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Sharp Corporation (JP:6753)
:6753
Japanese Market

Sharp Corporation (6753) AI Stock Analysis

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JP

Sharp Corporation

(6753)

Rating:53Neutral
Price Target:
¥728.00
▲(4.76%Upside)
Sharp Corporation's overall stock score reflects significant financial challenges, particularly in cash flow management and high leverage, despite some recovery in profitability. Technical indicators also show bearish momentum, overshadowing the reasonable valuation based on the P/E ratio. The lack of dividend yield further limits appeal to income investors.

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

Sharp Corporation Business Overview & Revenue Model

Company DescriptionSharp Corporation is a multinational electronics manufacturer headquartered in Sakai-ku, Sakai, Japan. The company is renowned for its diverse array of products, which include consumer electronics, home appliances, and business solutions. It operates across several sectors, including innovative display technology, health and environmental solutions, and advanced communication systems. Sharp's core products encompass televisions, audio-visual equipment, kitchen appliances, air purification systems, and solar panels.
How the Company Makes MoneySharp Corporation generates revenue through multiple streams, primarily driven by its consumer electronics and business solutions divisions. The company earns substantial income from the sale of its display products, such as LCD panels and televisions, both directly to consumers and through partnerships with other manufacturers. Additionally, Sharp's home appliances, including refrigerators, microwaves, and air conditioners, contribute significantly to its earnings. In the business solutions sector, Sharp provides office equipment like multifunction printers and interactive displays, generating revenue from both product sales and service contracts. The company also benefits from licensing its technology, particularly in the display technology sector. Strategic partnerships and collaborations with other technology firms further bolster its revenue streams, allowing Sharp to expand its market reach and innovate its product offerings.

Sharp Corporation Financial Statement Overview

Summary
Sharp Corporation's financial performance is marked by recovery in profitability but significant challenges in revenue stability and cash flow management. The high leverage and negative free cash flows raise concerns about financial flexibility, despite improvements in margins and ROE.
Income Statement
55
Neutral
Sharp Corporation has shown a volatile revenue trend with a decline in recent years. The gross profit margin for 2025 was approximately 18.78%, which is stable compared to the previous year but lower than earlier periods. Net profit margin improved to around 1.67% in 2025 from significant losses previously, signaling a recovery in profitability. The EBIT margin was 1.27% and EBITDA margin 5.20%, indicating moderate operational efficiency. Despite recent improvements, the overall trajectory indicates challenges in maintaining stable revenue growth and profitability.
Balance Sheet
60
Neutral
The debt-to-equity ratio for 2025 is approximately 3.37, indicating high leverage, which poses a risk if income does not improve consistently. The return on equity (ROE) for 2025 was around 23.34%, reflecting improved profitability on shareholder investments. The equity ratio stood at 10.64%, suggesting a relatively low proportion of equity financing. The balance sheet reflects a company managing large debt levels but showing some profitability improvement.
Cash Flow
45
Neutral
Sharp's cash flow statement reveals challenges, with a negative free cash flow of -¥28.39 billion in 2025, down from positive figures in prior years. The operating cash flow to net income ratio was negative, indicating difficulties converting earnings into cash. The company faces cash flow management issues, impacting its ability to reinvest and service debt efficiently.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue2.16T2.32T2.55T2.50T2.43T
Gross Profit405.71B401.22B330.83B431.72B421.32B
EBITDA112.39B-65.57B-143.38B168.71B145.57B
Net Income36.09B-149.98B-260.84B73.99B53.26B
Balance Sheet
Total Assets1.45T1.59T1.77T1.96T1.93T
Cash, Cash Equivalents and Short-Term Investments279.31B227.13B262.06B287.36B341.92B
Total Debt521.35B589.86B725.59B626.57B724.92B
Total Liabilities1.29T1.43T1.55T1.49T1.56T
Stockholders Equity154.65B143.18B208.74B454.57B350.65B
Cash Flow
Free Cash Flow-28.39B71.92B-42.27B12.08B153.26B
Operating Cash Flow-1.59B124.50B14.75B75.16B204.64B
Investing Cash Flow103.74B10.88B-40.97B-31.45B-14.11B
Financing Cash Flow-74.77B-149.67B-18.48B-124.29B-76.72B

Sharp Corporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price694.90
Price Trends
50DMA
754.93
Negative
100DMA
846.31
Negative
200DMA
900.36
Negative
Market Momentum
MACD
-20.55
Negative
RSI
45.72
Neutral
STOCH
81.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6753, the sentiment is Neutral. The current price of 694.9 is above the 20-day moving average (MA) of 682.13, below the 50-day MA of 754.93, and below the 200-day MA of 900.36, indicating a neutral trend. The MACD of -20.55 indicates Negative momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 81.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6753.

Sharp Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$23.16T20.0814.32%0.53%-0.49%19.71%
73
Outperform
$248.13B30.923.45%4.13%-2.63%-31.17%
72
Outperform
$3.57T9.767.85%2.61%-0.45%-17.53%
71
Outperform
¥173.90B8.5316.78%1.73%3.02%60.53%
61
Neutral
¥2.43T100.870.71%2.90%0.51%-76.08%
53
Neutral
¥451.16B12.50
-6.97%
49
Neutral
C$2.90B2.14-80.91%2.95%6.62%-18.96%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6753
Sharp Corporation
694.90
-247.10
-26.23%
JP:6632
JVCKENWOOD Corporation
1,153.00
262.64
29.50%
JP:6752
Panasonic
1,530.50
247.12
19.26%
JP:6758
Sony
3,790.00
1,056.75
38.66%
JP:6971
Kyocera
1,725.50
-78.92
-4.37%
JP:6952
Casio Computer Co
1,089.00
-63.83
-5.54%

Sharp Corporation Corporate Events

Sharp Corporation Corrects Financial Results for FY 2025
Jun 12, 2025

Sharp Corporation announced a correction to its previously released consolidated financial results for the fiscal year ended March 31, 2025. The correction, which involves adjustments to the share options data, does not impact the financial statements. This update ensures accuracy in the company’s financial disclosures, maintaining transparency and trust with stakeholders.

The most recent analyst rating on (JP:6753) stock is a Sell with a Yen570.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp Corporation Finalizes Stock Options Issuance Details
Jun 10, 2025

Sharp Corporation announced the finalization of details regarding the issuance of stock options, initially resolved at a Board of Directors meeting in May 2025. The issuance involves 42,740 stock acquisition rights allocated to directors, executive officers, and employees of Sharp and its wholly-owned subsidiaries. This move is likely aimed at incentivizing key personnel and aligning their interests with the company’s long-term goals.

The most recent analyst rating on (JP:6753) stock is a Sell with a Yen570.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp Corporation Reports Improved Profitability Amid Declining Sales
Jun 2, 2025

Sharp Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a decline in net sales by 7% compared to the previous year. Despite this, the company managed to turn around its profitability, reporting an operating profit of ¥27,338 million and a profit attributable to owners of ¥36,095 million, a significant improvement from the losses incurred in the previous fiscal year. This financial performance indicates a positive shift in Sharp’s operational efficiency and market positioning, although the forecast for the next fiscal year suggests a challenging environment with expected declines in sales and profits.

The most recent analyst rating on (JP:6753) stock is a Sell with a Yen570.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp Corporation Achieves Profitability in Fiscal 2024
May 12, 2025

Sharp Corporation reported an increase in sales across its Brand Business segments for fiscal 2024, despite challenges from a depreciating yen. The company saw improvements in operating profit and returned to profitability, surpassing forecasts. Structural reforms in the Device Business helped narrow operating losses, and the company made progress in its Asset Light Initiatives, setting a strong foundation for fiscal 2025.

Sharp Corporation Reports Significant Extraordinary Losses in Q4 2025
May 12, 2025

Sharp Corporation has announced extraordinary losses in its financial results for the fourth quarter of the fiscal year ending March 31, 2025, due to asset-light initiatives and decreased profitability in certain business areas. The company recorded impairment losses of 30,193 million yen and business restructuring expenses of 18,518 million yen, reflecting challenges in its LCD, laser, and semiconductor businesses. These financial adjustments are part of Sharp’s strategic efforts to streamline operations and address market challenges, potentially impacting its financial stability and stakeholder confidence.

Sharp Corporation Exceeds Financial Forecasts for Fiscal Year 2025
May 12, 2025

Sharp Corporation reported a significant improvement in its financial results for the fiscal year ended March 31, 2025, compared to its previous forecast. The company achieved higher operating and ordinary profits due to strong performance in its PC and Smart Office businesses, as well as favorable foreign exchange gains. Additionally, the profit attributable to owners of the parent increased substantially due to gains from the sale of non-current assets, despite some losses from asset-light initiatives and restructuring expenses.

Sharp Corporation Reports Financial Turnaround Amid Sales Decline
May 12, 2025

Sharp Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a decline in net sales by 7% to ¥2,160,146 million compared to the previous year. Despite the decrease in sales, the company achieved a turnaround from a loss to a profit of ¥36,095 million, indicating improved operational efficiency and financial health. The company’s equity-to-asset ratio improved to 10.5%, reflecting a stronger financial position. However, Sharp forecasts a challenging fiscal year ending March 31, 2026, with expected declines in net sales and profits, highlighting potential market challenges and the need for strategic adjustments.

Sharp Corporation Issues Stock Options to Align Leadership and Workforce Interests
May 12, 2025

Sharp Corporation has announced the issuance of stock acquisition rights as a form of remuneration for its directors, executives, and employees, including those at its subsidiaries. This move, resolved at the company’s 130th Annual General Shareholders’ Meeting, aims to align the interests of the company’s leadership and workforce with its long-term performance goals. The issuance involves a total of 43,625 stock acquisition rights, with no cash payment required, and is set to be allotted on June 10, 2025. This strategic initiative is expected to enhance employee motivation and retention, potentially strengthening Sharp’s competitive position in the electronics industry.

Sharp Corporation Announces Strategic Merger with AIoT Cloud Inc.
Apr 23, 2025

Sharp Corporation announced an absorption-type merger with its wholly-owned subsidiary, AIoT Cloud Inc., effective July 1, 2025. This strategic move aims to enhance Sharp’s revenue growth in cloud services and data utilization by leveraging AIoT Cloud’s development talent and customer base. The merger will also help expand Sharp’s Smart Workplace Business Group. AIoT Cloud, currently in a state of negative net worth, will be dissolved, and Sharp plans to waive claims against it to resolve financial issues, facilitating a smooth merger process.

Sharp Corporation Transfers Subsidiary to Hon Hai Group
Apr 23, 2025

Sharp Corporation announced the transfer of shares of its subsidiary, Sharp Fukuyama Laser Co., Ltd., to Hon Yuan International Investment Co., Ltd., a subsidiary of Hon Hai Precision Industry Co., Ltd. This transaction aligns with Sharp’s strategy to focus on its brand business by divesting certain laser and semiconductor operations. The move is expected to benefit both Sharp and SFL, with SFL shifting towards higher value-added products under the Hon Hai group.

Sharp Corporation Sells Fixed Assets to KDDI to Enhance Financial Structure
Apr 4, 2025

Sharp Corporation has announced the sale of its fixed assets, including land and buildings at its Sakai plant, to KDDI Corporation as part of its asset-light strategy. This move is expected to improve Sharp’s financials and support its focus on brand business, while also facilitating the early commencement of operations in collaboration with KDDI.

Sharp Clarifies LCD Plant Transfer Reports
Apr 4, 2025

Sharp Corporation clarified that recent news reports about the transfer of its LCD panel plant to KDDI Corporation are not based on any official announcement from Sharp. The company is in discussions with KDDI regarding the transfer of certain fixed assets, but no decisions have been finalized. Sharp assured stakeholders that any decisions requiring disclosure will be promptly announced.

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: May 27, 2025