Sharp (SHCAY) AI Stock Analysis

• Market Cap: $3.84B
• Dividend Yield: N/A
• Average Volume (3M): 1.72K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.47
• Revenue Growth: -9.67%
• EPS Growth: N/A
• Country: US
• Employees: 43,445
• Sector: Technology
• Sector Strength: 85
• Industry: Consumer Electronics
• EPS (TTM): 0.07
• Shares Outstanding: 2,601,626,200
• 10 Day Avg. Volume: 270
• 30 Day Avg. Volume: 1,720
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.01
• Enterprise Value/Ebitda: 0.07
• 1Y Price Target: $1.50
• Price Target Upside: 3.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $1.50 ▲(3.45% Upside)

Sharp's overall stock score reflects a mixed financial performance with challenges in revenue and cash flow, offset by improved profitability margins. The technical analysis indicates short-term bullish momentum, but overbought signals suggest caution. Valuation metrics show the stock may be undervalued, providing potential upside. However, the lack of dividend yield and high leverage are notable risks.

Positive Factors

Improved Profit Margins

The improvement in net profit margin indicates a turnaround in profitability, suggesting better cost management and operational efficiency, which can enhance long-term financial health.

Operational Efficiency

Recovery in EBIT and EBITDA margins reflects improved operational efficiency, which can lead to sustainable profitability and competitive advantage in the long term.

Return on Equity

An improved ROE indicates effective management of equity to generate profits, enhancing investor confidence and supporting future growth potential.

Negative Factors

Declining Revenue

The decline in revenue over recent years highlights challenges in market demand or competitive positioning, which could impact long-term growth prospects if not addressed.

High Leverage

High leverage poses financial risks by increasing interest obligations and reducing financial flexibility, potentially impacting the company's ability to invest in growth opportunities.

Weak Cash Flow

Weak cash flow performance indicates challenges in converting earnings into cash, which can limit the company's ability to fund operations and invest in future growth, posing long-term liquidity risks.

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 generates revenue through several key streams. The primary source of income comes from the sale of consumer electronics, particularly televisions and home appliances, which are marketed both domestically and internationally. Additionally, the company earns revenue from its display technology segment, supplying LCD panels and other display solutions to various industries, including automotive and commercial sectors. Sharp also monetizes its solar energy products, contributing to its earnings through renewable energy solutions. Further revenue is generated through partnerships with other technology firms and collaborations that enhance its product offerings. Service contracts and maintenance agreements related to its technology solutions also provide a steady income stream.

Sharp Financial Statement Overview

Summary

Sharp's financial performance shows signs of recovery in profitability, yet remains challenged by declining revenues and cash flow issues. The company's high leverage and low equity ratio pose financial risks, despite improved ROE. Cash flow generation remains a critical concern, requiring strategic measures to enhance liquidity. Overall, while there are positive trends in margins, Sharp needs to address revenue growth and cash flow generation to ensure financial stability.

Income Statement

Sharp has faced declining revenue over the past few years, with a decrease from 2.54 trillion in 2023 to 2.16 trillion JPY in 2025. The gross profit margin for 2025 stands at 18.8%, reflecting a moderate level of profitability. However, the net profit margin improved significantly to 1.67% in 2025 from a negative margin in previous years, indicating a turnaround in profitability. The EBIT and EBITDA margins have also shown recovery, suggesting better operational efficiency, though still low compared to historical levels.

Balance Sheet

The debt-to-equity ratio for 2025 is approximately 3.37, indicating high leverage, which poses potential financial risk. Return on equity (ROE) improved to 23.34% in 2025, signifying better utilization of equity in generating profits. However, the equity ratio stands at a low 10.64%, which highlights a reliance on debt financing. Overall, the balance sheet reflects a mixed picture with high leverage offset by improved profitability metrics.

Cash Flow

Sharp's cash flow performance is weak, with negative free cash flow in 2025 at -40.6 billion JPY, down from a positive 71.9 billion JPY in 2024. The operating cash flow to net income ratio is negative, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is also negative, highlighting potential liquidity issues. This indicates a need to improve cash generation capabilities to support operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.16T	2.16T	2.32T	2.55T	2.50T	2.43T
Gross Profit	405.71B	405.71B	347.89B	330.83B	431.72B	421.32B
EBITDA	75.80B	112.39B	-60.55B	-139.95B	157.12B	155.06B
Net Income	36.09B	36.09B	-149.98B	-260.84B	73.99B	53.26B
Balance Sheet
Total Assets	1.45T	1.45T	1.59T	1.77T	1.96T	1.93T
Cash, Cash Equivalents and Short-Term Investments	279.31B	279.31B	227.13B	262.06B	287.36B	341.92B
Total Debt	521.35B	521.35B	589.86B	725.59B	626.57B	724.92B
Total Liabilities	1.29T	1.29T	1.43T	1.55T	1.49T	1.56T
Stockholders Equity	154.65B	154.65B	143.18B	208.74B	454.57B	350.65B
Cash Flow
Free Cash Flow	-28.39B	-40.61B	71.92B	-42.27B	12.08B	153.26B
Operating Cash Flow	-1.59B	-1.59B	124.50B	14.75B	75.16B	204.64B
Investing Cash Flow	103.74B	103.74B	10.88B	-40.97B	-31.45B	-14.11B
Financing Cash Flow	-74.77B	-74.77B	-149.67B	-18.48B	-124.29B	-76.72B

Sharp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHCAY, the sentiment is Neutral. The current price of 1.45 is below the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.30, and above the 200-day MA of 1.43, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 25.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHCAY.

Sharp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONY	78 Outperform	$173.45B	22.58	14.70%	0.42%	-4.41%	18.04%
TBCH	74 Outperform	$299.08M	16.04	17.97%	―	24.09%	―
SONO	58 Neutral	$1.78B	―	-17.69%	―	-10.02%	-385.04%
LPL	57 Neutral	$4.19B	―	-9.31%	―	3.97%	72.99%
ZEPP	54 Neutral	$689.67M	―	-28.36%	―	-18.94%	-197.82%
Sector *	54 Neutral	$300.49M	3.24	-13.34%	2.78%	5.71%	-76.50%
SHCAY	51 Neutral	$3.84B	8.79	38.96%	―	-9.67%	―