Panasonic (6752) AI Stock Analysis

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JP:6752 Dividends

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Panasonic

(OTC:6752)

70Outperform

Panasonic's overall score reflects strong financial performance and decent valuation, tempered by technical challenges and mixed earnings guidance. Key strengths include revenue growth, profitability, and AI market expansion, while concerns include net profit decline and increased debt.

Positive Factors

Earnings

2Q Group OP was ¥132b, which was a significant increase of 29.1% year over year and exceeded the consensus.

Energy Sector Performance

Energy operating profit, excluding specific subsidies, increased significantly, driven by profit growth in the industry area and improved market prices for materials.

Restructuring

Panasonic's restructuring shows promise with a disciplined top-down cost focus, hyperscaler battery business growth, and governance changes.

Negative Factors

Company Diversification

The company's inconsistent past and overly diversified portfolio warrant caution.

Panasonic (6752) vs. S&P 500 (SPY)

Market Cap

¥3.94T

Dividend Yield2.19%

Average Volume (3M)8.58M

Price to Earnings (P/E)11.8

Beta (1Y)1.11

Revenue Growth1.72%

EPS Growth-33.60%

CountryJP

Employees208,431

SectorTechnology

Sector Strength68

IndustryConsumer Electronics

Share Statistics

EPS (TTM)142.74

Shares Outstanding2,454,446,500

10 Day Avg. Volume6,819,550

30 Day Avg. Volume8,580,790

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

¥2,309.25

Price Target Upside36.88% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

Panasonic Business Overview & Revenue Model

Company DescriptionPanasonic Holdings Corporation, listed on the Tokyo Stock Exchange under the ticker 6752, is a globally recognized leader in the electronics industry. The company operates across various sectors, including consumer electronics, automotive, housing, and B2B solutions. Panasonic offers a wide range of products and services, such as home appliances, audio-visual equipment, electric vehicle components, energy solutions, and industrial devices. With a focus on innovation and sustainability, Panasonic aims to enhance the quality of life for people worldwide.

How the Company Makes MoneyPanasonic generates revenue through multiple streams, primarily driven by its diverse product portfolio. The company's consumer electronics division sells home appliances, audio-visual products, and personal care items, contributing significantly to its income. In the automotive sector, Panasonic provides batteries, infotainment systems, and other components, collaborating with major car manufacturers. The housing segment offers solutions like air conditioning, lighting, and building materials. Additionally, the B2B segment includes industrial devices, energy solutions, and factory automation systems. Strategic partnerships and investments in research and development further bolster Panasonic's financial performance, ensuring a steady flow of revenue from both consumer and business markets.

Panasonic Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
8.50T	8.38T	7.39T	6.70T	7.49T
	Gross Profit
2.49T	2.26T	2.08T	1.97T	2.15T
	EBIT
390.00B	288.57B	357.53B	258.60B	293.75B
	EBITDA
845.50B	718.31B	731.06B	615.19B	698.09B
	Net Income Common Stockholders
443.99B	265.50B	255.33B	165.08B	225.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35T	989.16B	1.42T	1.74T	1.16T
	Total Assets
9.41T	8.06T	8.02T	6.85T	6.22T
	Total Debt
1.63T	1.46T	1.90T	1.45T	1.47T
	Net Debt
506.65B	637.61B	691.41B	-145.80B	454.81B
	Total Liabilities
4.69T	4.27T	4.68T	4.08T	4.06T
	Stockholders Equity
4.54T	3.62T	3.16T	2.59T	2.00T
Cash Flow		Free Cash Flow
219.70B	150.86B	-45.15B	207.61B	85.02B
	Operating Cash Flow
866.90B	520.74B	252.63B	504.04B	430.30B
	Investing Cash Flow
-591.88B	-344.03B	-796.15B	176.60B	-206.10B
	Financing Cash Flow
-70.46B	-607.01B	58.91B	-177.70B	48.22B

Panasonic Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1687.00

Price Trends

50DMA

1698.57

Negative

100DMA

1642.23

Positive

200DMA

1447.39

Positive

Market Momentum

MACD

-9.27

Negative

RSI

57.81

Neutral

STOCH

94.71

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6752, the sentiment is Positive. The current price of 1687 is above the 20-day moving average (MA) of 1537.00, below the 50-day MA of 1698.57, and above the 200-day MA of 1447.39, indicating a neutral trend. The MACD of -9.27 indicates Negative momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 94.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6752.

Panasonic Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6758	79 Outperform	¥22.80T	19.98	14.40%	0.52%	9.56%	26.52%
6501	77 Outperform	$16.77T	27.44	10.50%	1.06%	0.56%	5.32%
6503	75 Outperform	€5.91T	18.05	8.40%	1.82%	5.02%	14.73%
6702	73 Outperform	¥5.80T	26.08	11.70%	0.85%	-5.48%	-11.96%
6752	70 Outperform	¥3.94T	11.82	7.23%	2.19%	1.72%	-33.60%
Sector *	60 Neutral	$10.94B	10.58	-7.08%	2.98%	7.52%	-12.04%
6753	44 Neutral	¥553.75B	―		―	-5.57%	38.15%

* Technology Sector Average

Performance Comparison

JP:6752

Panasonic

1,687.00

341.30

25.36%

JP:6753

Sharp Corporation

852.90

-7.50

-0.87%

JP:6503

Mitsubishi Electric

2,810.50

7.22

0.26%

JP:6501

Hitachi,Ltd.

3,673.00

766.18

26.36%

JP:6758

Sony

3,732.00

1,211.45

48.06%

JP:6702

Fujitsu

3,154.00

721.76

29.67%

Panasonic Earnings Call Summary

Earnings Call Date:Feb 04, 2025

(Q3-2025)

% Change Since: 11.62%|

Next Earnings Date:May 08, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted positive growth in several segments, particularly in generative AI and factory expansions, but also acknowledged significant challenges due to the deconsolidation of Automotive, net profit decline, and upcoming structural reforms. The company's commitment to dividends and targeted investment areas show a balanced approach amidst these challenges.

Q3-2025 Updates

Positive Updates

Sales Growth Excluding Automotive

Excluding the Automotive sector, sales increased by 5% year-on-year, driven by favorable sales of generative AI-related products, HVAC, electrical materials, and consumer electronics.

Increased Operating Profit

Adjusted operating profit increased to JPY 150.2 billion, and operating profit increased to JPY 132.3 billion, driven by strong performance in Lifestyle, Connect, Industry, and Energy segments.

Generative AI Market Expansion

Generative AI-related businesses continue to show favorable results with high growth expected to continue for the full year, particularly impacting the Industry and Energy segments positively.

Successful Nevada Factory Expansion

Sales at the Nevada factory increased, reaching 10 gigawatt hours with new equipment starting operations and growing customer demand.

Stable Dividend Forecast

Annual dividend is forecasted at JPY 40 per share, a year-on-year increase of JPY 5, with a payout ratio expected at 30% relative to the full-year net profit forecast.

Negative Updates

Net Profit Decline

Net profit decreased to JPY 99.5 billion due to an increase in income taxes.

Impact of Automotive Deconsolidation

The deconsolidation of the Automotive sector led to a decrease in sales and a negative impact on profits, affecting the overall financial results.

Employment and Structural Reforms

The company announced plans for significant employment and structural reforms, including potential headcount reductions and a reshaping of business areas with low ROIC.

Challenges in Consumer Electronics

The company is considering withdrawing or restructuring businesses such as industrial devices, electromechanical control, kitchen appliances, and TV due to low profitability and competitiveness issues.

Cash Flow and Debt Concerns

Net cash was reported as a negative JPY 462.4 billion, raising concerns about long-term financial stability.

Company Guidance

In the third quarter of the fiscal year ending March 2025, Panasonic reported an overall sales decrease of 1% year-on-year to JPY 2,152.6 billion. Excluding the deconsolidated automotive segment, sales increased by 5%. Adjusted operating profit (AOP) rose to JPY 150.2 billion, and operating profit (OP) increased to JPY 132.3 billion, although net profit decreased to JPY 99.5 billion due to higher income taxes. The company maintained its full-year profit forecast despite revising the sales forecast downward by JPY 300 billion due to the deconsolidation of the automotive segment. Notably, segments like Industry and Energy experienced upward revisions in their forecasts, driven by robust sales in generative AI-related products and improved productivity. Panasonic also highlighted a cumulative operating cash flow of JPY 702.7 billion up to Q3, achieving its medium-term target of JPY 2 trillion from fiscal 2023. The company plans to distribute an annual dividend of JPY 40 per share, reflecting a year-on-year increase of JPY 5.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.