Sharp (SHCAY) AI Stock Analysis

• Market Cap: $2.55B
• Dividend Yield: N/A
• Average Volume (3M): 812.00
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.46
• 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: 2,601,646,500
• 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: 238.66
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.44
• Enterprise Value/Ebitda: 6.34
• 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: $1.00 ▼(-20.63% 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

Diversified revenue streams

Sharp's multi-channel revenue model spans consumer electronics, industrial displays, and solar, which spreads demand risk across end markets. This diversification supports steadier long-term cash inflows and cross-segment innovation, improving resilience versus single-product peers.

Established product & technology portfolio

A well-recognized product set and display technology expertise create durable competitive advantages: IP, supplier/customer relationships, and credibility in B2B display markets. Such capabilities support recurring commercial contracts and higher-margin system sales over time.

Profitability rebound and positive returns

A meaningful margin recovery and return-on-equity turning positive indicate management has begun restoring operational discipline. Sustained improvement in margins implies progress on cost structure and product mix, underpinning durable earnings quality if top-line stabilizes.

Negative Factors

High leverage

Elevated debt ratios materially constrain financial flexibility, increasing refinancing and interest-rate exposure. Even with recent improvement, leverage at these levels limits capital allocation choices, raises default risk under stress, and can hamper long-term investment and M&A options.

Weak and volatile cash generation

Negative operating and free cash flow reduce the company's ability to deleverage, fund capex, or invest in growth organically. Historical volatility suggests working-capital swings or uneven execution, leaving the company dependent on external financing for strategic initiatives.

Persistent revenue contraction

Ongoing top-line decline undermines scale economics, restricts margin upside, and raises questions about market share and demand sustainability. Without a clear and durable revenue recovery, profit improvements may be fragile and susceptible to reversed trends.

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

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: 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 Negative. The current price of 1.26 is above the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.17, and below the 200-day MA of 1.28, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 30.83 is Neutral, neither overbought nor oversold. The STOCH value of 20.62 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
TBCH	64 Neutral	$242.55M	14.56	17.19%	―	6.43%	196.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONY	56 Neutral	$139.58B	-113.79	14.69%	0.41%	-2.47%	6.49%
SONO	56 Neutral	$1.78B	-84.24	-3.85%	―	-4.93%	-59.17%
SHCAY	53 Neutral	$2.55B	3.55	34.18%	―	-10.36%	―
LPL	50 Neutral	$4.89B	28.25	3.90%	―	-3.45%	82.49%
ZEPP	48 Neutral	$280.46M	-4.75	-24.38%	―	13.27%	-66.48%