OTCPK:SOBK.Y

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

-0.8%

SOBK.Y

0.4%

US Wireless Telecom

-0.2%

US Market


1 Year Return

n/a

SOBK.Y

6.0%

US Wireless Telecom

1.1%

US Market

No trading data on SOBK.Y.

No trading data on SOBK.Y.


Share holder returns

SOBK.YIndustryMarket
7 Day-0.8%0.4%-0.2%
30 Day-2.0%2.1%2.5%
90 Day7.3%-0.2%1.6%
1 Yearn/a7.2%6.0%3.4%1.1%
3 Yearn/a33.9%28.8%45.2%35.8%
5 Yearn/a43.4%29.5%62.6%44.8%

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

38%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

SoftBank's share price is below the future cash flow value, and at a moderate discount (> 20%).

SoftBank's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

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


Price Based on Expected Growth

SoftBank is poor value based on expected growth next year.


Price Based on Value of Assets

SoftBank is overvalued based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is SoftBank expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SoftBank's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

SoftBank's earnings are expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

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

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

SoftBank's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

SoftBank is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

SoftBank's year on year earnings growth rate has been positive over the past 5 years.

SoftBank's 1-year earnings growth exceeds its 5-year average (7.4% vs 2.2%)

SoftBank's earnings growth has not exceeded the US Wireless Telecom industry average in the past year (7.4% vs 7.7%).


Return on Equity

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


Return on Capital Employed

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


Next Steps

Financial Health

How is SoftBank's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

SoftBank's level of debt (236.2%) compared to net worth is high (greater than 40%).

Unable to establish if SoftBank's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (23.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

5.95%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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

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

It is too early to tell whether SoftBank has stable dividend payments.

SoftBank only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


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

12.3yrs

Average board tenure


CEO

Ken Miyauchi (70yo)

9.3yrs

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

The average tenure for the SoftBank board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Ken Miyauchi (70yo)

    Chief Executive Officer

    • Tenure: 9.3yrs
  • Junichi Miyakawa (54yo)

    CTO & Representative Director

    • Tenure: 13.4yrs
  • 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: 9.3yrs
  • Atsushi Horiba (71yo)

    External Director

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

    CTO & Representative Director

    • Tenure: 13.4yrs
  • 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: 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: SOBK.Y
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: JP¥7.324t
  • Listing Market Cap: JP¥67.800b
  • Shares outstanding: 4.79b
  • 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 Analysis2019/09/20 01:31
End of Day Share Price2019/09/19 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.