Softbank (SFTBY) AI Stock Analysis

• Market Cap: $229.24B
• Dividend Yield: 0.08%
• Average Volume (3M): 679.03K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 2.19
• Revenue Growth: 6.31%
• EPS Growth: 3932.00%
• Country: US
• Employees: 65,352
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.99
• Shares Outstanding: 2,939,990,500
• 10 Day Avg. Volume: 632,729
• 30 Day Avg. Volume: 679,033
• 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 Cap: 0.95
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.06
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $91.00 ▲(15.54% Upside)

Softbank's stock is supported by strong technical indicators and a fair valuation with an attractive dividend yield. However, financial performance is mixed, with strong profitability offset by high leverage and cash flow challenges. The absence of recent earnings call data and corporate events limits additional insights.

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 financial performance shows a recovery in profitability with improved net profit margins. However, high leverage and significant cash flow challenges, including a negative free cash flow growth rate, weigh heavily on the score.

Income Statement

Softbank's income statement shows a modest revenue growth rate of 2.64% in the latest year, with a strong gross profit margin of 51.83%. The net profit margin improved significantly from a negative position in previous years to 15.92%, indicating a turnaround in profitability. However, the EBIT margin remains relatively low at 10.07%, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.64, indicating significant leverage, which could pose financial risks. The return on equity is 9.98%, showing moderate profitability relative to equity. The equity ratio stands at 25.68%, suggesting a balanced but cautious approach towards asset financing.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -1482.56%, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is low at 0.016, highlighting potential issues in cash generation relative to reported profits. The free cash flow to net income ratio is negative, reflecting cash flow difficulties.

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

• Technical Analysis Sentiment: Positive
• Last Price: 78.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 78.76 is above the 20-day moving average (MA) of 72.24, above the 50-day MA of 62.81, and above the 200-day MA of 38.42, indicating a bullish trend. The MACD of 4.87 indicates Positive momentum. The RSI at 61.36 is Neutral, neither overbought nor oversold. The STOCH value of 51.20 is Neutral, 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	―	$163.68B	9.02	18.26%	6.94%	2.05%	61.39%
CMCSA	―	$108.11B	4.84	25.44%	4.42%	2.54%	60.53%
AMX	―	$69.34B	18.31	17.70%	2.30%	1.14%	83.48%
TMUS	―	$243.58B	20.94	19.03%	1.60%	7.30%	17.67%
SFTBY	―	$229.24B	19.59	15.53%	0.08%	6.31%	3932.00%
T	―	$179.76B	8.17	20.88%	4.35%	1.98%	150.68%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Softbank Corporate Events

SoftBank Group Corp. Reports Strong Q1 2025 Earnings

SoftBank Group Corp., a prominent player in the investment and telecommunications sectors, has released its earnings report for the three-month period ending June 30, 2025. The company is known for its diverse investment portfolio, including stakes in technology and telecommunications companies, and its strategic focus on AI and tech-driven ventures.