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SoftBank Corp. (JP:9434)
:9434
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SoftBank Corp.
(9434)
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Rating:65Neutral
Price Target:
¥234.00
▲(4.00% Upside)
SoftBank Corp.'s overall stock score is driven by stable financial performance and operational efficiency, despite high leverage. Technical indicators suggest a neutral to slightly bearish trend, while valuation metrics indicate potential overvaluation. The attractive dividend yield provides some support to the stock's appeal.
Positive Factors
Operational Efficiency
A strong gross profit margin indicates efficient cost management, which supports sustainable profitability and competitive positioning in the telecommunications sector.
Revenue Growth
Stable revenue growth reflects consistent demand for SoftBank's services, supporting long-term business sustainability and market presence in the telecommunications industry.
Return on Equity
A strong return on equity demonstrates effective use of shareholder funds to generate profits, indicating robust management performance and financial health.
Negative Factors
High Leverage
High leverage can increase financial risk, potentially impacting the company's ability to invest in growth opportunities and maintain financial stability during economic downturns.
Free Cash Flow Decline
A decline in free cash flow may limit SoftBank's ability to fund new investments or return capital to shareholders, affecting long-term growth prospects.
Modest Net Profit Margin
A modest net profit margin suggests potential challenges in maximizing profitability, which could limit the company's ability to reinvest in business expansion and innovation.
SoftBank Corp. (9434) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥10.32T
Dividend Yield3.94%
Average Volume (3M)59.70M
Price to Earnings (P/E)20.5
Beta (1Y)0.46
Revenue Growth7.79%
EPS Growth5.53%
CountryJP
Employees55,400
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)4.22
Shares Outstanding47,908,266,000
10 Day Avg. Volume58,027,199
30 Day Avg. Volume59,702,612
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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. Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
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
Positive
225.00
Price Trends
220.35
Positive
221.44
Positive
215.07
Positive
Market Momentum
2.32
Negative
54.55
Neutral
73.56
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 225 is above the 20-day moving average (MA) of 221.79, above the 50-day MA of 220.35, and above the 200-day MA of 215.07, indicating a bullish trend. The MACD of 2.32 indicates Negative momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 73.56 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $489.14B | 23.55 | 15.67% | 1.27% | 12.48% | 18.38% | |
76 Outperform | €241.55B | 25.29 | 13.42% | 2.41% | 5.10% | 12.48% | |
76 Outperform | $9.28T | 14.46 | 13.75% | 3.17% | 3.34% | 20.36% | |
73 Outperform | $13.25T | 12.38 | 10.59% | 3.31% | 2.10% | -9.29% | |
65 Neutral | ¥10.32T | 20.53 | ― | 3.94% | 7.79% | 5.53% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | ¥21.92T | 7.18 | 24.50% | 0.19% | 7.31% | 44.73% |
* Communication Services Sector Average
JP:9434
SoftBank Corp.
225.00
41.39
22.54%
JP:3774
Internet Initiative Japan
2,889.00
-62.95
-2.13%
JP:9433
KDDI
2,667.00
286.93
12.06%
JP:9432
Nippon Telegraph and Telephone
152.40
4.94
3.35%
JP:9436
Okinawa Cellular Telephone Company
2,747.00
675.90
32.63%
JP:9984
SoftBank Group
15,390.00
6,444.09
72.03%
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.