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Sharp Corporation (SHCAY)
:SHCAY
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Sharp (SHCAY) AI Stock Analysis

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SHCAY

Sharp

(OTC:SHCAY)

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Neutral 62 (OpenAI - 4o)
Rating:62Neutral
Price Target:
$1.50
▲(4.90% Upside)
Sharp's overall stock score reflects a balance of mixed financial performance, neutral technical indicators, and attractive valuation. The most significant factor is the financial performance, highlighting profitability but also financial risks due to high leverage and cash flow challenges. The technical analysis suggests a stable market position without strong momentum, while the valuation indicates potential undervaluation.

Sharp (SHCAY) vs. SPDR S&P 500 ETF (SPY)

Sharp Business Overview & Revenue Model

Company DescriptionSharp 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 MoneySharp 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
65
Positive
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
55
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.10T2.16T2.32T2.55T2.50T2.43T
Gross Profit422.03B405.71B347.89B330.83B431.72B421.32B
EBITDA93.71B112.39B-60.55B64.08B157.12B155.06B
Net Income64.62B36.09B-149.98B-260.84B73.99B53.26B
Balance Sheet
Total Assets1.38T1.45T1.59T1.77T1.96T1.93T
Cash, Cash Equivalents and Short-Term Investments209.97B279.31B227.13B262.06B287.36B341.92B
Total Debt491.67B521.35B589.86B725.59B626.57B724.92B
Total Liabilities1.20T1.29T1.43T1.55T1.49T1.56T
Stockholders Equity174.50B154.65B143.18B208.74B454.57B350.65B
Cash Flow
Free Cash Flow-35.90B-40.61B71.92B-42.27B12.08B153.26B
Operating Cash Flow-12.15B-1.59B124.50B14.75B75.16B204.64B
Investing Cash Flow140.82B103.74B10.88B-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
Neutral
Last Price1.43
Price Trends
50DMA
1.45
Negative
100DMA
1.32
Positive
200DMA
1.41
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
47.83
Neutral
STOCH
85.36
Negative
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 1.43 is above the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.45, and above the 200-day MA of 1.41, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 85.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHCAY.

Sharp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$175.01B22.5714.70%0.34%-4.41%18.04%
74
Outperform
$338.50M18.2317.97%24.09%
62
Neutral
$3.68B8.4138.96%-9.67%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
58
Neutral
$2.10B-26.87-17.69%-10.02%-385.04%
55
Neutral
$4.79B-10.28-9.31%3.97%72.99%
54
Neutral
$591.39M-8.52-28.36%-18.94%-197.82%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SHCAY
Sharp
1.42
-0.12
-7.79%
LPL
LG Display
4.95
1.25
33.78%
TBCH
Turtle Beach
17.09
0.05
0.29%
SONY
Sony Group
28.65
11.37
65.80%
ZEPP
Zepp Health
41.16
37.70
1089.60%
SONO
Sonos
17.40
4.34
33.23%

Sharp Corporate Events

Sharp Corporation Reports Strong Profit Recovery
Aug 9, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 21, 2025