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Softbank Corp (SFTBY)
OTHER OTC:SFTBY
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Softbank
(OTC:SFTBY)
Select Model
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Rating:61Neutral
Price Target:
$53.00
â–¼(-10.77% Downside)
Softbank's overall stock score is primarily influenced by its strong valuation, indicating potential undervaluation with a low P/E ratio. However, financial performance is mixed, with strong profitability offset by high leverage and cash flow issues. Technical analysis suggests bearish momentum, which could pose short-term risks.
Positive Factors
Investment in OpenAI
The investment in OpenAI positions SoftBank at the forefront of AI advancements, potentially enhancing its tech portfolio and long-term growth prospects.
Profitability and Margins
High profitability and efficient cost management indicate robust operational efficiency, supporting sustainable long-term financial health.
Return on Equity
Improved return on equity suggests effective use of shareholder funds to generate profits, enhancing investor confidence and financial stability.
Negative Factors
High Leverage
Significant leverage poses financial risks, potentially impacting cash flow and limiting strategic flexibility in adverse conditions.
Cash Flow Challenges
Weak cash flow despite profitability may hinder SoftBank's ability to invest in growth opportunities and manage debt effectively.
Modest Revenue Growth
Slow revenue growth could limit SoftBank's ability to scale operations and compete effectively in rapidly evolving tech markets.
Softbank (SFTBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$233.44B
Dividend Yield0.2%
Average Volume (3M)679.03K
Price to Earnings (P/E)20.2
Beta (1Y)2.21
Revenue Growth8.09%
EPS Growth45.49%
CountryUS
Employees65,352
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)5.65
Shares Outstanding2,855,924,000
10 Day Avg. Volume632,729
30 Day Avg. Volume679,033
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.48
Price to Sales (P/S)0.77
P/FCF Ratio-8.62
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.06
Enterprise Value/Ebitda0.14
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 10, 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 demonstrates strong profitability and operational efficiency, with improving margins and return on equity. However, high leverage and cash flow challenges pose potential risks. The company shows stable revenue growth, but financial stability could be improved by addressing debt levels and enhancing cash flow management.Income Statement
Softbank's income statement shows a strong gross profit margin of 51.45% TTM, indicating efficient cost management. The net profit margin has improved significantly to 23.70% TTM, reflecting enhanced profitability. Revenue growth is modest at 1.64% TTM, suggesting stable but slow expansion. EBIT and EBITDA margins are healthy at 18.83% and 30.66% TTM, respectively, showcasing operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.80 TTM, indicating significant leverage, which could pose financial risk. However, the return on equity has improved to 15.33% TTM, suggesting effective use of equity to generate profits. The equity ratio stands at 24.98% TTM, reflecting a moderate level of financial stability.60
Neutral
Cash Flow
Cash flow analysis shows challenges with negative free cash flow and a low operating cash flow to net income ratio of 0.03 TTM. The free cash flow to net income ratio is negative, indicating cash flow issues despite profitability. Free cash flow growth is positive at 37.67% TTM, but the overall cash flow position remains weak.50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.36T | 7.24T | 6.76T | 6.57T | 6.22T | 5.63T |
| Gross Profit | 3.79T | 3.75T | 3.54T | 3.33T | 3.27T | 2.87T |
| EBITDA | 1.60T | 1.60T | 1.47T | 1.53T | 1.57T | 6.21T |
| Net Income | 1.75T | 1.15T | -227.65B | -970.14B | -1.71T | 4.99T |
Balance Sheet | ||||||
| Total Assets | 44.84T | 45.01T | 46.72T | 43.94T | 47.54T | 45.75T |
| Cash, Cash Equivalents and Short-Term Investments | 5.91T | 3.71T | 6.44T | 7.30T | 6.09T | 7.80T |
| Total Debt | 19.65T | 18.91T | 16.19T | 20.32T | 22.32T | 19.55T |
| Total Liabilities | 31.24T | 31.06T | 33.49T | 33.29T | 35.84T | 33.79T |
| Stockholders Equity | 11.20T | 11.56T | 11.16T | 9.03T | 9.98T | 10.21T |
Cash Flow | ||||||
| Free Cash Flow | -895.67B | -650.59B | -372.06B | 107.53B | 1.89T | -89.64B |
| Operating Cash Flow | -24.01B | 203.58B | 250.55B | 741.29B | 2.73T | 557.25B |
| Investing Cash Flow | -1.94T | -1.63T | -841.46B | 547.58B | -3.02T | -1.47T |
| Financing Cash Flow | 837.18B | -1.12T | -606.22B | 191.52B | 602.22B | 2.19T |
Softbank Technical Analysis
Neutral
59.40
Price Trends
68.95
Negative
60.62
Negative
44.32
Positive
Market Momentum
-2.83
Negative
45.87
Neutral
70.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFTBY, the sentiment is Neutral. The current price of 59.4 is above the 20-day moving average (MA) of 57.78, below the 50-day MA of 68.95, and above the 200-day MA of 44.32, indicating a neutral trend. The MACD of -2.83 indicates Negative momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 70.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $169.25B | 8.56 | 19.70% | 6.60% | 2.42% | 102.17% | |
76 Outperform | $225.21B | 19.36 | 19.03% | 1.75% | 7.30% | 17.67% | |
72 Outperform | $97.62B | 4.45 | 24.73% | 4.71% | 0.20% | 61.54% | |
71 Outperform | $173.76B | 7.96 | 20.88% | 4.55% | 1.98% | 150.68% | |
61 Neutral | $233.44B | 20.16 | 15.53% | 0.20% | 8.09% | 45.49% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $65.13B | 17.18 | 17.70% | 2.63% | 1.14% | 83.48% |
* Communication Services Sector Average
SFTBY
Softbank
59.40
28.66
93.23%
AMX
America Movil
21.30
6.73
46.19%
T
AT&T
24.39
1.77
7.82%
CMCSA
Comcast
27.58
-10.89
-28.31%
VZ
Verizon
39.92
0.36
0.91%
TMUS
T Mobile US
195.33
-33.05
-14.47%
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.