SoftBank Corp 9434

Morningstar Rating
¥237.40 −3.40 (1.41%)
View Full Chart

Company Report

SoftBank Corporation Growing Due to Cloud, AI and Finance

Given its higher financial leverage and high dividend payout ratio, SoftBank is the most leveraged way for investors to invest in the Japanese telecom market. If the Japanese mobile market can return to the cozy, stable oligopoly status that it has enjoyed for much of its history, SoftBank would likely provide investors with the highest returns of the large listed telecom companies. However, we have seen several bouts of telecom price competition since Rakuten entered the mobile market. We can't rule out further pricing pressure in the core telecom market, but Rakuten's financial position might make it difficult for the company to start any more price wars.

Price vs Fair Value

9434 is trading at a LOCK|qS!>#Y& premium.
Price
¥237.40
Fair Value
#^!
Uncertainty
>^V
1-Star Price
LOCK|M.Fw
5-Star Price
LOCK|&%
Economic Moat
LOCK|&<$Xl
Capital Allocation
LOCK|@&c%vtS

Bulls Say, Bears Say

Bulls

An 85% dividend payout ratio provides SoftBank with a strong dividend yield in a Japanese market with generally low yields.

Bears

Pricing pressure in the telecom market looks set to increase through government efforts to lower prices, Rakuten’s entry into the market, and the lack of differentiation between operators' core product offerings.

News

Trading Information

Previous Close Price
¥240.80
Day Range
¥235.90–240.60
52-Week Range
¥202.60–252.90
Bid/Ask
¥237.10 / ¥237.40
Shares Outstanding
47.83B
Market Cap
¥11.36T
Volume/Avg
77M / 80M

Key Statistics

Price/Earnings (Normalized)
22.65
Price/Sales
1.67
Dividend Yield (Trailing)
3.66%
Dividend Yield (Forward)
3.71%
Dividend Payment Schedule
Jun, Dec
Total Yield
3.66%

Company Profile

SoftBank is an established telecommunications services provider in Japan, owning a mobile network with around 50 million mobile customers and a 24% market share. It also provides some fixed-line services, which are mostly resold and are low-margin. The company also owns 32.4% of LY Corporation, and SoftBank and LY Corporation each own 29% of PayPay, so SoftBank consolidates PayPay. SoftBank Group sold 33.5% of SoftBank Corporation in an IPO in 2018 and has since sold down further to a 40% holding.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
81,338

Competitors

Valuation

Metric
9434
9433
4755
Price/Earnings (Normalized)
22.6515.97—
Price/Book Value
3.892.181.62
Price/Sales
1.671.860.56
Price/Cash Flow
8.797.663.18
Price/Earnings
9434
9433
4755

Financial Strength

Metric
9434
9433
4755
Quick Ratio
0.580.5332.11
Current Ratio
0.630.5632.11
Interest Coverage
9.3533.280.78
Quick Ratio
9434
9433
4755

Profitability

Metric
9434
9433
4755
Return on Assets (Normalized)
4.27%—0.01%
Return on Equity (Normalized)
25.88%—0.46%
Return on Invested Capital (Normalized)
7.58%—0.22%
Return on Assets
9434
9433
4755

Telecom Services Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Verizon Communications Inc
VZ
LOCK|ZbC#mhqLOCK|^PnGQ$191B
T-Mobile US Inc
TMUS
LOCK|pnwP&H#$LOCK|wshK$173B
AT&T Inc
T
LOCK|?B&LOCK|KzWlN$167B
Deutsche Telekom AG ADR
DTEGY
LOCK|#$>l?>jLOCK|S!#z$141B
Comcast Corp Class A
CMCSA
LOCK|p@pl#wLOCK|^?bL$77B
KDDI Corp ADR
KDDIY
LOCK|QjM%H!LOCK|^<$>$69B
America Movil SAB de CV ADR - Series B
AMX
LOCK|#>K>^%zLOCK|WhG%$63B
Orange SA ADR
ORANY
LOCK|%B#z@w<LOCK|^c$42B
Vodafone Group PLC ADR
VOD
LOCK|gsy>!hLOCK|B@$38B
EchoStar Corp Class A
ECHO
LOCK|MWLOCK|>z$26B

Sponsor Center