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Panasonic Corporation (JP:6752)
:6752

Panasonic (6752) AI Stock Analysis

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JP

Panasonic

(OTC:6752)

Rating:72Outperform
Price Target:
¥1,785.00
▲(13.88%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
Analyst Recommendation
Analyst raises estimates and price target, upgrading the stock to a BUY recommendation.
Earnings
Q4 operating profit beat expectations with a healthy margin, driven by the 'Connect' segment.
Restructuring
Panasonic's restructuring efforts show promise with a disciplined approach to cost management and growth in the hyperscaler battery business.
Negative Factors
Company History
The company's inconsistent past and overly diversified portfolio warrant caution.
Forecasts
Forecasts for FY3/26 fell well short of consensus expectations.
US Tariffs
The impact of US tariffs not yet factored in raises doubts if current forecasts are conservative.

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

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: -7.77%|
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, a strong balance sheet, 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
78
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
82
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
74
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.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
8.46T8.50T8.38T7.39T6.70T
Gross Profit
2.63T2.34T2.26T2.08T1.97T
EBIT
467.22B360.96B288.57B357.53B258.60B
EBITDA
900.79B845.50B718.31B731.06B615.19B
Net Income Common Stockholders
366.20B443.99B265.50B255.33B165.08B
Balance SheetCash, Cash Equivalents and Short-Term Investments
847.56B1.35T989.16B1.42T1.74T
Total Assets
9.34T9.41T8.06T8.02T6.85T
Total Debt
1.57T1.63T1.46T1.90T1.45T
Net Debt
720.68B506.65B637.61B691.41B-145.80B
Total Liabilities
4.47T4.69T4.27T4.68T4.08T
Stockholders Equity
4.69T4.54T3.62T3.16T2.59T
Cash FlowFree Cash Flow
23.75B219.70B150.86B-45.15B207.61B
Operating Cash Flow
796.08B866.90B520.74B252.63B504.04B
Investing Cash Flow
-859.93B-578.84B-344.03B-796.15B176.60B
Financing Cash Flow
-190.35B-83.49B-607.01B58.91B-177.70B

Panasonic Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1567.50
Price Trends
50DMA
1612.44
Negative
100DMA
1660.59
Negative
200DMA
1497.82
Positive
Market Momentum
MACD
-3.90
Positive
RSI
43.10
Neutral
STOCH
40.41
Neutral
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 1567.5 is below the 20-day moving average (MA) of 1620.85, below the 50-day MA of 1612.44, and above the 200-day MA of 1497.82, indicating a neutral trend. The MACD of -3.90 indicates Positive momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 40.41 is Neutral, 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
72
Outperform
$3.66T9.997.85%2.89%-0.45%-17.53%
62
Neutral
$11.80B10.37-7.29%2.91%7.39%-7.96%
$1.63B31.083.45%4.16%
$16.63B92.870.71%3.18%
$161.67B22.6714.32%0.47%
DEJVC
€1.05B8.2516.78%1.36%
53
Neutral
¥450.71B12.33
-6.97%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6752
Panasonic
1,567.50
245.65
18.58%
CSIOF
Casio Computer Co
7.18
-0.04
-0.55%
KYOCF
Kyocera
10.42
-0.87
-7.71%
SNEJF
Sony
28.06
11.04
64.86%
DE:JVC
JVCKENWOOD Corporation
6.82
1.48
27.72%
JP:6753
Sharp Corporation
685.40
-293.70
-30.00%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.