Sharp (SHCAY) AI Stock Analysis

• Market Cap: $3.32B
• Dividend Yield: N/A
• Average Volume (3M): 797.00
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.44
• 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: 2,391
• 30 Day Avg. Volume: 797
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): $12.71B

• Rating: 56 Neutral
• Price Target: $1.50 ▲(19.05% Upside)

Sharp's overall stock score is primarily influenced by its financial performance and technical analysis. The company shows profitability and strong returns on equity but faces challenges with high leverage and cash flow management. Technical indicators suggest bearish momentum, with the stock trading below key moving averages and approaching oversold conditions. The valuation is a positive aspect, with a low P/E ratio indicating potential undervaluation. However, the lack of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Returns on Equity

Strong returns on equity indicate efficient management and the ability to generate profits from shareholders' investments, supporting long-term growth.

Operational Efficiency

A healthy gross profit margin suggests effective cost management and pricing power, which can sustain profitability over time.

Free Cash Flow Growth

Positive free cash flow growth indicates potential for reinvestment in business operations, supporting future expansion and innovation.

Negative Factors

High Leverage

High leverage can increase financial risk, limit flexibility, and strain cash flow, potentially impacting long-term financial stability.

Negative Revenue Growth

Declining revenue growth suggests challenges in market demand or competitive positioning, which could hinder future business expansion.

Cash Flow Issues

Negative cash flow from operations can indicate liquidity issues, affecting the company's ability to fund operations and invest in 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 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. The company shows profitability with a gross profit margin of 20.09% and strong return on equity at 42.59%. However, it faces challenges with negative revenue growth, high leverage with a debt-to-equity ratio of 2.82, and concerning cash flow issues, including negative operating cash flow.

Income Statement

Sharp's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 20.09%, which is a positive sign of profitability. However, the net profit margin is relatively low at 3.08%, and the revenue growth rate is negative, indicating a decline in sales. The EBIT and EBITDA margins are modest, suggesting operational efficiency but also highlighting room for improvement. Overall, the company demonstrates profitability but faces challenges in revenue growth.

Balance Sheet

Sharp's balance sheet reveals a high debt-to-equity ratio of 2.82 in the TTM, indicating significant leverage and potential financial risk. The return on equity is strong at 42.59%, reflecting effective use of equity to generate profits. However, the equity ratio is low, suggesting limited equity financing. The company's financial stability is a concern due to high leverage, despite strong returns on equity.

Cash Flow

The cash flow statement highlights challenges for Sharp, with negative operating cash flow and free cash flow in the TTM. The free cash flow growth rate is positive, but the operating cash flow to net income ratio is negative, indicating cash flow issues relative to reported earnings. The free cash flow to net income ratio is high, suggesting reliance on non-operating cash flows. Overall, the cash flow situation is concerning, with potential liquidity risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.10T	2.16T	2.32T	2.55T	2.50T	2.43T
Gross Profit	422.03B	405.71B	347.89B	330.83B	431.72B	421.32B
EBITDA	93.71B	112.39B	-60.55B	64.08B	157.12B	155.06B
Net Income	64.62B	36.09B	-149.98B	-260.84B	73.99B	53.26B
Balance Sheet
Total Assets	1.38T	1.45T	1.59T	1.77T	1.96T	1.93T
Cash, Cash Equivalents and Short-Term Investments	209.97B	279.31B	227.13B	262.06B	287.36B	341.92B
Total Debt	491.67B	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	174.50B	154.65B	143.18B	208.74B	454.57B	350.65B
Cash Flow
Free Cash Flow	-35.90B	-40.61B	71.92B	-42.27B	12.08B	153.26B
Operating Cash Flow	-12.15B	-1.59B	124.50B	14.75B	75.16B	204.64B
Investing Cash Flow	140.82B	103.74B	10.88B	-40.97B	-31.45B	-14.11B
Financing Cash Flow	-120.27B	-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 below the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.36, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 79.06 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	$169.15B	21.83	14.45%	0.38%	-2.47%	6.49%
TBCH	62 Neutral	$281.17M	16.69	17.19%	―	6.43%	196.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONO	59 Neutral	$2.30B	―	-15.60%	―	-4.93%	-59.17%
SHCAY	56 Neutral	$3.32B	8.36	34.18%	―	-10.36%	―
LPL	48 Neutral	$4.51B	―	-4.63%	―	-3.45%	82.49%
ZEPP	44 Neutral	$410.64M	―	-24.39%	―	13.27%	-66.48%

Sharp Corporate Events

Sharp Corporation Reports Strong Profit Recovery

Sharp Corporation, a prominent player in the electronics industry, is known for its innovative consumer electronics, including televisions, smartphones, and home appliances. The company operates primarily in the technology and manufacturing sectors, with a focus on creating cutting-edge products that enhance everyday life.