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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Doshisha Co., Ltd.

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FUJIFILM Holdings Corp.

Sharp Corp.

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Ushio, Inc.

YA-MAN Ltd.

Panasonic Holdings Corp.

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 30,211 MM has Grown at 4,409.1%
NET PROFIT(Q) At JPY 24,980.99 MM has Grown at 904.28%
ROCE(HY) Highest at 52.96%

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 -41.27%, 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

Below par performance in long term as well as near term

Along with generating -41.27% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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.

-40.72%

113.53

43.54%

Japan Nikkei 225

36.73%

1.30

28.24%

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)

2.98

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

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

17What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 30,211 MM has Grown at 4,409.1%

NET PROFIT(Q)

At JPY 24,980.99 MM has Grown at 904.28%

ROCE(HY)

Highest at 52.96%

RAW MATERIAL COST(Y)

Fallen by -9.14% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 80.3 %

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY -29,532 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.63 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.85 times

NET SALES(Q)

Lowest at JPY 467,356 MM

Here's what is working for Sharp Corp.

Pre-Tax Profit

At JPY 30,211 MM has Grown at 4,409.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 24,980.99 MM has Grown at 904.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 80.3 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -9.14% (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 -29,532 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Net Sales

At JPY 467,356 MM has Fallen at -16.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 467,356 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 5.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio