WBAG:SFTC

Stock Analysis Report

Executive Summary

SoftBank Corp., together with its subsidiaries, engages in the telecommunication and information technology businesses in Japan.

Snowflake

Fundamentals

Fair value with acceptable track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.1%

SFTC

0.4%

AT Wireless Telecom

1.2%

AT Market


1 Year Return

n/a

SFTC

5.3%

AT Wireless Telecom

-3.8%

AT Market

Return vs Industry: Insufficient data to determine how SFTC performed against the Austrian Wireless Telecom industry.

Return vs Market: Insufficient data to determine how SFTC performed against the Austrian Market.


Shareholder returns

SFTCIndustryMarket
7 Day-3.1%0.4%1.2%
30 Day-3.9%0.7%-1.5%
90 Day3.8%16.1%2.3%
1 Yearn/a10.6%5.3%-0.3%-3.8%
3 Yearn/a-3.1%-18.7%43.9%30.8%
5 Yearn/a13.2%-15.1%66.5%42.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

47.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SFTC (€12.35) is trading below our estimate of fair value (€23.61)

Significantly Undervalued: SFTC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SFTC is good value based on its PE Ratio (15.9x) compared to the Wireless Telecom industry average (22.4x).

PE vs Market: SFTC is poor value based on its PE Ratio (15.9x) compared to the Austrian market (14.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: SFTC is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: SFTC is overvalued based on its PB Ratio (7.4x) compared to the XE Wireless Telecom industry average (2x).


Next Steps

Future Growth

How is SoftBank forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFTC's forecast earnings growth (4.6% per year) is above the savings rate (0.5%).

Earnings vs Market: SFTC's earnings (4.6% per year) are forecast to grow slower than the Austrian market (8.5% per year).

High Growth Earnings: SFTC's earnings are forecast to grow, but not significantly.

Revenue vs Market: SFTC's revenue (2.4% per year) is forecast to grow slower than the Austrian market (3% per year).

High Growth Revenue: SFTC's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SFTC's Return on Equity is forecast to be high in 3 years time (38.4%)


Next Steps

Past Performance

How has SoftBank performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SFTC's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: SFTC's earnings growth over the past year (7.4%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: SFTC earnings growth over the past year (7.4%) exceeded the Wireless Telecom industry -38.3%.


Return on Equity

High ROE: Whilst SFTC's Return on Equity (30.69%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: SFTC's Return on Assets is below or equal to the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: SFTC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is SoftBank's financial position?


Financial Position Analysis

Short Term Liabilities: SFTC's short term assets (¥2,875.9B) do not cover its short term liabilities (¥3,896.8B)

Long Term Liabilities: SFTC's short term assets (2,875.9B) do not cover its long term liabilities (3,079.4B)


Debt to Equity History and Analysis

Debt Level: SFTC's debt to equity ratio (236.2%) is considered high

Reducing Debt: Insufficient data to determine if SFTC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SFTC's debt is well covered by operating cash flow (23.8%).

Interest Coverage: SFTC's interest payments on its debt are well covered by EBIT (15.8x coverage).


Balance Sheet

Inventory Level: SFTC has a high level of physical assets or inventory.

Debt Coverage by Assets: SFTC's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

5.70%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.6%markettop25%4.4%industryaverage4.7%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SFTC's dividend (5.7%) is higher than the bottom 25% of dividend payers in the Austrian market (1.57%).

High Dividend: SFTC's dividend (5.7%) is in the top 25% of dividend payers in the Austrian market (4.43%)

Stable Dividend: Too early to tell whether SFTC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SFTC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), SFTC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of SoftBank's salary, the management and board of directors tenure and is there insider trading?

12.3yrs

Average board tenure


CEO

Ken Miyauchi (70yo)

9.4yrs

Tenure

0

Mr. Ken Miyauchi serves as the Chief Executive Officer and President of Softbank Mobile Corp. Mr. Miyauchi serves as Chief Executive Officer and President at Softbank Corp. Mr. Miyauchi served as the Presi ...


Board Age and Tenure

12.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: SFTC's board of directors are seasoned and experienced ( 12.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Ken Miyauchi (70yo)

    Chief Executive Officer

    • Tenure: 9.4yrs
  • Junichi Miyakawa (54yo)

    CTO & Representative Director

    • Tenure: 13.5yrs
  • Kazuhiko Fujihara (60yo)

    CFO, Executive VP & Director

    • Tenure: 12.3yrs
  • Fumihiro Aono

    Executive VP & Chief Human Resource Officer

    • Tenure: 0yrs
  • Jun Shimba

    COO & Representative Director

    • Tenure: 0yrs
  • Shuichi Kukita

    Executive Vice President

    • Tenure: 0yrs
  • Takashi Tsutsui

    Senior VP & Chief Scientist

    • Tenure: 0yrs
  • Yasuyuki Imai (61yo)

    COO & Representative Director

    • Tenure: 0yrs
  • Hideyuki Tsukuda

    Sr. VP & Chief Network Officer

    • Tenure: 0yrs
  • Keiichi Makizono

    Senior VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Masa Son (62yo)

    Chairman of the Board

    • Tenure: 12.3yrs
  • Ken Miyauchi (70yo)

    Chief Executive Officer

    • Tenure: 9.4yrs
  • Atsushi Horiba (71yo)

    External Director

    • Tenure: 0yrs
  • Junichi Miyakawa (54yo)

    CTO & Representative Director

    • Tenure: 13.5yrs
  • Kazuhiko Fujihara (60yo)

    CFO, Executive VP & Director

    • Tenure: 12.3yrs
  • Jun Shimba

    COO & Representative Director

    • Tenure: 0yrs
  • Yasuyuki Imai (61yo)

    COO & Representative Director

    • Tenure: 0yrs
  • Kentaro Kawabe

    Director

    • Tenure: 1.1yrs
  • Kazuaki Oki

    External Director

    • Tenure: 0yrs
  • Kyoko Uemura

    External Director

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: SoftBank Corp.
  • Ticker: SFTC
  • Exchange: WBAG
  • Founded: 1984
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥7.131t
  • Listing Market Cap: JP¥58.992b
  • Shares outstanding: 4.78b
  • Website: https://www.softbank.jp

Number of Employees


Location

  • SoftBank Corp.
  • 1-9-1 Higashi-shimbashi
  • Minato-ku
  • Tokyo
  • 105-7317
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9434TSE (The Tokyo Stock Exchange)YesNew Common StockJPJPYDec 2018
SFTCWBAG (Wiener Boerse AG)YesNew Common StockATEURDec 2018
3AG1DB (Deutsche Boerse AG)YesNew Common StockDEEURDec 2018
SOBK.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDFeb 2019

Biography

SoftBank Corp., together with its subsidiaries, engages in the telecommunication and information technology businesses in Japan. It operates through Consumer, Enterprise, and Distribution segments. The Con ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 22:14
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.