Panasonic (6752) AI Stock Analysis

• Market Cap: $4.21T
• Dividend Yield: 2.13%
• Average Volume (3M): 9.07M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.04
• Revenue Growth: -4.14%
• EPS Growth: 16.99%
• Country: JP
• Employees: 207,548
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 30.61
• Shares Outstanding: 2,454,526,400
• 10 Day Avg. Volume: 11,181,160
• 30 Day Avg. Volume: 9,068,290
• PEG Ratio: -0.64
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 174.12
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: 5.12
• 1Y Price Target: $1,729.62
• Price Target Upside: -5.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥2,083.00 ▲(14.04% Upside)

Panasonic's stock is bolstered by strong technical indicators and a reasonable valuation, despite financial challenges. The focus on AI and energy segments is promising, but sales decline and cash flow issues need addressing.

Positive Factors

Strong Operational Performance

Panasonic's ability to increase adjusted operating profit across all segments indicates strong operational management and resilience, which is crucial for long-term stability and growth.

Growth in AI and Energy Segments

The growth in AI and energy segments positions Panasonic well in high-demand markets, supporting future revenue streams and enhancing its competitive edge.

Strong Demand for Energy Storage

Rising demand for energy storage systems, particularly for data centers, aligns with global trends towards renewable energy, providing a sustainable growth avenue.

Negative Factors

Overall Sales Decline

The significant decline in overall sales highlights challenges in maintaining revenue growth, which could impact long-term financial health if not addressed.

Negative Cash Flow

A decline in cash flow generation limits Panasonic's ability to invest in growth opportunities and manage debt, posing risks to financial flexibility.

Challenges in the EV Market

Anticipated challenges in the EV market, driven by external factors like tariffs, could hinder growth in Panasonic's automotive battery segment, affecting future revenue.

Panasonic Business Overview & Revenue Model

Company Description

Panasonic 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 Money

Panasonic generates revenue through multiple channels, primarily by selling consumer and industrial electronics. Key revenue streams include the sale of home appliances and consumer electronics like televisions and audio systems, which cater to individual consumers. Additionally, the automotive segment contributes significantly to revenue through the provision of advanced automotive batteries and infotainment systems to major automotive manufacturers. Panasonic also offers industrial solutions, including automation and energy management systems, which serve various sectors such as manufacturing and smart cities. Strategic partnerships with companies in the automotive and technology sectors enhance its market reach and product offerings, further bolstering its earnings. The company's commitment to innovation and sustainability, including investments in renewable energy technologies, also plays a crucial role in maintaining its competitive edge and driving revenue growth.

Panasonic Financial Statement Overview

Summary

Panasonic shows stable operational performance with healthy margins but faces challenges in revenue growth and cash flow generation. The balance sheet is strong with balanced leverage, yet declining return on equity and free cash flow growth pose risks.

Income Statement

Panasonic's income statement shows a stable gross profit margin of around 31% in the TTM period, indicating efficient cost management. However, the net profit margin has slightly decreased to 4.33%, reflecting some pressure on profitability. The revenue growth rate is negative at -2.66% in the TTM, suggesting a decline in sales. Despite this, the EBIT and EBITDA margins remain healthy, indicating strong operational performance.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.33, indicating a balanced capital structure with manageable leverage. The return on equity is 7.74% in the TTM, showing a slight decrease, which may point to reduced efficiency in generating returns for shareholders. The equity ratio stands at approximately 49.5%, reflecting a solid equity base relative to total assets.

Cash Flow

The cash flow statement highlights a significant decline in free cash flow growth at -94.38% in the TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is 0.30, indicating that operating cash flows are covering net income adequately. However, the free cash flow to net income ratio is low at 0.03, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.23T	8.46T	8.50T	8.38T	7.39T	6.70T
Gross Profit	2.60T	2.63T	2.49T	2.26T	2.08T	1.97T
EBITDA	902.37B	920.74B	845.50B	718.31B	731.06B	597.02B
Net Income	367.04B	366.20B	443.99B	265.50B	255.33B	165.08B
Balance Sheet
Total Assets	9.27T	9.34T	9.41T	8.06T	8.02T	6.85T
Cash, Cash Equivalents and Short-Term Investments	742.18B	847.56B	1.12T	819.50B	1.21T	1.59T
Total Debt	1.56T	1.57T	1.63T	1.46T	1.90T	1.45T
Total Liabilities	4.50T	4.47T	4.69T	4.27T	4.68T	4.08T
Stockholders Equity	4.59T	4.69T	4.54T	3.62T	3.16T	2.59T
Cash Flow
Free Cash Flow	1.33B	23.75B	319.43B	231.39B	18.66B	272.92B
Operating Cash Flow	748.45B	796.08B	866.90B	520.74B	252.63B	504.04B
Investing Cash Flow	-839.56B	-859.96B	-591.88B	-347.12B	-799.39B	176.41B
Financing Cash Flow	-202.95B	-190.32B	-70.46B	-603.93B	62.15B	-177.52B

Panasonic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1826.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6752, the sentiment is Positive. The current price of 1826.5 is above the 20-day moving average (MA) of 1776.08, above the 50-day MA of 1630.70, and above the 200-day MA of 1596.25, indicating a bullish trend. The MACD of 61.40 indicates Positive momentum. The RSI at 63.03 is Neutral, neither overbought nor oversold. The STOCH value of 50.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6752.

Panasonic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6752	―	$4.21T	11.46	7.89%	2.13%	-4.14%	16.99%
6758	―	$26.74T	23.02	14.70%	0.51%	-3.84%	18.55%
6952	―	$282.88B	50.49	2.56%	3.73%	-4.66%	-61.05%
6632	―	¥186.80B	10.15	15.38%	1.32%	0.31%	23.47%
6971	―	$2.89T	114.81	0.81%	2.32%	-1.48%	-75.67%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6753	―	¥546.99B	8.47	―	―	-9.17%	―

Panasonic Corporate Events

Panasonic’s Earnings Call: Mixed Results Amid Challenges

The recent earnings call from Panasonic Corporation painted a picture of mixed performance, reflecting both achievements and challenges. While the company celebrated notable increases in net profit and growth in key segments such as energy and lifestyle, it also faced significant hurdles. These included a decline in overall sales due to automotive deconsolidation, the impact of US tariffs, and the termination of a strategic alliance. Despite these challenges, the automotive battery business demonstrated resilience, although the overall outlook was weighed down by these obstacles.