SoftBank Corp. (9434) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vision, Inc. ( Japan)

Forval Telecom, Inc.

Okinawa Cellular Telephone Co.

SoftBank Corp.

WirelessGate, Inc.

KDDI Corp.

Japan Communications Inc.

Why is SoftBank Corp. ?

High Management Efficiency with a high ROCE of 16.06%

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 0.85% of over the last 5 years
The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 0.85% of over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 18.99%
INTEREST COVERAGE RATIO(Q) Lowest at 1,115.44
INTEREST(Q) Highest at JPY 33,666 MM

With ROCE of 13.85%, it has a very attractive valuation with a 2.04 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.27%, its profits have risen by 18.2% ; the PEG ratio of the company is 0.8

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -4.27% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SoftBank Corp. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.53%

EBIT Growth (5y)

0.85%

EBIT to Interest (avg)

11.24

Debt to EBITDA (avg)

2.19

Net Debt to Equity (avg)

1.36

Sales to Capital Employed (avg)

0.75

Tax Ratio

25.26%

Dividend Payout Ratio

78.25%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

16.06%

ROE (avg)

30.66%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.65

EV to EBIT

14.75

EV to EBITDA

8.34

EV to Capital Employed

2.04

EV to Sales

2.14

PEG Ratio

0.78

Dividend Yield

ROCE (Latest)

13.85%

ROE (Latest)

26.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 1,393,760 MM

RAW MATERIAL COST(Y)

Fallen by 0.34% (YoY

NET SALES(Q)

Highest at JPY 1,843,281 MM

-17What is not working for the Company

ROCE(HY)

Lowest at 18.99%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,115.44

INTEREST(Q)

Highest at JPY 33,666 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.37 %

PRE-TAX PROFIT(Q)

Lowest at JPY 125,079 MM

NET PROFIT(Q)

Lowest at JPY 72,416.73 MM

EPS(Q)

Lowest at JPY 1.29

Here's what is working for SoftBank Corp.

Operating Cash Flow

Highest at JPY 1,393,760 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 1,843,281 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Raw Material Cost

Fallen by 0.34% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 207,267 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for SoftBank Corp.

Interest

At JPY 33,666 MM has Grown at 17.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,115.44

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 33,666 MM

in the last five periods and Increased by 17.06% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 20.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 125,079 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 72,416.73 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 1.29

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)