OTCPK:SFTB.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record and fair value.

Risks

  • SoftBank Group has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-5.3%

SFTB.F

-0.4%

US Wireless Telecom

-0.6%

US Market


1 Year Return

-13.1%

SFTB.F

5.2%

US Wireless Telecom

0.6%

US Market

SFTB.F underperformed the Wireless Telecom industry which returned 6% over the past year.

SFTB.F underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

SFTB.FIndustryMarket
7 Day-5.3%-0.4%-0.6%
30 Day-5.2%1.3%2.2%
90 Day-10.2%-1.0%1.1%
1 Year-13.1%-13.1%6.4%5.2%2.9%0.6%
3 Year29.9%29.9%32.9%27.8%44.6%35.2%
5 Year17.5%17.5%42.3%28.6%61.9%44.2%

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 based on future cash flows and its price relative to the stock market?

4.55x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

SoftBank Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

SoftBank Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

SoftBank Group is good value based on earnings compared to the US Wireless Telecom industry average.

SoftBank Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

SoftBank Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

SoftBank Group is good value based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is SoftBank Group expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

-22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SoftBank Group's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).

SoftBank Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

SoftBank Group's revenue growth is positive but not above the United States of America market average.

SoftBank Group's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

SoftBank Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

SoftBank Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has SoftBank Group performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SoftBank Group has delivered over 20% year on year earnings growth in the past 5 years.

SoftBank Group's 1-year earnings growth exceeds its 5-year average (65.9% vs 29.5%)

SoftBank Group's earnings growth has exceeded the US Wireless Telecom industry average in the past year (65.9% vs 7.7%).


Return on Equity

Whilst SoftBank Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

SoftBank Group used its assets more efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

SoftBank Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SoftBank Group's financial position?


Financial Position Analysis

SoftBank Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

SoftBank Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

SoftBank Group's level of debt (160.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (291.2% vs 160.5% today).

Debt is not well covered by operating cash flow (2.3%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

0.90%

Expected Dividend Yield


Dividend Yield and Payments Analysis

SoftBank Group's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

SoftBank Group's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

SoftBank Group is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

SoftBank Group is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of SoftBank Group's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Masa Son (62yo)

33yrs

Tenure

JP¥139,000,000

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

Masa's remuneration is lower than average for companies of similar size in United States of America.

Masa's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.0yrs

Average Tenure

56yo

Average Age

The average tenure for the SoftBank Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

59.5yo

Average Age

The average tenure for the SoftBank Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Masa Son (62yo)

    Founder

    • Tenure: 33yrs
    • Compensation: JP¥139.00m
  • Robert Townsend (63yo)

    Senior VP & Chief Legal Officer

    • Tenure: 1yrs
  • Nikesh Arora (51yo)

    • Tenure: 3.2yrs
    • Compensation: JP¥10.35b
  • Yoshimitsu Goto (56yo)

    Senior VP

    • Tenure: 0yrs
  • Kazuko Kimiwada

    Senior VP & Head of Accounting Unit

    • Tenure: 0yrs
  • Raul Claure (49yo)

    Executive VP

    • Tenure: 2.3yrs
  • Keiichi Makizono

    Sr. VP & Chief Information Officer

    • Tenure: 0.3yrs
  • Michelle Horn

    Chief People Officer & Senior VP

    • Tenure: 0.7yrs
  • Takeaki Nukii

    Head of the Corporate Communications Office

    • Tenure: 0yrs
  • Chad Fentress

    Group Compliance Officer

    • Tenure: 0.3yrs

Board Members

  • Masa Son (62yo)

    Founder

    • Tenure: 33yrs
    • Compensation: JP¥139.00m
  • Ken Miyauchi (70yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: JP¥617.00m
  • Jack Ma (55yo)

    Director

    • Tenure: 12.3yrs
  • Rajeev Misra (57yo)

    Executive VP & Director

    • Tenure: 2.3yrs
  • Ron Fisher (72yo)

    Vice Chairman

    • Tenure: 2.3yrs
    • Compensation: JP¥2.43b
  • Tadashi Yanai (70yo)

    External Director

    • Tenure: 18.3yrs
  • Masami Iijima (69yo)

    External Director

    • Tenure: 1.3yrs
  • Raul Claure (49yo)

    Executive VP

    • Tenure: 2.3yrs
  • Yasir Al-Rumayyan (49yo)

    Director

    • Tenure: 2.3yrs
  • Katsunori Sago (52yo)

    Chief Strategy Officer

    • Tenure: 1.3yrs

Company Information

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


Key Information

  • Name: SoftBank Group Corp.
  • Ticker: SFTB.F
  • Exchange: OTCPK
  • Founded: 1981
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥9.575t
  • Listing Market Cap: JP¥88.707b
  • 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 Bri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:52
End of Day Share Price2019/09/20 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.