SoftBank Group Corp.
SoftBank Group Corp. Fundamental Analysis
SoftBank Group Corp. (SFTBY) shows strong financial fundamentals with a PE ratio of 6.27, profit margin of 48.30%, and ROE of 28.44%. The company generates $7728.8B in annual revenue with moderate year-over-year growth of 7.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -224.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SFTBY's fundamental strength across five key dimensions:
Efficiency Score
WeakSFTBY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSFTBY trades at attractive valuation levels.
Growth Score
ModerateSFTBY shows steady but slowing expansion.
Financial Health Score
WeakSFTBY carries high financial risk with limited liquidity.
Profitability Score
ModerateSFTBY maintains healthy but balanced margins.
Key Financial Metrics
Is SFTBY Expensive or Cheap?
P/E Ratio
SFTBY trades at 6.27 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SFTBY's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values SoftBank Group Corp. at 1.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.57 times EBITDA. This is generally considered low.
How Well Does SFTBY Make Money?
Net Profit Margin
For every $100 in sales, SoftBank Group Corp. keeps $48.30 as profit after all expenses.
Operating Margin
Core operations generate 7.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.44 in profit for every $100 of shareholder equity.
ROA
SoftBank Group Corp. generates $6.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SoftBank Group Corp. generates limited operating cash flow of $-718.14B, signaling weaker underlying cash strength.
Free Cash Flow
SoftBank Group Corp. generates weak or negative free cash flow of $-2.08T, restricting financial flexibility.
FCF Per Share
Each share generates $-182.80 in free cash annually.
FCF Yield
SFTBY converts -8.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How SFTBY Stacks Against Its Sector Peers
| Metric | SFTBY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.27 | 21.28 | Better (Cheaper) |
| ROE | 28.44% | 1116.00% | Weak |
| Net Margin | 48.30% | -55491.00% (disorted) | Strong |
| Debt/Equity | 1.63 | 1.38 | Neutral |
| Current Ratio | 0.83 | 1.61 | Weak Liquidity |
| ROA | 6.72% | -204827.00% (disorted) | Weak |
SFTBY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SoftBank Group Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.18%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-67.25%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
26.05%
Industry Style: Growth, Technology, Streaming
High Growth