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Softbank
(OTC:SFTBY)
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Rating:59Neutral
Price Target:
$18.50
â–²(13.29% Upside)
Action:Reiterated
Date:08/10/26
The score is held back primarily by weak cash-flow performance (negative operating and free cash flow in recent periods) and elevated leverage despite improved reported profitability, indicating higher financial volatility. Technical indicators are mixed-to-soft with negative MACD and the price below the 50-day average. Offsetting these risks, valuation is a clear positive with a low P/E and very high dividend yield.
Positive Factors
Diversified business model
SoftBank combines recurring telecom operations with large-scale investment and asset-management activities. This mix provides multiple durable cash-generation channels: subscription and enterprise telecom revenue plus upside from realizations and dividends, reducing sole dependence on one segment over the medium term.
Negative Factors
Weak cash generation
Negative operating and free cash flows indicate reported profits are not translating into cash, forcing reliance on asset sales, financing, or dividends from subsidiaries. This undermines sustained investment capacity and limits the firm’s ability to fund operations or reduce leverage over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
SoftBank combines recurring telecom operations with large-scale investment and asset-management activities. This mix provides multiple durable cash-generation channels: subscription and enterprise telecom revenue plus upside from realizations and dividends, reducing sole dependence on one segment over the medium term.
Read all positive factors
Softbank (SFTBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$200.24B
Dividend Yield0.15%
Average Volume (3M)4.47M
Price to Earnings (P/E)6.4
Beta (1Y)2.37
Revenue Growth5.26%
EPS Growth182.07%
CountryUS
Employees73,677
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)438.62
Shares Outstanding11,397,848,000
10 Day Avg. Volume4,136,794
30 Day Avg. Volume4,468,339
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.24
Price to Sales (P/S)2.63
P/FCF Ratio-8.27
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$20.00Price Target Upside22.47% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.44
Revenue Forecast (FY)$53.05B
Softbank Business Overview & Revenue Model
Company Description
SoftBank Group Corp. operates as a global telecommunications provider, delivering its services both within Japan and across international markets. Its diverse operations are structured into five key divisions: Investment Business of Holding Compan...
How the Company Makes Money
SoftBank primarily makes money through (1) investment and asset management activities and (2) telecommunications operations.
1) Investment returns and portfolio monetization (SoftBank Group / investing activities)
- Unrealized and realized gains ...
Softbank Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
SoftBank's earnings call highlighted a return to profitability and strong performance in several areas, including Vision Fund 1, PayPay, and Arm. However, challenges such as a decrease in net asset value, increased loan-to-value ratio, and decreased cash position were noted. The company's strategic investments in OpenAI and Ampere were emphasized as critical for future growth.Positive Updates
Return to Profitability
SoftBank reported a net income of JPY 1.15 trillion, marking its first profit in four years, up JPY 1.38 trillion year-over-year.
Negative Updates
Net Asset Value Decline
Net asset value decreased by JPY 2.1 trillion year-over-year, ending at JPY 25.7 trillion, although it later recovered.
Read all updates
Q4-2025 Updates
Positive
Negative
Return to Profitability
SoftBank reported a net income of JPY 1.15 trillion, marking its first profit in four years, up JPY 1.38 trillion year-over-year.
Read all positive updates
Company Guidance
In the call, SoftBank Group Corp. provided comprehensive guidance for the fiscal year ended March 31, 2025, detailing several key financial metrics and strategic initiatives. The company reported a net asset value of JPY 25.7 trillion, down JPY 2.1 trillion year-over-year, but noted a recovery to JPY 27.4 trillion based on current share prices. They achieved a net income of JPY 1.15 trillion, marking their first profit in four years, driven by gains in their investment portfolio, particularly from Vision Fund contributions like ByteDance and OpenAI. Their loan-to-value ratio increased to 18.0%, still below their 25% safety threshold, while cash on hand decreased to JPY 3.4 trillion. Strategic actions included significant investments in AI, such as a JPY 6.5 billion acquisition of Ampere and a commitment of up to $30 billion in OpenAI. SoftBank also highlighted the Stargate Project in collaboration with OpenAI and Oracle, and the establishment of Cristal Intelligence through a partnership with OpenAI, reflecting their focus on AI and technological advancement.Softbank Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.13T | 8.27T | 7.24T | 6.76T | 6.57T | 6.22T |
| Gross Profit | 4.18T | 4.26T | 3.75T | 3.54T | 3.33T | 3.27T |
| EBITDA | 3.60T | 969.08B | 1.60T | 1.47T | 1.53T | 1.57T |
| Net Income | 5.01T | 5.30T | 1.15T | -227.65B | -970.14B | -1.71T |
Balance Sheet | ||||||
| Total Assets | 64.71T | 61.01T | 45.01T | 46.72T | 43.94T | 47.54T |
| Cash, Cash Equivalents and Short-Term Investments | 6.21T | 7.53T | 3.71T | 6.44T | 7.30T | 6.09T |
| Total Debt | 27.80T | 25.97T | 18.91T | 16.19T | 20.32T | 22.32T |
| Total Liabilities | 43.69T | 40.65T | 31.06T | 33.49T | 33.29T | 35.84T |
| Stockholders Equity | 18.11T | 17.50T | 11.56T | 11.16T | 9.03T | 9.98T |
Cash Flow | ||||||
| Free Cash Flow | -3.65T | -2.63T | -650.59B | -372.06B | 107.53B | 1.89T |
| Operating Cash Flow | -857.65B | -789.25B | 203.58B | 250.55B | 741.29B | 2.73T |
| Investing Cash Flow | -6.41T | -4.63T | -1.63T | -841.46B | 547.58B | -3.02T |
| Financing Cash Flow | 6.26T | 6.38T | -1.12T | -606.22B | 191.52B | 602.22B |
Softbank Technical Analysis
Positive
16.33
Price Trends
19.71
Negative
17.66
Negative
16.20
Positive
Market Momentum
-0.53
Negative
49.56
Neutral
80.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFTBY, the sentiment is Positive. The current price of 16.33 is below the 20-day moving average (MA) of 17.18, below the 50-day MA of 19.71, and above the 200-day MA of 16.20, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 80.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFTBY.
Softbank Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $190.07B | 18.50 | 18.22% | 2.19% | 9.68% | -10.02% | |
72 Outperform | $163.02B | 7.85 | 19.48% | 4.60% | 2.63% | 72.35% | |
72 Outperform | $89.99B | 8.23 | 12.04% | 5.92% | 0.58% | -48.94% | |
69 Neutral | $195.52B | 12.26 | 15.52% | 6.03% | 1.38% | -10.78% | |
67 Neutral | $72.94B | 13.61 | 21.99% | 2.28% | 13.40% | 75.68% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $200.24B | 6.37 | 34.45% | 0.16% | 5.26% | 182.07% |
* Communication Services Sector Average
SFTBY
Softbank
17.60
5.84
49.60%
AMX
America Movil
23.75
5.14
27.62%
T
AT&T
23.79
-3.09
-11.48%
CMCSA
Comcast
25.36
-2.71
-9.64%
VZ
Verizon
47.06
6.64
16.43%
TMUS
T Mobile US
177.19
-67.08
-27.46%
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.