WBAG:SFT

Stock Analysis Report

Executive Summary

SoftBank Group Corp. provides telecommunication services in Japan and internationally.


Snowflake Analysis

Overvalued with poor track record.


Similar Companies

Share Price & News

How has SoftBank Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.3%

SFT

2.5%

AT Wireless Telecom

8.9%

AT Market


1 Year Return

-23.1%

SFT

-14.2%

AT Wireless Telecom

-26.8%

AT Market

Return vs Industry: SFT underperformed the Austrian Wireless Telecom industry which returned -14.2% over the past year.

Return vs Market: SFT exceeded the Austrian Market which returned -26.8% over the past year.


Shareholder returns

SFTIndustryMarket
7 Day10.3%2.5%8.9%
30 Day-1.8%-4.5%-3.4%
90 Day-13.0%-20.7%-27.0%
1 Year-22.3%-23.1%-10.1%-14.2%-24.2%-26.8%
3 Yearn/a-20.8%-33.4%-8.2%-16.2%
5 Yearn/a-21.5%-41.4%8.2%-6.8%

Price Volatility Vs. Market

How volatile is SoftBank Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SoftBank Group undervalued compared to its fair value and its price relative to the market?

29.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SFT (€35.08) is trading above our estimate of fair value (€6.9)

Significantly Below Fair Value: SFT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SFT is poor value based on its PE Ratio (29x) compared to the Wireless Telecom industry average (20.6x).

PE vs Market: SFT is poor value based on its PE Ratio (29x) compared to the Austrian market (11.6x).


Price to Earnings Growth Ratio

PEG Ratio: SFT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SFT is good value based on its PB Ratio (1.1x) compared to the XE Wireless Telecom industry average (2.1x).


Next Steps

Future Growth

How is SoftBank Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFT's earnings are forecast to decline over the next 3 years (-0.6% per year).

Earnings vs Market: SFT's earnings are forecast to decline over the next 3 years (-0.6% per year).

High Growth Earnings: SFT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SFT's revenue (0.7% per year) is forecast to grow slower than the Austrian market (2% per year).

High Growth Revenue: SFT's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFT's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has SoftBank Group performed over the past 5 years?

21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFT has a large one-off gain of ¥316.5B impacting its December 31 2019 financial results.

Growing Profit Margin: SFT's current net profit margins (3.2%) are lower than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: SFT's earnings have grown significantly by 21.1% per year over the past 5 years.

Accelerating Growth: SFT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SFT had negative earnings growth (-80.5%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-1.6%).


Return on Equity

High ROE: SFT's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is SoftBank Group's financial position?


Financial Position Analysis

Short Term Liabilities: SFT's short term assets (¥7,501.4B) do not cover its short term liabilities (¥8,087.1B).

Long Term Liabilities: SFT's short term assets (¥7,501.4B) do not cover its long term liabilities (¥22,127.9B).


Debt to Equity History and Analysis

Debt Level: SFT's debt to equity ratio (187.5%) is considered high.

Reducing Debt: SFT's debt to equity ratio has reduced from 255.1% to 187.5% over the past 5 years.

Debt Coverage: SFT's debt is not well covered by operating cash flow (5.1%).

Interest Coverage: SFT's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Next Steps

Dividend

What is SoftBank Group's current dividend yield, its reliability and sustainability?

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SFT's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.95%).

High Dividend: SFT's dividend (1.05%) is low compared to the top 25% of dividend payers in the Austrian market (5.88%).


Stability and Growth of Payments

Stable Dividend: SFT is not paying a notable dividend for the Austrian market, therefore no need to check if payments are stable.

Growing Dividend: SFT is not paying a notable dividend for the Austrian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SFT is not paying a notable dividend for the Austrian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SFT's dividend in 3 years as they are not forecast to pay a notable one for the Austrian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Masa Son (62yo)

33.58s

Tenure

JP¥229,000,000

Compensation

Mr. Masayoshi Son, also known as Masa, founded SoftBank Group Corp. in September 1981 and has been its Chairman since September 1981 and Chief Executive Officer since September 1986. Mr. Son serves as the  ...


CEO Compensation Analysis

Compensation vs Market: Masa's total compensation ($USD2.11M) is below average for companies of similar size in the Austrian market ($USD3.87M).

Compensation vs Earnings: Masa's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Masayoshi Son
Founder33.58yrsJP¥229.00m27.14% ¥19.8b
Raul Claure
Executive VP2.83yrsJP¥1.80b0.099% ¥72.3m
Rajeev Misra
Executive VP & Director2.83yrsJP¥752.00m0.015% ¥11.2m
Katsunori Sago
Chief Strategy Officer1.83yrsJP¥982.00m0.051% ¥37.6m
Yoshimitsu Goto
Senior Managing Executive Officerno datano datano data
Kazuko Kimiwada
Managing Executive Officerno datano datano data
Keiichi Makizono
Sr. VP & Chief Information Officer0.83yrno datano data
Robert Townsend
Managing Executive Officer & CLO of Legal Affairs1.58yrsno datano data
Chad Fentress
Group Compliance Officer0.83yrno datano data
Dipchand Nishar
Senior Managing Partner4.75yrsno datano data

1.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: SFT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Masayoshi Son
Founder33.58yrsJP¥229.00m27.14% ¥19.8b
Raul Claure
Executive VP2.83yrsJP¥1.80b0.099% ¥72.3m
Rajeev Misra
Executive VP & Director2.83yrsJP¥752.00m0.015% ¥11.2m
Katsunori Sago
Chief Strategy Officer1.83yrsJP¥982.00m0.051% ¥37.6m
Ken Miyauchi
Director32.17yrsJP¥1.23b0.15% ¥110.5m
Yun Ma
Director12.83yrsno datano data
Ronald Fisher
Vice Chairman2.83yrsJP¥3.27b0.051% ¥37.5m
Masami Iijima
External Director1.83yrsno datano data
Yasir bin Othman Al-Rumayyan
Director2.83yrsno datano data
Yutaka Matsuo
External Director0.83yrno datano data

2.8yrs

Average Tenure

56yo

Average Age

Experienced Board: SFT's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SoftBank Group Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SoftBank Group Corp.
  • Ticker: SFT
  • Exchange: WBAG
  • Founded: 1981
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥8.665t
  • Listing Market Cap: JP¥73.091b
  • Shares outstanding: 2.07b
  • Website: https://www.softbank.jp

Number of Employees


Location

  • SoftBank Group Corp.
  • 1-9-1 Higashi-shimbashi
  • Minato-ku
  • Tokyo
  • 105-7303
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFTB.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 1994
9984TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJul 1994
SFTDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1994
SOFT NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1994
SFTWBAG (Wiener Boerse AG)YesCommon StockATEURJul 1994
SFTB.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.50 ORDUSUSDOct 2008
SFTUDB (Deutsche Boerse AG)UNSP ADR EACH REPR 0.50 ORDDEEUROct 2008
0L7LLSE (London Stock Exchange)UNSP ADR EACH REPR 0.50 ORDGBUSDOct 2008

Biography

SoftBank Group Corp. provides telecommunication services in Japan and internationally. The company operates in six segments: SoftBank, Sprint, Yahoo Japan, Arm, SoftBank Vision Fund and Delta Fund, and Brightstar. The SoftBank segment offers mobile communications, broadband, and fixed-line communications services; and sells PC software, peripherals, and mobile device accessories. The Sprint segment provides mobile communications and fixed-line telecommunications services; sells and leases mobile devices; and sells accessories. The Yahoo Japan segment is involved in Internet advertising, e-commerce, and membership service activities. The Arm segment designs microprocessor intellectual property and related technology; sells software tools; and offers software services. The SoftBank Vision Fund and Delta Fund segment is involved in investment activities. The Brightstar segment distributes mobile devices. The company also owns professional baseball team, as well as manages and maintains baseball stadium and other sports facilities; generates, supplies, and sells electricity from renewable energy sources; operates IT information site; and operates software site, through which it conducts an online game business for mobile phones and PCs. In addition, it provides investment management and payment services; visual, audio, and data content distribution services; and solutions and services for online businesses. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was founded in 1981 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 03:22
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.