Softbank (SFTBY) AI Stock Analysis

• Market Cap: $76.89B
• Dividend Yield: 0.36%
• Average Volume (3M): 724.07K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 2.02
• Revenue Growth: -2.23%
• EPS Growth: N/A
• Country: US
• Employees: 65,352
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 1.21
• Shares Outstanding: 2,939,990,500
• 10 Day Avg. Volume: 640,083
• 30 Day Avg. Volume: 724,067
• PEG Ratio: 1.19
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.03
• 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: 21.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

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. 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 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 show profitability and liquidity challenges, with negative net income and free cash flow. High leverage adds risk, although substantial assets provide stability. Strategic improvements are needed for sustainable growth.

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	11.92T	3.83T
	Gross Profit
3.63T	3.54T	3.33T	3.27T	9.17T	1.24T
	EBIT
831.07B	560.01B	380.08B	713.85B	6.89T	-918.51B
	EBITDA
853.41B	1.47T	1.27T	365.37B	7.73T	2.61T
	Net Income Common Stockholders
71.06B	-227.65B	-1.01T	-1.74T	4.99T	-1.16T
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.78T	6.19T	7.11T	5.36T	4.78T	3.61T
	Total Assets
44.98T	46.72T	43.94T	47.54T	45.75T	37.26T
	Total Debt
20.93T	21.36T	20.73T	22.82T	20.04T	14.77T
	Net Debt
14.77T	15.18T	13.80T	17.65T	15.38T	11.40T
	Total Liabilities
33.27T	33.49T	33.70T	36.33T	34.29T	30.38T
	Stockholders Equity
9.77T	10.97T	8.62T	9.48T	9.72T	5.42T
Cash Flow		Free Cash Flow
28.71B	-372.06B	35.71B	-323.63B	-123.89B	-145.74B
	Operating Cash Flow
659.87B	250.55B	669.48B	511.44B	523.00B	1.09T
	Investing Cash Flow
-1.72T	-841.46B	228.18B	-3.06T	-16.86B	-4.37T
	Financing Cash Flow
-894.89B	-606.22B	191.52B	602.22B	2.24T	2.92T

Softbank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 26.44 is above the 20-day moving average (MA) of 25.95, above the 50-day MA of 25.28, and below the 200-day MA of 28.36, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 55.99 is Neutral, neither overbought nor oversold. The STOCH value of 65.80 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
CHT	80 Outperform	$33.77B	29.33	9.59%	2.59%	-0.19%	-0.79%
VZ	78 Outperform	$186.82B	10.53	18.23%	6.09%	0.93%	56.97%
TMUS	75 Outperform	$277.33B	23.65	19.35%	1.25%	5.31%	38.46%
AMX	71 Outperform	$52.93B	31.61	8.54%	2.92%	0.19%	-49.68%
T	69 Neutral	$201.62B	17.21	11.38%	3.96%	0.50%	-12.66%
Sector *	60 Neutral	$14.09B	6.90	-3.35%	3.68%	2.44%	-36.27%
SFTBY	58 Neutral	$76.89B	10.29	10.28%	0.36%	-2.23%	―