Sony Group (SONY) AI Stock Analysis

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Sony Group

(NYSE:SONY)

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Outperform 78 (OpenAI - 4o)

Rating:78Outperform

Price Target:

$32.00

▲(9.74% 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)

Market Cap

$177.31B

Dividend Yield0.41%

Average Volume (3M)3.84M

Price to Earnings (P/E)22.7

Beta (1Y)1.22

Revenue Growth-4.41%

EPS Growth18.04%

CountryUS

Employees113,000

SectorTechnology

Sector Strength88

IndustryConsumer Electronics

Share Statistics

EPS (TTM)0.29

Shares Outstanding6,149,810,500

10 Day Avg. Volume3,564,994

30 Day Avg. Volume3,836,672

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.90

Enterprise Value/Revenue0.01

Enterprise Value/Gross Profit0.04

Enterprise Value/Ebitda0.06

Forecast

1Y Price Target

$31.00

Price Target Upside6.31% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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

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)

% Change Since: |

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	12.57T	12.96T	13.02T	13.02T	13.02T	13.02T
Gross Profit	3.70T	3.66T	3.33T	3.33T	3.33T	3.33T
EBITDA	2.75T	2.67T	2.45T	2.45T	2.45T	2.45T
Net Income	1.15T	1.14T	970.57B	970.57B	970.57B	970.57B
Balance Sheet
Total Assets	35.13T	35.29T	34.11T	34.11T	34.11T	34.11T
Cash, Cash Equivalents and Short-Term Investments	1.63T	3.45T	2.33T	2.33T	2.33T	2.33T
Total Debt	1.61T	4.20T	4.09T	4.09T	4.09T	4.09T
Total Liabilities	26.55T	26.78T	26.35T	26.35T	26.35T	26.35T
Stockholders Equity	8.30T	8.18T	7.59T	7.59T	7.59T	7.59T
Cash Flow
Free Cash Flow	1.97T	1.67T	749.27B	749.27B	749.27B	749.27B
Operating Cash Flow	2.53T	2.32T	1.37T	1.37T	1.37T	1.37T
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 Price29.16

Price Trends

50DMA

26.56

Positive

100DMA

26.08

Positive

200DMA

24.39

Positive

Market Momentum

MACD

0.66

Negative

RSI

62.72

Neutral

STOCH

83.57

Negative

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 29.16 is above the 20-day moving average (MA) of 28.24, above the 50-day MA of 26.56, and above the 200-day MA of 24.39, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 83.57 is Negative, 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
AAPL	80 Outperform	3.55T	36.20	150.81%	0.43%	5.97%	0.15%
SONY	78 Outperform	$177.31B	22.70	14.70%	0.41%	-4.41%	18.04%
TBCH	74 Outperform	297.89M	16.04	17.08%	―	24.09%	0.00%
GPRO	61 Neutral	371.50M	-3.32	-110.84%	―	-19.83%	73.22%
SONO	58 Neutral	1.82B	-23.30	-19.13%	―	-10.02%	-385.04%
LPL	55 Neutral	4.66B	-9.97	-10.33%	―	3.97%	72.99%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

SONY

Sony Group

29.16

10.58

56.94%

AAPL

Apple

238.99

11.18

4.91%

GPRO

GoPro

2.31

0.92

66.19%

LPL

LG Display

4.80

0.80

20.00%

TBCH

Turtle Beach

15.04

0.21

1.42%

SONO

Sonos

15.09

2.56

20.43%

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