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SoftBank Group Corp. (JP:9984)
:9984
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SoftBank Group
(9984)
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Rating:64Neutral
Price Target:
¥17,928.00
▲(342.56% Upside)
SoftBank Group's overall stock score is driven by strong valuation metrics, with a low P/E ratio suggesting potential undervaluation. However, financial performance is mixed, with solid revenue growth overshadowed by high leverage and cash flow challenges. Technical analysis indicates bearish momentum, which could limit short-term upside potential. The absence of earnings call and corporate events data means these factors do not influence the score.
Positive Factors
AI Infrastructure Expansion
Acquiring data center operators like Switch positions SoftBank to capitalize on the AI boom, enhancing its infrastructure capabilities and competitive edge in digital services.
Strategic Investments in AI
Investing in Skild AI, a maker of foundation models for robots, aligns SoftBank with cutting-edge AI developments, potentially driving long-term growth and innovation.
Semiconductor and AI Sector Growth
By establishing a chip-design school, SoftBank's Arm Holdings strengthens its position in the semiconductor and AI sectors, fostering talent and innovation in a critical industry.
Negative Factors
High Leverage
High leverage can pose financial risks, limiting SoftBank's flexibility to invest in new opportunities and potentially impacting its long-term financial health.
Cash Flow Challenges
Negative free cash flow indicates potential liquidity issues, which could hinder SoftBank's ability to fund operations and investments, affecting its growth prospects.
Operational Efficiency
Suboptimal operational efficiency, as indicated by the EBIT margin, suggests SoftBank may need to streamline operations to enhance profitability and sustain competitive advantage.
SoftBank Group (9984) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥24.32T
Dividend Yield0.25%
Average Volume (3M)22.76M
Price to Earnings (P/E)8.0
Beta (1Y)1.75
Revenue Growth7.31%
EPS Growth44.73%
CountryJP
Employees65,352
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)437.45
Shares Outstanding5,711,848,000
10 Day Avg. Volume20,688,840
30 Day Avg. Volume22,757,256
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.23
Price to Sales (P/S)0.38
P/FCF Ratio22.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥18,397.72Price Target Upside354.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SoftBank Group Business Overview & Revenue Model
Company DescriptionSoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through five segments: Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Latin America Funds. The company offers mobile communications, broadband, and fixed-line communications services; and sells mobile devices. It is also involved in the internet advertising marketing, online advertising distribution, and e-book distribution services; planning and operation of fashion e-commerce website; mail-order sale of stationery and services; and design and development of mobile robots. In addition, the company designs microprocessor intellectual property and related technology; sells software tools; and generates, supplies, and sells electricity from renewable energy sources, as well as offers related services. Further, it provides alternative investment management, smartphone payment, PC software downloads, and banking services, as well as solutions and services for online businesses; distributes video, voice, and data content; manufactures, distributes, and sells IT-related products, as well as IT-related services; and manages funds. Additionally, the company operates a professional baseball team; and ITmedia, an IT information site, as well as manages and maintains baseball stadium and other sports facilities. It also plans and operates ZOZOTOWN, ZOZO, and ZOZOBASE websites. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.
How the Company Makes MoneySoftBank generates revenue through a combination of its telecommunications services, investments in technology companies, and management fees from its Vision Fund. The core revenue streams include subscription fees from telecommunications services, sales of devices, and value-added services. The Vision Fund also contributes significantly to earnings by taking equity stakes in high-growth tech companies and generating returns through exits, dividends, and management fees. Additionally, SoftBank benefits from strategic partnerships and joint ventures, which help in expanding its investment reach and fostering innovation across its portfolio companies.
SoftBank Group Earnings Call Summary
Earnings Call Date:―
(Q4-2025)
| Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment overall, with significant financial recovery and strategic investments in AI and technology sectors. However, ongoing market volatility and increased leverage were noted as challenges. Despite these, the company's strategic direction and financial achievements outweighed the concerns.Q4-2025 Updates
Positive Updates
Record Profitability
SoftBank Group reported a net income of JPY 1.15 trillion, marking its first profit in four years and an increase of JPY 1.38 trillion year-over-year.
Strong Net Asset Position
Net asset value at the end of March was JPY 25.7 trillion, and JPY 27.4 trillion as of the latest pro forma, indicating a recovery and strong financial positioning.
Significant Investments in AI
Announced a commitment of up to $40 billion in OpenAI, with a strategic focus on AI and ASI advancements, including the acquisitions of Ampere for $6.5 billion.
Vision Fund Performance
Vision Fund 1's performance reached $113 billion on $90 billion investments, with Vision Fund 2 showing potential growth despite current lower returns.
Successful IPO Preparations
SoftBank is preparing for the IPO of PayPay, with strong market presence and growth metrics such as a GMV of JPY 15.4 trillion, up 23% year-on-year.
Negative Updates
Market Volatility and Challenges
Weaker performance of tech stocks led to significant market volatility, impacting net asset value down by JPY 2.1 trillion year-over-year.
Increased Loan-to-Value Ratio
Loan-to-value increased to 18% from 8.4% the previous year, indicating higher leverage, although still within safety guidelines.
Significant Fluctuations in Cash Position
Cash position decreased from JPY 4.7 trillion to JPY 3.4 trillion due to active investments, reflecting liquidity management challenges.
Company Guidance
During the earnings results announcement for the fiscal year ended March 31, 2025, SoftBank Group Corp. highlighted several key metrics and strategic initiatives. The company reported a net asset value of JPY 25.7 trillion, a decrease of JPY 2.1 trillion year-over-year, but noted a recovery to JPY 27.4 trillion based on current share prices. The loan-to-value ratio increased to 18.0% from 8.4% the previous year, remaining below the 25% safety threshold. SoftBank achieved a net income of JPY 1.15 trillion, marking its first profit in four years, and net sales rose to JPY 7.2 billion, up JPY 487 billion year-on-year. The company is focused on advancing its AI strategy, including a significant investment commitment of up to $30 billion in OpenAI and the acquisition of Ampere for $6.5 billion. Additionally, SoftBank is preparing for the IPO of PayPay, which achieved an EBIT of JPY 45 billion and a GMV of JPY 15.4 trillion, reflecting a 23% year-on-year increase.SoftBank Group Financial Statement Overview
Summary
SoftBank Group shows strong revenue growth and profitability on the income statement, but high leverage and cash flow challenges present potential risks. The company needs to address its debt levels and improve cash flow management to ensure long-term financial stability. While the income statement is a strong point, the balance sheet and cash flow require careful monitoring and strategic adjustments.Income Statement
SoftBank Group's income statement shows a solid performance with a TTM revenue growth rate of 2.02% and a strong net profit margin of 23.70%. The gross profit margin is healthy at 51.45%, indicating efficient cost management. However, the EBIT margin of 18.83% suggests room for improvement in operational efficiency. Overall, the company demonstrates robust revenue growth and profitability, but operational margins could be optimized further.75
Positive
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 1.80, indicating significant leverage, which could pose financial risks. The return on equity is moderate at 15.33%, showing decent profitability relative to shareholder equity. The equity ratio stands at 28.67%, suggesting a balanced asset structure but with a reliance on debt financing. While the company maintains profitability, the high leverage warrants caution.65
Positive
Cash Flow
Cash flow analysis reveals challenges, with a negative free cash flow and a low operating cash flow to net income ratio of 0.03. The free cash flow to net income ratio is negative, indicating cash flow issues despite reported net income. Although there is a significant improvement in free cash flow growth, the overall cash flow position remains weak, highlighting potential liquidity concerns.55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.51T | 7.24T | 6.76T | 6.57T | 6.22T | 5.63T |
| Gross Profit | 3.86T | 3.75T | 3.54T | 3.33T | 3.27T | 2.87T |
| EBITDA | 5.23T | 1.60T | 1.47T | 980.26B | 365.37B | 1.45T |
| Net Income | 3.06T | 1.15T | -227.65B | -970.14B | -1.71T | 4.99T |
Balance Sheet | ||||||
| Total Assets | 49.16T | 45.01T | 46.72T | 43.94T | 47.54T | 45.75T |
| Cash, Cash Equivalents and Short-Term Investments | 6.78T | 3.71T | 6.19T | 6.93T | 5.33T | 5.32T |
| Total Debt | 20.31T | 18.91T | 16.19T | 16.05T | 17.79T | 16.46T |
| Total Liabilities | 32.49T | 31.06T | 33.49T | 33.29T | 35.84T | 33.79T |
| Stockholders Equity | 14.10T | 11.56T | 11.16T | 9.03T | 9.98T | 10.21T |
Cash Flow | ||||||
| Free Cash Flow | -943.85B | 118.98B | -372.06B | 107.53B | 1.89T | -89.64B |
| Operating Cash Flow | 404.00M | 973.15B | 250.55B | 741.29B | 2.73T | 557.25B |
| Investing Cash Flow | -1.26T | -1.71T | -841.46B | 547.58B | -3.02T | -1.47T |
| Financing Cash Flow | 1.04T | -1.81T | -606.22B | 191.52B | 602.22B | 2.19T |
SoftBank Group Technical Analysis
Negative
4051.00
Price Trends
4566.84
Negative
4747.71
Negative
3527.51
Positive
Market Momentum
-80.23
Positive
39.45
Neutral
21.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9984, the sentiment is Negative. The current price of 4051 is below the 20-day moving average (MA) of 4382.85, below the 50-day MA of 4566.84, and above the 200-day MA of 3527.51, indicating a neutral trend. The MACD of -80.23 indicates Positive momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 21.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9984.
SoftBank Group Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥10.35T | 15.15 | 13.75% | 2.85% | 3.34% | 20.36% | |
73 Outperform | ¥13.55T | 12.67 | 10.59% | 3.36% | 2.10% | -9.29% | |
64 Neutral | ¥24.32T | 7.96 | 24.50% | 0.25% | 7.31% | 44.73% | |
64 Neutral | ¥10.35T | 19.09 | ― | 3.99% | 7.79% | 5.53% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
JP:9984
SoftBank Group
4,051.00
1,742.30
75.47%
JP:9433
KDDI
2,661.00
320.16
13.68%
JP:9432
Nippon Telegraph and Telephone
159.50
13.01
8.88%
JP:9434
SoftBank Corp.
216.70
31.94
17.29%
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.