Last price: ¥6,632Updated: 2 years ago52w range:
¥4,766
to
¥7,297
52w change:
39.00%
to
-9.00%
Forward PE: 36.19Trailing EPS: -1541.29
50d average: ¥6,207
(7%)
200d average: ¥6,208
(7%)
Open: ¥6,525Previous close: ¥6,457
Change: ¥175
(2.71%)
Day high: ¥6,658Day low: ¥6,491Volume: 5.47 millionAvg. vol 3m: 7.89 million
Tokyo TSE:9984Cap: 9.72 trillion Shares outstanding: 1.5 billionPrice hint: 2Price to book: 1.02Annual dividend rate: 44.00Annual dividend yield: 0.01¥22 dividend 2 years agoYahoo Quote
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9984.T
SoftBank Group Corp. is a leading global conglomerate headquartered in Tokyo, Japan. It operates in various sectors including telecommunications, information systems, internet services and finance. Its portfolio includes some of the world's most influential and innovative tech companies like Alibaba, Yahoo Japan, Uber, Slack among others.
Its CEO and founder, Masayoshi Son, has a vision of investing in technologically related companies that he believes will lead the future, essentially forming a digital infrastructure. To achieve this idea, SoftBank established the Vision Fund, the world's largest technology-focused venture capital fund, with over $100 billion in capital.
One of the major risks of investing in SoftBank is its high level of debt. Although the company has been generating ample profits and free cash flow in recent years, it has substantial outstanding obligations. The company's financial health metrics, such as its total debt compared to assets and equity, have historically been quite high compared to peers.
Another risk is the conglomerate's investment strategy, which departs from the industry norm by investing heavily in late-stage startups for higher equity stakes. This strategy has the potential for huge rewards, evidenced by its successful investment in Alibaba. However, it also means that when investments don't perform as expected, SoftBank incurs significant losses as seen in the case of WeWork.
Lastly, there is a concentration risk associated with SoftBank's large investments in a few companies. A significant portion of SoftBank's value is tied up in a few major holdings, meaning the firm’s fortunes could experience volatility if these companies do not perform well.
Overall, SoftBank's aggressive and unique investment strategy along with its commitment in tech-driven companies make it suitable for those who are willing to take on a high risk for potentially high returns. However, its high level of indebtedness and concentration risk suggest the necessity for careful evaluation before investment.