SoftBank Group (9984) AI Stock Analysis

• Market Cap: ¥38.45T
• Dividend Yield: 0.19%
• Average Volume (3M): 18.99M
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.77
• Revenue Growth: 6.69%
• EPS Growth: 2988.22%
• Country: JP
• Employees: 65,352
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 291.71
• Shares Outstanding: 1,427,962,000
• 10 Day Avg. Volume: 26,477,350
• 30 Day Avg. Volume: 18,990,543
• PEG Ratio: -0.02
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 91.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥19,637.29
• Price Target Upside: -27.44% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥27,126.00 ▲(0.23% Upside)

SoftBank Group's stock score is driven by strong technical momentum and improved financial performance, despite high leverage and cash flow challenges. The stock is fairly valued, but the low dividend yield limits income potential.

Positive Factors

Investment in AI

SoftBank's substantial investment in OpenAI positions it at the forefront of AI development, potentially driving future growth and innovation.

Profitability Improvement

The improvement in net profit margin indicates enhanced operational efficiency and cost management, supporting long-term profitability.

Strategic Partnerships

Participation in large-scale investment projects can enhance SoftBank's strategic partnerships and expand its influence in key markets.

Negative Factors

High Leverage

The high leverage indicates a risk of financial instability, especially in volatile markets, potentially impacting SoftBank's long-term financial health.

Cash Flow Challenges

Negative cash flow despite profitability suggests liquidity issues, which could hinder SoftBank's ability to fund operations and investments.

Slow Revenue Growth

Modest revenue growth indicates limited expansion, which could challenge SoftBank's ability to scale and compete in the fast-evolving tech sector.

SoftBank Group Business Overview & Revenue Model

Company Description

SoftBank Group Corp. is a Japanese multinational conglomerate that operates primarily in the technology sector through investments in telecommunications, internet services, and various technology-related businesses. Founded in 1981, SoftBank has expanded its portfolio to include ownership stakes in diverse sectors such as e-commerce, AI, robotics, and fintech, alongside its telecommunications services through SoftBank Corp. and Sprint Corporation. The company is known for its Vision Fund, which is one of the largest technology-focused venture capital funds globally, investing in both established companies and startups.

How the Company Makes Money

SoftBank generates revenue through a combination of its telecommunications services, investments in technology companies, and management fees from its Vision Fund. The core revenue streams include subscription fees from telecommunications services, sales of devices, and value-added services. The Vision Fund also contributes significantly to earnings by taking equity stakes in high-growth tech companies and generating returns through exits, dividends, and management fees. Additionally, SoftBank benefits from strategic partnerships and joint ventures, which help in expanding its investment reach and fostering innovation across its portfolio companies.

SoftBank Group Financial Statement Overview

Summary

SoftBank Group shows improved profitability and operational efficiency with a strong gross profit margin and better net profit margin. However, high leverage and cash flow challenges present significant risks, requiring focus on balance sheet strengthening and cash flow conversion.

Income Statement

SoftBank Group's income statement shows a strong gross profit margin of 51.45% in TTM, indicating efficient cost management. The net profit margin improved significantly to 23.70% in TTM from negative margins in previous years, reflecting a turnaround in profitability. Revenue growth is modest at 1.64% in TTM, suggesting stable but slow growth. The EBIT and EBITDA margins have also improved, indicating better operational efficiency. However, the historical volatility in net income and revenue growth poses a risk.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.80 in TTM, indicating significant leverage, which could be risky in volatile markets. The return on equity improved to 15.39% in TTM, showing better utilization of equity. However, the equity ratio is relatively low, suggesting a heavy reliance on debt financing. The improvement in ROE is a positive sign, but the high leverage remains a concern.

Cash Flow

SoftBank's cash flow statement shows a concerning free cash flow to net income ratio of -1.71 in TTM, indicating cash flow issues despite profitability. The operating cash flow to net income ratio is low at 0.03, suggesting that net income is not translating effectively into cash flow. Although there was a significant improvement in free cash flow growth, the negative free cash flow highlights liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.36T	7.24T	6.76T	6.57T	6.22T	5.63T
Gross Profit	3.79T	3.75T	3.54T	3.33T	3.27T	2.87T
EBITDA	2.26T	1.60T	1.47T	980.26B	365.37B	1.45T
Net Income	1.75T	1.15T	-227.65B	-970.14B	-1.71T	4.99T
Balance Sheet
Total Assets	44.84T	45.01T	46.72T	43.94T	47.54T	45.75T
Cash, Cash Equivalents and Short-Term Investments	5.91T	3.71T	6.19T	6.93T	5.33T	5.32T
Total Debt	19.84T	18.91T	16.19T	16.05T	17.79T	16.46T
Total Liabilities	31.43T	31.06T	33.49T	33.29T	35.84T	33.79T
Stockholders Equity	11.01T	11.56T	11.16T	9.03T	9.98T	10.21T
Cash Flow
Free Cash Flow	-550.66B	118.98B	-372.06B	107.53B	1.89T	-89.64B
Operating Cash Flow	321.00B	973.15B	250.55B	741.29B	2.73T	557.25B
Investing Cash Flow	-1.74T	-1.71T	-841.46B	547.58B	-3.02T	-1.47T
Financing Cash Flow	-96.57B	-1.81T	-606.22B	191.52B	602.22B	2.19T

SoftBank Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27065.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9984, the sentiment is Positive. The current price of 27065 is above the 20-day moving average (MA) of 23491.75, above the 50-day MA of 19508.54, and above the 200-day MA of 11696.53, indicating a bullish trend. The MACD of 2105.43 indicates Negative momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 85.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9984.

SoftBank Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9432	73 Outperform	$13.49T	13.38	10.39%	3.31%	1.65%	-15.29%
9433	72 Outperform	$9.14T	13.95	13.28%	3.15%	2.66%	11.83%
9434	65 Neutral	¥10.25T	20.40	―	3.94%	7.71%	-1.03%
9984	63 Neutral	¥38.45T	22.70	15.53%	0.19%	6.69%	2988.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

SoftBank Group Corporate Events

SoftBank Group Reports Strong Financial Turnaround

SoftBank Group Corp., a prominent player in the investment and telecommunications sectors, is known for its strategic investments in technology and innovation-driven companies worldwide.