Sharp Corp. (6753) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hirata Corp.

Doshisha Co., Ltd.

FUJIFILM Holdings Corp.

Tamron Co., Ltd.

Zojirushi Corp.

Casio Computer Co., Ltd.

Yokowo Co. Ltd.

Sharp Corp.

Ushio, Inc.

Panasonic Holdings Corp.

YA-MAN Ltd.

Why is Sharp Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -0.95% and Operating profit at -10.72% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -0.95% and Operating profit at -10.72% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At JPY 30,789 MM has Grown at 18,318.34%
NET PROFIT(Q) At JPY 27,683.09 MM has Grown at 16,823.49%
ROCE(HY) Highest at 37.88%

With ROE of 64.14%, it has a expensive valuation with a 2.92 Price to Book Value

Over the past year, while the stock has generated a return of -17.48%, its profits have risen by 739.7% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.48% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sharp Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sharp Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Sharp Corp.

-17.48%

168.52

39.86%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.95%

EBIT Growth (5y)

-10.72%

EBIT to Interest (avg)

6.45

Debt to EBITDA (avg)

5.24

Net Debt to Equity (avg)

1.57

Sales to Capital Employed (avg)

2.97

Tax Ratio

33.32%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.52%

ROCE (avg)

5.74%

ROE (avg)

20.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.92

EV to EBIT

25.37

EV to EBITDA

9.15

EV to Capital Employed

1.75

EV to Sales

0.32

PEG Ratio

0.01

Dividend Yield

0.14%

ROCE (Latest)

6.89%

ROE (Latest)

64.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 30,789 MM has Grown at 18,318.34%

NET PROFIT(Q)

At JPY 27,683.09 MM has Grown at 16,823.49%

ROCE(HY)

Highest at 37.88%

INTEREST COVERAGE RATIO(Q)

Highest at 1,232.87

RAW MATERIAL COST(Y)

Fallen by -35.63% (YoY

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY -12,153 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.03%

NET SALES(Q)

Lowest at JPY 472,490 MM

Here's what is working for Sharp Corp.

Pre-Tax Profit

At JPY 30,789 MM has Grown at 18,318.34%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 27,683.09 MM has Grown at 16,823.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Interest Coverage Ratio

Highest at 1,232.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Raw Material Cost

Fallen by -35.63% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Sharp Corp.

Operating Cash Flow

Lowest at JPY -12,153 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Net Sales

Lowest at JPY 472,490 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

Fallen at -11.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 6.03%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio