OTCPK:SOBK.Y

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SOBK.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

SOBK.Y

-0.9%

US Wireless Telecom

-2.4%

US Market


1 Year Return

-18.0%

SOBK.Y

31.2%

US Wireless Telecom

12.0%

US Market

Return vs Industry: SOBK.Y underperformed the US Wireless Telecom industry which returned 31.2% over the past year.

Return vs Market: SOBK.Y underperformed the US Market which returned 12% over the past year.


Shareholder returns

SOBK.YIndustryMarket
7 Day-1.4%-0.9%-2.4%
30 Day-14.0%-5.8%-6.5%
90 Day-9.3%4.0%8.4%
1 Year-18.0%-18.0%31.8%31.2%14.5%12.0%
3 Yearn/a52.6%49.0%34.8%25.8%
5 Yearn/a118.4%108.4%82.1%61.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOBK.Y ($11.69) is trading below our estimate of fair value ($24.57)

Significantly Below Fair Value: SOBK.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SOBK.Y is good value based on its PE Ratio (12.9x) compared to the US Wireless Telecom industry average (22.6x).

PE vs Market: SOBK.Y is good value based on its PE Ratio (12.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: SOBK.Y is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SOBK.Y is overvalued based on its PB Ratio (6.2x) compared to the US Wireless Telecom industry average (2.4x).


Next Steps

Future Growth

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

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOBK.Y's forecast earnings growth (6.4% per year) is above the savings rate (2.2%).

Earnings vs Market: SOBK.Y's earnings (6.4% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: SOBK.Y's revenue (3.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: SOBK.Y's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOBK.Y's Return on Equity is forecast to be very high in 3 years time (44.8%).


Next Steps

Past Performance

How has SoftBank performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOBK.Y has high quality earnings.

Growing Profit Margin: SOBK.Y's current net profit margins (9.5%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: SOBK.Y's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: SOBK.Y's earnings growth over the past year (2.7%) is below its 5-year average (3.4% per year).

Earnings vs Industry: SOBK.Y earnings growth over the past year (2.7%) underperformed the Wireless Telecom industry 14.3%.


Return on Equity

High ROE: Whilst SOBK.Y's Return on Equity (30.3%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is SoftBank's financial position?


Financial Position Analysis

Short Term Liabilities: SOBK.Y's short term assets (¥3,674.2B) do not cover its short term liabilities (¥4,631.2B).

Long Term Liabilities: SOBK.Y's short term assets (¥3,674.2B) do not cover its long term liabilities (¥3,790.2B).


Debt to Equity History and Analysis

Debt Level: SOBK.Y's debt to equity ratio (273.8%) is considered high.

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

Debt Coverage: SOBK.Y's debt is well covered by operating cash flow (28.5%).

Interest Coverage: SOBK.Y's interest payments on its debt are well covered by EBIT (14.4x coverage).


Balance Sheet


Next Steps

Dividend

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

6.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOBK.Y's dividend (6.91%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: SOBK.Y's dividend (6.91%) is in the top 25% of dividend payers in the US market (4.99%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SOBK.Y has been paying a dividend for less than 10 years.

Growing Dividend: SOBK.Y's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.8%), SOBK.Y's payments are 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

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

5.6yrs

Average management tenure


CEO

Ken Miyauchi (71 yo)

5.42yrs

Tenure

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. since April 2015. Mr. Miyauchi s ...


Leadership Team

NamePositionTenureCompensationOwnership
Ken Miyauchi
CEO, President & Representative Director5.42yrsno data0.017%
¥ 9.4m
Kazuhiko Fujihara
CFO, Executive VP & Director13.25yrsno data0.0063%
¥ 3.5m
Jun Shimba
COO and Head of Consumer Business Unit3.42yrsno data0.0042%
¥ 2.4m
Yasuyuki Imai
COO, Enterprise Business Unit Head & Representative Director8.25yrsno data0.0042%
¥ 2.4m
Takashi Naito
Vice President of Finance Unitno datano datano data
Junichi Miyakawa
CTO, Head of Technology Unit & Technology Strategy Unit and Representative Director14.42yrsno data0.0042%
¥ 2.4m
Keiichi Makizono
Senior VP & Chief Information Officerno datano datano data
Takashi Tsutsui
Senior VP & Chief Scientistno datano datano data
Fumihiro Aono
Executive VP & Chief Human Resource Officerno datano datano data
Shuichi Kukita
Executive Vice Presidentno datano datano data
Hideyuki Tsukuda
Executive VP & Chief Network Officerno datano datano data
Eric Gan
Executive Vice President5.83yrsno datano data

5.6yrs

Average Tenure

61yo

Average Age

Experienced Management: SOBK.Y's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ken Miyauchi
CEO, President & Representative Director5.42yrsno data0.017%
¥ 9.4m
Kazuhiko Fujihara
CFO, Executive VP & Director13.25yrsno data0.0063%
¥ 3.5m
Yasuyuki Imai
COO, Enterprise Business Unit Head & Representative Director8.25yrsno data0.0042%
¥ 2.4m
Junichi Miyakawa
CTO, Head of Technology Unit & Technology Strategy Unit and Representative Director14.42yrsno data0.0042%
¥ 2.4m
Masayoshi Son
Chairman of the Board5.42yrsno data0.017%
¥ 9.4m
Takehiro Kamigama
Independent External Director2.25yrsno datano data
Atsushi Horiba
Independent External Director2.25yrsno data0.000020%
¥ 11.2k
Kazuko Kimiwada
Audit & Supervisory Board Member6.25yrsno data0.00011%
¥ 61.6k
Eiji Shimagami
Full-time Audit & Supervisory Board Member1.25yrsno data0.000060%
¥ 33.6k
Kentaro Kawabe
Director2yrsno datano data
Kazuaki Oki
Independent External Director2.25yrsno datano data
Kyoko Uemura
Independent External Director2.25yrsno data0.000030%
¥ 16.8k

2.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: SOBK.Y's board of directors are not considered experienced ( 2.3 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 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¥5.913t
  • Listing Market Cap: JP¥55.975b
  • Shares outstanding: 4.75b
  • 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
SFBQ.FOTCPK (Pink Sheets LLC)YesNew Common StockUSUSDDec 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 Analysis2020/09/26 06:30
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
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.