Sharp (SHCAY) AI Stock Analysis

• Market Cap: $3.89B
• Dividend Yield: N/A
• Average Volume (3M): 1.73K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.49
• Revenue Growth: -9.67%
• EPS Growth: N/A
• Country: US
• Employees: 43,445
• Sector: Technology
• Sector Strength: 91
• Industry: Consumer Electronics
• EPS (TTM): 0.07
• Shares Outstanding: 2,601,626,200
• 10 Day Avg. Volume: 4,891
• 30 Day Avg. Volume: 1,727
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.01
• Enterprise Value/Ebitda: 0.07
• 1Y Price Target: $1.50
• Price Target Upside: 0.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $1.50 ▲(0.67% 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.

Sharp Business Overview & Revenue Model

Company Description

Sharp Corporation (SHCAY) is a multinational corporation based in Japan, primarily engaged in the manufacturing of a wide range of electronic products and solutions. The company operates in various sectors, including consumer electronics, display technology, and healthcare. Its core products encompass LCD televisions, home appliances, solar panels, and advanced display systems for commercial use, as well as cutting-edge technologies in the fields of artificial intelligence and IoT.

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

Sharp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHCAY, the sentiment is Positive. The current price of 1.49 is above the 20-day moving average (MA) of 1.28, above the 50-day MA of 1.20, and above the 200-day MA of 1.44, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 78.42 is Negative, neither overbought nor oversold. The STOCH value of 93.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHCAY.

Sharp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONY	70 Outperform	$177.46B	22.64	14.70%	0.43%	-4.41%	18.04%
Sector *	61 Neutral	$36.02B	6.70	-7.25%	1.99%	8.63%	-7.76%
LPL	58 Neutral	$4.29B	―	-9.31%	―	3.97%	72.99%
SHCAY	51 Neutral	$3.89B	8.92	38.96%	―	-9.67%	―