Sony Group (SONY) AI Stock Analysis

Compare

5,969 Followers

Top Page

Sony Group

(NYSE:SONY)

Rating:70Outperform

Price Target:

$27.00

▲(3.73% Upside)

The overall stock score of 70 reflects Sony's strong financial performance, characterized by consistent growth and efficient cash flow management. However, technical indicators suggest a lack of upward momentum, and the valuation shows limited income potential, slightly offsetting the financial strengths.

Positive Factors

Financial Performance

Sony reported results that beat both analyst and consensus estimates on top and bottom lines.

Gaming and Music Segments

Gaming and Music segments significantly outperformed, with Gaming & Network Services revenue up 16% and Music up 14% year-over-year.

Guidance

The company issued initial FY25 operating income guidance that was better than the pre-print estimate when adjusting for tariffs and FX impacts.

Negative Factors

Revenue Decline

Excluding Financial Services, revenue was down 4% year-over-year, led by declines in Games & Network Services, Pictures, and Music segments.

Revenue Miss

Sony Q4:F24 revenue of ¥2.63 trillion missed estimates largely due to accounting-driven downside at Financial Services.

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

Market Cap

$150.29B

Dividend Yield0.46%

Average Volume (3M)4.21M

Price to Earnings (P/E)19.8

Beta (1Y)1.18

Revenue Growth-5.46%

EPS Growth14.01%

CountryUS

Employees113,000

SectorTechnology

Sector Strength94

IndustryConsumer Electronics

Share Statistics

EPS (TTM)0.29

Shares Outstanding6,149,810,500

10 Day Avg. Volume3,859,939

30 Day Avg. Volume4,208,871

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.07

Enterprise Value/Revenue0.01

Enterprise Value/Gross Profit0.04

Enterprise Value/Ebitda0.06

Forecast

1Y Price Target

$29.00

Price Target Upside11.41% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Sony Group Business Overview & Revenue Model

Company DescriptionSony Group Corporation is a Japanese multinational conglomerate headquartered in Tokyo, Japan. It operates in diverse sectors, including electronics, gaming, entertainment, and financial services. Sony is renowned for its consumer electronics products such as televisions, audio equipment, and cameras. In the gaming sector, it is a leading player with its PlayStation gaming consoles and related software. The company's entertainment division includes Sony Pictures, a major film and television production company, and Sony Music, one of the largest music companies globally. Furthermore, Sony provides financial services through Sony Financial Holdings, offering insurance and banking services, primarily in Japan.

How the Company Makes MoneySony Group Corporation generates revenue through multiple streams across its diverse business operations. The primary revenue sources include the sale of consumer electronics such as televisions, audio systems, and imaging products. The gaming segment, dominated by the PlayStation platform, contributes significantly through console sales, game software, and subscription services like PlayStation Plus. The entertainment division earns from film and television production, distribution, and licensing, as well as music recording and publishing. In financial services, Sony earns from life insurance premiums, banking services, and investment income. The company's earnings are further supported by strategic partnerships and collaborations across its various sectors, enhancing its market presence and product offerings.

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

(Q3-2024)

% Change Since: 4.45%|

Next Earnings Date:Nov 11, 2025

Earnings Call Sentiment Positive

The earnings call highlighted Sony's robust financial performance, particularly in the Games and Network Services and Music segments, where record-breaking revenues and user engagement were noted. However, challenges in the Pictures and ET&S segments, along with a decline in operating income in Financial Services, indicate areas that require attention. Overall, the call reflects a strong performance with some areas needing strategic focus.

Q3-2024 Updates

Positive Updates

Record-Breaking Financial Performance

Consolidated sales excluding the financial services segment increased by 7% year-on-year, reaching ¥3,695.7 trillion, while operating income increased 10% to ¥423 billion. Including the financial services segment, sales increased 18% year-on-year to ¥4,409.6 trillion, with operating income reaching a record high for the third quarter at ¥469.3 billion.

Games and Network Services Growth

Sales for the Games and Network Services segment increased 16% year-on-year to ¥1,682.3 billion, with operating income increasing 37% to ¥118.1 billion, marking a record high for the third quarter. The number of monthly active users on PlayStation platforms increased by 5% year-on-year, reaching 129 million accounts, the highest in PS history.

Music Segment Performance

Music segment sales increased 14% year-on-year to ¥481.7 billion, with operating income increasing 28% to ¥97.4 billion. Streaming revenues increased 9% year-on-year on a U.S. dollar basis.

Strategic Alliances and Acquisitions

Sony became the largest shareholder of Kadokawa through a capital and business alliance, aiming to create new value by combining Kadokawa's strengths in creating original IP with Sony's technologies and global expansion capabilities.

Negative Updates

Pictures Segment Challenges

While sales for the Pictures segment increased 9% year-on-year, operating income decreased 18% due to increased marketing costs and impacts from strikes, such as the postponement of theatrical releases.

ET&S Segment Sales Decline

Sales for the ET&S segment decreased 4% year-on-year to ¥704.5 billion, primarily due to a decrease in unit sales of televisions. The full year forecast remains unchanged despite these challenges.

Financial Services Segment Operating Income Decline

Operating income for the financial services segment decreased by ¥30.9 billion year-on-year to ¥46.4 billion. This was primarily due to the absence of significant gains related to market fluctuations recorded in the previous fiscal year.

Company Guidance

During the Sony Group Corporation fiscal year 2024 third quarter earnings call, several key financial metrics were discussed. Consolidated sales excluding the financial services segment increased by 7% year-on-year to ¥3,695.7 trillion, while operating income rose 10% to ¥423 billion. Including the financial services segment, consolidated sales saw an 18% increase year-on-year, reaching ¥4,409.6 trillion, with operating income increasing by 1% to ¥469.3 billion, marking a record high for the third quarter. The company revised its full-year forecast, with consolidated sales expected to reach ¥13.200 trillion, a 4% increase from the previous forecast, and operating income revised upward by 2% to ¥335 billion. Additionally, the PlayStation segment showed strong performance, with a 16% increase in sales year-on-year to ¥1,682.3 billion and a 37% rise in operating income to ¥118.1 billion. The Music segment also experienced growth, with sales increasing 14% to ¥481.7 billion and operating income rising 28% to ¥97.4 billion. The company's financial services revenue for the quarter increased by ¥406.7 billion year-on-year to ¥718.5 billion.

Sony Group Financial Statement Overview

Summary

Sony Group exhibits a robust financial position with strong revenue and profit growth, efficient operational management, and strong cash flow generation. While leverage is manageable, there is potential to increase equity financing to further strengthen the balance sheet. Overall, Sony demonstrates sound financial health and growth potential.

Income Statement

Very Positive

Sony Group demonstrates strong revenue and profit growth, with a solid gross profit margin of 28.27% and an impressive net profit margin of 8.81% for the TTM period. Revenue growth has been consistent, evidenced by a 30.53% increase from 2022 to 2023. EBIT and EBITDA margins are healthy at 10.86% and 20.73%, respectively, indicating efficient operational management and profitability.

Balance Sheet

Positive

The balance sheet is strong with a reasonable debt-to-equity ratio of 0.51, indicating manageable leverage. The return on equity is robust at 13.96%, reflecting efficient use of equity capital. However, the equity ratio is moderate at 23.17%, suggesting room for improvement in asset financing through equity.

Cash Flow

Positive

Sony's cash flow position is solid, with a strong operating cash flow to net income ratio of 2.03, showcasing effective cash generation from operations. The free cash flow to net income ratio of 1.47 indicates that Sony is maintaining ample free cash flow relative to its net income, supporting further investments and debt obligations. Notably, free cash flow has grown significantly, demonstrating effective capital management.

Breakdown	Mar 2025	Mar 2024	Mar 2024	Mar 2024	Mar 2024
Income Statement
Total Revenue	12.96T	13.02T	13.02T	13.02T	13.02T
Gross Profit	3.66T	3.33T	3.33T	3.33T	3.33T
EBITDA	2.67T	2.45T	2.45T	2.45T	2.45T
Net Income	1.14T	970.57B	970.57B	970.57B	970.57B
Balance Sheet
Total Assets	35.29T	34.11T	34.11T	34.11T	34.11T
Cash, Cash Equivalents and Short-Term Investments	3.45T	2.33T	2.33T	2.33T	2.33T
Total Debt	4.20T	4.09T	4.09T	4.09T	4.09T
Total Liabilities	26.78T	26.35T	26.35T	26.35T	26.35T
Stockholders Equity	8.18T	7.59T	7.59T	7.59T	7.59T
Cash Flow
Free Cash Flow	1.67T	749.27B	749.27B	749.27B	749.27B
Operating Cash Flow	2.32T	1.37T	1.37T	1.37T	1.37T
Investing Cash Flow	-930.12B	-818.89B	-818.89B	-818.89B	-818.89B
Financing Cash Flow	-298.24B	-210.71B	-210.71B	-210.71B	-210.71B

Sony Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price26.03

Price Trends

50DMA

25.32

Positive

100DMA

24.95

Positive

200DMA

23.03

Positive

Market Momentum

MACD

-0.02

Negative

RSI

62.73

Neutral

STOCH

62.32

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 26.03 is above the 20-day moving average (MA) of 24.53, above the 50-day MA of 25.32, and above the 200-day MA of 23.03, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 62.32 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
AAPL	75 Outperform	$3.01T	30.85	149.81%	0.46%	5.97%	0.15%
SONY	70 Outperform	$150.29B	19.82	14.70%	0.46%	-5.46%	14.01%
TBCH	68 Neutral	$291.12M	19.87	12.49%	―	44.41%	―
SONO	62 Neutral	$1.33B	―	-17.69%	―	-5.24%	-67.92%
Sector *	61 Neutral	$34.83B	4.75	-10.43%	2.08%	6.55%	-9.99%
LPL	55 Neutral	$3.95B	―	-28.93%	―	3.97%	72.99%
GPRO	54 Neutral	$209.85M	―	-83.57%	―	-20.88%	62.21%

* Technology Sector Average

Performance Comparison

SONY

Sony Group

26.03

9.20

54.66%

AAPL

Apple

220.03

7.71

3.63%

GPRO

GoPro

1.32

0.10

8.20%

LPL

LG Display

4.08

0.21

5.43%

TBCH

Turtle Beach

14.41

1.59

12.40%

SONO

Sonos

10.97

-0.81

-6.88%

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 05, 2025