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Sharp Corporation (JP:6753)
:6753
Japanese Market
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Sharp Corporation (6753) AI Stock Analysis

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JP

Sharp Corporation

(6753)

Rating:51Neutral
Price Target:
¥642.00
▼(-1.11%Downside)
Sharp Corporation's financial performance is mixed with profitability recovery but significant leverage and cash flow issues. Technical analysis indicates bearish momentum, while valuation suggests reasonable pricing but lacks dividend appeal.

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

Sharp Corporation Business Overview & Revenue Model

Company DescriptionSharp Corporation manufactures and sells telecommunication equipment, electric and electronic application equipment, and electronic components in Japan, China, and internationally. It operates through five segments: Smart Life, 8K Ecosystem, ICT, Display Device, and Electronic Device. The Smart Life segment offers refrigerators, superheated steam ovens, microwave ovens, small cooking appliances, air conditioners, washing machines, vacuum cleaners, air purifiers, fans, dehumidifiers, humidifiers, electric heating equipment, plasma cluster ion generators, beauty equipment, electronic dictionaries, calculators, telephones, network control units, solar cells, storage batteries etc. The 8K Ecosystem segment provides TVs, Blu-ray disc recorders, audio equipment, multi-function printers, information displays, business projectors, POS system equipment, FA equipment, options/consumables, software, masks etc. The ICT segment offers mobile phones, personal computers, tablet devices, routers etc. The Display Device segments provides display modules, in-vehicle cameras etc. The Electronic Device segment offers camera modules, sensor modules, proximity sensors, dust sensors, wafer foundry, CMOS / CCD sensors, semiconductor lasers etc. The company was formerly known as Hayakawa Electric Industry Co., Ltd. and changed its name to Sharp Corporation in January 1970. Sharp Corporation was founded in 1912 and is headquartered in Sakai, Japan.
How the Company Makes MoneySharp Corporation generates revenue through the sale of a diverse range of electronic products and solutions. Key revenue streams include consumer electronics, such as televisions and audio equipment, home appliances like refrigerators and air purifiers, and information technology products like printers and displays. Additionally, Sharp is a significant player in the solar energy market, providing solar panels and energy solutions. The company also earns income through strategic partnerships and collaborations with other technology firms, leveraging its advanced display technology in products like smartphones and tablets. Factors contributing to Sharp's earnings include its strong brand recognition, continuous innovation, and a broad distribution network that spans global markets.

Sharp Corporation Financial Statement Overview

Summary
Sharp Corporation shows recovery in profitability with improved margins and ROE. However, the company faces significant challenges with high leverage and negative cash flow, indicating financial flexibility concerns.
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
Negative
Last Price649.20
Price Trends
50DMA
702.14
Negative
100DMA
801.30
Negative
200DMA
881.19
Negative
Market Momentum
MACD
-15.48
Negative
RSI
39.47
Neutral
STOCH
37.92
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 649.2 is below the 20-day moving average (MA) of 669.31, below the 50-day MA of 702.14, and below the 200-day MA of 881.19, indicating a bearish trend. The MACD of -15.48 indicates Negative momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 37.92 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$3.34T9.127.85%2.81%-0.45%-17.53%
73
Outperform
¥166.81B8.1816.78%2.44%3.02%60.53%
69
Neutral
$265.44B33.083.45%3.86%-2.63%-31.17%
64
Neutral
$21.78T18.8914.32%0.56%-0.49%19.71%
64
Neutral
¥2.27T94.180.71%3.10%0.51%-76.08%
63
Neutral
$34.61B5.36-11.67%1.95%5.33%-20.62%
51
Neutral
¥417.40B11.56
-6.97%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6753
Sharp Corporation
642.90
-289.30
-31.03%
JP:6632
JVCKENWOOD Corporation
1,106.00
212.67
23.81%
JP:6752
Panasonic
1,423.00
185.38
14.98%
JP:6758
Sony
3,539.00
686.48
24.07%
JP:6971
Kyocera
1,597.00
-278.82
-14.86%
JP:6952
Casio Computer Co
1,153.00
-28.27
-2.39%

Sharp Corporation Corporate Events

Sharp Corporation Faces Appeal Over Smartphone Patent Infringement
Jul 16, 2025

Sharp Corporation is facing an appeal filed by DAP realize Co., Ltd. concerning a lawsuit over patent infringement related to 16 smartphone models. The Tokyo District Court previously ruled the patent invalid, dismissing the claims, but the appellant has now taken the case to the Intellectual Property High Court, seeking 10 million yen in damages.

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 Transfers Camera Module Business to Fullertain
Jun 30, 2025

Sharp Corporation has announced the transfer of its camera module business, including equity interests in SAIGON STEC CO., LTD, to Fullertain Information Technologies Ltd., a subsidiary of Hon Hai Precision Industry Co., Ltd. This strategic move is expected to generate extraordinary income for Sharp and is part of its efforts to streamline operations and focus on core business areas. The transaction has been carefully evaluated to ensure fairness and protect minority shareholders, with the transfer expected to positively impact Sharp’s financial performance in the fiscal year ending March 2026.

The most recent analyst rating on (JP:6753) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

Sharp Corporation Details Relationship with Controlling Shareholder Hon Hai
Jun 30, 2025

Sharp Corporation has announced details regarding its controlling shareholder, Hon Hai Precision Industry Co., Ltd., which holds a significant portion of voting rights in Sharp. The announcement emphasizes Sharp’s commitment to leveraging business synergies with Hon Hai to enhance operational efficiency and increase sales and profits while ensuring the independence and autonomy of both entities. The collaboration is seen as beneficial for minority shareholders, with measures in place to ensure fairness and transparency in transactions between Sharp and its parent company.

The most recent analyst rating on (JP:6753) stock is a Sell with a Yen700.00 price target. To see the full list of analyst forecasts on Sharp Corporation stock, see the JP:6753 Stock Forecast page.

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.

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: Jul 11, 2025