Panasonic (6752) AI Stock Analysis

• Market Cap: $5.78T
• Dividend Yield: 1.99%
• Average Volume (3M): 9.07M
• Price to Earnings (P/E): 28.5
• Beta (1Y): 1.27
• Revenue Growth: -6.96%
• EPS Growth: -7.22%
• Country: JP
• Employees: 207,548
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -7.33
• 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: 1.23
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 2.81
• Enterprise Value/Ebitda: 10.20
• 1Y Price Target: $1,835.41
• Price Target Upside: -26.89% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥2,521.00 ▲(0.42% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by weakening financial performance and cash flow (negative TTM free cash flow, softer revenue/margins), partially offset by strong technical momentum. Valuation is only fair given a 25.22 P/E and modest 1.68% yield, while the latest earnings call was mixed with profit improvements but sales decline, tariff uncertainty, and cash flow concerns.

Positive Factors

Manageable leverage & growing asset base

Panasonic’s low-to-moderate leverage and multi-year growth in equity and assets provide balance-sheet resilience. This structural strength supports multi-year investment in batteries, AI/energy infrastructure and restructuring, and buffers cyclical volatility while preserving strategic optionality.

Exposure to generative AI and energy storage demand

Rising sales tied to generative AI and energy storage reflect durable, secular demand from data centers and industrial customers. These markets favor scale, long product life cycles and recurring service opportunities, improving revenue visibility and potentially higher industrial margins over the medium term.

Improving operating profitability

Reported increases in adjusted operating and net profit indicate improving operational execution and cost discipline. Sustained profit recovery enhances internal funding capacity, supports R&D and capex for strategic segments, and enables reinvestment despite top-line pressures.

Negative Factors

Negative TTM free cash flow and weak cash conversion

A negative trailing twelve‑month free cash flow and softer cash conversion constrain durable financial flexibility. This limits the company’s ability to fund capital-intensive battery and energy projects internally, raises refinancing or external funding risk, and compresses margin of safety for strategic spending.

Revenue decline and softer margins

Material top-line deterioration and compressed net margins reflect structural mix shifts and deconsolidation impacts. Sustained revenue weakness erodes operating leverage, depresses returns on equity over time, and makes it harder to absorb rising input or tariff-related costs without lasting margin damage.

Tariff exposure and EV market headwinds

Persistent tariff uncertainty and weakening EV incentives pose structural demand and margin risks for the automotive/battery business. Reduced policy support and higher trade costs can shrink addressable markets, delay projects, and force less profitable contract terms, impairing long-term returns in a core growth area.

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

Balance sheet strength is a support (manageable leverage and asset/equity growth), but recent fundamentals are weaker: TTM revenue down, margins compressed, and cash generation deteriorated with negative TTM free cash flow and weaker cash conversion.

Income Statement

Revenue has been largely flat to down recently, with TTM (Trailing-Twelve-Months) showing a notable decline versus the prior annual period. Profitability is positive but modest: gross margin is stable around the low-30% range, while net margin is thin and has stepped down meaningfully in TTM (Trailing-Twelve-Months) versus recent annual results. Operating profitability also softened in TTM (Trailing-Twelve-Months), signaling some pressure from costs, mix, or pricing despite the company remaining solidly profitable.

Balance Sheet

Leverage looks manageable, with debt-to-equity in the ~0.33–0.40 range in recent periods and improving materially from earlier higher levels. Equity and assets have grown over the multi-year window, supporting balance-sheet resilience. The main weakness is returns: return on equity has trended lower in TTM (Trailing-Twelve-Months) versus prior years, suggesting profitability has not kept pace with the capital base.

Cash Flow

Cash generation is mixed. Operating cash flow remains positive, but it covers only a modest portion of net income in the latest periods, pointing to weaker cash conversion. More importantly, TTM (Trailing-Twelve-Months) free cash flow is negative (after being positive in most recent annual years), indicating higher investment needs and/or working-capital drag; this raises near-term flexibility risk despite historically positive free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.94T	8.46T	8.50T	8.38T	7.39T	6.70T
Gross Profit	2.52T	2.63T	2.49T	2.26T	2.08T	1.97T
EBITDA	695.01B	920.74B	845.50B	718.31B	652.76B	597.02B
Net Income	203.10B	366.20B	443.99B	265.50B	255.33B	165.08B
Balance Sheet
Total Assets	10.15T	9.34T	9.41T	8.06T	8.02T	6.85T
Cash, Cash Equivalents and Short-Term Investments	751.20B	847.56B	1.12T	819.50B	1.21T	1.59T
Total Debt	1.98T	1.57T	1.63T	1.46T	1.90T	1.51T
Total Liabilities	4.92T	4.47T	4.69T	4.27T	4.68T	4.08T
Stockholders Equity	5.03T	4.69T	4.54T	3.62T	3.16T	2.59T
Cash Flow
Free Cash Flow	-177.16B	23.75B	319.43B	231.39B	18.66B	272.92B
Operating Cash Flow	505.73B	796.08B	866.90B	520.74B	252.63B	504.04B
Investing Cash Flow	-747.50B	-859.96B	-591.88B	-347.12B	-799.39B	176.41B
Financing Cash Flow	-45.22B	-190.32B	-70.46B	-603.93B	62.15B	-177.52B

Panasonic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2510.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2510.5 is above the 20-day moving average (MA) of 2335.20, above the 50-day MA of 2200.27, and above the 200-day MA of 1762.47, indicating a bullish trend. The MACD of 92.56 indicates Negative momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 66.60 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
6952	74 Outperform	¥362.28B	18.87	5.53%	3.55%	-5.43%	55.21%
6632	66 Neutral	¥196.60B	10.28	13.53%	1.34%	0.48%	-1.86%
6971	64 Neutral	$3.72T	35.32	1.37%	2.29%	-0.51%	-45.68%
6752	62 Neutral	$5.78T	28.48	6.73%	1.99%	-6.96%	-7.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6758	56 Neutral	$21.22T	-94.65	14.45%	0.55%	-2.86%	5.93%
6753	49 Neutral	¥433.83B	4.03	―	―	-10.88%	―