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Sharp Corporation (JP:6753)
:6753
Japanese Market

Sharp Corporation (6753) AI Stock Analysis

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JP:6753

Sharp Corporation

(6753)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
¥662.00
▼(-23.02% Downside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by weak cash generation and high leverage despite improved profitability, alongside bearish technical trends (below key moving averages with negative MACD). A very low P/E provides a meaningful valuation offset but does not fully compensate for cash-flow and balance-sheet risk.
Positive Factors
Improved profitability and margins
Sharp's move from multi-year losses to positive earnings and improved gross and operating margins indicates structural operating improvement. Sustained margin expansion provides more durable earnings power, improves ability to fund operations and service obligations, and supports longer-term recovery even if revenue growth is slow.
Strong recent return on equity
A strong ROE in recent periods shows management is extracting meaningful profit from a relatively modest equity base, signaling operational efficiency. Over a multi-month horizon this suggests the company can generate shareholder returns if margins and earnings persist, aiding capital allocation decisions.
Diversified business model
Sharp's exposure across consumer appliances, display solutions, business services, and component supply provides revenue diversification and multiple paths to margin improvement (higher-margin services and B2B solutions). This structural mix reduces reliance on any single cyclical market and supports resilience over 2–6 months.
Negative Factors
Weak cash generation
Negative trailing-twelve-month operating and free cash flow is a durable red flag: earnings gains are less convincing until converted to cash. Persistent cash outflows heighten funding needs, increase reliance on external financing, and constrain reinvestment, dividend capacity, and ability to withstand industry downturns.
Elevated leverage
High debt-to-equity materially reduces financial flexibility and amplifies downside risk. Elevated leverage increases interest and refinancing pressure, limits strategic investments, and leaves the company sensitive to cash-flow swings and cyclical demand, making sustained recovery more vulnerable over months ahead.
Declining revenue trend
A durable top-line decline undermines margin sustainability and scale economics; lower volumes reduce capacity utilization and bargaining power. If revenue contraction persists, margin improvements and ROE gains may prove fleeting, placing strain on profitability and cash conversion in the medium term.

Sharp Corporation (6753) vs. iShares MSCI Japan ETF (EWJ)

Sharp Corporation Business Overview & Revenue Model

Company DescriptionSharp 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 MoneySharp 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
Profitability has rebounded (positive earnings and improved margins in TTM), but the overall picture is constrained by negative TTM operating/free cash flow, elevated leverage (high debt-to-equity), and declining revenue, which increases funding and sustainability risk.
Income Statement
62
Positive
Profitability has improved meaningfully versus the prior two fiscal years: the company moved from sizable losses in FY2023–FY2024 to positive earnings in FY2025 and stronger profitability in TTM (Trailing-Twelve-Months) (net margin ~2.9% and EBIT margin ~4.1%). Gross margin also improved in TTM (Trailing-Twelve-Months) (~21.3%). The key weakness is top-line pressure—revenue growth is negative in both FY2025 and TTM (Trailing-Twelve-Months)—which raises questions about sustainability if volumes/pricing remain soft.
Balance Sheet
43
Neutral
Leverage is the main constraint. Debt-to-equity remains elevated (about 3.4x in FY2025 and ~2.3x in TTM (Trailing-Twelve-Months)), indicating a balance sheet that is still debt-heavy versus equity. While return on equity is strong in the most recent periods (helped by the earnings rebound), the combination of high leverage and a relatively modest equity base reduces financial flexibility and increases sensitivity to downturns.
Cash Flow
34
Negative
Cash generation is currently weak: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative, following another negative free-cash-flow year in FY2025. This is a notable deterioration from FY2024, when operating and free cash flow were solidly positive. The swing to cash outflows is the primary risk factor, as it can increase reliance on funding and makes the earnings recovery less convincing until cash flow stabilizes.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.92T2.16T2.32T2.55T2.50T2.43T
Gross Profit417.25B405.71B347.89B330.83B431.72B421.32B
EBITDA111.99B112.39B-60.55B-139.95B166.65B143.90B
Net Income107.20B36.09B-149.98B-260.84B73.99B53.26B
Balance Sheet
Total Assets1.44T1.45T1.59T1.77T1.96T1.93T
Cash, Cash Equivalents and Short-Term Investments241.79B279.31B227.13B262.06B287.36B341.92B
Total Debt448.97B521.35B589.86B725.59B626.57B724.92B
Total Liabilities1.17T1.29T1.43T1.55T1.49T1.56T
Stockholders Equity258.02B154.65B143.18B208.74B454.57B350.65B
Cash Flow
Free Cash Flow-51.21B-40.61B71.92B-42.27B12.08B153.26B
Operating Cash Flow-29.53B-1.59B124.50B14.75B75.16B204.64B
Investing Cash Flow157.18B103.74B10.88B-40.97B-31.45B-14.11B
Financing Cash Flow-133.22B-74.77B-149.67B-18.48B-124.29B-76.72B

Sharp Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price860.00
Price Trends
50DMA
735.79
Negative
100DMA
779.99
Negative
200DMA
770.63
Negative
Market Momentum
MACD
-29.17
Positive
RSI
32.08
Neutral
STOCH
13.21
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 691.16, above the 50-day MA of 735.79, and above the 200-day MA of 770.63, indicating a bearish trend. The MACD of -29.17 indicates Positive momentum. The RSI at 32.08 is Neutral, neither overbought nor oversold. The STOCH value of 13.21 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥369.57B19.255.53%3.55%-5.43%55.21%
66
Neutral
¥191.70B10.0313.53%1.34%0.48%-1.86%
64
Neutral
¥3.82T36.291.37%2.29%-0.51%-45.68%
62
Neutral
¥5.74T28.276.73%1.99%-6.96%-7.22%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
¥20.20T-90.4514.45%0.55%-2.86%5.93%
49
Neutral
¥400.72B3.83-10.88%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6753
Sharp Corporation
632.00
-358.00
-36.16%
JP:6952
Casio Computer Co
1,623.50
402.47
32.96%
JP:6971
Kyocera
2,779.50
1,123.80
67.87%
JP:6752
Panasonic
2,541.00
690.47
37.31%
JP:6758
Sony
3,292.00
-328.09
-9.06%
JP:6632
JVCKENWOOD Corporation
1,272.50
-107.82
-7.81%

Sharp Corporation Corporate Events

Sharp to Absorb Camera-Module Subsidiary as It Refocuses on Core Brand Business
Feb 10, 2026

Sharp Corporation will absorb its wholly owned subsidiary Sharp Sensing Technology Corporation (SSTC) through an absorption-type merger effective April 1, 2026, with Sharp as the surviving entity and no new shares or cash consideration issued. SSTC, which had handled the group’s camera module and sensor module business, effectively wound down its core operations after transferring its camera module business to a Hon Hai subsidiary, prompting Sharp to streamline its structure as it pivots toward brand-focused operations under the SHARP name.

The merger will be executed as a simplified and short-form transaction under Japan’s Companies Act, allowing it to proceed without shareholder meetings at either company. By dissolving SSTC and integrating its remaining functions, Sharp is rationalizing its corporate structure following the business transfer, which may improve operational efficiency and sharpen its strategic focus on higher-value brand businesses within its electronics portfolio.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen713.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp Sets Terms for Sixth Employee Stock Acquisition Rights Program
Feb 10, 2026

Sharp Corporation has finalized the terms of its Sixth Stock Acquisition Rights program, a stock-based compensation scheme for employees of the parent company and its wholly owned subsidiaries. The program, originally approved at the June 2025 shareholders’ meeting, will allocate 10,915 stock acquisition rights in total to 247 employees, with each right corresponding to 100 shares of common stock.

The allotment date is set for March 10, 2026, and no cash payment is required from recipients for the grant of these rights, making it a pure equity incentive. The exercise value will be set at either ¥748.3 or the Tokyo Stock Exchange closing price on the allotment date, whichever is higher, and includes adjustment mechanisms for future stock splits, consolidations, or below-market share issuances, aligning employee incentives with shareholder interests over the long term.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen713.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp Swings Back to Profit Despite Sliding Sales and Tight Dividend Stance
Feb 10, 2026

Sharp Corporation reported a sharp turnaround in earnings for the nine months to December 31, 2025, posting profit attributable to owners of the parent of ¥67.5 billion versus a loss a year earlier, despite a 14.5% drop in net sales to ¥1.42 trillion. Operating profit more than doubled to ¥41.0 billion, ordinary profit rose strongly, and equity improved, lifting the equity-to-asset ratio to 17.8% from 10.5% at the previous fiscal year-end.

The company maintained a zero interim dividend and has yet to determine a year-end payout, signaling a continued focus on balance sheet reinforcement despite the earnings recovery. For the full year to March 31, 2026, Sharp now forecasts a 13.4% decline in sales to ¥1.87 trillion but expects operating profit to rise 64.6% to ¥45.0 billion and profit attributable to owners of the parent to climb 46.8% to ¥53.0 billion, reflecting restructuring progress and a leaner business portfolio after the exclusion of three subsidiaries from consolidation.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen713.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp to Book ¥14.9 Billion Restructuring Charge but Keeps Profit Outlook Intact
Feb 10, 2026

Sharp Corporation expects to book ¥14.9 billion in business restructuring expenses over the current and next fiscal years, stemming from changes to its structural reform plans under its medium-term management strategy. The charges are primarily tied to halting production at the Kameyama No. 2 Plant after a planned transfer to Hon Hai Precision Industry collapsed, discontinuing operations at Sakai Display Products Corporation following a failed technology transfer deal with an Indian partner, and shutting down Sharp Yonago Corporation.

Despite these extraordinary losses, Sharp reports that net sales and operating profit are progressing in line with expectations, and non-operating income and expenses are improving versus prior forecasts. As a result, the company still expects to achieve its previously projected profit attributable to owners of the parent, suggesting that the restructuring, while costly, is aimed at streamlining unprofitable operations without derailing overall earnings targets.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen713.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp Doubles Operating Profit Despite Sales Decline in Q3 FY2025
Feb 10, 2026

Sharp Corporation reported that in the cumulative third quarter of fiscal 2025 its Brand Business delivered double-digit operating profit growth despite lower sales driven by weaker demand and intensifying competition. The Display Device segment reduced its operating loss even as revenue declined, highlighting ongoing efforts to stabilize performance in that unit.

Overall, consolidated net sales fell year on year, but operating profit more than doubled to 40.9 billion yen from 20.3 billion yen, with ordinary and bottom-line profit also improving significantly. Management said net sales and operating profit are tracking in line with plan, and while additional restructuring costs have been incorporated into the full-year outlook, improved non-operating income is expected to support achievement of the previously guided full-year profit.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen713.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp Wins Patent Infringement Appeal Over Smartphone Models in Japan
Jan 26, 2026

Sharp Corporation has prevailed in an intellectual property lawsuit after the Intellectual Property High Court dismissed an appeal by DAP realize Co., Ltd., which had sought damages over alleged patent infringement by 16 Sharp-manufactured smartphone models. The court’s decision upholds an earlier Tokyo District Court ruling that the asserted patent was invalid, confirms that appeal costs will be borne by the appellant, and leaves Sharp’s consolidated financial results unaffected, signaling legal clarity around the disputed products and removing a potential financial and reputational overhang for the company.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen803.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp to Record ¥29.3 Billion Special Dividend from Subsidiary as Non-Operating Income
Dec 22, 2025

Sharp Corporation announced that its wholly owned subsidiary, Sharp Sensing Technology Corporation, will pay a special dividend of 29.345 billion yen, effective December 23, 2025. The parent company plans to book this dividend as non-operating income in its non-consolidated results for the fiscal year ending March 31, 2026, while confirming that the transaction will not affect its consolidated financial results since the cash distribution originates from a consolidated subsidiary and is therefore eliminated at the group level.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen835.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp to Absorb Display Subsidiary to Bolster Global B2B Solutions Business
Dec 19, 2025

Sharp Corporation has approved an absorption-type merger of its wholly-owned subsidiary Sharp Display Solutions, Ltd. (SDS), effective April 1, 2026, as part of a broader effort to integrate and strengthen its B2B display and Smart Workplace operations. By folding SDS, which develops and sells LCD and LED displays, projectors, and digital cinema solutions, directly into the parent company, Sharp aims to streamline group structure, eliminate SDS’s negative net worth through a planned waiver of intra-group claims, and deliver higher value-added display solutions while enhancing global competitiveness, with no new shares or cash consideration to be issued due to the wholly-owned status of the subsidiary.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen835.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

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.Date of analysis: Feb 18, 2026