Education
About Us
Working with TipRanks
Follow Us
Softbank Corp (SFTBY)
OTHER OTC:SFTBY
Top Page
Softbank
(OTC:SFTBY)
Select Model
Select Model
Rating:55Neutral
Price Target:
$53.00
â–²(3.41% Upside)
Softbank's overall stock score reflects a challenging financial and technical environment, with high leverage and cash flow issues being significant risks. Despite these challenges, the stock's low P/E ratio suggests potential undervaluation, which slightly offsets the negative factors.
Positive Factors
AI Investment Strategy
SoftBank's focus on acquiring data centers aligns with the growing demand for AI and digital infrastructure, positioning it to capitalize on long-term industry trends.
Strategic Partnerships
Investing in Skild AI with Nvidia enhances SoftBank's presence in AI, leveraging partnerships to strengthen its technology investment portfolio.
Semiconductor Expansion
Establishing a chip-design school in South Korea supports SoftBank's strategic focus on semiconductors, fostering innovation and expertise in a critical industry.
Negative Factors
High Leverage
High leverage poses a risk to financial stability, potentially limiting SoftBank's ability to invest and respond to market changes effectively.
Cash Flow Challenges
Persistent cash flow issues may hinder SoftBank's operational flexibility and ability to fund new investments or manage debt efficiently.
Revenue Decline
A substantial decline in revenue growth indicates potential challenges in maintaining market position and competitive advantage in key sectors.
Softbank (SFTBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$153.65B
Dividend Yield0.22%
Average Volume (3M)679.03K
Price to Earnings (P/E)31.0
Beta (1Y)2.36
Revenue Growth8.09%
EPS Growth45.49%
CountryUS
Employees65,352
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.41
Shares Outstanding11,423,696,000
10 Day Avg. Volume632,729
30 Day Avg. Volume679,033
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.12
Price to Sales (P/S)0.19
P/FCF Ratio-2.16
Enterprise Value/Market Cap141.92
Enterprise Value/Revenue3.89
Enterprise Value/Gross Profit7.61
Enterprise Value/Ebitda18.23
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Softbank 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 multiple key streams. Its telecommunications division, SoftBank Mobile, earns income from mobile phone services, broadband subscriptions, and enterprise solutions. Additionally, the company’s Vision Fund, one of the largest technology investment funds globally, generates revenue through capital appreciation and management fees from its investments in startups and technology-centric firms. The firm also earns revenue from its stake in the publicly traded companies in which it invests, including major firms like Alibaba. Moreover, strategic partnerships and joint ventures with other technology firms enhance its revenue potential through collaborative projects and shared innovations.
Softbank Earnings Call Summary
Earnings Call Date:―
(Q4-2025)
| Next Earnings Date:Feb 12, 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.Q4-2025 Updates
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.
Strong Performance of Vision Fund 1
Vision Fund 1 saw a significant contribution primarily from ByteDance, contributing to the overall gain on investments.
PayPay's Growth
PayPay achieved an EBIT of JPY 45 billion and GMV of JPY 15.4 trillion, a 23% increase year-on-year, with plans for an IPO.
Arm's Record High Revenue
Arm posted record high annual revenue, with a 31% increase in non-GAAP operating income year-on-year.
OpenAI Investment Commitment
SoftBank committed up to $30 billion in follow-on investments in OpenAI, emphasizing its strategic importance.
Acquisition of Ampere
SoftBank announced the acquisition of Ampere for $6.5 billion, aiming to enhance its capabilities in AI and semiconductor design.
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.
Increased Loan-to-Value Ratio
SoftBank's loan-to-value ratio increased from 8.4% to 18.0%, a 10 percentage point increase year-over-year.
Cash Position Decrease
SoftBank's cash position decreased from JPY 4.7 trillion to JPY 3.4 trillion due to active investments.
Volatility in Tech Stocks
The company faced weaker performance of tech stocks, contributing to market volatility.
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
Softbank's financial performance is mixed. Strong profitability margins are overshadowed by a significant revenue decline and high leverage. Cash flow issues persist with negative free cash flow and limited cash generation from operations.Income Statement
Softbank's income statement shows a mixed performance. The TTM data indicates a significant decline in revenue growth at -23.84%, which is concerning. However, the company maintains a strong gross profit margin of 51.45% and a net profit margin of 23.70% in the TTM, indicating profitability. The EBIT and EBITDA margins are also healthy at 18.83% and 30.66%, respectively. Despite the revenue decline, the company has improved its profitability metrics compared to previous periods.Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.80 in the TTM, indicating significant leverage, which poses a risk. However, the return on equity has improved to 15.33%, showing better utilization of equity to generate profits. The equity ratio stands at 29.06%, suggesting a moderate level of equity financing relative to total assets. Overall, while profitability has improved, the high leverage remains a concern.Cash Flow
Softbank's cash flow statement highlights challenges, with negative free cash flow and a free cash flow to net income ratio of -1.72 in the TTM, indicating cash flow issues. The operating cash flow to net income ratio is low at 0.03, suggesting limited cash generation from operations relative to net income. Although there is a slight improvement in free cash flow growth, the overall cash flow position remains weak.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.61T | 7.24T | 6.76T | 6.57T | 6.22T | 5.63T |
| Gross Profit | 2.86T | 3.75T | 3.54T | 3.33T | 3.27T | 2.87T |
| EBITDA | 1.20T | 1.60T | 1.47T | 1.53T | 1.57T | 6.21T |
| Net Income | 586.77B | 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 | 6.44T | 7.30T | 6.09T | 7.80T |
| Total Debt | 20.12T | 18.91T | 16.19T | 20.32T | 22.32T | 19.55T |
| Total Liabilities | 32.30T | 31.06T | 33.49T | 33.29T | 35.84T | 33.79T |
| Stockholders Equity | 14.29T | 11.56T | 11.16T | 9.03T | 9.98T | 10.21T |
Cash Flow | ||||||
| Free Cash Flow | -935.14B | -650.59B | -372.06B | 107.53B | 1.89T | -89.64B |
| Operating Cash Flow | -247.55B | 203.58B | 250.55B | 741.29B | 2.73T | 557.25B |
| Investing Cash Flow | -1.13T | -1.63T | -841.46B | 547.58B | -3.02T | -1.47T |
| Financing Cash Flow | 234.90B | -1.12T | -606.22B | 191.52B | 602.22B | 2.19T |
Softbank Technical Analysis
Negative
51.25
Price Trends
15.44
Negative
15.71
Negative
11.77
Positive
Market Momentum
-0.15
Negative
46.45
Neutral
36.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFTBY, the sentiment is Negative. The current price of 51.25 is above the 20-day moving average (MA) of 14.02, above the 50-day MA of 15.44, and above the 200-day MA of 11.77, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 36.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFTBY.
Softbank Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $170.60B | 8.62 | 19.70% | 6.60% | 2.42% | 102.17% | |
77 Outperform | $103.38B | 4.71 | 24.73% | 4.42% | 0.20% | 61.54% | |
77 Outperform | $224.33B | 19.28 | 19.03% | 1.75% | 7.30% | 17.67% | |
71 Outperform | $170.08B | 7.79 | 20.88% | 4.56% | 1.98% | 150.68% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $62.38B | 16.39 | 17.70% | 2.69% | 1.14% | 83.48% | |
55 Neutral | $153.65B | 31.02 | 15.53% | 0.22% | 8.09% | 45.49% |
* Communication Services Sector Average
SFTBY
Softbank
14.21
7.07
99.03%
AMX
America Movil
20.50
6.95
51.29%
T
AT&T
23.74
2.85
13.66%
CMCSA
Comcast
29.06
-4.06
-12.25%
VZ
Verizon
39.84
4.01
11.20%
TMUS
T Mobile US
197.51
-13.38
-6.34%
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.