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SoftBank Group Corp. (JP:9984)
:9984
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SoftBank Group (9984) AI Stock Analysis

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JP:9984

SoftBank Group

(OTC:9984)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
¥15,858.00
▼(-31.14% Downside)
SoftBank Group's overall stock score reflects strong technical momentum and reasonable valuation, offset by financial risks due to high leverage and cash flow challenges. The lack of earnings call and corporate events data limits further insights.
Positive Factors
Negative Factors

SoftBank Group (9984) vs. iShares MSCI Japan ETF (EWJ)

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:Aug 07, 2025
(Q4-2025)
|
Next Earnings Date:Nov 11, 2025
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 improved profitability and operational efficiency with a strong gross profit margin and better net profit margin. However, high leverage and cash flow challenges present significant risks, requiring focus on balance sheet strengthening and cash flow conversion.
Income Statement
65
Positive
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.
Balance Sheet
55
Neutral
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.
Cash Flow
45
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.36T7.24T6.76T6.57T6.22T5.63T
Gross Profit3.79T3.75T3.54T3.33T3.27T2.87T
EBITDA2.26T1.60T1.47T980.26B365.37B1.45T
Net Income1.75T1.15T-227.65B-970.14B-1.71T4.99T
Balance Sheet
Total Assets44.84T45.01T46.72T43.94T47.54T45.75T
Cash, Cash Equivalents and Short-Term Investments5.91T3.71T6.19T6.93T5.33T5.32T
Total Debt19.84T18.91T16.19T16.05T17.79T16.46T
Total Liabilities31.43T31.06T33.49T33.29T35.84T33.79T
Stockholders Equity11.01T11.56T11.16T9.03T9.98T10.21T
Cash Flow
Free Cash Flow-550.66B118.98B-372.06B107.53B1.89T-89.64B
Operating Cash Flow321.00B973.15B250.55B741.29B2.73T557.25B
Investing Cash Flow-1.74T-1.71T-841.46B547.58B-3.02T-1.47T
Financing Cash Flow-96.57B-1.81T-606.22B191.52B602.22B2.19T

SoftBank Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price23030.00
Price Trends
50DMA
17358.55
Positive
100DMA
13513.59
Positive
200DMA
10886.78
Positive
Market Momentum
MACD
1659.59
Negative
RSI
65.72
Neutral
STOCH
81.96
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 23030 is above the 20-day moving average (MA) of 20221.46, above the 50-day MA of 17358.55, and above the 200-day MA of 10886.78, indicating a bullish trend. The MACD of 1659.59 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 81.96 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$13.49T13.3810.39%3.32%1.65%-15.29%
70
Outperform
$8.96T13.9513.28%3.27%2.66%11.83%
63
Neutral
$33.69T19.3215.53%0.19%6.69%2988.22%
61
Neutral
¥10.25T20.403.99%7.71%-1.03%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9984
SoftBank Group
23,030.00
13,930.69
153.10%
JP:9433
KDDI
2,368.00
73.16
3.19%
JP:9432
Nippon Telegraph and Telephone
158.30
17.51
12.44%
JP:9434
SoftBank Corp.
215.50
35.35
19.62%
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.Date of analysis: Aug 21, 2025