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Panasonic Corporation (JP:6752)
:6752
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Panasonic
(6752)
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Rating:71Outperform
Price Target:
¥1,991.00
▲(14.59% Upside)
Panasonic's overall stock score reflects strong financial stability and attractive valuation, tempered by challenges in revenue growth and cash flow. Positive momentum and balanced earnings call sentiment contribute to a cautiously optimistic outlook.
Positive Factors
Strong Financial Stability
Panasonic's low debt-to-equity ratio indicates a solid financial foundation, enabling the company to withstand economic fluctuations and invest in growth opportunities.
Growth in AI and Energy Segments
Expansion in AI and energy segments positions Panasonic well in high-growth markets, potentially driving future revenue and profitability.
Lifestyle Segment Growth
Growth in the lifestyle segment reflects strong consumer demand and effective market positioning, supporting long-term revenue stability.
Negative Factors
Declining Revenue Growth
Negative revenue growth indicates challenges in maintaining market share and competitiveness, potentially impacting long-term profitability.
Negative Cash Flow
Decreased operating cash flow limits Panasonic's ability to fund operations and investments, posing risks to financial flexibility and growth.
Challenges in the EV Market
Challenges in the EV market could hinder Panasonic's automotive battery segment, affecting revenue from a key growth area.
Panasonic (6752) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$4.06T
Dividend Yield2.08%
Average Volume (3M)9.07M
Price to Earnings (P/E)12.7
Beta (1Y)1.00
Revenue Growth-6.96%
EPS Growth-7.22%
CountryJP
Employees207,548
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)N/A
Shares Outstanding2,454,526,400
10 Day Avg. Volume11,181,160
30 Day Avg. Volume9,068,290
Financial Highlights & Ratios
PEG Ratio-0.64
Price to Book (P/B)0.88
Price to Sales (P/S)0.49
P/FCF Ratio174.12
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda5.67
Forecast
1Y Price Target
$1,834.25Price Target Upside5.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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 Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there were significant achievements in segments such as AI and energy, challenges like overall sales decline, tariff impacts, and issues in the EV market were evident. The sentiment is balanced due to the offsetting nature of the highlights and lowlights.Q1-2026 Updates
Positive Updates
Increased Sales in Generative AI and Energy Segments
Sales in generative AI-related businesses in industry and energy segments increased. Additionally, sales of process automation and Connect saw growth, contributing to an overall adjusted operating profit increase.
Adjusted Operating Profit Increased
Adjusted operating profit reached JPY91.5 billion, with an increase in all segments, notably in lifestyle and energy, offsetting the deconsolidation of automotive.
Net Profit Increase
Net profit increased to JPY71.5 billion, aided by improvements in income taxes despite a deterioration in non-operating income and loss.
Strong Demand for Energy Storage Systems
Favorable sales of energy storage systems for data centers were driven by the expansion of the generative AI market, leading to increased industrial and consumer sales.
Lifestyle Segment Growth
Lifestyle segment saw increased sales due to steady sales of consumer electronics, HVAC, and electrical construction materials in Japan.
Negative Updates
Overall Sales Decline
Consolidated sales decreased YoY by 11% to JPY1,896.7 billion, mainly due to the deconsolidation of the automotive segment.
Impact of US Tariffs
The impact of US tariffs was negative JPY5.8 billion, affecting energy and Connect segments, with the full impact yet to be factored into forecasts due to ongoing assessment.
Negative Cash Flow
Operating cash flow decreased YoY to JPY180.3 billion, mainly due to the automotive deconsolidation, resulting in a negative net cash position of JPY745.7 billion.
Challenges in the EV Market
A slowdown in the EV market is anticipated in North America due to US tariff policies and the termination of the IRA 30D tax credit, impacting the automotive battery business.
Termination of Projector Business Sale
The strategic capital alliance agreement for the projector business in Connect was terminated, leading to a revision of the Connect segment forecast.
Company Guidance
During the FY2026 Q1 earnings call, Akira Waniko provided detailed financial guidance, highlighting several key metrics. Sales decreased year-over-year (YoY) by 11% to JPY1,896.7 billion, primarily due to the deconsolidation of the automotive segment, although sales excluding automotive saw a 2% YoY increase. Adjusted operating profit rose to JPY91.5 billion, while net profit increased to JPY71.5 billion, driven by improvements in income taxes and offsetting US tariffs. Operating cash flow for Q1 was JPY180.3 billion, experiencing a YoY decline due to the automotive changes. The full-year forecast for FY2026 remains unchanged, with no impact from US tariffs factored in yet, as the situation is still under assessment. Segment-specific forecasts were revised, particularly for Connect and energy, with significant focus on the growing demand for generative AI applications and energy storage systems. In terms of operational impacts, the group is planning a personnel optimization of 10,000 employees to improve organizational efficiency, reflecting ongoing reforms and strategic adjustments across the company.Panasonic Financial Statement Overview
Summary
Panasonic shows strong financial stability with a solid balance sheet and efficient cost management. However, declining revenue growth and significant cash flow challenges pose risks to future profitability and liquidity.Income Statement
Panasonic's income statement shows a stable gross profit margin around 31% in TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 3.98% in TTM, reflecting some pressure on profitability. Revenue growth has been negative recently, with a decline of 2.5% in TTM, which is a concern. The EBIT and EBITDA margins have also slightly decreased, suggesting challenges in maintaining operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.34 in TTM, indicating low leverage and financial stability. The return on equity is moderate at 6.73%, showing decent profitability relative to shareholder equity. The equity ratio is healthy, suggesting a solid capital structure.80
Positive
Cash Flow
Cash flow analysis reveals a significant decline in free cash flow, with a negative growth rate of -6548.8% in TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.22, suggesting limited cash conversion efficiency. The negative free cash flow to net income ratio further highlights cash flow challenges.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.03T | 8.46T | 8.50T | 8.38T | 7.39T | 6.70T |
| Gross Profit | 2.54T | 2.63T | 2.49T | 2.26T | 2.08T | 1.97T |
| EBITDA | 815.51B | 920.74B | 845.50B | 718.31B | 652.76B | 597.02B |
| Net Income | 319.70B | 366.20B | 443.99B | 265.50B | 255.33B | 165.08B |
Balance Sheet | ||||||
| Total Assets | 9.55T | 9.34T | 9.41T | 8.06T | 8.02T | 6.85T |
| Cash, Cash Equivalents and Short-Term Investments | 710.61B | 847.56B | 1.12T | 819.50B | 1.21T | 1.59T |
| Total Debt | 1.61T | 1.57T | 1.63T | 1.46T | 1.90T | 1.51T |
| Total Liabilities | 4.56T | 4.47T | 4.69T | 4.27T | 4.68T | 4.08T |
| Stockholders Equity | 4.81T | 4.69T | 4.54T | 3.62T | 3.16T | 2.59T |
Cash Flow | ||||||
| Free Cash Flow | -86.03B | 23.75B | 319.43B | 231.39B | 18.66B | 272.92B |
| Operating Cash Flow | 636.92B | 796.08B | 866.90B | 520.74B | 252.63B | 504.04B |
| Investing Cash Flow | -763.27B | -859.96B | -591.88B | -347.12B | -799.39B | 176.41B |
| Financing Cash Flow | -120.91B | -190.32B | -70.46B | -603.93B | 62.15B | -177.52B |
Panasonic Technical Analysis
Neutral
1737.50
Price Trends
1718.70
Positive
1599.76
Positive
1617.79
Positive
Market Momentum
0.16
Positive
48.28
Neutral
24.89
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 1737.5 is below the 20-day moving average (MA) of 1773.25, above the 50-day MA of 1718.70, and above the 200-day MA of 1617.79, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 48.28 is Neutral, neither overbought nor oversold. The STOCH value of 24.89 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $26.24T | 22.59 | 14.45% | 0.48% | -2.86% | 5.93% | |
71 Outperform | $4.06T | 12.70 | 6.73% | 2.08% | -6.96% | -7.22% | |
69 Neutral | ¥173.83B | 10.24 | 13.53% | 1.28% | 0.48% | -1.86% | |
66 Neutral | $277.75B | 49.58 | 5.53% | 3.66% | -5.43% | 55.21% | |
63 Neutral | $2.85T | 64.97 | 1.37% | 2.38% | -0.51% | -45.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥520.89B | 8.89 | ― | ― | -10.88% | ― |
* Technology Sector Average
JP:6752
Panasonic
1,737.50
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JVCKENWOOD Corporation
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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.