Sharp Corporation (6753) AI Stock Analysis

• Market Cap: ¥496.55B
• Dividend Yield: N/A
• Average Volume (3M): 3.18M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.95
• Revenue Growth: -10.88%
• EPS Growth: N/A
• Country: JP
• Employees: 43,445
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 41.95
• Shares Outstanding: 650,406,600
• 10 Day Avg. Volume: 2,472,320
• 30 Day Avg. Volume: 3,175,420
• PEG Ratio: -0.14
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -15.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 70.6
• Revenue Forecast (FY): ¥1.94T

• Rating: 60 Neutral
• Price Target: ¥835.00 ▼(-2.91% Downside)

Sharp Corporation's overall stock score reflects a combination of mixed financial performance and technical indicators, offset by a relatively attractive valuation. The company's high leverage and cash flow issues are significant concerns, while the stock's undervaluation presents potential upside if financial challenges are addressed.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management, which can support profitability and competitive pricing strategies over time.

Return on Equity

High return on equity suggests effective use of shareholder funds to generate profits, which is a positive indicator of management efficiency and business health.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single market, enhancing resilience against sector-specific downturns and supporting long-term growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase vulnerability to interest rate fluctuations, impacting long-term financial stability.

Negative Cash Flow

Negative cash flow suggests liquidity issues, which can hinder the company's ability to invest in growth opportunities and meet financial obligations.

Declining Revenue

Declining revenue can signal weakening demand or competitive pressures, challenging the company's ability to maintain market position and profitability.

Sharp Corporation Business Overview & Revenue Model

Company Description

Sharp Corporation (6753) is a Japanese multinational corporation primarily engaged in the development and manufacturing of electronic products and solutions. The company operates across several sectors, including consumer electronics, business solutions, and health and wellness technologies. Sharp is well-known for its cutting-edge display technologies, including LCD and OLED panels, as well as appliances like microwaves, air purifiers, and kitchen electronics. Additionally, Sharp is involved in providing advanced technologies for solar energy and communication devices.

How the Company Makes Money

Sharp Corporation generates revenue through multiple key streams. Its primary revenue source comes from the sale of consumer electronics, including televisions, smartphones, and home appliances, which are marketed globally. The company also earns significant income from its business solutions division, which includes display technologies and professional equipment for commercial use. Sharp collaborates with various technology partners and enterprises to develop integrated solutions, enhancing its market reach and generating additional revenue. Furthermore, the company invests in research and development to innovate and enhance its product offerings, ensuring competitiveness and driving sales in the rapidly evolving tech landscape.

Sharp Corporation Financial Statement Overview

Summary

Sharp Corporation's financial statements present a mixed picture. While profitability metrics show some stability, declining revenues and high leverage are concerning. Cash flow challenges further complicate the financial outlook, indicating potential liquidity issues. The company needs to address operational efficiencies and manage its debt levels to improve financial health.

Income Statement

The income statement shows mixed results. The TTM gross profit margin is stable at 18.78%, indicating decent profitability from core operations. However, the net profit margin is low at 1.67%, suggesting challenges in controlling costs or other expenses. Revenue has declined by 2.75% TTM, indicating potential market or operational challenges. The EBIT and EBITDA margins are modest, reflecting limited operational efficiency improvements.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 3.37, which could pose financial risks if not managed properly. The return on equity is relatively strong at 24.10%, indicating effective use of equity to generate profits. However, the equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

The cash flow statement indicates negative operating and free cash flows, which could strain liquidity. The free cash flow to net income ratio is high at 17.85, suggesting that cash flow generation is not aligned with reported profits. The operating cash flow to net income ratio is negative, highlighting potential issues in converting profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.01T	2.16T	2.32T	2.55T	2.50T	2.43T
Gross Profit	428.41B	405.71B	347.89B	330.83B	431.72B	421.32B
EBITDA	123.42B	112.39B	-60.55B	-139.95B	166.65B	143.90B
Net Income	58.62B	36.09B	-149.98B	-260.84B	73.99B	53.26B
Balance Sheet
Total Assets	1.42T	1.45T	1.59T	1.77T	1.96T	1.93T
Cash, Cash Equivalents and Short-Term Investments	242.64B	279.31B	227.13B	262.06B	287.36B	341.92B
Total Debt	486.34B	521.35B	589.86B	725.59B	626.57B	724.92B
Total Liabilities	1.20T	1.29T	1.43T	1.55T	1.49T	1.56T
Stockholders Equity	209.09B	154.65B	143.18B	208.74B	454.57B	350.65B
Cash Flow
Free Cash Flow	-32.01B	-40.61B	71.92B	-42.27B	12.08B	153.26B
Operating Cash Flow	-11.34B	-1.59B	124.50B	14.75B	75.16B	204.64B
Investing Cash Flow	145.70B	103.74B	10.88B	-40.97B	-31.45B	-14.11B
Financing Cash Flow	-122.69B	-74.77B	-149.67B	-18.48B	-124.29B	-76.72B

Sharp Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 860.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6753, the sentiment is Negative. The current price of 860 is above the 20-day moving average (MA) of 779.15, above the 50-day MA of 817.33, and above the 200-day MA of 808.49, indicating a bearish trend. The MACD of -12.89 indicates Negative momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 18.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6753.

Sharp Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6971	73 Outperform	¥3.05T	69.52	1.37%	2.31%	-0.51%	-45.68%
6752	73 Outperform	$4.53T	14.19	6.73%	2.06%	-6.96%	-7.22%
6758	73 Outperform	¥24.40T	20.51	14.45%	0.56%	-2.86%	5.93%
6632	68 Neutral	¥175.71B	10.35	13.53%	1.37%	0.48%	-1.86%
6952	66 Neutral	¥284.36B	22.71	5.53%	3.61%	-5.43%	55.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6753	60 Neutral	¥496.55B	8.47	―	―	-10.88%	―

Sharp Corporation Corporate Events

Sharp Corporation Reports Increased Operating Profit Amidst Sales Decline

Sharp Corporation reported a significant improvement in operating profit for the first half of fiscal 2025, despite a decline in sales due to increased competition and foreign exchange fluctuations. The company’s strategic Asset Light Initiatives, including halting production at SDP, contributed to narrowing the operating loss in its Device Business. As a result, Sharp has revised its full-year financial forecast upward, indicating a positive outlook for the remainder of the fiscal year.

Sharp Corporation Revises Financial Forecast Upwards for FY 2026

Sharp Corporation has revised its consolidated financial forecast for the fiscal year ending March 31, 2026, with an upward revision in operating profit, ordinary profit, and profit attributable to owners of the parent. This adjustment is largely due to the strong performance of its PC business in the second quarter, along with positive contributions from entities accounted for using the equity method. The revised forecast suggests improved profitability, indicating a positive outlook for the company’s financial health and potentially enhancing its market position.

Sharp Corporation Reports Mixed Financial Results Amid Market Challenges

Sharp Corporation reported a decline in net sales for the six months ending September 30, 2025, with a 13.3% decrease compared to the previous year. Despite this, the company saw a significant increase in profit attributable to owners, rising by 98.1%. The financial results indicate a challenging market environment but also highlight Sharp’s ability to improve profitability. The company has revised its earnings forecast for the fiscal year ending March 31, 2026, reflecting a cautious yet optimistic outlook.