TSE:9984

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


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: 9984's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

9984

-2.7%

JP Wireless Telecom

1.8%

JP Market


1 Year Return

-12.0%

9984

1.4%

JP Wireless Telecom

-3.5%

JP Market

Return vs Industry: 9984 underperformed the JP Wireless Telecom industry which returned 1.4% over the past year.

Return vs Market: 9984 underperformed the JP Market which returned -3.5% over the past year.


Shareholder returns

9984IndustryMarket
7 Day-0.3%-2.7%1.8%
30 Day4.8%-3.7%4.3%
90 Day-15.6%-11.9%-11.1%
1 Year-11.0%-12.0%4.8%1.4%-1.0%-3.5%
3 Year7.6%5.5%13.3%4.8%2.6%-4.6%
5 Year29.1%24.9%37.3%22.1%3.9%-7.5%

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?

1.61x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 9984 (¥4607) is trading above our estimate of fair value (¥1863.39)

Significantly Below Fair Value: 9984 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 9984 is unprofitable, so we can't compare its PE Ratio to the Wireless Telecom industry average.

PE vs Market: 9984 is unprofitable, so we can't compare its PE Ratio to the JP market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 9984's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 9984 is good value based on its PB Ratio (1.6x) compared to the JP Wireless Telecom industry average (3.1x).


Next Steps

Future Growth

How is SoftBank Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9984 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.05%).

Earnings vs Market: 9984 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 9984's is expected to become profitable in the next 3 years.

Revenue vs Market: 9984's revenue (1.8% per year) is forecast to grow slower than the JP market (3.2% per year).

High Growth Revenue: 9984's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9984's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has SoftBank Group performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9984 is currently unprofitable.

Growing Profit Margin: 9984 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 9984 is unprofitable, but has reduced losses over the past 5 years at a rate of 8.4% per year.

Accelerating Growth: Unable to compare 9984's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 9984 is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (3.6%).


Return on Equity

High ROE: 9984 has a negative Return on Equity (-10.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is SoftBank Group's financial position?


Financial Position Analysis

Short Term Liabilities: 9984's short term assets (¥15,636.9B) exceed its short term liabilities (¥14,191.1B).

Long Term Liabilities: 9984's short term assets (¥15,636.9B) do not cover its long term liabilities (¥15,693.2B).


Debt to Equity History and Analysis

Debt Level: 9984's debt to equity ratio (178.1%) is considered high.

Reducing Debt: 9984's debt to equity ratio has reduced from 271.1% to 178.1% over the past 5 years.

Debt Coverage: 9984's debt is not well covered by operating cash flow (8.5%).

Interest Coverage: 9984 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 9984's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.53%).

High Dividend: 9984's dividend (0.96%) is low compared to the top 25% of dividend payers in the JP market (3.58%).


Stability and Growth of Payments

Stable Dividend: 9984's dividends per share have been stable in the past 10 years.

Growing Dividend: 9984's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 9984 is paying a dividend but the company is unprofitable.


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

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

1.9yrs

Average management tenure


CEO

Masa Son (62yo)

33.67yrs

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 ($USD2.13M) is about average for companies of similar size in the JP market ($USD1.88M).

Compensation vs Earnings: Masa's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Masayoshi Son
Founder33.67yrsJP¥229.00m27.91% ¥2.6t
Raul Claure
Executive VP2.92yrsJP¥1.80b0.10% ¥9.4b
Rajeev Misra
Executive VP & Director2.92yrsJP¥752.00m0.016% ¥1.5b
Katsunori Sago
Chief Strategy Officer1.92yrsJP¥982.00m0.053% ¥4.9b
Yoshimitsu Goto
Senior VPno datano datano data
Kazuko Kimiwada
Managing Executive Officerno datano datano data
Keiichi Makizono
Sr. VP & Chief Information Officer0.92yrno datano data
Jin Nakamura
Deputy General Manager of Investor Relationsno datano datano data
Robert Townsend
Managing Executive Officer & CLO of Legal Affairs1.67yrsno datano data
Chad Fentress
Group Compliance Officer0.92yrno datano data

1.9yrs

Average Tenure

57yo

Average Age

Experienced Management: 9984's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Masayoshi Son
Founder33.67yrsJP¥229.00m27.91% ¥2.6t
Raul Claure
Executive VP2.92yrsJP¥1.80b0.10% ¥9.4b
Rajeev Misra
Executive VP & Director2.92yrsJP¥752.00m0.016% ¥1.5b
Katsunori Sago
Chief Strategy Officer1.92yrsJP¥982.00m0.053% ¥4.9b
Ken Miyauchi
Director32.25yrsJP¥1.23b0.16% ¥14.4b
Yun Ma
Director12.92yrsno datano data
Ronald Fisher
Vice Chairman2.92yrsJP¥3.27b0.053% ¥4.9b
Masami Iijima
External Director1.92yrsno datano data
Yasir bin Othman Al-Rumayyan
Director2.92yrsno datano data
Yutaka Matsuo
External Director0.92yrno datano data

2.9yrs

Average Tenure

56yo

Average Age

Experienced Board: 9984's board of directors are not considered experienced ( 2.9 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: Insufficient data to determine if shareholders have been 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: 9984
  • Exchange: TSE
  • Founded: 1981
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥9.279t
  • Shares outstanding: 2.01b
  • Website: https://group.softbank

Number of Employees


Location

  • SoftBank Group Corp.
  • 1-9-1 Higashi-shimbashi
  • Minato-ku
  • Tokyo
  • 105-7317
  • 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 through four segments: SoftBank Vision Fund and Other SBIA-Managed Funds, SoftBank, Arm, and Brightstar. The SoftBank Vision Fund and Other SBIA-Managed Funds is involved in investment activities. The SoftBank segment offers mobile communications, broadband, and fixed-line communications services; and sells mobile devices, as well as involved in Internet advertising, e-commerce business. The Arm segment designs microprocessor intellectual property and related technology; sells software tools; and offers software services. The Brightstar segment distributes mobile devices. The company provides investment management and payment services; and generates, supplies, and sells electricity from renewable energy sources, as well as marketing activities. In addition, it offers card services; IT solutions; operates, sells, and markets PC software and online games; and distributes video, voice, and data content. The company operates professional baseball team, as well as manages and maintains baseball stadium and other sports facilities. It also operates fashion online shopping website ZOZOTOWN. 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 Analysis2020/05/25 15:13
End of Day Share Price2020/05/25 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.