SoftBank Corp. (9434) AI Stock Analysis

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SoftBank Corp.

(9434)

Rating:80Outperform

Price Target:

¥252.00

▲(15.02%Upside)

SoftBank Corp.'s overall stock score of 80 reflects its strong financial performance, effective cost management, and strategic revenue growth. The company's proactive investments in AI and infrastructure, as highlighted in the earnings call, enhance its growth potential. Technical indicators point to a stable upward trend, while the valuation remains reasonable with an attractive dividend yield. Although there are challenges such as high leverage and some net income shortfall, these are mitigated by consistent profitability and cash flow strength.

Positive Factors

Dividend Yield

A ~5% dividend yield remains the primary draw in Japan's low-growth telecom market.

Financial Performance

PayPay's revenue grew 18%, achieving profitability with ¥33b OP.

Market Activity

PayPay has started IPO preparation.

Negative Factors

Segment Performance

Enterprise segment operating profit growth was relatively slow.

SoftBank Corp. (9434) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥10.44T

Dividend Yield3.91%

Average Volume (3M)56.89M

Price to Earnings (P/E)20.0

Beta (1Y)0.44

Revenue Growth7.57%

EPS Growth6.30%

CountryJP

Employees55,400

SectorCommunication Services

Sector Strength88

IndustryTelecommunications Services

Share Statistics

EPS (TTM)1.83

Shares Outstanding47,772,855,000

10 Day Avg. Volume55,044,480

30 Day Avg. Volume56,892,617

Financial Highlights & Ratios

PEG Ratio-0.46

Price to Book (P/B)3.86

Price to Sales (P/S)0.00

P/FCF Ratio11.33

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

¥232.67

Price Target Upside6.19% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

SoftBank Corp. Business Overview & Revenue Model

Company DescriptionSoftBank Corp. (9434) is a leading telecommunications and technology company based in Japan. The company operates across various sectors, including mobile communications, fixed-line telecommunications, internet services, and digital marketing. SoftBank Corp. provides a wide range of services and products such as mobile phone services, broadband services, and enterprise solutions. It is a subsidiary of SoftBank Group Corp., which is renowned for its investments in technology and innovation globally.

How the Company Makes MoneySoftBank Corp. generates revenue primarily through its telecommunications services, which include mobile and fixed-line communications. The company earns substantial income from providing mobile phone services to individual and corporate customers, including voice, data, and value-added services. Additionally, SoftBank Corp. derives revenue from its broadband internet services, offering high-speed internet connectivity to residential and business clients. The company also engages in enterprise services, providing IT solutions, cloud services, and digital marketing solutions to businesses. Furthermore, SoftBank leverages strategic partnerships and investments to enhance its service offerings and expand its customer base, contributing to its overall earnings.

SoftBank Corp. Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q4-2024)

% Change Since: -1.22%|

Next Earnings Date:Jul 31, 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

Income Statement

Balance Sheet

Cash Flow

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
6.38T	6.08T	5.91T	5.69T	5.21T	4.86T
	Gross Profit
3.09T	2.93T	2.72T	2.80T	2.50T	2.32T
	EBIT
924.75B	851.58B	1.06T	985.75B	970.77B	911.73B
	EBITDA
1.70T	1.61T	1.52T	1.73T	1.66T	1.55T
	Net Income Common Stockholders
519.00B	489.07B	531.37B	517.08B	491.29B	473.13B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.89T	1.99T	2.25T	1.74T	1.73T	1.24T
	Total Assets
16.30T	15.52T	14.68T	12.71T	12.23T	9.79T
	Total Debt
6.22T	6.32T	6.13T	6.00T	5.69T	5.08T
	Net Debt
4.32T	4.33T	4.08T	4.45T	4.11T	3.94T
	Total Liabilities
12.14T	11.59T	11.00T	9.82T	9.48T	8.08T
	Stockholders Equity
2.65T	2.38T	2.22T	1.68T	1.51T	1.00T
Cash Flow		Free Cash Flow
883.00B	685.62B	546.53B	506.83B	859.43B	817.75B
	Operating Cash Flow
1.46T	1.24T	1.16T	1.22T	1.34T	1.25T
	Investing Cash Flow
-923.44B	-927.61B	-154.77B	-957.69B	-511.30B	-900.14B
	Financing Cash Flow
-850.79B	-391.30B	-495.26B	-305.07B	-388.46B	-143.61B

SoftBank Corp. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price219.10

Price Trends

50DMA

215.47

Positive

100DMA

208.51

Positive

200DMA

199.18

Positive

Market Momentum

MACD

1.22

Positive

RSI

53.63

Neutral

STOCH

44.45

Neutral

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 219.1 is below the 20-day moving average (MA) of 219.32, above the 50-day MA of 215.47, and above the 200-day MA of 199.18, indicating a bullish trend. The MACD of 1.22 indicates Positive momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 44.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9434.

SoftBank Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9434	80 Outperform	¥10.44T	20.02		3.91%	7.57%	6.30%
9432	80 Outperform	$13.51T	13.25	9.84%	3.18%	2.47%	-20.86%
9436	76 Outperform	¥233.58B	19.06	12.86%	2.58%	8.11%	6.48%
3774	73 Outperform	$510.98B	25.20	14.78%	1.17%	14.76%	0.69%
9433	70 Outperform	$9.12T	14.24	13.04%	2.94%	2.85%	12.63%
9984	65 Neutral	¥10.77T	9.43	10.28%	0.57%	7.21%	―
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%

* Communication Services Sector Average

Performance Comparison

JP:9434

SoftBank Corp.

220.00

32.11

17.09%

JP:9436

Okinawa Cellular Telephone Company

4,965.00

1,428.28

40.38%

JP:3774

Internet Initiative Japan

2,837.00

658.45

30.22%

JP:9432

Nippon Telegraph and Telephone

158.50

12.47

8.54%

JP:9984

SoftBank Group

7,363.00

-2,310.34

-23.88%

JP:9433

KDDI

2,410.00

324.26

15.55%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.