SoftBank Corp. (9434) AI Stock Analysis

• Market Cap: ¥10.31T
• Dividend Yield: 3.99%
• Average Volume (3M): 59.70M
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.39
• Revenue Growth: 7.79%
• EPS Growth: 5.53%
• Country: JP
• Employees: 55,400
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 47,958,652,000
• 10 Day Avg. Volume: 58,027,199
• 30 Day Avg. Volume: 59,702,612
• PEG Ratio: 2.86
• Price to Book (P/B): 3.69
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 16.29
• 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: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥224.00 ▲(4.28% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is led by steady financial performance (solid margins and modest growth) but held back by high leverage and only moderate cash conversion. Technicals are mildly weak with price below major moving averages and negative MACD, while valuation is supported by a ~4% dividend yield alongside a mid-range P/E.

Positive Factors

Strong operating margins

Sustained mid-to-high operating margins indicate durable operational efficiency and pricing power in a mature telecom market. Persistent gross and EBIT margins provide long-term capacity to fund network maintenance, technology upgrades, and service investments without relying solely on external financing.

Positive free cash flow

Consistent positive operating and free cash flow supports ongoing capex for network resilience, dividends and selective strategic investments. Over a multi-month horizon this cash generation underpins operational autonomy and the ability to fund digital initiatives or maintain service levels despite cyclical pressures.

Diversified recurring revenue model

A diversified mix of consumer mobile subscriptions, fixed broadband, enterprise IT and digital services creates recurring revenue streams and cross-sell opportunities. This structural breadth reduces single-market dependency and supports steady cashflows and customer stickiness over medium-term business cycles.

Negative Factors

Elevated leverage

High debt-to-equity amplifies returns but materially reduces financial flexibility and increases exposure to interest-rate and refinancing risk. Over a 2–6 month horizon this constraint can limit capacity for opportunistic investments or rapid balance-sheet responses to adverse shocks.

Weaker cash conversion

FCF covering ~43% of net income signals lower earnings quality and potential capex or working-capital intensity. Persistently weaker cash conversion limits the firm’s ability to deleverage, self-fund growth initiatives or sustain higher shareholder distributions without increasing external financing.

Modest revenue growth and thinning net margin

Low top-line growth in a mature domestic market and a declining net margin compress long-term profit expansion potential. With limited organic growth, margin pressure constrains reinvestment returns and makes the company more reliant on efficiency gains or strategic shifts to drive durable earnings growth.

SoftBank Corp. Business Overview & Revenue Model

Company Description

SoftBank Corp. operates as an affiliate of paypay bank corporation with 14.87% indirect stakes.

How the Company Makes Money

SoftBank Corp. generates revenue primarily through its telecommunications services, which include mobile subscriptions, internet services, and fixed-line communications. The company earns money from monthly subscription fees, data plans, and additional services offered to consumers and businesses. Furthermore, significant revenue comes from its investments in technology companies via the SoftBank Vision Fund, which has stakes in various high-growth sectors. Partnerships with global tech firms and startups also contribute to its income, as successful investments can yield substantial returns. The company's diverse portfolio allows it to capitalize on emerging technologies and market trends, enhancing its overall financial performance.

SoftBank Corp. Financial Statement Overview

Summary

Stable, mature telecom fundamentals with modest TTM revenue growth (+1.99%) and solid operating profitability (gross margin ~48%, EBIT margin ~15%). The main offsets are elevated leverage (~2.2x debt-to-equity) and only moderate cash conversion (FCF ~43% of net income), which constrain financial flexibility.

Income Statement

TTM (Trailing-Twelve-Months) revenue is growing modestly (+1.99%) and profitability remains solid, with gross margin holding near ~48% and operating profitability steady (EBIT margin ~15%, EBITDA margin ~26%). However, net margin is relatively thin for the level of leverage (~8%) and has drifted below earlier years (closer to ~9–9.5% historically), suggesting some mix/cost or non-operating pressure despite stable core operations.

Balance Sheet

The balance sheet is the main constraint: leverage is high with debt running at a little over ~2.2x equity in TTM (Trailing-Twelve-Months), though improved versus prior peaks. Returns on equity are strong (~20% TTM), but that strength is amplified by leverage, leaving the company more exposed to refinancing/interest-rate and balance-sheet flexibility risk than a lower-debt peer.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) operating cash flow of ~1.25T and free cash flow of ~0.54T, and free cash flow growth slightly positive. That said, free cash flow covers less than half of net income (~43% TTM), implying weaker cash conversion (working capital and/or capex intensity), and the cash flow support versus the debt load appears limited based on the provided coverage measure.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.93T	6.54T	6.08T	5.91T	5.69T	5.21T
Gross Profit	3.34T	3.16T	2.93T	2.72T	2.80T	2.50T
EBITDA	1.84T	1.74T	1.64T	1.75T	1.73T	1.66T
Net Income	565.67B	519.98B	489.07B	531.37B	517.08B	491.29B
Balance Sheet
Total Assets	18.24T	16.10T	15.52T	14.68T	13.10T	12.21T
Cash, Cash Equivalents and Short-Term Investments	1.58T	1.61T	2.15T	2.19T	1.66T	1.67T
Total Debt	7.26T	5.96T	6.32T	6.13T	6.02T	5.59T
Total Liabilities	13.75T	11.84T	11.59T	11.00T	9.88T	9.47T
Stockholders Equity	2.86T	2.74T	2.38T	2.22T	1.96T	1.54T
Cash Flow
Free Cash Flow	538.47B	621.21B	685.62B	546.53B	506.83B	859.43B
Operating Cash Flow	1.25T	1.37T	1.24T	1.16T	1.22T	1.34T
Investing Cash Flow	-1.20T	-971.93B	-893.40B	-123.87B	-950.57B	-504.12B
Financing Cash Flow	-368.09B	-979.68B	-391.30B	-526.17B	-312.19B	-395.64B

SoftBank Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 214.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9434, the sentiment is Positive. The current price of 214.8 is above the 20-day moving average (MA) of 212.72, above the 50-day MA of 213.39, and below the 200-day MA of 218.14, indicating a neutral trend. The MACD of 0.80 indicates Negative momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 84.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9434.

SoftBank Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9436	79 Outperform	¥317.70B	18.43	13.42%	2.27%	5.10%	12.48%
9433	71 Outperform	¥10.08T	16.09	13.75%	2.85%	3.34%	20.36%
9419	62 Neutral	¥3.10B	5.37	―	―	-3.76%	-67.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9434	60 Neutral	¥10.31T	19.08	―	3.99%	7.79%	5.53%
3774	60 Neutral	¥430.11B	19.63	15.67%	1.31%	12.48%	18.38%
9432	56 Neutral	¥13.38T	9.80	11.22%	3.36%	2.10%	-9.29%