Panasonic (6752) AI Stock Analysis

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Panasonic

(OTC:6752)

Rating:72Outperform

Price Target:

¥1,785.00

▲(16.10%Upside)

Panasonic's overall stock score is driven by a strong financial foundation and attractive valuation. Technical analysis reveals some short-term weaknesses, while mixed earnings call sentiment highlights both achievements and challenges.

Positive Factors

Earnings

Q4 operating profit exceeded expectations with a healthy beat, driven by the 'Connect' segment.

Restructuring

Panasonic's restructuring shows promise with a disciplined top-down cost focus and governance changes.

Negative Factors

Forecasts

Forecasts for FY3/26 fell well short of consensus.

Tariffs

Impact of US tariffs not yet factored in raises doubts if these forecasts are conservative.

Panasonic (6752) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

$3.61T

Dividend Yield2.98%

Average Volume (3M)7.82M

Price to Earnings (P/E)9.8

Beta (1Y)1.09

Revenue Growth-0.45%

EPS Growth-17.53%

CountryJP

Employees207,548

SectorTechnology

Sector Strength84

IndustryConsumer Electronics

Share Statistics

EPS (TTM)42.62

Shares Outstanding2,454,446,500

10 Day Avg. Volume8,232,770

30 Day Avg. Volume7,822,570

Financial Highlights & Ratios

PEG Ratio2.62

Price to Book (P/B)0.76

Price to Sales (P/S)0.00

P/FCF Ratio18.29

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$2,291.19

Price Target Upside49.02% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

Panasonic Business Overview & Revenue Model

Company DescriptionPanasonic Holdings Corporation, together with its subsidiaries, develops, manufactures, sells, and services various electrical and electronic products worldwide. It operates through Appliances, Life Solutions, Connected Solutions, Automotive, and Industrial Solutions segments. The Appliances segment offers air conditioners, refrigerators, washing machines, vacuum cleaners, microwave ovens, rice cookers, personal care products, TVs, digital cameras, video equipment, home audio equipment, fixed-phones, show cases, compressors, and fuel cells. The Life Solutions segment provides lighting fixtures, lamps, wiring devices, solar photovoltaic systems, spatial sterilizing/deodorizing equipment, interior and exterior furnishing materials, ventilation and air conditioning equipment, air purifiers, bicycles, and nursing care related products, as well as kitchen and bath products. The Connected Solutions segment offers aircraft in-flight entertainment systems and communications services, electronic component mounting machines, welding equipment, PCs and tablets, projectors, and professional AV systems, as well as solutions for various industries. The Automotive segment provides automotive-use infotainment systems, head-up displays, automotive audio systems, automotive switches, vehicle camera modules, advanced driver assistance systems, automotive mirrors, and cylindrical and prismatic lithium-ion batteries, as well as devices and systems for electric automobiles. The Industrial Solutions segment offers relays, switches, power supply products, industrial motors and sensors, capacitors, coils, resistors, electronic circuit board materials, semiconductors, and LCD panels, as well as small lithium-ion, dry, and micro batteries. The company was formerly known as Panasonic Corporation. Panasonic Holdings Corporation was founded in 1918 and is headquartered in Kadoma, Japan.

How the Company Makes MoneyPanasonic generates revenue through multiple streams, primarily driven by its diverse product portfolio. The company's consumer electronics division sells home appliances, audio-visual products, and personal care items, contributing significantly to its income. In the automotive sector, Panasonic provides batteries, infotainment systems, and other components, collaborating with major car manufacturers. The housing segment offers solutions like air conditioning, lighting, and building materials. Additionally, the B2B segment includes industrial devices, energy solutions, and factory automation systems. Strategic partnerships and investments in research and development further bolster Panasonic's financial performance, ensuring a steady flow of revenue from both consumer and business markets.

Panasonic Earnings Call Summary

Earnings Call Date:May 09, 2025

(Q4-2025)

% Change Since: -9.53%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment with significant achievements in sales growth and cash flow targets being met, alongside challenges such as a decrease in net profit, potential impacts from US tariffs, and a major workforce reduction. While structural reforms aim to improve future profitability, current challenges and uncertainties weigh heavily on the outlook.

Q4-2025 Updates

Positive Updates

Increased Sales and Profit Excluding Automotive

Sales and profit exceeded forecasts with a year-on-year increase, excluding the Automotive segment. Sales of generative AI-related products, Process Automation, Avionics, and Gemba Solutions contributed significantly.

Achievement of Medium-Term Cash Flow Target

Over three years since FY23, operating cash flow amounted to 2.2 trillion yen, achieving the medium-term target of 2 trillion yen.

Dividend Increase

Annual dividend was increased to 48 yen per share, up 8 yen year-on-year, with a payout ratio of 30.6%.

Restructuring for Future Growth

Panasonic is implementing structural reforms aiming for 150 billion yen profit improvement by FY27, with a focus on fixed cost restructuring and profit improvement.

Negative Updates

Decreased Net Profit

Net profit decreased to 366.2 billion yen due to the absence of one-time gains from the previous fiscal year.

Impact of US Tariffs Not Factored Into FY26 Forecast

The potential impact of US tariffs on future sales and profits has not been included in the FY26 forecast, introducing uncertainty.

Significant Workforce Reduction

A reduction of over 10,000 employees is planned, as part of efforts to improve profitability and streamline operations.

Challenges in Automotive Segment

The Automotive segment was deconsolidated, resulting in decreased sales and adjusted operating profit in this area.

Company Guidance

During the May 2025 earnings call, Panasonic Holdings Corporation provided comprehensive guidance on its financial performance and strategic initiatives. For fiscal year 2025, the company reported sales of 8,458.2 billion yen, largely consistent with the previous year, with a 5% sales increase excluding the deconsolidated Automotive segment. Adjusted operating profit rose to 467.2 billion yen, with operating profit at 426.5 billion yen. However, net profit declined to 366.2 billion yen, primarily due to the absence of one-time gains from the previous fiscal year. The company's operating cash flow totaled 796.1 billion yen for FY25, contributing to a cumulative three-year cash flow of 2.2 trillion yen, surpassing its 2 trillion yen target. Panasonic declared an annual dividend of 48 yen per share, representing an increase of 13 yen year-on-year, and a payout ratio of 30.6%. For FY26, Panasonic anticipates an increase in sales and adjusted operating profit in segments excluding Automotive, despite restructuring costs of 130 billion yen impacting overall operating profit. The FY26 forecast projects overall sales at 7,800 billion yen, adjusted operating profit at 500 billion yen, and net profit at 310 billion yen, with EPS of 132.79 yen, an ROE of 6.5%, and EBITDA of 800 billion yen. The company also highlighted its ongoing restructuring efforts, aiming for a 150 billion yen profit improvement by FY27, and a cumulative improvement of 300 billion yen by FY29, with a commitment to achieving an ROE of 10% and an adjusted operating profit margin of 10%.

Panasonic Financial Statement Overview

Summary

Panasonic exhibits a well-rounded financial profile with steady revenue growth, strong balance sheet stability, and effective cash flow management. However, moderate profitability challenges exist.

Income Statement

Positive

Panasonic has demonstrated a stable revenue base with modest growth over recent years. The gross profit margin is consistently healthy, indicating effective cost management. However, a slight decline in net income and EBIT margins suggests some profitability pressures. Overall, the income statement shows resilience with moderate growth potential.

Balance Sheet

Very Positive

The balance sheet reflects a solid equity base and a favorable debt-to-equity ratio, signifying strong financial health and low leverage risk. Return on equity has improved, showcasing efficiency in generating profits from shareholders' equity. The equity ratio is robust, underscoring stability and financial strength.

Cash Flow

Positive

Operating cash flow is strong and covers net income well, indicating effective cash generation from operations. Free cash flow has been positive but shows volatility, which may imply fluctuations in capital expenditure management. Overall, cash flow generation remains solid, with room for enhancement in capital allocation.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
8.46T	8.50T	8.38T	7.39T	6.70T
	Gross Profit
2.63T	2.34T	2.26T	2.08T	1.97T
	EBIT
467.22B	360.96B	288.57B	357.53B	258.60B
	EBITDA
900.79B	845.50B	718.31B	731.06B	615.19B
	Net Income Common Stockholders
366.20B	443.99B	265.50B	255.33B	165.08B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
847.56B	1.35T	989.16B	1.42T	1.74T
	Total Assets
9.34T	9.41T	8.06T	8.02T	6.85T
	Total Debt
1.57T	1.63T	1.46T	1.90T	1.45T
	Net Debt
720.68B	506.65B	637.61B	691.41B	-145.80B
	Total Liabilities
4.47T	4.69T	4.27T	4.68T	4.08T
	Stockholders Equity
4.69T	4.54T	3.62T	3.16T	2.59T
Cash Flow		Free Cash Flow
23.75B	219.70B	150.86B	-45.15B	207.61B
	Operating Cash Flow
796.08B	866.90B	520.74B	252.63B	504.04B
	Investing Cash Flow
-859.93B	-578.84B	-344.03B	-796.15B	176.60B
	Financing Cash Flow
-190.35B	-83.49B	-607.01B	58.91B	-177.70B

Panasonic Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1537.50

Price Trends

50DMA

1594.79

Negative

100DMA

1660.39

Negative

200DMA

1505.24

Positive

Market Momentum

MACD

-17.57

Positive

RSI

40.32

Neutral

STOCH

7.29

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6752, the sentiment is Negative. The current price of 1537.5 is below the 20-day moving average (MA) of 1600.67, below the 50-day MA of 1594.79, and above the 200-day MA of 1505.24, indicating a neutral trend. The MACD of -17.57 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 7.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6752.

Panasonic Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6752	72 Outperform	$3.61T	9.85	7.85%	2.98%	-0.45%	-17.53%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
CSIOF		$1.70B	32.06	3.45%	0.03%	―	―
KYOCF		$16.55B	92.87	0.71%	3.19%	―	―
SNEJF		$161.23B	21.70	14.32%	0.50%	―	―
JVC		€1.04B	8.19	16.78%	1.37%	―	―
6753	53 Neutral	¥442.40B	12.26		―	-6.97%	―

* Technology Sector Average

Performance Comparison

JP:6752

Panasonic

1,537.50

254.12

19.80%

CSIOF

Casio Computer Co

7.56

0.36

5.00%

KYOCF

Kyocera

10.42

-0.78

-6.96%

SNEJF

Sony

25.13

8.37

49.94%

DE:JVC

JVCKENWOOD Corporation

6.61

1.37

26.15%

JP:6753

Sharp Corporation

681.60

-283.40

-29.37%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.