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Sony Group (SONY)
NYSE:SONY
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Sony Group (SONY) AI Stock Analysis

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SONY

Sony Group

(NYSE:SONY)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
$32.00
▲(11.50% Upside)
Sony's overall stock score is driven by strong financial performance and bullish technical indicators. The company's solid balance sheet and profitability provide stability, while technical analysis shows strong upward momentum. However, valuation metrics suggest moderate attractiveness, and revenue growth challenges need addressing for future expansion.
Positive Factors
Strong Balance Sheet
A strong balance sheet with low debt levels provides Sony with financial stability and flexibility to invest in growth opportunities.
Cash Flow Generation
Strong cash flow generation enhances Sony's ability to fund operations, invest in new projects, and return value to shareholders.
Gaming Division Strategy
Focusing on first-party studios can strengthen Sony's gaming division, driving long-term revenue growth and competitive advantage in the gaming market.
Negative Factors
Revenue Growth Challenges
Negative revenue growth suggests difficulties in market expansion, which could impact Sony's ability to sustain long-term growth.
Decline in PlayStation 5 Sales
A significant decline in PS5 sales could affect Sony's gaming revenue and market position, necessitating strategic adjustments to regain momentum.
Price Increase Impact
Price increases may deter potential buyers, impacting sales volume and market competitiveness, especially in a challenging economic environment.

Sony Group (SONY) vs. SPDR S&P 500 ETF (SPY)

Sony Group Business Overview & Revenue Model

Company DescriptionSony Group Corporation, commonly known as Sony, is a multinational conglomerate headquartered in Tokyo, Japan. The company operates through various sectors, primarily focusing on electronics, gaming, entertainment, and financial services. Sony is renowned for its innovative consumer electronics such as televisions, audio equipment, and cameras, as well as its gaming division, which includes the PlayStation console and related software. Additionally, Sony is a major player in the music and film industries, producing and distributing content through its music label and film studio, Sony Pictures.
How the Company Makes MoneySony generates revenue through multiple key streams, including the sales of electronics, gaming software and services, music, and film production. The Electronics segment contributes significantly through the sale of products such as televisions, audio devices, and smartphones. The Game & Network Services division, particularly through the PlayStation brand, generates substantial revenue from console sales, video game sales, and subscription services like PlayStation Plus. Meanwhile, the Music segment earns money from the sale of recorded music, publishing, and licensing agreements. Sony Pictures contributes revenue through theatrical releases, home entertainment sales, and television production. Significant partnerships with other companies, including collaborations in gaming and content distribution, further enhance its earnings potential.

Sony Group Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Breaks down revenue across different business units, highlighting which segments drive growth and profitability, and revealing strategic focus areas within Sony's diverse operations.
Chart InsightsSony's Game and Network Services segment shows robust growth, driven by strong demand for PlayStation and network services, reaching a peak in late 2024. The Music segment also exhibits steady growth, reflecting successful streaming and licensing strategies. However, Financial Services faces volatility, with recent negative values indicating potential restructuring or market challenges. Imaging and Sensing Solutions are gaining momentum, likely benefiting from advancements in sensor technology. Overall, Sony's diversified portfolio is leveraging entertainment and technology synergies, but financial services require close monitoring for stability.
Data provided by:Main Street Data

Sony Group Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q4-2025)
|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
Sony's earnings call highlighted strong performance in its entertainment segments, with record financial results and growth in user engagement. However, challenges such as the impact of U.S. tariffs and uncertainties in the film industry were noted. The company's cautious outlook for FY '25 reflects these challenges.
Q4-2025 Updates
Positive Updates
Record-Breaking Financial Performance
Sony reported consolidated sales of ¥12,043.9 billion and an operating income of ¥1,276.6 billion for FY '24, both record highs. The operating cash flow was ¥1,972.4 billion.
Growth in Entertainment Segments
The entertainment business, including games, music, film, and TV, accounted for 61% of consolidated sales. PlayStation 5 and PlayStation Network showed strong user engagement, with a 5% increase in monthly active users. The Music segment also achieved a record high operating income of ¥357.3 billion.
Strategic Investments and IP Expansion
Sony focused on expanding its content and IP across games, music, film, and anime, enhancing its ecosystem and collaborating with partners like Crunchyroll and Bandai Namco. Aniplex and Crunchyroll are driving significant growth in the anime sector.
Negative Updates
Impact of U.S. Tariffs
Sony anticipates a ¥100 billion impact on profitability due to U.S. tariffs, affecting segments like G&NS, ET&S, and I&SS. Efforts to mitigate this impact include strategic inventory management and price adjustments.
Challenges in the Film Industry
The film segment saw only slight sales increases due to the impact of COVID-19 and strike-related shutdowns. There is also uncertainty surrounding U.S. tariff policies affecting film production.
Flat Forecast for FY '25
For FY '25, Sony forecasts sales of ¥11,700 billion and an operating income of ¥1,380 billion, reflecting a cautious approach due to uncertainties like U.S. tariffs and potential global economic slowdowns.
Company Guidance
During the 2025 Corporate Strategy and Earnings Announcement Presentation, Sony Group Corporation provided detailed guidance on various business segments. Sony emphasized its strategic focus on the entertainment sector, with the entertainment business contributing to 61% of consolidated sales, highlighting its resilience during economic downturns. The PlayStation 5's expansion is expected to drive steady profit, with a focus on maximizing average revenue per user. In the music segment, Sony aims to strengthen its global position and improve profitability, targeting growth in high-potential markets like Latin America and India. The company plans to explore AI technologies to create value and protect artists' rights. The film segment anticipates new releases, including a Spider-Man movie and an anime adaptation of "Ghost of Tsushima: Legends," with Crunchyroll expected to be a significant growth driver. Sony's imaging and sensing solutions segment forecasts growth through mobile and automotive sensors, while strategic investments and capital expenditures remain a priority. Despite challenges like U.S. tariffs, Sony plans to manage the impact and continue its growth trajectory, projecting operating income of ¥1,380 billion for FY '25.

Sony Group Financial Statement Overview

Summary
Sony demonstrates solid financial health with strong profitability and a stable balance sheet. The low debt-to-equity ratio and strong equity position provide stability. However, challenges in revenue growth need attention for future expansion.
Income Statement
78
Positive
Sony's income statement shows strong profitability with a consistent gross profit margin around 27-29% and a net profit margin improving to over 9% in the TTM period. However, revenue growth has been negative recently, indicating potential challenges in market expansion. The EBIT and EBITDA margins are healthy, reflecting efficient operations, but the recent revenue decline is a concern.
Balance Sheet
82
Very Positive
The balance sheet is robust with a low debt-to-equity ratio of 0.19 in the TTM period, indicating strong financial stability. Return on equity is solid at around 14%, showing effective use of shareholder funds. The equity ratio is healthy, suggesting a strong asset base relative to liabilities.
Cash Flow
75
Positive
Sony's cash flow statement reveals positive trends with a significant increase in free cash flow growth in the TTM period. The operating cash flow to net income ratio is stable, although the free cash flow to net income ratio indicates some variability. Overall, cash flow generation is strong but shows some fluctuations.
BreakdownTTMDec 2024Dec 2023Dec 2023Dec 2023Dec 2023
Income Statement
Total Revenue12.57T12.96T13.02T13.02T13.02T13.02T
Gross Profit3.70T3.66T3.33T3.33T3.33T3.33T
EBITDA2.75T2.67T2.45T2.45T2.45T2.45T
Net Income1.15T1.14T970.57B970.57B970.57B970.57B
Balance Sheet
Total Assets35.13T35.29T34.11T34.11T34.11T34.11T
Cash, Cash Equivalents and Short-Term Investments1.63T3.45T2.33T2.33T2.33T2.33T
Total Debt1.61T4.20T4.09T4.09T4.09T4.09T
Total Liabilities26.55T26.78T26.35T26.35T26.35T26.35T
Stockholders Equity8.30T8.18T7.59T7.59T7.59T7.59T
Cash Flow
Free Cash Flow1.97T1.67T749.27B749.27B749.27B749.27B
Operating Cash Flow2.53T2.32T1.37T1.37T1.37T1.37T
Investing Cash Flow-744.32B-930.12B-818.89B-818.89B-818.89B-818.89B
Financing Cash Flow-512.39B-298.24B-210.71B-210.71B-210.71B-210.71B

Sony Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.70
Price Trends
50DMA
28.37
Positive
100DMA
26.61
Positive
200DMA
25.00
Positive
Market Momentum
MACD
0.12
Positive
RSI
53.13
Neutral
STOCH
37.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONY, the sentiment is Positive. The current price of 28.7 is below the 20-day moving average (MA) of 28.98, above the 50-day MA of 28.37, and above the 200-day MA of 25.00, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 37.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SONY.

Sony Group Risk Analysis

Sony Group disclosed 22 risk factors in its most recent earnings report. Sony Group reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sony Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$175.52B22.5714.70%0.34%-4.41%18.04%
$3.90T39.95149.81%0.38%5.97%0.15%
$338.50M18.2317.97%24.09%
$37.18B12.37-10.20%1.83%8.50%-7.62%
$2.10B-17.69%-10.02%-385.04%
$4.80B-9.31%3.97%72.99%
$340.94M-76.81%-19.83%73.22%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SONY
Sony Group
28.99
11.62
66.90%
AAPL
Apple
268.81
36.22
15.57%
GPRO
GoPro
2.09
0.53
33.97%
LPL
LG Display
5.08
1.29
34.04%
TBCH
Turtle Beach
16.97
-0.04
-0.24%
SONO
Sonos
17.30
4.32
33.28%

Sony Group Corporate Events

Sony Completes September Share Buyback Program
Oct 14, 2025

Sony Group Corporation announced the completion of a share buyback program for the period from September 1 to September 30, 2025, with a total of 5,572,800 shares repurchased at a cost of approximately 23.2 billion yen. This buyback is part of a larger initiative approved by the Board of Directors in May 2025, aiming to repurchase up to 100 million shares by May 2026. As of the end of September 2025, Sony had repurchased 51.14% of the authorized shares, reflecting a strategic move to enhance shareholder value and optimize capital structure.

Sony Adjusts Stock Option Prices Post Financial Services Spin-off
Oct 6, 2025

On October 6, 2025, Sony Group Corporation announced an adjustment in the exercise prices of several series of stock acquisition rights following the partial spin-off of its wholly-owned subsidiary, Sony Financial Group Inc., which was completed on October 1, 2025. This adjustment reflects changes in the company’s financial structure due to the spin-off, potentially impacting stakeholders by altering the valuation of stock options and aligning with the company’s strategic restructuring efforts.

Sony Announces Completion of September Share Repurchase
Oct 3, 2025

On October 3, 2025, Sony Group Corporation announced the status of its share repurchase program, which was initially approved by its Board of Directors on May 14, 2025. During the period from September 1 to September 30, 2025, Sony repurchased 5,572,800 shares of its common stock for a total of 23,215,946,996 yen through open market purchases on the Tokyo Stock Exchange. This repurchase is part of a broader initiative to buy back up to 100 million shares, representing 1.66% of its total outstanding shares, with a maximum budget of 250 billion yen, set to continue until May 14, 2026. The repurchase aims to enhance shareholder value and optimize the company’s capital structure.

Sony Completes Spin-off of Financial Services Business
Oct 1, 2025

On October 1, 2025, Sony Group Corporation announced the completion of a partial spin-off of its financial services business, Sony Financial Group Inc. (SFGI). As a result of this spin-off, Sony now holds 16.40% of SFGI’s common stock, transitioning SFGI from a consolidated subsidiary to an affiliate accounted for using the equity method. This move is expected to result in a reclassification of the financial services business’s accumulated other comprehensive income balance, leading to an anticipated loss of approximately 1 trillion 400 billion yen in net income or loss from discontinued operations for the fiscal year ending March 31, 2026. However, this accounting treatment will not affect Sony’s total equity, cash flows, or profit or loss for continuing operations.

Sony Withdraws Shelf Registration Statement Amid Regulatory Changes
Sep 30, 2025

On September 30, 2025, Sony Group Corporation announced the withdrawal of its shelf registration statement, initially filed on November 8, 2024, concerning the issuance of new shares or disposal of treasury shares. This decision follows the filing of an extraordinary report with the Kanto Local Finance Bureau regarding the disposition of treasury shares upon the vesting of previously granted Restricted Stock Units (RSUs). The withdrawal is in line with amendments to Japanese financial regulations effective from February 2025, and it will not impact the RSUs already granted.

Sony Financial Group Lists on Tokyo Stock Exchange Ahead of Spin-off
Sep 29, 2025

On September 29, 2025, Sony Group Corporation announced the listing of its wholly-owned subsidiary, Sony Financial Group Inc. (SFGI), on the Tokyo Stock Exchange Prime Market. This listing is a precursor to the planned partial spin-off of SFGI, set to occur on October 1, 2025. Following the spin-off, Sony will retain less than 20% of SFGI shares, transitioning SFGI from a consolidated subsidiary to an affiliate accounted for using the equity method. This strategic move is expected to impact Sony’s financial structure and market positioning, as it reduces direct control over its financial services arm while potentially unlocking shareholder value.

Sony Finalizes Asset Distribution for Financial Services Spin-off
Sep 17, 2025

On September 17, 2025, Sony Group Corporation announced the final estimate for the proportion of distributed assets related to the spin-off of its wholly-owned subsidiary, Sony Financial Group Inc. This spin-off, effective October 1, 2025, involves a distribution of dividends in kind for Japanese tax purposes, with the proportion set at 0.206. This move is part of Sony’s strategic restructuring to enhance operational focus and shareholder value, and it is expected to have implications for the company’s financial structure and market positioning.

Sony Group Reports August 2025 Share Buyback Progress
Sep 11, 2025

On September 11, 2025, Sony Group Corporation released a report detailing its share buyback activities for August 2025. During this period, the company repurchased over 15 million shares, amounting to approximately 60.9 billion yen, as part of a board-approved resolution to buy back up to 100 million shares by May 2026. This buyback initiative, which has reached 45.56% of its target, is expected to enhance shareholder value and optimize the company’s capital structure.

Sony Financial Group to List on Tokyo Stock Exchange Following Spin-off
Sep 8, 2025

On September 8, 2025, Sony Group Corporation announced the approval for the listing of its wholly-owned subsidiary, Sony Financial Group Inc. (SFGI), on the Tokyo Stock Exchange, effective October 1, 2025. This move follows a resolution for a partial spin-off of SFGI, which operates Sony’s financial services business. The listing is expected to impact Sony’s financial structure, as SFGI will no longer be a consolidated subsidiary but an affiliate accounted for using the equity method. Additionally, SFGI plans to establish a share repurchase facility to manage the supply and demand of its shares post-listing, with an acquisition amount of 100 billion yen set from September 29, 2025, to August 8, 2026.

Sony Completes August Share Repurchase Program
Sep 3, 2025

On September 3, 2025, Sony Group Corporation announced the completion of a share repurchase program, which was approved by its Board of Directors on May 14, 2025. During the period from August 1 to August 31, 2025, Sony repurchased 15,151,600 shares of its common stock for approximately 60.9 billion yen through open market purchases on the Tokyo Stock Exchange. This move is part of a larger plan to repurchase up to 100 million shares by May 2026, aiming to enhance shareholder value and optimize capital structure.

Sony Announces Partial Spin-off of Financial Services Business
Sep 3, 2025

On September 3, 2025, Sony Group Corporation announced the resolution to execute a partial spin-off of its wholly-owned subsidiary, Sony Financial Group Inc. (SFGI), effective October 1, 2025. This move involves distributing SFGI shares as dividends in kind to Sony shareholders, with the listing of SFGI shares on the Tokyo Stock Exchange scheduled for September 29, 2025. The spin-off is subject to approval from the Tokyo Stock Exchange and aims to reclassify SFGI as an affiliate rather than a consolidated subsidiary of Sony. This strategic decision is part of Sony’s corporate restructuring plan, which has been re-approved by Japan’s Minister of Economy, Trade and Industry. The impact on Sony’s consolidated results is still being evaluated, but the financial services business has been classified as a discontinued operation in its financial statements.

Sony Revises Q1 FY2025 Financial Results
Aug 19, 2025

On August 19, 2025, Sony Group Corporation announced a partial revision to its Q1 FY2025 Consolidated Financial Results, initially disclosed on August 7, 2025. The revision pertains to the sales of continuing operations for FY2024 in the ‘FY2025 Results Forecast by Segment,’ where the figure was adjusted from 12,043.9 billion yen to 12,034.9 billion yen. This correction does not affect the ‘Consolidated Financial Summary for the First Quarter Ended June 30, 2025.’ The revised presentation material is available on Sony’s website.

Sony Group’s July 2025 Share Buyback Progress
Aug 12, 2025

Sony Group Corporation announced a share buyback program for July 2025, repurchasing 11,454,600 shares at a total cost of 41.9 billion yen. This initiative is part of a broader plan approved by the Board of Directors in May 2025 to repurchase up to 100 million shares by May 2026. The buyback is conducted through open market purchases on the Tokyo Stock Exchange, reflecting Sony’s strategy to enhance shareholder value. As of July 31, 2025, the company has repurchased 30.41% of the authorized shares, indicating significant progress in its buyback initiative.

Sony Group Reports Q1 2025 Financial Results and Announces Spin-off of Financial Services
Aug 7, 2025

Sony Group Corporation reported its consolidated financial results for the first quarter ended June 30, 2025, showing a 2.2% increase in sales and a significant 36.5% rise in operating income compared to the same period last year. The company announced a strategic move to spin off its wholly-owned subsidiary, Sony Financial Group Inc., effective October 1, 2025, which will impact its financial services operations. This decision is part of Sony’s ongoing efforts to streamline its operations and focus on its core business areas, potentially affecting stakeholders and market positioning.

Sony Reports Q1 FY2025 Results and Plans Financial Services Spin-Off
Aug 7, 2025

On August 7, 2025, Sony Group Corporation announced its Q1 FY2025 financial results, showing a 2% increase in sales and a 36% rise in operating income compared to the previous year. The company plans a partial spin-off of its wholly-owned subsidiary, Sony Financial Group Inc., in October 2025, classifying it as a discontinued operation. This strategic move is expected to impact Sony’s financial reporting and operations, with the company planning to apply the equity method to the remaining shares. The spin-off is part of Sony’s broader strategy to streamline its operations and focus on its core businesses, potentially affecting stakeholders and market positioning.

Sony Completes July Share Repurchase Program
Aug 5, 2025

On August 5, 2025, Sony Group Corporation announced the completion of a share repurchase program, which was initially approved by its Board of Directors on May 14, 2025. During the repurchase period from July 1 to July 31, 2025, Sony repurchased 11,454,600 shares of its common stock for approximately 41.9 billion yen through open market transactions on the Tokyo Stock Exchange. This initiative is part of a broader strategy to enhance shareholder value, with a maximum of 100 million shares authorized for repurchase over a year-long period ending in May 2026.

Sony and Bandai Namco Forge Strategic Alliance to Boost Anime Engagement
Jul 24, 2025

On July 24, 2025, Sony Group Corporation announced a strategic business alliance with Bandai Namco Holdings Inc., acquiring 16 million shares, representing approximately 2.5% of Bandai Namco’s total issued shares. This partnership aims to expand the global fan community for anime and manga, leveraging both companies’ strengths to create new experiences and maximize IP value. The collaboration will focus on enhancing engagement in the rapidly growing anime market and exploring joint development opportunities in entertainment technologies and services.

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.Date of analysis: Aug 20, 2025