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Panasonic Corporation (JP:6752)
:6752
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Panasonic
(OTC:6752)
Rating:75Outperform
Price Target:
¥1,676.00
▲(12.90%Upside)
Positive Factors
Financial Performance
Panasonic posted solid Q1 FY2026 results with adjusted operating profit showing a 9% year-over-year increase.
Growth Prospects
Panasonic's restructuring shows promise with a disciplined top-down cost focus, hyperscaler battery business growth, and governance changes.
Negative Factors
Forecasts
Forecasts for FY3/26 fell well short of consensus.
Valuation Risks
There are valuation risks associated with the Blue Yonder business.
Panasonic (6752) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$3.47T
Dividend Yield2.69%
Average Volume (3M)7.61M
Price to Earnings (P/E)9.5
Beta (1Y)1.08
Revenue Growth-0.45%
EPS Growth-17.53%
CountryJP
Employees207,548
SectorTechnology
Sector Strength96
IndustryConsumer Electronics
Share Statistics
EPS (TTM)75.95
Shares Outstanding2,454,526,400
10 Day Avg. Volume6,944,550
30 Day Avg. Volume7,606,143
Financial Highlights & Ratios
PEG Ratio0.96
Price to Book (P/B)0.74
Price to Sales (P/S)0.00
P/FCF Ratio147.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2,155.20Price Target Upside45.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Panasonic Business Overview & Revenue Model
Company DescriptionPanasonic Corporation (6752) is a multinational electronics company headquartered in Japan, renowned for its diversified range of products and services. Operating in sectors including consumer electronics, automotive, housing, and business solutions, Panasonic offers a wide array of products such as home appliances, audio-visual equipment, automotive infotainment systems, industrial devices, and energy solutions. The company is committed to innovation and sustainability, focusing on creating products that enhance the quality of life globally.
How the Company Makes MoneyPanasonic makes money through its diversified business segments, which include appliances, eco solutions, connected solutions, automotive & industrial systems, and others. The appliances segment generates revenue from the sale of consumer electronics such as televisions, refrigerators, and washing machines. The eco solutions segment focuses on energy solutions, lighting, and housing systems. The connected solutions segment provides B2B solutions, including products for entertainment, avionics, and manufacturing. The automotive & industrial systems segment supplies components and systems for automotive and industrial applications, including batteries, electronic components, and infotainment systems. Panasonic's earnings are also bolstered by strategic partnerships and collaborations with other companies, enhancing its technological capabilities and market reach.
Panasonic Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q1-2026)
| % Change Since: -0.13%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance. While there were notable increases in net profit and growth in key segments like energy and lifestyle, significant challenges such as the overall sales decline due to automotive deconsolidation, the impact of US tariffs, and the termination of a strategic alliance were highlighted. The automotive battery business showed resilience despite market slowdowns. However, the challenges seemed to weigh heavily on the overall outlook.Q1-2026 Updates
Positive Updates
Sales and Profit Increase in Key Segments
Sales increased in all segments except automotive, with generative AI-related businesses and energy seeing notable growth. Adjusted operating profit increased overall, with significant contributions from lifestyle and energy segments.
Net Profit Increase
Net profit increased to JPY71.5 billion due to improvements in income taxes, despite a deterioration in non-operating income and loss.
Strong Demand in Energy Storage Systems
The demand for energy storage systems for data centers is growing more than anticipated, driven by large-scale investments related to generative AI.
Resilient Automotive Battery Business
Despite challenges, the automotive battery business in North America is expected to surpass FY2025 sales volumes, driven by strong demand for locally produced IRA-compliant battery cells.
Lifestyle Segment Performance
The lifestyle segment saw increased sales in consumer electronics and HVAC, with significant growth in air conditioner sales, achieving 120% YoY growth.
Negative Updates
Overall Sales Decline Due to Automotive Deconsolidation
Overall sales decreased by 11% YoY to JPY1,896.7 billion due to the deconsolidation of automotive, despite increases in all other segments.
Impact of US Tariffs
US tariffs negatively impacted energy and Connect segments, with a negative impact of JPY5.8 billion in Q1.
Termination of Strategic Capital Alliance
The strategic capital alliance agreement for the projector business in Connect was mutually terminated, impacting the forecast for Connect.
Challenges in Automotive Battery Production
Production timelines for the Kansas factory are postponed due to a slowdown in the EV market, impacting the expected growth.
Operating Cash Flow Decrease
Operating cash flows decreased YoY to JPY180.3 billion, mainly due to the deconsolidation of automotive.
Company Guidance
During the FY2026 Q1 financial results call, Akira Waniko reported a comprehensive analysis of the company's financial performance. Despite the overall sales decline by 11% YoY to JPY1,896.7 billion due to the deconsolidation of the automotive segment, sales excluding automotive increased by 2% YoY. Adjusted operating profit rose to JPY91.5 billion, with operating profit and net profit increasing to JPY86.9 billion and JPY71.5 billion, respectively. The impact of US tariffs was a significant concern, projected to affect segments like Connect and energy, although it hasn't been factored into the full-year forecast yet. The lifestyle segment saw increased sales in consumer electronics and HVAC, while the energy segment faced a decrease in in-vehicle sales due to price revisions but noted an uptick in energy storage systems for data centers. Operating cash flow decreased to JPY180.3 billion, mainly due to the automotive deconsolidation, and net cash stood at a negative JPY745.7 billion. Despite these challenges, there was no change to the group's full-year forecast, although segment forecasts were revised, particularly for Connect and energy, to reflect ongoing market dynamics and strategic decisions.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. The company is positioned for sustainable growth, though it faces moderate profitability challenges. Continued focus on operational efficiency and strategic reinvestment could enhance future financial performance.Income Statement
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.78
Positive
Balance Sheet
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.82
Very Positive
Cash Flow
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.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
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 |
| EBITDA | 900.79B | 845.50B | 718.31B | 731.06B | 615.19B |
| Net Income | 366.20B | 443.99B | 265.50B | 255.33B | 165.08B |
Balance Sheet | |||||
| Total Assets | 9.34T | 9.41T | 8.06T | 8.02T | 6.85T |
| Cash, Cash Equivalents and Short-Term Investments | 847.56B | 1.35T | 989.16B | 1.42T | 1.74T |
| Total Debt | 1.57T | 1.63T | 1.46T | 1.90T | 1.45T |
| 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
Neutral
1484.50
Price Trends
1524.91
Negative
1595.73
Negative
1555.27
Negative
Market Momentum
-13.20
Negative
49.95
Neutral
59.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6752, the sentiment is Neutral. The current price of 1484.5 is above the 20-day moving average (MA) of 1472.80, below the 50-day MA of 1524.91, and below the 200-day MA of 1555.27, indicating a neutral trend. The MACD of -13.20 indicates Negative momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 59.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6752.
Panasonic Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.47T | 9.45 | 7.89% | 2.69% | -0.45% | -17.53% | |
74 Outperform | $22.03T | 19.10 | 14.32% | 0.55% | -0.49% | 19.71% | |
71 Outperform | €181.07B | 8.88 | 16.78% | 1.25% | 3.02% | 60.53% | |
69 Neutral | ¥274.90B | 34.26 | 3.45% | 3.69% | -2.63% | -31.17% | |
58 Neutral | $2.34T | 97.25 | 0.81% | 3.00% | 0.51% | -76.08% | |
57 Neutral | HK$14.24B | 5.73 | -5.77% | 5.18% | 9.65% | -43.80% | |
51 Neutral | ¥463.24B | 12.79 | ― | -6.97% | ― |
* Technology Sector Average
Performance Comparison
JP:6752
Panasonic
1,484.50
363.24
32.40%
JP:6753
Sharp Corporation
718.00
-145.20
-16.82%
JP:6632
JVCKENWOOD Corporation
1,200.50
348.77
40.95%
JP:6758
Sony
3,642.00
1,040.94
40.02%
JP:6971
Kyocera
1,645.00
-146.30
-8.17%
JP:6952
Casio Computer Co
1,202.50
58.83
5.14%
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.