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SoftBank Group Corp. (JP:9984)
:9984
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SoftBank Group
(OTC:9984)
Rating:66Neutral
Price Target:
¥12,128.00
▲(8.00%Upside)
Positive Factors
AI Investments
The outlook for AI investment is improving at SoftBank Corp. due to SBG's full-fledged backing.
Earnings
SBG reported a significant increase in Q4 net income driven by investment income and fair value increase of T-Mobile and Deutsche Telekom.
Negative Factors
Debt Levels
Net Debt/Equity stands at approximately 17%, which is higher than the company's estimate of 12%.
Financial Performance
SBG experienced a Q3 net loss driven by investment losses from SVF1&2.
SoftBank Group (9984) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$16.43T
Dividend Yield0.41%
Average Volume (3M)9.96M
Price to Earnings (P/E)14.4
Beta (1Y)1.60
Revenue Growth7.21%
EPS GrowthN/A
CountryJP
Employees65,352
SectorCommunication Services
Sector Strength81
IndustryTelecommunications Services
Share Statistics
EPS (TTM)354.08
Shares Outstanding1,469,995,200
10 Day Avg. Volume6,850,670
30 Day Avg. Volume9,964,990
Financial Highlights & Ratios
PEG Ratio-11.95
Price to Book (P/B)1.32
Price to Sales (P/S)0.00
P/FCF Ratio-63.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10,849.55Price Target Upside-3.39% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering5
SoftBank Group Business Overview & Revenue Model
Company DescriptionSoftBank Group Corp. is a multinational conglomerate holding company headquartered in Tokyo, Japan. The company operates through various sectors including telecommunications, e-commerce, technology services, and finance. SoftBank is best known for its investments in technology companies globally, holding substantial stakes in many prominent firms through its Vision Fund, which focuses on investing in AI, robotics, and other cutting-edge technologies. Additionally, SoftBank provides mobile and internet services primarily in Japan, and it has interests in renewable energy projects.
How the Company Makes MoneySoftBank Group makes money through a diverse revenue model primarily centered around its investment activities and telecommunications services. The company's most significant revenue stream comes from its Vision Fund, which invests in high-growth technology companies worldwide. Profits are generated through equity appreciation, dividends, and eventual exits from these investments. The telecommunications business, which includes mobile phone and internet services in Japan, also contributes a significant portion of SoftBank's revenue through customer subscriptions and data services. Furthermore, SoftBank's strategic partnerships and acquisitions enhance its portfolio value and provide additional income. The conglomerate's involvement in e-commerce, through companies like Alibaba, and finance sectors, such as owning shares in financial technology firms, further diversify its income sources.
SoftBank Group Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q2-2024)
| % Change Since: 49.59%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed sentiment. While there are significant achievements such as the successful ARM IPO and improvements in Vision Fund performance, these are overshadowed by substantial net income losses and the financial impact of WeWork's bankruptcy. The persistence of the SoftBank discount also indicates market skepticism.Q2-2024 Updates
Positive Updates
Successful ARM IPO
ARM's IPO was the biggest event for SoftBank Group, with a market cap of $52 billion upon listing. The share price has remained robust, exceeding the listing price, indicating a successful launch as a public company.
Improvements in Vision Fund Performance
Vision Fund recorded a positive JPY 232 million in gain and loss on investments for Q2 2023, indicating an improvement from previous losses. Vision Fund 1 has made a good investment return, with $104 billion returned on $90 billion invested.
Increase in Net Asset Value
SoftBank's net asset value increased by JPY 1 trillion, reaching JPY 16.4 trillion, demonstrating financial health and growth potential.
Strategic AI Investments
SoftBank is increasing its investments in AI, with a total of $1.5 billion invested in the second quarter, showing a strategic shift towards AI-driven companies.
Negative Updates
Significant Net Income Loss
SoftBank reported a net income loss of JPY 1.4 trillion for the six-month period, continuing a trend of negative figures year-on-year.
WeWork Bankruptcy Impact
WeWork filed for Chapter 11 bankruptcy, leading to a cumulative loss of $14.3 billion for SoftBank, highlighting challenges in investment decisions.
SoftBank Discount Persists
SoftBank's share price remains significantly lower than its net asset value per share, indicating ongoing investor skepticism and a need for strategic clarity.
Company Guidance
During the SoftBank Group Corp's earnings call for the six-month period ended September 30, 2023, several key metrics were highlighted. The IPO of ARM was a major event, with a market cap of $52 billion and 10% of shares offered to the market, equating to approximately JPY 600-700 billion. The investment in ARM showed a MOIC of 3.2x. Despite a negative net income of JPY 1.4 trillion, the net asset value increased by JPY 1 trillion, reaching JPY 16.4 trillion. The company's cash position was strong at JPY 5.1 trillion, and the loan-to-value ratio remained at a safe level of 10%. Vision Fund 1 showed improvement with a negative JPY 583 billion, compared to negative JPY 4.3 trillion in the previous year. ARM's quarterly revenue guidance ranged between $2.96 trillion and $3.08 trillion, with a 92% year-on-year increase in non-GAAP operating profit. The discussion also included the impact of AI investments, with a combined total of $1.5 billion in the second quarter, reflecting a strategic focus on AI-driven companies.SoftBank Group Financial Statement Overview
Summary
SoftBank Group exhibits mixed financial health. Strong revenue growth and improved profit margins signal positives. However, high leverage and inconsistent cash flow generation are major concerns, necessitating focus on stabilizing earnings and enhancing cash flow efficiency.Income Statement
SoftBank Group demonstrated a strong revenue growth trajectory, with a 7.2% increase from 2024 to 2025. The gross profit margin is healthy at 51.8%, indicating effective cost management. However, the net profit margin is volatile, transitioning from a significant loss in 2024 to profitability in 2025, suggesting potential instability in earnings. The EBIT and EBITDA margins improved, reflecting enhanced operational efficiency.65
Positive
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, suggesting significant leverage, which poses potential financial risks. However, the return on equity is robust at 9.98%, indicating effective utilization of shareholder funds. The equity ratio is moderate at 25.7%, showcasing a balanced capital structure, though improvements could reduce financial vulnerability.58
Neutral
Cash Flow
Cash flow analysis reveals a decline in free cash flow, underscoring challenges in generating cash. The operating cash flow to net income ratio is low, indicating discrepancies between reported earnings and cash generation. Despite these challenges, the company managed to maintain positive operating cash flow, showing resilience in operational activities.52
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.24T | 6.76T | 6.57T | 6.22T | 5.63T |
| Gross Profit | 3.75T | 3.54T | 3.33T | 3.27T | 2.87T |
| EBITDA | 1.60T | 1.47T | 980.26B | 365.37B | 6.21T |
| Net Income | 1.15T | -227.65B | -970.14B | -1.71T | 4.99T |
Balance Sheet | |||||
| Total Assets | 45.01T | 46.72T | 43.94T | 47.54T | 45.75T |
| Cash, Cash Equivalents and Short-Term Investments | 3.71T | 6.19T | 7.30T | 6.09T | 7.80T |
| Total Debt | 18.91T | 21.36T | 20.32T | 22.32T | 19.55T |
| Total Liabilities | 31.06T | 33.49T | 33.29T | 35.84T | 33.79T |
| Stockholders Equity | 11.56T | 11.16T | 9.03T | 9.98T | 10.21T |
Cash Flow | |||||
| Free Cash Flow | -650.59B | -372.06B | 107.53B | 1.89T | -89.64B |
| Operating Cash Flow | 203.58B | 250.55B | 741.29B | 2.73T | 557.25B |
| Investing Cash Flow | -1.63T | -841.46B | 547.58B | -3.02T | -1.47T |
| Financing Cash Flow | -1.12T | -606.22B | 191.52B | 602.22B | 2.19T |
SoftBank Group Technical Analysis
Positive
11230.00
Price Trends
8854.02
Positive
8169.49
Positive
8664.98
Positive
Market Momentum
569.65
Positive
75.38
Negative
66.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9984, the sentiment is Positive. The current price of 11230 is above the 20-day moving average (MA) of 10357.00, above the 50-day MA of 8854.02, and above the 200-day MA of 8664.98, indicating a bullish trend. The MACD of 569.65 indicates Positive momentum. The RSI at 75.38 is Negative, neither overbought nor oversold. The STOCH value of 66.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9984.
SoftBank Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥10.38T | 19.89 | 3.94% | 7.57% | 6.30% | ||
76 Outperform | ¥9.32T | 14.55 | 13.04% | 3.05% | 2.85% | 12.58% | |
74 Outperform | $12.86T | 12.62 | 9.84% | 3.46% | 2.47% | -20.92% | |
66 Neutral | $16.43T | 14.38 | 10.28% | 0.41% | 7.21% | ― | |
63 Neutral | €14.15B | -11.20 | 1.40% | 3.92% | 2.00% | 1.26% |
* Communication Services Sector Average
Performance Comparison
JP:9984
SoftBank Group
11,230.00
784.70
7.51%
JP:9434
SoftBank Corp.
218.60
26.69
13.91%
JP:9432
Nippon Telegraph and Telephone
150.90
-3.53
-2.28%
JP:9433
KDDI
2,463.50
222.02
9.91%
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.