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SoftBank Group Corp (JP:9984)
:9984
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SoftBank Group
(OTC:9984)
Rating:64Neutral
Price Target:
¥16,612.00
▲(0.56% Upside)
Positive Factors
Earnings
SBG Q4 net income of ¥517b ($3.5b) was driven by SVF1&2 investment income and an increase in fair value of T-Mobile and Deutsche Telekom.
Negative Factors
Financial Strategy
Without a clear buyback plan and with uncertainty around AI investments, the discount to NAV may continue.
Investment Performance
SVF 1&2 have cumulatively returned a loss of $0.6b on a total investment of $145b since inception.
SoftBank Group (9984) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥24.16T
Dividend Yield0.27%
Average Volume (3M)9.83M
Price to Earnings (P/E)13.9
Beta (1Y)1.73
Revenue Growth6.69%
EPS Growth2988.22%
CountryJP
Employees65,352
SectorCommunication Services
Sector Strength92
IndustryTelecommunications Services
Share Statistics
EPS (TTM)291.71
Shares Outstanding1,469,995,200
10 Day Avg. Volume13,917,380
30 Day Avg. Volume9,832,950
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥12,941.00Price Target Upside-21.66% Downside
Rating ConsensusModerate 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:Aug 07, 2025
(Q2-2024)
| % Change Since: 33.28%|
Next Earnings Date:Nov 06, 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 shows improved profitability and operational efficiency with a strong gross profit margin and improved net profit margin. However, high leverage and cash flow challenges present significant risks, necessitating a focus on strengthening the balance sheet and improving cash flow conversion.Income Statement
SoftBank Group's income statement shows a strong gross profit margin of 51.45% in TTM, indicating efficient cost management. The net profit margin improved significantly to 23.70% in TTM from negative margins in previous years, reflecting a turnaround in profitability. Revenue growth is modest at 1.64% in TTM, suggesting stable but slow growth. The EBIT and EBITDA margins have also improved, indicating better operational efficiency. However, the historical volatility in net income and revenue growth poses a risk.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.80 in TTM, indicating significant leverage, which could be risky in volatile markets. The return on equity improved to 15.39% in TTM, showing better utilization of equity. However, the equity ratio is relatively low, suggesting a heavy reliance on debt financing. The improvement in ROE is a positive sign, but the high leverage remains a concern.55
Neutral
Cash Flow
SoftBank's cash flow statement shows a concerning free cash flow to net income ratio of -1.71 in TTM, indicating cash flow issues despite profitability. The operating cash flow to net income ratio is low at 0.03, suggesting that net income is not translating effectively into cash flow. Although there was a significant improvement in free cash flow growth, the negative free cash flow highlights liquidity challenges.45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.36T | 7.24T | 6.76T | 6.57T | 5.63T | 6.22T |
| Gross Profit | 3.79T | 3.75T | 3.54T | 3.33T | 2.87T | 3.27T |
| EBITDA | 2.26T | 1.60T | 1.47T | 980.26B | 1.45T | 365.37B |
| Net Income | 1.75T | 1.15T | -227.65B | -970.14B | 4.99T | -1.71T |
Balance Sheet | ||||||
| Total Assets | 44.84T | 45.01T | 46.72T | 43.94T | 45.75T | 47.54T |
| Cash, Cash Equivalents and Short-Term Investments | 5.91T | 3.71T | 6.44T | 7.30T | 7.80T | 6.09T |
| Total Debt | 19.84T | 18.91T | 21.36T | 20.32T | 19.55T | 22.32T |
| Total Liabilities | 31.43T | 31.06T | 33.49T | 33.29T | 33.79T | 35.84T |
| Stockholders Equity | 11.01T | 11.56T | 11.16T | 9.03T | 10.21T | 9.98T |
Cash Flow | ||||||
| Free Cash Flow | -550.66B | 118.98B | -372.06B | 107.53B | -89.64B | 1.89T |
| Operating Cash Flow | 321.00B | 973.15B | 250.55B | 741.29B | 557.25B | 2.73T |
| Investing Cash Flow | -1.74T | -1.71T | -841.46B | 547.58B | -1.47T | -3.02T |
| Financing Cash Flow | -96.57B | -1.81T | -606.22B | 191.52B | 2.19T | 602.22B |
SoftBank Group Technical Analysis
Positive
16520.00
Price Trends
10709.70
Positive
9010.87
Positive
9020.34
Positive
Market Momentum
1318.21
Negative
89.69
Negative
96.46
Negative
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 16520 is above the 20-day moving average (MA) of 12593.25, above the 50-day MA of 10709.70, and above the 200-day MA of 9020.34, indicating a bullish trend. The MACD of 1318.21 indicates Negative momentum. The RSI at 89.69 is Negative, neither overbought nor oversold. The STOCH value of 96.46 is Negative, 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 (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $9.95T | 15.49 | 13.28% | 4.09% | 2.66% | 11.83% | |
78 Outperform | $13.89T | 13.78 | 10.39% | 3.19% | 1.65% | -15.29% | |
77 Outperform | ¥11.24T | 22.41 | 3.58% | 7.71% | -1.03% | ||
64 Neutral | ¥24.16T | 13.86 | 15.53% | 0.27% | 6.69% | 2988.22% | |
56 Neutral | AU$3.61B | 19.21 | -6.45% | 4.08% | 3.58% | -16.96% |
* Communication Services Sector Average
Performance Comparison
JP:9984
SoftBank Group
16,520.00
8,288.11
100.68%
JP:9434
SoftBank Corp.
240.00
53.98
29.02%
JP:9432
Nippon Telegraph and Telephone
163.00
16.01
10.89%
JP:9433
KDDI
2,630.00
358.44
15.78%
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.