Sharp (SHCAY) AI Stock Analysis

• Market Cap: $3.63B
• Dividend Yield: N/A
• Average Volume (3M): 120.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -12.33%
• EPS Growth: 45.04%
• Country: US
• Employees: 43,445
• Sector: Technology
• Sector Strength: 49
• Industry: Consumer Electronics
• EPS (TTM): -0.40
• Shares Outstanding: 2,601,626,200
• 10 Day Avg. Volume: 361
• 30 Day Avg. Volume: 120
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.23
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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

Sharp's stock score reflects significant financial and operational challenges. The company's weak financial performance, high leverage, and negative profitability are major concerns. The stock's bearish trend, indicated by its position below key moving averages, further impacts the score. While positive operating cash flow offers some stability, strategic improvements are needed to enhance profitability and reduce leverage.

Sharp Business Overview & Revenue Model

Company Description

Sharp 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 Money

Sharp Corporation makes money through a diversified revenue model that includes the sale of consumer electronics, home appliances, and electronic components. The company generates significant revenue from its line of LCD panels, which are used in both its own products and sold to other manufacturers. Additionally, Sharp earns income from its business solutions segment, which provides office equipment like printers and copiers, as well as IT services. The company has strategic partnerships and collaborations with other tech firms to enhance its product offerings and expand its market reach. Sharp's earnings are also influenced by its investments in renewable energy solutions, including solar technology, which aligns with global sustainability trends.

Sharp Financial Statement Overview

Summary

Sharp faces significant financial challenges across its income statement, balance sheet, and cash flow. The company is dealing with declining revenues and profitability, high leverage, and operational inefficiencies. While free cash flow has improved, substantial efforts are needed to address losses and improve financial stability.

Income Statement

Sharp's income statement reveals significant challenges. The company has experienced declining revenues over the past year with a negative revenue growth rate of -8.86%. Gross profit margins have decreased to 14.98%, indicating pressure on profitability. The net profit margin is deeply negative at -6.46%, reflecting substantial losses. Both EBIT and EBITDA margins are negative, highlighting operational struggles.

Balance Sheet

The balance sheet shows a weakened financial position. The debt-to-equity ratio is high at 4.12, indicating significant leverage and potential risk. Stockholders' equity has decreased, impacting the equity ratio, which currently stands at 9.00%. Return on equity is negative due to net losses, further illustrating financial strain.

Cash Flow

Cash flow analysis shows mixed results. The company has improved its free cash flow position significantly, with a positive free cash flow growth rate of 270.08%, but the operating cash flow to net income ratio is concerning at -0.83, indicating operational inefficiencies. Free cash flow to net income ratio is positive, suggesting that some cash flow is still being generated despite net losses.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.31T	2.32T	2.55T	2.50T	2.43T	2.27T
	Gross Profit
357.20B	347.89B	330.83B	431.72B	421.32B	409.80B
	EBIT
-19.10B	-20.34B	-25.72B	84.72B	83.11B	52.77B
	EBITDA
36.65B	-60.55B	-139.95B	157.12B	155.06B	124.09B
	Net Income Common Stockholders
-156.78B	-149.98B	-260.84B	73.99B	53.26B	20.96B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
348.41B	227.13B	262.06B	287.36B	341.92B	225.05B
	Total Assets
2.84T	1.59T	1.77T	1.96T	1.93T	1.83T
	Total Debt
794.45B	589.86B	725.59B	626.57B	724.92B	776.47B
	Net Debt
446.04B	362.73B	463.53B	339.21B	383.00B	551.42B
	Total Liabilities
1.77T	1.43T	1.55T	1.49T	1.56T	1.54T
	Stockholders Equity
1.04T	143.18B	208.74B	454.57B	350.65B	275.60B
Cash Flow		Free Cash Flow
33.97B	71.92B	-42.27B	12.08B	153.26B	-25.65B
	Operating Cash Flow
82.97B	124.50B	14.75B	75.16B	204.64B	68.09B
	Investing Cash Flow
-32.24B	10.88B	-40.97B	-31.45B	-14.11B	-127.88B
	Financing Cash Flow
-61.75B	-149.67B	-18.48B	-124.29B	-76.72B	4.56B

Sharp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHCAY, the sentiment is Negative. The current price of 1.37 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.57, and below the 200-day MA of 1.56, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of -3.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHCAY.

Sharp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONY	79 Outperform	$150.16B	18.59	14.40%	0.39%	1.77%	18.85%
Sector *	57 Neutral	$19.52B	9.58	-12.47%	2.79%	5.43%	-24.71%
LPL	52 Neutral	$2.83B	―	-37.33%	―	19.52%	24.03%
SHCAY	46 Neutral	$3.63B	―	-76.23%	―	-12.33%	45.04%