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Sony Corporation (JP:6758)
:6758
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Sony
(OTC:6758)
79Outperform
Positive Factors
Intellectual Property
Sony Group will enhance value through its ability to monetize intellectual property (IP) and business portfolio management.
New Product Releases
Upcoming releases like the Demon Slayer movie and Grand Theft Auto 6 are seen as catalysts that could enhance Sony's share price by leveraging intra-group synergies and monetizing the PlayStation platform.
Spin-Off
The spin-off would result in Sony becoming a pure entertainment company, resulting in higher multiples.
Negative Factors
Competition
Risks: Intense competition in game console market; vulnerable global supply chain for consumer electronics.
Interest Rates Impact
The rise in JPY interest rates has had a negative impact on the economic solvency ratio and some other indicators.
Netflix Competition
Netflix’s resource allocation could be limited and some popular works have not gained the same level of recognition as terrestrial productions.
Sony (6758) vs. S&P 500 (SPY)
Market Cap
$22.80T
Dividend Yield0.52%
Average Volume (3M)17.44M
Price to Earnings (P/E)20.0
Beta (1Y)1.19
Revenue Growth9.56%
EPS Growth26.52%
CountryJP
Employees113,000
SectorTechnology
Sector Strength68
IndustryConsumer Electronics
Share Statistics
EPS (TTM)186.74
Shares Outstanding6,149,810,500
10 Day Avg. Volume12,023,609
30 Day Avg. Volume17,435,643
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
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
$4,210.53Price Target Upside12.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Sony Business Overview & Revenue Model
Company DescriptionSony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home and portable game consoles, packaged software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operates a visual effects and animation unit; manages a studio facility; and operates television and digital networks, and post-production facilities. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, tablets, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.
How the Company Makes MoneySony generates revenue through multiple business segments. The Electronics Products & Solutions segment provides income from sales of televisions, cameras, audio and video devices, and other consumer electronics. The Game & Network Services segment, driven primarily by the PlayStation brand, generates revenue from hardware sales, game software, network services, and subscription services like PlayStation Plus. The Music segment earns from recorded music, music publishing, and visual media and platform businesses. The Pictures segment brings in revenue through motion picture and television production and distribution. Lastly, the Financial Services segment contributes income through life insurance and non-life insurance, banking operations, and other related financial services. Strategic partnerships, technological innovation, and a diversified portfolio are key factors that contribute to Sony's earnings.
Sony Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.02T | 11.54T | 9.92T | 9.00T | 8.26T | Gross Profit |
| 3.34T | 3.14T | 2.70T | 2.44T | 2.33T | EBIT |
| 1.21T | 1.21T | 1.20T | 971.87B | 845.46B | EBITDA |
| 2.46T | 2.29T | 2.03T | 1.74T | 1.56T | Net Income Common Stockholders |
| 970.57B | 1.01T | 882.18B | 1.03T | 582.19B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.33T | 1.92T | 2.56T | 4.69T | 3.36T | Total Assets |
| 34.11T | 32.04T | 30.48T | 26.35T | 23.04T | Total Debt |
| 4.09T | 4.06T | 3.35T | 2.46T | 1.86T | Net Debt |
| 2.18T | 2.58T | 1.30T | 669.50B | 346.37B | Total Liabilities |
| 26.35T | 24.75T | 23.28T | 20.73T | 18.24T | Stockholders Equity |
| 7.59T | 7.23T | 7.14T | 5.58T | 4.13T |
| Cash Flow | Free Cash Flow | |||
| 749.27B | -298.94B | 792.55B | 837.91B | 909.98B | Operating Cash Flow |
| 1.37T | 314.69B | 1.23T | 1.35T | 1.35T | Investing Cash Flow |
| -818.89B | -1.05T | -728.78B | -1.78T | -1.35T | Financing Cash Flow |
| -210.71B | 84.30B | -336.58B | 666.97B | 65.66B |
Sony Technical Analysis
Positive
3732.00
Price Trends
3574.41
Positive
3455.82
Positive
3105.07
Positive
Market Momentum
36.31
Negative
58.16
Neutral
87.76
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6758, the sentiment is Positive. The current price of 3732 is above the 20-day moving average (MA) of 3419.30, above the 50-day MA of 3574.41, and above the 200-day MA of 3105.07, indicating a bullish trend. The MACD of 36.31 indicates Negative momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 87.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6758.
Sony Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Performance Comparison
JP:6758
Sony
3,732.00
1,211.45
48.06%
AITUF
Anritsu
8.93
1.45
19.39%
DE:29F
Fujitsu General
16.80
4.42
35.70%
HTHIF
Hitachi,Ltd.
26.88
8.03
42.60%
PCRFF
Panasonic
12.11
3.40
39.04%
JP:6753
Sharp Corporation
852.90
-7.50
-0.87%
Sony Earnings Call Summary
Earnings Call Date:Feb 13, 2025
(Q3-2024)
| % Change Since: 10.96%|
Next Earnings Date:May 14, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance, particularly in the Games & Network Services and Music segments, with record-high income and a positive revision of the full-year forecast. However, challenges were noted in the Pictures and ET&S segments, alongside a decline in operating income in financial services. Despite these challenges, the overall growth and strategic planning suggest optimism.Q3-2024 Updates
Positive Updates
Record Sales and Operating Income
Consolidated sales excluding the financial services segment increased 7% year-on-year to ¥3,695.7 trillion. Operating income increased 10% to ¥423 billion. Including the financial services segment, sales increased 18% year-on-year to ¥4,409.6 trillion, and operating income increased 1% to ¥469.3 billion, setting a record for the third quarter.
Strong Performance in Games & Network Services
Sales for the quarter increased 16% year-on-year to ¥1,682.3 billion, with operating income increasing 37% year-on-year to ¥118.1 billion, a record high for the third quarter. The number of monthly active users across PlayStation platforms reached 129 million, the highest in PlayStation history.
Music Segment Growth
Sales for the quarter increased 14% year-on-year to ¥481.7 billion, primarily due to higher streaming revenue. Operating income increased 28% year-on-year to ¥97.4 billion.
Upward Revision of Full Year Forecast
Consolidated sales, including the financial services segment, have been upwardly revised 4% from the previous forecast to ¥13.200 trillion. Operating income has been revised upward by 2% to ¥335 billion, and net income has been revised upward by 10% to ¥1.80 trillion.
Negative Updates
Challenges in the Pictures Segment
Operating income in the Pictures segment decreased 18% year-on-year to ¥34 billion due to increased marketing costs for theatrical releases and the impact of production delays from strikes.
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 segment faces a severe operating environment, with further fixed cost reduction measures planned.
Decreased Operating Income in Financial Services
Operating income in the financial services segment decreased ¥30.9 billion year-on-year to ¥46.4 billion, largely due to the absence of significant gains related to market fluctuations recorded in the previous fiscal year.
Company Guidance
During Sony Group Corporation's fiscal year 2024 third-quarter earnings call, significant guidance was provided, highlighting several key financial metrics. Consolidated sales excluding the financial services segment increased 7% year-on-year to ¥3,695.7 trillion, while operating income rose 10% to ¥423 billion. Including the financial services segment, consolidated sales surged 18% to ¥4,409.6 trillion, with operating income climbing 1% to a record ¥469.3 billion for the third quarter. Notably, net income increased 3% to ¥373.7 billion. The company revised its full-year forecast upward, projecting consolidated sales of ¥11.900 trillion, up 4% from the previous forecast, and operating income of ¥335 billion, a 2% increase. The PlayStation segment experienced remarkable growth, with sales up 16% year-on-year to ¥1,682.3 billion, and operating income soaring 37% to ¥118.1 billion. The Music segment also saw a 14% rise in sales to ¥481.7 billion and a 28% increase in operating income to ¥97.4 billion. Meanwhile, the Pictures segment's sales grew 9% to ¥398.2 billion, although operating income decreased 18% to ¥34 billion. The company emphasized its strategic focus on enhancing local music repertoire and strengthening engagements in the Anime sector, with expectations for continued growth driven by innovative content and technological advancements.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.