NYSE · Technology

Sony Group Corporation

SONY · Consumer Electronics

$22.63

▼ -0.63 (-2.71%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

B⤢

Gross Profit Margin 36.7%

Operating Margin 16.7%

Net Income Margin 12.1%

Fin. Health

B⤢

Years to Pay Off Debt 5.5 yrs

Working Capital vs Long-Term Debt $211.9B

Working Capital $1,205.6B

Valuation

A⤢

Margin of Safety 98.3%

Price-to-Book 0.02x

Cash Flow

B⤢

Free Cash Flow $59.6B

CapEx % of Net Income 40.3%

Owner Earnings $730.8B

Profitability

Gross Profit Margin 36.7%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 16.7%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 12.1%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 5.5 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $211.9B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $1,205.6B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $59.6B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 40.3%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $730.8B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Sony Group Corporation

Sony Group Corporation develops, designs, produces, manufactures, supplies, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial use in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company operates through Game & Network Services, Music, Pictures, Entertainment Technology & Services, and Imaging & Sensing Solutions. It develops, designs, produces, manufactures, provides, and sells smartphones and image sensors; plans, produces, manufactures, and sells music software, performances and merchandise, song lyrics and music management, licensing, animation works, and game applications. The company is also involved in the production, acquisition, sale, and distribution of motion pictures and television programs; operates television networks and direct-to-consumer distribution services; insurance business, including life insurance and non-life insurance; internet banking; production and sale of digital software add-on content; manufacturing and sales of home video game consoles; and interchangeable lens, projectors, and medical equipment. It has a strategic partnership with TCL Electronics Holdings Limited in the home entertainment sector; and a non-binding memorandum of understanding with Taiwan Semiconductor Manufacturing Company Limited for a strategic partnership regarding the development and manufacturing of image sensors. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.

Market Data

Market Cap $132.9B

Enterprise Value $242.9B

P/E (TTM) 19.85

Dividend Yield 1.07%

Exchange NYSE

Key Margins

Gross Profit 36.7%

Operating Margin 16.7%

Net Margin 12.1%

Company Info

Sector Technology

Industry Consumer Electronics

Employees 94900

Country Japan

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Sony Group Corporation at $22.63.

The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.

At $22.63, the stock trades below its Graham Number of $1,361.64 — suggesting a margin of safety exists.

The margin of safety of 98.3% exceeds Graham's recommended 33% threshold — a rare opportunity.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q2 2026	Q4 2025
Gross Profit %	36.7%▲	28.4%
Operating Margin %	16.7%▲	13.7%
Net Income %	12.1%▲	-27.2%
Diluted EPS	57.82▲	-169.03

Balance Sheet Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Total Assets	$16,047.3B	$15,885.0B	N/A
Total Debt	$1,870.6B▲	$1,656.9B•	N/A
Working Capital	$1,205.6B▲	$1,128.0B•	N/A
Years to Pay Debt	5.47	-1.64	N/A

Cash Flow Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Free Cash Flow	$59.6B▼	$806.4B•	N/A
Owner Earnings	$730.8B	-$655.4B	N/A
CapEx % of Net Income	40.3%	N/A	N/A

Income Statement

	2026	2025
Tax Rate For Calcs	0	0
Normalized EBITDA	751,760,000	809,575,000
Net Income From Continuing Operation Net Minority Interest	342,161,000	377,324,000
Reconciled Depreciation	250,797,000	277,932,000
Reconciled Cost Of Revenue	1,796,292,000	2,657,637,000
EBITDA	751,760,000	809,575,000
EBIT	500,963,000	531,643,000
Net Interest Income	992,000	-14,832,000
Interest Expense	23,472,000	31,434,000
Interest Income	24,464,000	16,602,000
Normalized Income	342,161,000	377,324,000
Net Income From Continuing And Discontinued Operation	342,161,000	-1,008,612,000
Total Expenses	2,363,278,000	3,203,577,000
Total Operating Income As Reported	476,499,000	515,041,000
Diluted Average Shares	5,917,342	6,006,497
Basic Average Shares	5,891,838	5,966,945
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	342,161,000	-1,008,612,000
Net Income Common Stockholders	342,161,000	-1,008,612,000
Net Income	342,161,000	-1,008,612,000
Minority Interests	-7,846,000	-3,130,000
Net Income Including Noncontrolling Interests	350,007,000	-1,005,482,000
Net Income Discontinuous Operations	0	-1,385,936,000
Net Income Continuous Operations	350,007,000	380,454,000
Tax Provision	127,484,000	119,755,000
Pretax Income	477,491,000	500,209,000
Other Income Expense	2,006,000	4,937,000
Earnings From Equity Interest	2,006,000	4,937,000
Net Non Operating Interest Income Expense	992,000	-14,832,000
Interest Expense Non Operating	23,472,000	31,434,000
Interest Income Non Operating	24,464,000	16,602,000
Operating Income	474,493,000	510,104,000
Operating Expense	566,986,000	545,940,000
Other Operating Expenses	-1,387,000	-37,726,000
Selling General And Administration	568,373,000	583,666,000
Gross Profit	1,041,479,000	1,056,044,000
Cost Of Revenue	1,796,292,000	2,657,637,000
Total Revenue	2,837,771,000	3,713,681,000
Operating Revenue	2,837,771,000	3,713,681,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	92,854	181,736
Ordinary Shares Number	5,872,462	5,968,074
Share Issued	5,965,316	6,149,811
Net Debt			1,886,144,000
Total Debt	1,870,598,000	1,656,856,000
Tangible Book Value	5,999,028,000	5,983,848,000
Invested Capital	9,573,430,000	9,193,971,000
Working Capital	1,205,638,000	1,127,965,000
Net Tangible Assets	5,999,028,000	5,983,848,000
Capital Lease Obligations	666,427,000	625,986,000
Common Stock Equity	8,369,259,000	8,163,101,000
Total Capitalization	9,362,961,000	9,052,636,000
Total Equity Gross Minority Interest	8,774,938,000	8,519,095,000
Minority Interest	405,679,000	355,994,000
Stockholders Equity	8,369,259,000	8,163,101,000
Gains Losses Not Affecting Retained Earnings	1,329,016,000	1,183,976,000
Other Equity Adjustments	1,329,016,000	1,183,976,000
Treasury Stock	296,130,000	542,426,000
Retained Earnings	5,560,069,000	5,174,889,000
Additional Paid In Capital	894,947,000	1,465,305,000
Capital Stock	881,357,000	881,357,000
Common Stock	881,357,000	881,357,000
Total Liabilities Net Minority Interest	7,272,364,000	7,365,876,000
Total Non Current Liabilities Net Minority Interest	2,355,504,000	2,206,994,000
Other Non Current Liabilities	395,514,000	393,057,000
Employee Benefits	163,004,000	204,715,000
Non Current Pension And Other Postretirement Benefit Plans	163,004,000	204,715,000
Non Current Deferred Liabilities	234,208,000	186,052,000
Non Current Deferred Revenue		0
Non Current Deferred Taxes Liabilities	234,208,000	186,052,000
Long Term Debt And Capital Lease Obligation	1,562,778,000	1,423,170,000
Long Term Capital Lease Obligation	569,076,000	533,635,000
Long Term Debt	993,702,000	889,535,000
Current Liabilities	4,916,860,000	5,158,882,000
Other Current Liabilities	1,501,796,000	1,858,200,000
Current Deferred Liabilities	690,425,000	606,141,000
Current Deferred Revenue	690,425,000	606,141,000
Current Debt And Capital Lease Obligation	307,820,000	233,686,000
Current Capital Lease Obligation	97,351,000	92,351,000
Current Debt	210,469,000	141,335,000
Other Current Borrowings	210,469,000	141,335,000
Payables And Accrued Expenses	2,416,819,000	2,460,855,000
Payables	2,416,819,000	2,460,855,000
Dividends Payable
Total Tax Payable	188,710,000	163,369,000
Income Tax Payable	188,710,000	163,369,000
Accounts Payable	2,228,109,000	2,297,486,000
Total Assets	16,047,302,000	15,884,971,000
Total Non Current Assets	9,924,804,000	9,598,124,000
Other Non Current Assets	3,329,244,000	3,109,768,000
Non Current Deferred Assets	566,658,000	494,404,000
Non Current Deferred Taxes Assets	566,658,000	494,404,000
Investments And Advances	1,680,172,000	1,799,564,000
Investmentin Financial Assets	1,330,644,000	1,240,481,000
Available For Sale Securities	1,330,644,000	1,240,481,000
Long Term Equity Investment	349,528,000	559,083,000
Goodwill And Other Intangible Assets	2,370,231,000	2,179,253,000
Other Intangible Assets	668,525,000	577,574,000
Goodwill	1,701,706,000	1,601,679,000
Net PPE	1,978,499,000	2,015,135,000
Accumulated Depreciation
Gross PPE	1,978,499,000	2,015,135,000
Construction In Progress
Other Properties	1,978,499,000	2,015,135,000
Machinery Furniture Equipment
Buildings And Improvements
Land And Improvements
Current Assets	6,122,498,000	6,286,847,000
Other Current Assets	703,239,000	694,092,000
Assets Held For Sale Current
Restricted Cash
Inventory	1,365,079,000	1,263,689,000
Finished Goods
Work In Process
Raw Materials
Receivables	1,852,291,000	2,213,801,000
Accounts Receivable	1,852,291,000	2,213,801,000
Cash Cash Equivalents And Short Term Investments	2,201,889,000	2,115,265,000
Other Short Term Investments	31,870,000	28,765,000
Cash And Cash Equivalents	2,170,019,000	2,086,500,000
Cash Equivalents
Cash Financial

Cash Flow

	2026	2025	2024
Free Cash Flow	59,565,000	806,398,000
Repurchase Of Capital Stock	-127,480,000	-83,065,000
Repayment Of Debt	-35,680,000	-106,849,000
Issuance Of Debt	168,017,000	7,811,000
Capital Expenditure	-137,870,000	-75,280,000
End Cash Position	2,170,019,000	2,086,500,000
Beginning Cash Position	2,208,879,000	2,667,965,000
Effect Of Exchange Rate Changes	27,116,000	67,177,000
Changes In Cash	-65,976,000	-648,642,000
Financing Cash Flow	-86,628,000	-226,537,000
Cash From Discontinued Financing Activities	0	0
Cash Flow From Continuing Financing Activities	-86,628,000	-226,537,000
Net Other Financing Charges	-16,605,000	30,000,000
Cash Dividends Paid	-73,426,000	-74,434,000
Common Stock Dividend Paid	-73,426,000	-74,434,000
Net Common Stock Issuance	-127,480,000	-83,065,000
Common Stock Payments	-127,480,000	-83,065,000
Net Issuance Payments Of Debt	130,883,000	-99,038,000
Net Short Term Debt Issuance	-1,454,000	3,093,000
Short Term Debt Issuance		3,093,000	-19,816,000
Net Long Term Debt Issuance	132,337,000	-102,131,000
Long Term Debt Payments	-35,680,000	-106,849,000
Long Term Debt Issuance	168,017,000	4,718,000
Investing Cash Flow	-176,783,000	-1,303,783,000
Cash From Discontinued Investing Activities	0	-1,170,068,000
Cash Flow From Continuing Investing Activities	-176,783,000	-133,715,000
Net Other Investing Changes	1,452,000	-1,597,000
Net Investment Purchase And Sale	-44,921,000	-35,711,000
Sale Of Investment	7,140,000	3,080,000
Purchase Of Investment	-52,061,000	-38,791,000
Net Business Purchase And Sale	-306,000	-32,876,000
Sale Of Business	14,632,000	4,451,000
Purchase Of Business	-14,938,000	-37,327,000
Net PPE Purchase And Sale	-133,008,000	-63,531,000
Sale Of PPE	4,862,000	11,749,000
Purchase Of PPE	-137,870,000	-75,280,000
Operating Cash Flow	197,435,000	881,678,000
Cash From Discontinued Operating Activities	0	0
Cash Flow From Continuing Operating Activities	197,435,000	881,678,000
Taxes Refund Paid	-129,121,000	-64,757,000
Change In Working Capital	-379,037,000	225,467,000
Change In Other Working Capital			736,588,000
Change In Other Current Liabilities	-90,994,000	243,869,000
Change In Other Current Assets	-203,834,000	-218,808,000
Change In Payables And Accrued Expense	53,299,000	-176,596,000
Change In Payable	53,299,000	-176,596,000
Change In Account Payable	19,055,000	-194,213,000
Change In Tax Payable	34,244,000	17,617,000
Change In Income Tax Payable	34,244,000	17,617,000
Change In Inventory	-129,406,000	458,322,000
Change In Receivables	-8,102,000	-81,320,000
Changes In Account Receivables	-8,102,000
Other Non Cash Items	-32,240,000	-72,129,000
Depreciation Amortization Depletion	250,797,000	277,932,000
Depreciation And Amortization	250,797,000	277,932,000
Operating Gains Losses	9,545,000	14,956,000
Earnings Losses From Equity Investments	9,686,000	13,000
Gain Loss On Investment Securities	-141,000	14,943,000
Net Income From Continuing Operations	477,491,000	500,209,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $2,621.6B ▲ $2,837.8B +8.2%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 32.3% ▲ 36.7% +4.4pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 18.1% ▲ 16.7% -1.4pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 9.0% ▲ 12.1% +3.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$2,837.8B/qtr (≈$11,351.1B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.25x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$59.6B

vs Positive

Operating Cash Flow

$197.4B

Latest quarter · Buffett's cash reality check

ROIC

3.4%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

0.0x

Net Assets: $8,774.9B

Asset Context — Consumer Electronics

This company's primary assets are likely intangible (brand, IP, talent, network effects) and don't appear on the balance sheet. Net Assets may significantly understate intrinsic value. ROIC and free cash flow are more reliable indicators of business quality.

Peers & Industry Comparison

Consumer Electronics — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
SONY	$22.63	$132.9B	19.85	36.7%	12.1%	$2,837.8B
AAPL Apple Inc.	$303.42	$4,456.4B	34.8	48.7%	27.6%	$466.8B
MSFT Microsoft Corporation	$487.65	$3,621.1B	27.2	67.9%	40.3%	$331.8B
GOOGL Alphabet Inc.	$373.51	$4,568.0B	18.7	60.9%	54.8%	$445.9B
SMSN.IL SAMSUNG ELECTRONICS CO LTD (ATT	$4,112.00	N/A	42.6	32.0%	13.1%	Foreign listing

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.00%

Low — management has little skin in the game

Return on Equity (ROE)

4.1%

Weak — poor returns on equity

Return on Assets (ROA)

2.1%

Fair — average asset utilization

Share Buybacks (Latest Year)

$522.1B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+12.0% YoY

Debt is growing — management is leveraging up

Leadership Team

Kenichiro Yoshida

Executive Chairman

Age 66

Pay: $1,295,808

0.000% of net income

Hiroki Totoki

President, CEO, Director & Representative Corporate Executive Officer

Age 61

Pay: $3,881,072

0.001% of net income

Lin Tao

CFO, Corporate Executive Officer & Director

Age 52

Pay: $1,035,376

0.000% of net income

Hirotoshi Korenaga

Senior Vice President of Accounting

Age 60

Justin Hill

Senior Vice President of Finance & Investor Relations and Head of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Fisher Asset Management, LLC	1.85%	110,630,948
Primecap Management Company	0.98%	58,530,830
Aristotle Capital Management, LLC	0.74%	43,937,137
Morgan Stanley	0.42%	24,987,735
Bank of America Corporation	0.28%	16,992,579
Mondrian Investment Partners Ltd	0.21%	12,272,937
Blackrock Inc.	0.16%	9,389,076
Goldman Sachs Group Inc	0.15%	8,968,457

Risk Analysis

Beta (Market Risk)

0.76

Low volatility — more stable than the market

Short Interest

0.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.21x

Conservative balance sheet — low financial risk

Current Ratio

1.25x

Adequate liquidity

52-Week Price Range

Low: $19.32 Current: $22.63 High: $30.34

Currently at 30% of 52-week range

Sony Group Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis