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Softbank Corp (SFTBY)
OTHER OTC:SFTBY
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Softbank
(OTC:SFTBY)
48Neutral
Softbank (SFTBY) vs. S&P 500 (SPY)
Market Cap
$77.27B
Dividend Yield0.35%
Average Volume (3M)599.66K
Price to Earnings (P/E)13.5
Beta (1Y)2.13
Revenue Growth-2.23%
EPS GrowthN/A
CountryUS
Employees65,352
SectorCommunication Services
Sector Strength80
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.97
Shares Outstanding2,939,990,500
10 Day Avg. Volume577,211
30 Day Avg. Volume599,658
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.20Price Target Upside20.64% Upside
Rating ConsensusHold
Number of Analyst Covering0
Softbank Business Overview & Revenue Model
Company DescriptionSoftBank Group Corp. is a Japanese multinational conglomerate holding company headquartered in Tokyo, Japan. It operates in various sectors including telecommunications, e-commerce, technology services, and finance. Core businesses include its mobile and fixed-line telecommunications services in Japan, as well as significant investments in internet and technology companies globally. It is also known for its Vision Fund, one of the largest technology-focused venture capital funds in the world.
How the Company Makes MoneySoftBank makes money through a combination of telecommunications services, investment gains, and strategic partnerships. Its telecommunications division generates revenue from mobile and fixed-line services in Japan, providing services to millions of subscribers. A significant portion of its revenue is derived from its diverse investment portfolio, managed through subsidiaries and its Vision Fund, which invests in high-growth technology companies worldwide. Profits are realized through capital gains, dividends, and interest from these investments. Additionally, SoftBank's strategic partnerships and shareholdings in renowned companies contribute to its earnings through equity income and collaborative business ventures.
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.40
Negative
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.55
Neutral
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.45
Neutral
| 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
Negative
26.69
Price Trends
29.27
Negative
29.41
Negative
29.83
Negative
Market Momentum
-0.68
Negative
43.45
Neutral
70.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFTBY, the sentiment is Negative. The current price of 26.69 is below the 20-day moving average (MA) of 26.75, below the 50-day MA of 29.27, and below the 200-day MA of 29.83, indicating a bearish trend. The MACD of -0.68 indicates Negative momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 70.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFTBY.
Softbank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.92T | 31.66 | 34.29% | 0.80% | 15.04% | 12.38% | |
78 Outperform | $2.06T | 20.39 | 32.91% | 0.35% | 13.89% | 38.99% | |
75 Outperform | $1.13T | 12.74 | 14.70% | ― | 1.91% | -6.72% | |
74 Outperform | $3.36T | 35.09 | 136.52% | 0.45% | 2.61% | -2.14% | |
73 Outperform | $2.18T | 37.25 | 24.29% | ― | 10.99% | 91.61% | |
59 Neutral | $30.02B | 0.85 | -18.80% | 4.01% | 2.14% | -50.70% | |
48 Neutral | $77.27B | 13.49 | 8.02% | 0.35% | -2.23% | ― |
* Communication Services Sector Average
Performance Comparison
SFTBY
Softbank
26.69
-2.80
-9.49%
AMZN
Amazon
201.13
21.30
11.84%
AAPL
Apple
221.53
49.03
28.42%
GOOGL
Alphabet Class A
165.06
14.91
9.93%
MSFT
Microsoft
389.97
-28.27
-6.76%
BRK.B
Berkshire Hathaway B
533.21
116.28
27.89%
Softbank Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -13.68% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed outlook for SoftBank Group. While there were significant achievements such as the successful ARM IPO and improved Vision Fund performance, challenges like the negative net income, WeWork's bankruptcy, and the persistent SoftBank discount were notable issues. The company's focus on AI investments suggests a strategic direction towards future growth.Highlights
Successful ARM IPO
ARM's IPO was a major event, with a market cap of $52 billion upon listing. The share price has exceeded the listing price, and ARM is seen as a core strategic company for SoftBank, expected to lead AI-related services.
Improved Vision Fund Performance
Vision Fund's loss reduced to JPY 583 billion from JPY 4.3 trillion a year ago, indicating significant improvement in investment performance.
Increased Net Asset Value
Net asset value increased by JPY 1 trillion compared to the end of June, reaching JPY 16.4 trillion, reflecting a positive trend.
Strong Cash Position
The cash position is strong at JPY 5.1 trillion, providing a safety net for future investments and operations.
Positive AI Investment Outlook
SoftBank is actively investing in AI, with significant investments in companies like ByteDance and Swiggy, indicating a strategic focus on AI-driven growth.
Lowlights
Negative Net Income
The company reported a negative net income of JPY 1.4 trillion, continuing the negative trend from the previous year.
WeWork Bankruptcy Impact
WeWork's bankruptcy filing under Chapter 11 was acknowledged, with SoftBank taking a significant hit due to its investment decisions.
SoftBank Discount Persisting
The gap between the net asset value per share and the actual share price remains wide, raising concerns about market perception and valuation.
Company Guidance
During the Q2 2024 earnings call for SoftBank Group Corp, the executive team, including Yoshimitsu Goto and Kazuko Kimiwada, provided several key metrics and updates. The IPO of ARM was highlighted as a significant event, with a market capitalization upon listing of $52 billion, and SoftBank Group's investment in ARM yielding a MOIC of 3.2x. The group's net income was reported as negative JPY 1.4 trillion, with Vision Fund investments showing improvement, posting a negative JPY 583 billion compared to the previous year's JPY 4.3 trillion loss. The net asset value increased by JPY 1 trillion to JPY 16.4 trillion, while the cash position stood at JPY 5.1 trillion. Additionally, SoftBank Group's loan-to-value ratio remained at a safe level of 10%, well below the policy cap of 25%. The call also delved into ARM's future prospects, highlighting its strong market share in mobile, cloud, automotive, and IoT sectors, with quarterly revenue reaching a record high and non-GAAP operating profit up by 92% year-on-year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.