Softbank Corp (SFTBY)
OTHER OTC:SFTBY
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Softbank
(OTC:SFTBY)
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Rating:57Neutral
Price Target:
$19.00
â–²(28.90% Upside)
Action:Reiterated
Date:05/15/26
The score is held back mainly by weak financial quality—high and rising leverage plus sharply negative operating/free cash flow and volatile earnings versus core operations. Technicals are a meaningful positive with strong price trends and momentum, while valuation is neutral-to-slightly expensive with a low dividend yield.
Positive Factors
Diversified business model
SoftBank combines a recurring, scale-driven telecom operating business with a large investment portfolio. This mix provides durable cashflow from telecom subscribers and optional upside from equity stakes, supporting long-term flexibility and multiple, structurally different revenue streams.
Negative Factors
Heavy and rising leverage
A materially larger debt load versus equity reduces financial flexibility and raises refinancing risk. High leverage constrains capital allocation, increases interest burden during rate cycles, and limits the company's ability to absorb investment or operating setbacks without asset sales or costly financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
SoftBank combines a recurring, scale-driven telecom operating business with a large investment portfolio. This mix provides durable cashflow from telecom subscribers and optional upside from equity stakes, supporting long-term flexibility and multiple, structurally different revenue streams.
Read all positive factors
Softbank (SFTBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$181.05B
Dividend Yield0.22%
Average Volume (3M)679.03K
Price to Earnings (P/E)4.1
Beta (1Y)2.32
Revenue Growth8.78%
EPS Growth1195.80%
CountryUS
Employees65,352
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)480.87
Shares Outstanding11,423,696,000
10 Day Avg. Volume632,729
30 Day Avg. Volume679,033
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.24
Price to Sales (P/S)2.63
P/FCF Ratio-8.27
Enterprise Value/Market Cap298.67
Enterprise Value/Revenue6.84
Enterprise Value/Gross Profit13.28
Enterprise Value/Ebitda13.51
Forecast
1Y Price Target
$20.00Price Target Upside35.69% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.33
Revenue Forecast (FY)$52.58B
Softbank Business Overview & Revenue Model
Company Description
SoftBank 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 m...
How the Company Makes Money
SoftBank primarily generates earnings through (1) telecommunications operations and (2) investment activities, with additional contributions from other consolidated subsidiaries.
1) Telecommunications (operating business): Through its telecom sub...
Softbank Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 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
45
Neutral
Cash Flow
28
Negative
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.27T | 7.24T | 6.76T | 6.57T | 6.22T |
| Gross Profit | 4.26T | 3.75T | 3.54T | 3.33T | 3.27T |
| EBITDA | 969.08B | 1.60T | 1.47T | 1.53T | 1.57T |
| Net Income | 5.30T | 1.15T | -227.65B | -970.14B | -1.71T |
Balance Sheet | |||||
| Total Assets | 61.01T | 45.01T | 46.72T | 43.94T | 47.54T |
| Cash, Cash Equivalents and Short-Term Investments | 7.53T | 3.71T | 6.44T | 7.30T | 6.09T |
| Total Debt | 25.97T | 18.91T | 16.19T | 20.32T | 22.32T |
| Total Liabilities | 40.65T | 31.06T | 33.49T | 33.29T | 35.84T |
| Stockholders Equity | 17.50T | 11.56T | 11.16T | 9.03T | 9.98T |
Cash Flow | |||||
| Free Cash Flow | -2.63T | -650.59B | -372.06B | 107.53B | 1.89T |
| Operating Cash Flow | -789.25B | 203.58B | 250.55B | 741.29B | 2.73T |
| Investing Cash Flow | -4.63T | -1.63T | -841.46B | 547.58B | -3.02T |
| Financing Cash Flow | 6.38T | -1.12T | -606.22B | 191.52B | 602.22B |
Softbank Technical Analysis
Positive
14.74
Price Trends
14.75
Positive
14.18
Positive
14.83
Positive
Market Momentum
0.87
Positive
53.03
Neutral
28.03
Neutral
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 14.74 is below the 20-day moving average (MA) of 18.19, below the 50-day MA of 14.75, and below the 200-day MA of 14.83, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 28.03 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $88.88B | 11.94 | 19.63% | 4.42% | 1.39% | 24.78% | |
72 Outperform | $205.79B | 23.07 | 17.82% | 1.75% | 9.48% | -8.46% | |
71 Outperform | $81.67B | 14.75 | 20.61% | 2.69% | 9.51% | 187.55% | |
67 Neutral | $199.68B | 10.46 | 16.68% | 6.60% | 2.85% | -2.51% | |
66 Neutral | $173.22B | 13.24 | 19.59% | 4.56% | 2.92% | 83.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $181.05B | 4.10 | 34.45% | 0.22% | 8.78% | 1195.80% |
* Communication Services Sector Average
SFTBY
Softbank
17.75
11.27
173.79%
AMX
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T
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24.93
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-4.46%
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TMUS
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190.16
-46.61
-19.69%
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.