Is SoftBank Stock (SFTBF) a Good Investment? (2024)

As of January 04, 2024, SoftBank Group Corp had a $65.4 billion market capitalization, putting it in the 97th percentile of companies in the Telecommunications Services - Wireless industry.

SoftBank Group Corp does not have a meaningful P/E due to negative earnings over the last 12 trailing months. SoftBank Group Corp’s trailing 12-month revenue is $46.2 billion with a -34.5% profit margin. Year-over-year quarterly sales growth most recently was 3.7%. Analysts expect adjusted earnings to reach $-78.797 per share for the current fiscal year. SoftBank Group Corp currently has a 0.7% dividend yield.

Before you choose to buy, sell or hold SoftBank Group Corp stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (SFTBF) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at SoftBank Group Corp’s stock grades for value, growth and quality. Learn more about A+ Investor here!

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

SoftBank Group Corp has a Value Score of 67, which is Value.

As of January 04, 2024, SoftBank Group Corp had a $65.4 billion market capitalization, putting it in the 97th percentile of companies in the Telecommunications Services - Wireless industry.

SoftBank Group Corp does not have a meaningful P/E due to negative earnings over the last 12 trailing months. SoftBank Group Corp’s trailing 12-month revenue is $46.2 billion with a -34.5% profit margin. Year-over-year quarterly sales growth most recently was 3.7%. Analysts expect adjusted earnings to reach $-78.797 per share for the current fiscal year. SoftBank Group Corp currently has a 0.7% dividend yield.

Before you choose to buy, sell or hold SoftBank Group Corp stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (SFTBF) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at SoftBank Group Corp’s stock grades for value, growth and quality. Learn more about A+ Investor here!

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. To decide if SoftBank Group Corp stock is a buy or sell, you’ll want to evaluate its fair market price or intrinsic value.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81-100 are considered deep value, those with a score between 61-80 are value and so on.

SoftBank Group Corp has a Value Score of 67, which is Value.

Quality Grade:

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Grade is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality� of a particular stock. A higher quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

SoftBank Group Corp has a Quality Score of 43, which is Average.

Momentum Grade:

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

SoftBank Group Corp has a Momentum Score of 41, which is Average.

In addition to Value, Momentum and Quality, A+ Investor also provides grades for Growth and Estimate Revisions.

The Earnings Estimate Revisions Grade takes into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too). AAII’s stock screen that follows the companies with the highest earnings estimate revisions (i.e., the best grades) has a 23.3% backtested annual return since inception, whereas an example screen following those with the worst revisions has a backtested annual return since inception of under 5%.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower—growth companies. AAII measures several dimensions of growth in its Growth Grade, including year—over—year increases in sales and earnings, long(er)—term historical sales and earnings growth rates and analyst‐forecasted long—term earnings growth.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether SoftBank Group Corp’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

Overall, SoftBank Group Corp stock has a Value Grade of B, Quality Grade of C, Momentum Grade of C .

Whether or not you should buy SoftBank Group Corp stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how SoftBank Group Corp stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

You can use the information about how SoftBank Group Corp is graded to determine if you should invest in this stock. However, you should decide whether SoftBank Group Corp’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

So, if you’re still on the fence about whether SoftBank Group Corp is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.