Sharp (SHCAY) AI Stock Analysis

• Market Cap: $2.44B
• Dividend Yield: N/A
• Average Volume (3M): 812.00
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.49
• Revenue Growth: -10.36%
• EPS Growth: N/A
• Country: US
• Employees: 43,445
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 0.06
• Shares Outstanding: 2,601,658,400
• 10 Day Avg. Volume: 46
• 30 Day Avg. Volume: 812
• PEG Ratio: -0.13
• Price to Book (P/B): 3.73
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -14.19
• Enterprise Value/Market Cap: 238.97
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 1.38
• Enterprise Value/Ebitda: 6.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): $12.07B

• Rating: 53 Neutral
• Price Target: $0.95 ▼(-24.29% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weaker fundamentals (high leverage and negative recent operating/free cash flow) and bearish technicals (below key moving averages with negative momentum). These are partially offset by a low P/E that suggests the stock may be priced cheaply relative to earnings.

Positive Factors

Profitability Recovery

A clear margin recovery versus prior loss-making years indicates operational improvement and cost control. If sustained, higher margins provide durable internal funding for capex and debt reduction, improve ROE, and increase resilience to cyclical demand over the coming months.

Strategic Ownership

Majority ownership by Foxconn gives structural advantages: manufacturing scale, procurement leverage, and potential preferential supply‑chain and channel access. These durable ties can lower unit costs and execution risk versus peers and support operational turnaround efforts.

Diversified & Recurring Revenue

A broad product mix plus an installed base of multifunction office systems and service/consumable contracts creates diversified and recurring income. This structural revenue mix dampens volatility, supports steady aftermarket margins, and aids recovery if execution stabilizes.

Negative Factors

High Leverage

Elevated leverage materially limits financial flexibility and raises interest and refinancing sensitivity. High debt burdens constrain capacity to invest, pursue strategic initiatives, or absorb shocks, making durable recovery contingent on material deleveraging or sustained cash generation.

Weak Cash Generation

Negative OCF and FCF across recent periods indicate poor cash conversion and working‑capital volatility. Persistent negative cash flow undermines debt servicing, restricts reinvestment, and heightens reliance on external financing, increasing medium‑term execution and liquidity risk.

Top-line Contraction

Sustained revenue declines erode scale and make margin gains harder to sustain. Shrinking top line pressures pricing power, supplier leverage, and the durability of the earnings rebound, requiring structural demand recovery or permanent cost base reduction to restore growth.

Sharp Business Overview & Revenue Model

Company Description

Sharp Corporation (SHCAY) is a multinational company based in Japan, primarily engaged in the manufacturing of electronic products and solutions. The company operates in various sectors, including consumer electronics, display technology, and information technology. Sharp is well-known for its innovative products such as LCD televisions, home appliances, solar panels, and advanced display systems used in commercial applications.

How the Company Makes Money

Sharp primarily makes money by selling hardware products and related solutions to consumers and businesses. Key revenue streams include: (1) Consumer and home products: sales of branded electronics and appliances (e.g., TVs/displays and household appliances) through retail and distribution channels. (2) Business solutions: sales of office equipment such as multifunction printers (MFPs), document systems, and associated services/solutions to enterprise and public-sector customers; this often includes ongoing revenue from maintenance/service contracts and supplies/consumables tied to the installed base, but specific figures are null. (3) Device/component-related sales: revenue from display- and imaging-related devices and other components sold to other manufacturers and business customers where applicable; product mix and segment details are not specified here and are null. (4) Licensing/other: the company may earn from intellectual property licensing and other ancillary activities, but specific contributions are null. Significant partnerships and ownership influence: Sharp is majority-owned by Foxconn/Hon Hai Precision Industry, which can affect manufacturing scale, procurement, and channel access; the precise impact on earnings and any material customer agreements are null.

Sharp Financial Statement Overview

Summary

Profitability has rebounded (positive net margins in FY2025 and stronger TTM), but revenue is still contracting. Balance-sheet risk remains elevated due to high leverage, and recent operating/free cash flow is negative and volatile, which weakens the quality of the earnings recovery.

Income Statement

Profitability has improved sharply versus the prior two fiscal years: net margin rebounded to ~1.7% in FY2025 from deep losses in FY2024–FY2023, and TTM (Trailing-Twelve-Months) net margin is stronger at ~2.9% with higher operating profitability as well. However, revenue has been contracting (negative growth in FY2024, FY2025, and TTM), and margins remain relatively thin for the industry—so the earnings recovery looks meaningful but not yet fully supported by top-line momentum.

Balance Sheet

Leverage is the key constraint. Debt-to-equity remains elevated (about 3.37x in FY2025 and ~2.33x in TTM (Trailing-Twelve-Months)), limiting financial flexibility, even though it has improved from the peak level in FY2024. Equity is positive and returns on equity have turned positive again (FY2025 and TTM), but the capital structure still leans heavily on debt, keeping balance-sheet risk higher than ideal.

Cash Flow

Cash generation has been inconsistent and has recently weakened: both operating cash flow and free cash flow are negative in FY2025 and in TTM (Trailing-Twelve-Months), despite strong positive cash flow in FY2024 and FY2021. This volatility suggests working-capital swings and/or investment demands are pressuring cash conversion, raising execution risk until operating cash flow turns sustainably positive.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.94T	2.16T	2.32T	2.55T	2.50T	2.43T
Gross Profit	421.03B	405.71B	347.89B	330.83B	431.72B	421.32B
EBITDA	95.91B	112.39B	-60.55B	64.08B	157.12B	155.06B
Net Income	107.92B	36.09B	-149.98B	-260.84B	73.99B	53.26B
Balance Sheet
Total Assets	1.44T	1.45T	1.59T	1.77T	1.96T	1.93T
Cash, Cash Equivalents and Short-Term Investments	241.96B	279.31B	227.13B	262.06B	287.36B	341.92B
Total Debt	449.28B	521.35B	589.86B	725.59B	626.57B	724.92B
Total Liabilities	1.17T	1.29T	1.43T	1.55T	1.49T	1.56T
Stockholders Equity	258.20B	154.65B	143.18B	208.74B	454.57B	350.65B
Cash Flow
Free Cash Flow	-50.06B	-40.61B	71.92B	-42.27B	12.08B	153.26B
Operating Cash Flow	-28.01B	-1.59B	124.50B	14.75B	75.16B	204.64B
Investing Cash Flow	127.15B	103.74B	10.88B	-40.97B	-31.45B	-14.11B
Financing Cash Flow	-108.56B	-74.77B	-149.67B	-18.48B	-124.29B	-76.72B

Sharp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.26 is above the 20-day moving average (MA) of 0.98, above the 50-day MA of 1.10, and above the 200-day MA of 1.26, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 36.26 is Neutral, neither overbought nor oversold. The STOCH value of 18.14 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
TBCH	64 Neutral	$222.46M	18.07	13.20%	―	6.43%	196.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONO	57 Neutral	$1.61B	5.81	-4.45%	―	-4.93%	-59.17%
SONY	56 Neutral	$125.81B	-5.83	-2.62%	0.41%	-11.64%	-116.17%
SHCAY	53 Neutral	$2.44B	5.36	34.18%	―	-10.36%	―
ZEPP	48 Neutral	$212.93M	-0.67	-17.94%	―	13.27%	-66.48%
LPL	46 Neutral	$4.06B	―	3.47%	―	-3.45%	82.49%