Sharp Corporation (6753) AI Stock Analysis

• Market Cap: ¥455.58B
• Dividend Yield: N/A
• Average Volume (3M): 3.16M
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.91
• Revenue Growth: -10.88%
• EPS Growth: N/A
• Country: JP
• Employees: 43,445
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): N/A
• Shares Outstanding: 650,411,600
• 10 Day Avg. Volume: 2,451,900
• 30 Day Avg. Volume: 3,164,026
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥737.00 ▼(-14.30% 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

Margin strength / ROE

A healthy gross margin (20.09%) alongside a very strong ROE (42.59%) indicates the company can price and manage costs effectively and extract high returns from equity. These durable profitability metrics support reinvestment, product development, and buffer against cyclical revenue swings.

Diversified revenue streams

Sharp's exposure across consumer appliances, displays/visual solutions, business IT services, and component supply reduces dependence on any single end market. This structural diversification smooths cash flow volatility, allows cross-selling, and balances higher-margin services against cyclical hardware sales over months.

B2B solutions and service contracts

Focus on integrated display solutions and maintenance/service contracts builds recurring, contractually-backed revenue from institutional customers. These long-term B2B relationships typically deliver steadier margins and lower churn than retail hardware, strengthening mid-term revenue visibility and customer retention.

Negative Factors

High leverage

A debt-to-equity ratio near 2.8 signifies heavy reliance on borrowed funds, heightening interest and refinancing risk. Combined with modest net margins, high leverage reduces financial flexibility for capex or strategic investments and increases vulnerability to rising rates or demand slowdowns over the coming months.

Weak cash generation

Consistent negative operating cash flow and deteriorating free cash flow growth highlight a structural gap between reported profits and cash conversion. Poor cash generation limits the company’s ability to service debt, invest in factories or R&D, and forces reliance on external financing, straining resilience over months.

Declining revenue & low net margin

Ongoing revenue declines coupled with a slim net margin (~3%) point to structural competitive pressure in consumer electronics and components. Lower top-line momentum limits scale benefits and makes margins sensitive to cost swings, constraining ability to absorb raw material or procurement cost increases over the medium term.

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 strengths, such as a solid gross profit margin and return on equity, the company faces challenges with declining revenues, high leverage, and cash flow issues. Addressing these areas could enhance financial stability and growth prospects.

Income Statement

Sharp Corporation's income statement shows a mixed performance. The TTM gross profit margin is healthy at 20.09%, indicating efficient cost management. However, the net profit margin is relatively low at 3.08%, and there is a concerning revenue decline of 4.12% in the TTM period. The EBIT and EBITDA margins are modest, suggesting room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio of 2.82 in the TTM period, indicating potential financial risk. The return on equity is strong at 42.59%, showing effective use of equity to generate profits. However, the equity ratio is low, suggesting a reliance on debt financing.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow in the TTM period. The free cash flow to net income ratio is high at 2.95, indicating cash flow issues despite reported profits. The negative free cash flow growth rate of 10.84% highlights potential liquidity concerns.

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: Positive
• RSI: Neutral
• STOCH: Neutral

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 757.24, above the 50-day MA of 768.57, and above the 200-day MA of 783.87, indicating a bearish trend. The MACD of -24.13 indicates Positive momentum. The RSI at 34.40 is Neutral, neither overbought nor oversold. The STOCH value of 20.38 is Neutral, 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
6952	74 Outperform	¥343.60B	17.90	5.53%	3.55%	-5.43%	55.21%
6971	73 Outperform	¥3.25T	74.19	1.37%	2.29%	-0.51%	-45.68%
6752	73 Outperform	¥4.94T	15.46	6.73%	1.99%	-6.96%	-7.22%
6758	73 Outperform	¥21.10T	17.74	14.45%	0.55%	-2.86%	5.93%
6632	68 Neutral	¥188.68B	11.11	13.53%	1.34%	0.48%	-1.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6753	60 Neutral	¥455.58B	7.77	―	―	-10.88%	―

Sharp Corporation Corporate Events

Sharp Wins Patent Infringement Appeal Over Smartphone Models in Japan

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

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

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.

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.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen896.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

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.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen896.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

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.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen896.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.