concerns
Rising churn rates indicate customer retention challenges, which could undermine revenue stability and necessitate increased marketing spend to acquire new customers.
SoftBank Corp. (9434) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥10.74T
Dividend Yield3.81%
Average Volume (3M)56.07M
Price to Earnings (P/E)21.7
Beta (1Y)0.45
Revenue Growth7.71%
EPS Growth-1.03%
CountryJP
Employees55,400
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)3.00
Shares Outstanding47,869,305,000
10 Day Avg. Volume54,845,150
30 Day Avg. Volume56,065,296
Financial Highlights & Ratios
PEG Ratio2.83
Price to Book (P/B)3.69
Price to Sales (P/S)1.55
P/FCF Ratio16.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥247.00Price Target Upside9.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
SoftBank Corp. Business Overview & Revenue Model
Company DescriptionSoftBank Corp. operates as an affiliate of paypay bank corporation with 14.87% indirect stakes.
How the Company Makes MoneySoftBank Corp. generates revenue primarily through its core telecommunications services, which include mobile and fixed-line communication services for individual and corporate customers. The company earns significant income from its mobile segment, where it offers voice, data, and device sales. Another key revenue stream is its broadband and internet services, providing high-speed internet access to residential and business customers. Additionally, SoftBank Corp. has been expanding its enterprise business, offering IT solutions, cloud computing services, and IoT platforms to meet the evolving needs of businesses. The company also enters into strategic partnerships and alliances to enhance its service offerings and customer base, contributing to its overall earnings.
SoftBank Corp. Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in revenue and operating income, surpassing mid-term targets ahead of schedule, alongside strong growth in enterprise and media sectors. However, challenges in net income realization, electricity sales forecasting, and churn rate were noted. The company is making aggressive investments in AI and technology to sustain long-term growth.Q4-2024 Updates
Positive Updates
Record-Breaking Revenue Achievement
Revenue was JPY6,544.3 billion, up 8%, achieving the mid-term Management Plan goal of JPY6.5 trillion one year ahead of schedule.
Operating Income Growth
Operating income increased to JPY989.0 billion, up 13%, surpassing the JPY970 billion target set in the mid-term plan one year ahead of schedule.
Enterprise Business Expansion
Enterprise business revenue grew by 27% year-on-year, with a clear path towards JPY1 trillion in revenue from this segment alone.
Strong Performance in Media and E-commerce
PayPay's gross merchandise value rose 23% to JPY15.4 trillion, marking a second consecutive year of profitability with a consolidated EBITDA of JPY45.6 billion.
Advancements in AI and Technology
Successful completion of an AI data center at Sharp Sakai plant for JPY100 billion and development of Sarashina mini, a high-performance AI model with 70 billion parameters.
Dividend Consistency
The dividend was set at JPY8.6 per share, consistent with previous commitments.
Negative Updates
Net Income Shortfall
Net income was JPY526.1 billion, up 8%, but failed to meet expectations due to a valuation loss on a portfolio company.
Challenges with Electricity Sales
Forecasting sales of electricity in the consumer business is difficult due to weather conditions, posing a challenge for revenue increase.
Price Increase Concerns
Inflationary environment raises concerns about maintaining flat dividends and the potential need for price increases in telecommunications.
Churn Rate Concerns
Churn rate increased, particularly due to short-term conversions in the SIM-only contracts with Y!mobile.
Company Guidance
In the call, SoftBank Corporation provided detailed guidance for fiscal year 2025, highlighting several key financial metrics and strategic plans. They reported an 8% increase in revenue to JPY6,544.3 billion, achieving their mid-term Management Plan's revenue target one year ahead of schedule. Operating income rose by 13% to JPY989.0 billion, also meeting the mid-term target early. Despite not reaching the net income target due to a valuation loss, net income increased by 8% to JPY526.1 billion. The dividend was maintained at JPY8.6 per share. Looking forward, SoftBank revised its revenue forecast upward by JPY200 billion for FY2025, aiming for a 10th consecutive year of revenue growth. They set a new operating income target of JPY1 trillion, driven by continuous profit growth across all segments and significant investments in AI. Additionally, they aim to achieve a net income of JPY540 billion and maintain the dividend at JPY8.6 per share, with potential share buybacks and dividend increases considered after upfront investments. The company also highlighted its commitment to investing in AI and next-generation infrastructure, with plans for significant R&D expenditures and initiatives in AI data centers and memory technology.SoftBank Corp. Financial Statement Overview
Summary
SoftBank Corp. demonstrates stable revenue growth and strong operational efficiency, as reflected in its income statement. The balance sheet reveals high leverage, which could be a risk factor, but the company effectively generates returns on equity. Cash flow management shows some weaknesses, particularly in free cash flow growth, but overall cash generation remains adequate.Income Statement
SoftBank Corp. shows a stable revenue growth trend with a TTM revenue growth rate of 1.88%. The gross profit margin remains strong at approximately 48.3%, indicating efficient cost management. However, the net profit margin is relatively modest at 8.04%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.75
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 2.17, indicating significant leverage, which could pose financial risk. However, the return on equity is strong at 20.51%, demonstrating effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing assets.65
Positive
Cash Flow
Operating cash flow is solid, but the free cash flow has declined by 3.99% in the TTM period, which could affect future investments. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is reasonable, showing some efficiency in cash generation relative to net income.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.67T | 6.54T | 6.08T | 5.91T | 5.69T | 5.21T |
| Gross Profit | 3.21T | 3.16T | 2.93T | 2.72T | 2.80T | 2.50T |
| EBITDA | 1.74T | 1.74T | 1.64T | 1.75T | 1.73T | 1.66T |
| Net Income | 501.18B | 519.98B | 489.07B | 531.37B | 517.08B | 491.29B |
Balance Sheet | ||||||
| Total Assets | 17.06T | 16.10T | 15.52T | 14.68T | 13.10T | 12.21T |
| Cash, Cash Equivalents and Short-Term Investments | 1.56T | 1.61T | 2.15T | 2.19T | 1.66T | 1.67T |
| Total Debt | 6.51T | 5.96T | 6.32T | 6.13T | 6.02T | 5.59T |
| Total Liabilities | 12.78T | 11.84T | 11.59T | 11.00T | 9.88T | 9.47T |
| Stockholders Equity | 2.70T | 2.74T | 2.38T | 2.22T | 1.96T | 1.54T |
Cash Flow | ||||||
| Free Cash Flow | 596.39B | 621.21B | 685.62B | 546.53B | 506.83B | 859.43B |
| Operating Cash Flow | 1.30T | 1.37T | 1.24T | 1.16T | 1.22T | 1.34T |
| Investing Cash Flow | -945.14B | -971.93B | -893.40B | -123.87B | -950.57B | -504.12B |
| Financing Cash Flow | -700.82B | -979.68B | -391.30B | -526.17B | -312.19B | -395.64B |
SoftBank Corp. Technical Analysis
Neutral
225.90
Price Trends
227.81
Negative
223.77
Positive
212.63
Positive
Market Momentum
-0.70
Positive
41.88
Neutral
32.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9434, the sentiment is Neutral. The current price of 225.9 is below the 20-day moving average (MA) of 229.52, below the 50-day MA of 227.81, and above the 200-day MA of 212.63, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 41.88 is Neutral, neither overbought nor oversold. The STOCH value of 32.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9434.
SoftBank Corp. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 13.48T | 13.37 | 10.48% | 3.29% | 1.65% | -15.29% | |
75 Outperform | 253.10B | 20.06 | 13.20% | 2.30% | 7.33% | 10.59% | |
70 Outperform | 9.21T | 14.34 | 13.19% | 4.41% | 2.66% | 11.83% | |
69 Neutral | ¥10.74T | 21.67 | 3.81% | 7.71% | -1.03% | ||
66 Neutral | 494.99B | 23.83 | 14.19% | 1.27% | 12.19% | 4.12% | |
63 Neutral | 26.23T | 15.04 | 15.85% | 0.25% | 6.69% | 2988.22% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
JP:9434
SoftBank Corp.
225.90
36.14
19.05%
IIJIF
Internet Initiative Japan
18.62
-1.70
-8.37%
KDDIF
KDDI
16.63
-0.63
-3.65%
NPPXF
Nippon Telegraph and Telephone
0.96
-0.04
-4.00%
DE:OCU
Okinawa Cellular Telephone Company
30.40
6.54
27.41%
SFTBF
SoftBank Group
124.68
64.46
107.04%
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.