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Socionext Inc.
(6526)
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Rating:52Neutral
Price Target:
¥1,991.00
▲(3.40% Upside)
Action:Reiterated
Date:10/29/26
The score is held back primarily by deteriorating cash-flow quality (negative free cash flow) and weaker profitability versus prior years, alongside bearish longer-term technical trends (below 100/200-day averages and negative MACD). A very conservative balance sheet and a moderate dividend yield provide support but do not fully offset the elevated P/E and recent operating/cash-flow pressure.
Positive Factors
Conservative Balance Sheet
Socionext’s extremely low leverage limits balance-sheet risk and preserves substantial financial flexibility. A stable equity base should help the company absorb operating volatility, continue investing in chip development, and fund strategic initiatives without depending heavily on debt markets.
Negative Factors
Negative Free Cash Flow
The recent swing to deeply negative free cash flow shows that accounting earnings are not currently translating into cash available for reinvestment or distribution. Continued investment or working-capital pressure could reduce funding flexibility and make capital allocation more dependent on future operating recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Socionext’s extremely low leverage limits balance-sheet risk and preserves substantial financial flexibility. A stable equity base should help the company absorb operating volatility, continue investing in chip development, and fund strategic initiatives without depending heavily on debt markets.
Read all positive factors
Socionext Inc. (6526) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥328.38B
Dividend Yield2.74%
Average Volume (3M)5.50M
Price to Earnings (P/E)39.0
Beta (1Y)2.01
Revenue Growth20.66%
EPS Growth-17.48%
CountryJP
Employees2,469
SectorIndustrials
Sector Strength72
IndustrySemiconductors
Share Statistics
EPS (TTM)46.76
Shares Outstanding180,033,940
10 Day Avg. Volume6,282,530
30 Day Avg. Volume5,503,080
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)2.47
Price to Sales (P/S)1.63
P/FCF Ratio-45.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,500.00Price Target Upside29.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)76.69
Revenue Forecast (FY)¥231.40B
Socionext Inc. Business Overview & Revenue Model
Company Description
Socionext Inc. designs, develops, manufactures, and sells system-on-chip (SoC), and solutions/services centering on SoC worldwide. It offers application specific standard products in the areas of radar sensor, servers, image processing, video proc...
Socionext Inc. Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
88
Very Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 213.05B | 200.83B | 188.53B | 221.25B | 192.77B | 117.01B |
| Gross Profit | 93.03B | 89.78B | 103.92B | 110.00B | 88.84B | 58.44B |
| EBITDA | 29.69B | 28.66B | 41.61B | 50.52B | 35.52B | 17.87B |
| Net Income | 8.20B | 8.73B | 19.60B | 26.13B | 19.76B | 7.48B |
Balance Sheet | ||||||
| Total Assets | 179.12B | 167.62B | 170.31B | 186.84B | 193.94B | 118.43B |
| Cash, Cash Equivalents and Short-Term Investments | 22.76B | 44.54B | 72.84B | 69.74B | 45.14B | 46.27B |
| Total Debt | 8.10B | 0.00 | 1.63B | 2.04B | 1.13B | 0.00 |
| Total Liabilities | 48.77B | 34.57B | 33.27B | 55.82B | 84.08B | 28.82B |
| Stockholders Equity | 130.34B | 133.06B | 137.05B | 131.02B | 109.86B | 89.61B |
Cash Flow | ||||||
| Free Cash Flow | -14.38B | -7.16B | 19.11B | 41.00B | 5.39B | 8.81B |
| Operating Cash Flow | 9.54B | 7.69B | 31.87B | 52.88B | 18.02B | 16.36B |
| Investing Cash Flow | -32.48B | -22.88B | -14.55B | -23.16B | -19.73B | -7.94B |
| Financing Cash Flow | -1.11B | -14.24B | -13.82B | -6.62B | -333.00M | -458.00M |
Socionext Inc. Technical Analysis
Negative
1925.50
Price Trends
1972.33
Negative
2174.19
Negative
2125.41
Negative
Market Momentum
-47.60
Positive
42.33
Neutral
75.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6526, the sentiment is Negative. The current price of 1925.5 is below the 20-day moving average (MA) of 1972.52, below the 50-day MA of 1972.33, and below the 200-day MA of 2125.41, indicating a bearish trend. The MACD of -47.60 indicates Positive momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 75.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6526.
Socionext Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥9.75T | 22.35 | 9.88% | 1.29% | 9.57% | 18.11% | |
65 Neutral | ¥1.76T | 16.00 | 14.39% | 1.75% | 9.29% | 34.41% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥1.04T | 28.78 | 7.43% | 1.75% | 5.82% | -37.13% | |
62 Neutral | ¥6.88T | 31.45 | 38.53% | 1.04% | 27.94% | 99.60% | |
56 Neutral | ¥1.97T | 22.04 | 22.61% | 1.14% | 12.86% | 165.14% | |
52 Neutral | ¥328.38B | 39.01 | ― | 2.74% | 20.66% | -17.48% |
* Industrials Sector Average
JP:6526
Socionext Inc.
1,824.00
-1,583.66
-46.47%
JP:6503
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371.98
8.72%
JP:6504
Fuji Electric Co
12,355.00
1,486.09
13.67%
JP:5801
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2,806.00
1,716.65
157.59%
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Yaskawa Electric
3,992.00
-195.19
-4.66%
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Fujikura Ltd
3,918.00
419.72
12.00%
Socionext Inc. Corporate Events
Socionext Posts Strong Sales But Profit Squeeze, Raises Full-Year Outlook
Oct 28, 2026
Socionext Inc. reported consolidated net sales of ¥99.4 billion for the six months ended September 30, 2026, a 14.0% year-on-year increase, but operating income fell 55.7% to ¥1.7 billion, with profit attributable to owners of parent dow...
Socionext Raises Full-Year Earnings Forecast on Weaker Yen, Keeps Dividend Unchanged
Oct 28, 2026
Socionext has revised its consolidated forecast for the fiscal year ending March 2027, projecting net sales of ¥225 billion and operating income of ¥15.5 billion, both above its April guidance. The upgrade reflects stronger-than-expected...
Socionext Posts Quarterly Loss but Maintains Full-Year Forecast and Dividend Plan
Jul 29, 2026
Socionext reported consolidated net sales of ¥39.0 billion for the three months ended June 30, 2026, up 13.0% year on year, but swung to an operating loss of ¥662 million and a net loss attributable to owners of the parent of ¥580 m...
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.