SoftBank Group (9984) AI Stock Analysis

• Market Cap: $26.66T
• Dividend Yield: 0.24%
• Average Volume (3M): 14.68M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.79
• Revenue Growth: 6.69%
• EPS Growth: 2988.22%
• Country: JP
• Employees: 65,352
• Sector: Communication Services
• Sector Strength: 98
• Industry: Telecommunications Services
• EPS (TTM): 291.71
• Shares Outstanding: 1,469,995,200
• 10 Day Avg. Volume: 14,595,000
• 30 Day Avg. Volume: 14,678,240
• 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: 1.18
• Enterprise Value/Revenue: 4.26
• Enterprise Value/Gross Profit: 8.29
• Enterprise Value/Ebitda: 13.91
• 1Y Price Target: $14,319.59
• Price Target Upside: -21.45% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: ¥15,858.00 ▼(-13.01% Downside)

SoftBank Group's overall stock score reflects strong technical momentum and reasonable valuation, offset by financial risks due to high leverage and cash flow challenges. The lack of earnings call and corporate events data limits further insights.

SoftBank Group Business Overview & Revenue Model

Company Description

SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through five segments: Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Latin America Funds. The company offers mobile communications, broadband, and fixed-line communications services; and sells mobile devices. It is also involved in the internet advertising marketing, online advertising distribution, and e-book distribution services; planning and operation of fashion e-commerce website; mail-order sale of stationery and services; and design and development of mobile robots. In addition, the company designs microprocessor intellectual property and related technology; sells software tools; and generates, supplies, and sells electricity from renewable energy sources, as well as offers related services. Further, it provides alternative investment management, smartphone payment, PC software downloads, and banking services, as well as solutions and services for online businesses; distributes video, voice, and data content; manufactures, distributes, and sells IT-related products, as well as IT-related services; and manages funds. Additionally, the company operates a professional baseball team; and ITmedia, an IT information site, as well as manages and maintains baseball stadium and other sports facilities. It also plans and operates ZOZOTOWN, ZOZO, and ZOZOBASE websites. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SoftBank Group makes money through a diverse revenue model primarily centered around its investment activities and telecommunications services. The company's most significant revenue stream comes from its Vision Fund, which invests in high-growth technology companies worldwide. Profits are generated through equity appreciation, dividends, and eventual exits from these investments. The telecommunications business, which includes mobile phone and internet services in Japan, also contributes a significant portion of SoftBank's revenue through customer subscriptions and data services. Furthermore, SoftBank's strategic partnerships and acquisitions enhance its portfolio value and provide additional income. The conglomerate's involvement in e-commerce, through companies like Alibaba, and finance sectors, such as owning shares in financial technology firms, further diversify its income sources.

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: 18230.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 18230 is above the 20-day moving average (MA) of 15761.50, above the 50-day MA of 13451.90, and above the 200-day MA of 9689.03, indicating a bullish trend. The MACD of 985.92 indicates Negative momentum. The RSI at 71.14 is Negative, neither overbought nor oversold. The STOCH value of 96.34 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
9984	63 Neutral	$26.66T	15.29	15.53%	0.24%	6.69%	2988.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
KDDIF	―	$64.09B	15.00	13.28%	4.36%	―	―
NPPXF	―	$93.47B	12.50	10.39%	3.58%	―	―
9434	69 Neutral	¥10.90T	21.72		3.75%	7.71%	-1.03%