Sharp (SHCAY) AI Stock Analysis

• Market Cap: $3.23B
• Dividend Yield: N/A
• Average Volume (3M): 812.00
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.40
• Revenue Growth: -10.36%
• EPS Growth: N/A
• Country: US
• Employees: 43,445
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): N/A
• Shares Outstanding: 2,601,626,500
• 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: 235.72
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 2.36
• Enterprise Value/Ebitda: 10.16
• 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: 50 Neutral
• Price Target: $1.00 ▼(-20.63% Downside)

Sharp's overall stock score reflects significant financial challenges, particularly in revenue growth and cash flow. Technical analysis indicates bearish momentum, further impacting the score. Valuation suggests potential undervaluation, but this is offset by financial and technical concerns.

Positive Factors

Profitability Metrics

Improved profitability metrics indicate better cost management and operational efficiency, which can enhance long-term financial stability.

Return on Equity

A strong ROE suggests effective management and potential for sustained shareholder value creation, supporting long-term growth.

Gross Profit Margin

An improved gross profit margin reflects better cost control and pricing power, contributing to enhanced profitability over time.

Negative Factors

Revenue Decline

A sharp decline in revenue growth can limit the company's ability to invest in innovation and expansion, impacting future competitiveness.

High Leverage

High leverage increases financial risk and can constrain the company's flexibility to navigate economic downturns or invest in growth opportunities.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which could hinder the company's ability to fund operations and strategic initiatives.

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 generates revenue through multiple channels, including the sale of consumer electronics, such as TVs and home appliances, which are a significant part of its product lineup. The company also earns income from its display technology segment, providing LCD panels and other display solutions to various industries, including automotive and industrial sectors. Additionally, Sharp's foray into renewable energy with solar panel production contributes to its revenue. Strategic partnerships with other technology firms and collaborations in the IT and telecommunications sectors further enhance its earnings, as they allow Sharp to expand its market reach and innovate its product offerings.

Sharp Financial Statement Overview

Summary

Sharp's financial performance is mixed. While profitability metrics like net profit margin and EBIT margins have improved, the significant decline in revenue growth and high leverage are concerning. The cash flow situation is particularly challenging with negative operating and free cash flows.

Income Statement

Sharp's income statement shows a mixed performance. The TTM data indicates a significant decline in revenue growth (-26.72%), which is concerning. However, the company has managed to maintain a positive net profit margin (2.91%) and improved its EBIT and EBITDA margins compared to previous periods. The gross profit margin has also improved to 21.27% in the TTM, indicating better cost management. Overall, while profitability metrics are improving, the sharp decline in revenue growth is a major concern.

Balance Sheet

The balance sheet reveals high leverage, with a debt-to-equity ratio of 2.33 in the TTM, which has improved from previous periods but remains high. The return on equity (ROE) is strong at 34.23%, indicating efficient use of equity. However, the equity ratio is relatively low, suggesting a high reliance on debt financing. The balance sheet shows some improvement in leverage, but the high debt levels pose a risk.

Cash Flow

Sharp's cash flow statement highlights significant challenges. The operating cash flow is negative in the TTM, and the free cash flow has also been negative, although it shows some growth. The free cash flow to net income ratio is positive, indicating that the company is generating cash relative to its net income. However, the negative operating cash flow coverage ratio suggests difficulties in covering net income with operating cash flow. Overall, the cash flow situation is concerning, with negative cash flows and limited coverage of net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.54T	2.16T	2.32T	2.55T	2.50T	2.43T
Gross Profit	322.57B	405.71B	347.89B	330.83B	431.72B	421.32B
EBITDA	74.97B	112.39B	-60.55B	64.08B	157.12B	155.06B
Net Income	40.50B	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	-46.18B	-40.61B	71.92B	-42.27B	12.08B	153.26B
Operating Cash Flow	-30.56B	-1.59B	124.50B	14.75B	75.16B	204.64B
Investing Cash Flow	108.66B	103.74B	10.88B	-40.97B	-31.45B	-14.11B
Financing Cash Flow	-78.41B	-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: Neutral

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 1.24, below the 50-day MA of 1.28, and below the 200-day MA of 1.33, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 32.02 is Neutral, 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	75 Outperform	$148.61B	18.70	14.45%	0.41%	-2.47%	6.49%
TBCH	64 Neutral	$263.21M	15.61	17.19%	―	6.43%	196.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONO	51 Neutral	$2.03B	―	-15.60%	―	-4.93%	-59.17%
SHCAY	50 Neutral	$3.23B	8.06	34.18%	―	-10.36%	―
LPL	48 Neutral	$4.05B	―	-4.63%	―	-3.45%	82.49%
ZEPP	44 Neutral	$383.34M	-5.55	-24.39%	―	13.27%	-66.48%