Softbank (SFTBY) AI Stock Analysis

• Market Cap: $109.92B
• Dividend Yield: 0.27%
• Average Volume (3M): 714.63K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.97
• Revenue Growth: -2.23%
• EPS Growth: N/A
• Country: US
• Employees: 65,352
• Sector: Communication Services
• Sector Strength: 87
• Industry: Telecommunications Services
• EPS (TTM): 1.21
• Shares Outstanding: 2,939,990,500
• 10 Day Avg. Volume: 830,803
• 30 Day Avg. Volume: 714,625
• PEG Ratio: 0.11
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $32.20
• Price Target Upside: -12.81% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ―

Softbank's stock score reflects significant financial challenges, particularly in profitability and cash flow, which weigh heavily on its performance. The technical analysis suggests ongoing positive momentum, but with a cautionary note on short-term overbought conditions. Valuation metrics hint at potential undervaluation, adding some support to the stock's outlook. However, without recent earnings call insights or notable corporate events, these factors form the primary basis for the current assessment.

Softbank Business Overview & Revenue Model

Company Description

SoftBank Group Corp. is a multinational conglomerate holding company headquartered in Tokyo, Japan. The company operates in various sectors including telecommunications, internet services, AI, smart robotics, IoT, and investment management. SoftBank is known for its significant investments in technology companies globally, often through its Vision Fund, which targets emerging businesses in areas like AI, robotics, and other innovative technologies. The company also provides mobile and broadband services, primarily in Japan, under its telecommunications division.

How the Company Makes Money

SoftBank makes money through a diverse range of revenue streams primarily from its telecommunications business, investment management, and strategic partnerships. The telecommunications sector, which includes mobile and broadband services in Japan, is a major source of revenue, generating income from subscriber fees and related services. Another significant revenue stream comes from SoftBank's investments, particularly through its Vision Fund, which holds stakes in numerous tech companies worldwide. Profits are realized through capital gains when these investments appreciate in value or are divested profitably. Additionally, SoftBank benefits from strategic partnerships and joint ventures with other companies, which can include revenue-sharing agreements and collaborative business ventures that enhance its overall earnings.

Softbank Financial Statement Overview

Summary

Softbank's financials reflect a company facing profitability and liquidity challenges, with high leverage adding risk. While revenue and operational efficiencies are present, consistent losses and cash flow issues undermine financial health. The significant asset base provides a cushion, but strategic improvements are necessary for sustainable growth and stability.

Income Statement

Softbank's income statement shows a mixed performance. The gross profit margin is healthy, but the net profit margin is negative, indicating ongoing issues with profitability. The revenue growth rate is volatile, with recent declines. The EBIT and EBITDA margins are positive, reflecting some operational efficiency, but the negative net income is a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, suggesting significant leverage and potential financial risk. The equity ratio is moderate, and return on equity is negative due to net losses, further highlighting profitability challenges. However, the company maintains substantial assets and cash reserves, providing some stability.

Cash Flow

Cash flow analysis shows negative free cash flow growth, indicating cash outflow issues. The operating cash flow to net income ratio is positive, suggesting cash generation despite losses. However, the free cash flow to net income ratio is concerning, with free cash flow also negative, pointing to liquidity pressures.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	6.90T	6.76T	6.57T	6.22T	5.63T	6.19T
Gross Profit	3.63T	3.54T	3.33T	3.27T	2.87T	2.70T
EBITDA	869.71B	1.47T	1.53T	-47.75B	6.21T	109.78B
Net Income	75.69B	-227.65B	-970.14B	-1.71T	4.99T	-961.58B
Balance Sheet
Total Assets	47.83T	46.72T	43.94T	47.54T	45.75T	37.26T
Cash, Cash Equivalents and Short-Term Investments	5.50T	6.19T	7.30T	6.09T	7.80T	3.68T
Total Debt	21.60T	21.36T	20.32T	22.32T	19.55T	14.27T
Total Liabilities	33.63T	33.49T	33.29T	35.84T	33.79T	29.88T
Stockholders Equity	12.12T	10.97T	9.03T	9.98T	10.21T	5.91T
Cash Flow
Free Cash Flow	209.71B	-372.06B	107.53B	1.89T	-89.64B	-114.67B
Operating Cash Flow	840.86B	250.55B	741.29B	2.73T	557.25B	1.12T
Investing Cash Flow	-1.72T	-841.46B	547.58B	-3.02T	-1.47T	-4.29T
Financing Cash Flow	-907.70B	-606.22B	191.52B	602.22B	2.19T	2.92T

Softbank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 36.93 is above the 20-day moving average (MA) of 30.58, above the 50-day MA of 27.84, and above the 200-day MA of 28.60, indicating a bullish trend. The MACD of 2.59 indicates Negative momentum. The RSI at 86.30 is Negative, neither overbought nor oversold. The STOCH value of 90.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFTBY.

Softbank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMUS	81 Outperform	$269.58B	23.14	19.35%	1.48%	5.31%	38.46%
CHT	76 Outperform	$36.23B	31.23	9.59%	2.77%	-0.19%	-0.79%
VZ	76 Outperform	$184.17B	10.38	18.23%	6.22%	0.93%	56.97%
AMX	71 Outperform	$55.73B	33.09	8.54%	2.71%	0.19%	-49.68%
T	69 Neutral	$207.81B	17.74	11.38%	3.92%	0.50%	-12.66%
Sector *	61 Neutral	$41.01B	-0.64	-14.21%	3.80%	2.39%	-73.52%
SFTBY	58 Neutral	$109.92B	14.33	10.28%	0.27%	-2.23%	―