Softbank (SFTBY) AI Stock Analysis

• Market Cap: $154.35B
• Dividend Yield: 0.17%
• Average Volume (3M): 751.52K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 2.14
• Revenue Growth: 6.31%
• EPS Growth: 3932.00%
• Country: US
• Employees: 65,352
• Sector: Communication Services
• Sector Strength: 92
• Industry: Telecommunications Services
• EPS (TTM): 0.99
• Shares Outstanding: 2,939,990,500
• 10 Day Avg. Volume: 995,599
• 30 Day Avg. Volume: 751,519
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.06
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: $56.00
• Price Target Upside: 7.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $56.00 ▲(7.03% Upside)

Softbank's overall stock score is driven primarily by its financial performance challenges, particularly high leverage and cash flow issues. The strong technical indicators provide a positive outlook, but the overbought conditions warrant caution. Valuation metrics suggest the stock may be undervalued, offering potential upside.

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 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 Money

SoftBank generates revenue through multiple streams. Primarily, it earns income from its telecommunications operations, including mobile and broadband services provided to millions of customers in Japan. Additionally, the company's investment arm, the SoftBank Vision Fund, contributes significantly to its earnings by investing in high-potential startups and established companies in various sectors, particularly technology. The returns from these investments, both through capital appreciation and exits via IPOs or acquisitions, are crucial for SoftBank's revenue. Strategic partnerships with global tech firms and investment in emerging technologies further bolster its earnings potential. Furthermore, the company has stakes in various subsidiaries and associate companies, allowing it to benefit from dividends and profits generated by these entities.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.24T	7.24T	6.76T	6.57T	6.22T	5.63T
Gross Profit	3.75T	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	1.15T	1.15T	-227.65B	-970.14B	-1.71T	4.99T
Balance Sheet
Total Assets	45.01T	45.01T	46.72T	43.94T	47.54T	45.75T
Cash, Cash Equivalents and Short-Term Investments	3.71T	3.71T	6.44T	7.30T	6.09T	7.80T
Total Debt	18.91T	18.91T	16.19T	20.32T	22.32T	19.55T
Total Liabilities	31.06T	31.06T	33.49T	33.29T	35.84T	33.79T
Stockholders Equity	11.56T	11.56T	10.97T	9.03T	9.98T	10.21T
Cash Flow
Free Cash Flow	-650.59B	-650.59B	-372.06B	107.53B	1.89T	-89.64B
Operating Cash Flow	203.58B	203.58B	250.55B	741.29B	2.73T	557.25B
Investing Cash Flow	-1.63T	-1.63T	-841.46B	547.58B	-3.02T	-1.47T
Financing Cash Flow	-1.12T	-1.12T	-606.22B	191.52B	602.22B	2.19T

Softbank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.32
• 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 52.32 is above the 20-day moving average (MA) of 42.98, above the 50-day MA of 36.82, and above the 200-day MA of 30.25, indicating a bullish trend. The MACD of 4.38 indicates Negative momentum. The RSI at 84.85 is Negative, neither overbought nor oversold. The STOCH value of 94.35 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
VZ	81 Outperform	$183.41B	10.11	18.26%	6.13%	2.05%	61.39%
TMUS	80 Outperform	$281.70B	23.61	19.74%	1.31%	6.27%	31.78%
CHT	78 Outperform	$34.74B	29.53	9.95%	3.70%	3.12%	3.14%
AMX	74 Outperform	$57.73B	19.96	14.41%	2.77%	-0.64%	56.92%
T	67 Neutral	$205.57B	16.39	12.12%	3.84%	1.46%	0.88%
SFTBY	64 Neutral	$154.35B	13.02	15.53%	0.17%	6.31%	3932.00%
Sector *	60 Neutral	$44.04B	1.92	-11.93%	4.00%	2.47%	-38.33%