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Panasonic Corporation (JP:6752)
:6752
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Panasonic
(OTC:6752)
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Rating:73Outperform
Price Target:
¥1,717.00
▼(-3.54% Downside)
Panasonic's strong valuation and technical indicators are the most significant strengths, suggesting potential undervaluation and positive momentum. However, financial performance challenges, particularly in cash flow and revenue growth, along with mixed earnings call sentiment, temper the overall outlook.
Positive Factors
Negative Factors
Panasonic (6752) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$4.04T
Dividend Yield2.25%
Average Volume (3M)7.50M
Price to Earnings (P/E)10.8
Beta (1Y)1.04
Revenue Growth-4.14%
EPS Growth16.99%
CountryJP
Employees207,548
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)30.61
Shares Outstanding2,454,526,400
10 Day Avg. Volume8,730,040
30 Day Avg. Volume7,502,633
Financial Highlights & Ratios
PEG Ratio-0.64
Price to Book (P/B)0.88
Price to Sales (P/S)0.49
P/FCF Ratio174.12
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit1.78
Enterprise Value/Ebitda5.12
Forecast
1Y Price Target
$1,950.96Price Target Upside9.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Panasonic Business Overview & Revenue Model
Company DescriptionPanasonic Holdings Corporation, together with its subsidiaries, develops, manufactures, sells, and services various electrical and electronic products worldwide. It operates through Appliances, Life Solutions, Connected Solutions, Automotive, and Industrial Solutions segments. The Appliances segment offers air conditioners, refrigerators, washing machines, vacuum cleaners, microwave ovens, rice cookers, personal care products, TVs, digital cameras, video equipment, home audio equipment, fixed-phones, show cases, compressors, and fuel cells. The Life Solutions segment provides lighting fixtures, lamps, wiring devices, solar photovoltaic systems, spatial sterilizing/deodorizing equipment, interior and exterior furnishing materials, ventilation and air conditioning equipment, air purifiers, bicycles, and nursing care related products, as well as kitchen and bath products. The Connected Solutions segment offers aircraft in-flight entertainment systems and communications services, electronic component mounting machines, welding equipment, PCs and tablets, projectors, and professional AV systems, as well as solutions for various industries. The Automotive segment provides automotive-use infotainment systems, head-up displays, automotive audio systems, automotive switches, vehicle camera modules, advanced driver assistance systems, automotive mirrors, and cylindrical and prismatic lithium-ion batteries, as well as devices and systems for electric automobiles. The Industrial Solutions segment offers relays, switches, power supply products, industrial motors and sensors, capacitors, coils, resistors, electronic circuit board materials, semiconductors, and LCD panels, as well as small lithium-ion, dry, and micro batteries. The company was formerly known as Panasonic Corporation. Panasonic Holdings Corporation was founded in 1918 and is headquartered in Kadoma, Japan.
How the Company Makes MoneyPanasonic makes money through its diversified business segments, which include appliances, eco solutions, connected solutions, automotive & industrial systems, and others. The appliances segment generates revenue from the sale of consumer electronics such as televisions, refrigerators, and washing machines. The eco solutions segment focuses on energy solutions, lighting, and housing systems. The connected solutions segment provides B2B solutions, including products for entertainment, avionics, and manufacturing. The automotive & industrial systems segment supplies components and systems for automotive and industrial applications, including batteries, electronic components, and infotainment systems. Panasonic's earnings are also bolstered by strategic partnerships and collaborations with other companies, enhancing its technological capabilities and market reach.
Panasonic Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there were significant achievements in segments such as AI and energy, challenges like overall sales decline, tariff impacts, and issues in the EV market were evident. The sentiment is balanced due to the offsetting nature of the highlights and lowlights.Q1-2026 Updates
Positive Updates
Increased Sales in Generative AI and Energy Segments
Sales in generative AI-related businesses in industry and energy segments increased. Additionally, sales of process automation and Connect saw growth, contributing to an overall adjusted operating profit increase.
Adjusted Operating Profit Increased
Adjusted operating profit reached JPY91.5 billion, with an increase in all segments, notably in lifestyle and energy, offsetting the deconsolidation of automotive.
Net Profit Increase
Net profit increased to JPY71.5 billion, aided by improvements in income taxes despite a deterioration in non-operating income and loss.
Strong Demand for Energy Storage Systems
Favorable sales of energy storage systems for data centers were driven by the expansion of the generative AI market, leading to increased industrial and consumer sales.
Lifestyle Segment Growth
Lifestyle segment saw increased sales due to steady sales of consumer electronics, HVAC, and electrical construction materials in Japan.
Negative Updates
Overall Sales Decline
Consolidated sales decreased YoY by 11% to JPY1,896.7 billion, mainly due to the deconsolidation of the automotive segment.
Impact of US Tariffs
The impact of US tariffs was negative JPY5.8 billion, affecting energy and Connect segments, with the full impact yet to be factored into forecasts due to ongoing assessment.
Negative Cash Flow
Operating cash flow decreased YoY to JPY180.3 billion, mainly due to the automotive deconsolidation, resulting in a negative net cash position of JPY745.7 billion.
Challenges in the EV Market
A slowdown in the EV market is anticipated in North America due to US tariff policies and the termination of the IRA 30D tax credit, impacting the automotive battery business.
Termination of Projector Business Sale
The strategic capital alliance agreement for the projector business in Connect was terminated, leading to a revision of the Connect segment forecast.
Company Guidance
During the FY2026 Q1 earnings call, Akira Waniko provided detailed financial guidance, highlighting several key metrics. Sales decreased year-over-year (YoY) by 11% to JPY1,896.7 billion, primarily due to the deconsolidation of the automotive segment, although sales excluding automotive saw a 2% YoY increase. Adjusted operating profit rose to JPY91.5 billion, while net profit increased to JPY71.5 billion, driven by improvements in income taxes and offsetting US tariffs. Operating cash flow for Q1 was JPY180.3 billion, experiencing a YoY decline due to the automotive changes. The full-year forecast for FY2026 remains unchanged, with no impact from US tariffs factored in yet, as the situation is still under assessment. Segment-specific forecasts were revised, particularly for Connect and energy, with significant focus on the growing demand for generative AI applications and energy storage systems. In terms of operational impacts, the group is planning a personnel optimization of 10,000 employees to improve organizational efficiency, reflecting ongoing reforms and strategic adjustments across the company.Panasonic Financial Statement Overview
Summary
Panasonic shows stable operational performance with healthy margins but faces challenges in revenue growth and cash flow generation. The balance sheet is strong with balanced leverage, yet declining return on equity and free cash flow growth pose risks.Income Statement
Panasonic's income statement shows a stable gross profit margin of around 31% in the TTM period, indicating efficient cost management. However, the net profit margin has slightly decreased to 4.33%, reflecting some pressure on profitability. The revenue growth rate is negative at -2.66% in the TTM, suggesting a decline in sales. Despite this, the EBIT and EBITDA margins remain healthy, indicating strong operational performance.72
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.33, indicating a balanced capital structure with manageable leverage. The return on equity is 7.74% in the TTM, showing a slight decrease, which may point to reduced efficiency in generating returns for shareholders. The equity ratio stands at approximately 49.5%, reflecting a solid equity base relative to total assets.68
Positive
Cash Flow
The cash flow statement highlights a significant decline in free cash flow growth at -94.38% in the TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is 0.30, indicating that operating cash flows are covering net income adequately. However, the free cash flow to net income ratio is low at 0.03, suggesting limited free cash flow relative to net income.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.23T | 8.46T | 8.50T | 8.38T | 7.39T | 6.70T |
| Gross Profit | 2.60T | 2.63T | 2.49T | 2.26T | 2.08T | 1.97T |
| EBITDA | 902.37B | 920.74B | 845.50B | 718.31B | 731.06B | 597.02B |
| Net Income | 367.04B | 366.20B | 443.99B | 265.50B | 255.33B | 165.08B |
Balance Sheet | ||||||
| Total Assets | 9.27T | 9.34T | 9.41T | 8.06T | 8.02T | 6.85T |
| Cash, Cash Equivalents and Short-Term Investments | 742.18B | 847.56B | 1.12T | 819.50B | 1.21T | 1.59T |
| Total Debt | 1.56T | 1.57T | 1.63T | 1.46T | 1.90T | 1.45T |
| Total Liabilities | 4.50T | 4.47T | 4.69T | 4.27T | 4.68T | 4.08T |
| Stockholders Equity | 4.59T | 4.69T | 4.54T | 3.62T | 3.16T | 2.59T |
Cash Flow | ||||||
| Free Cash Flow | 1.33B | 23.75B | 319.43B | 231.39B | 18.66B | 272.92B |
| Operating Cash Flow | 748.45B | 796.08B | 866.90B | 520.74B | 252.63B | 504.04B |
| Investing Cash Flow | -839.56B | -859.96B | -591.88B | -347.12B | -799.39B | 176.41B |
| Financing Cash Flow | -202.95B | -190.32B | -70.46B | -603.93B | 62.15B | -177.52B |
Panasonic Technical Analysis
Positive
1780.00
Price Trends
1533.95
Positive
1524.07
Positive
1577.44
Positive
Market Momentum
51.21
Negative
75.33
Negative
82.98
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 1780 is above the 20-day moving average (MA) of 1597.18, above the 50-day MA of 1533.95, and above the 200-day MA of 1577.44, indicating a bullish trend. The MACD of 51.21 indicates Negative momentum. The RSI at 75.33 is Negative, neither overbought nor oversold. The STOCH value of 82.98 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $27.45T | 23.62 | 14.70% | 0.50% | -3.84% | 18.55% | |
73 Outperform | $4.04T | 10.79 | 7.89% | 2.25% | -4.14% | 16.99% | |
70 Outperform | €174.43B | 9.32 | 15.38% | 1.41% | 0.31% | 23.47% | |
69 Neutral | $281.17B | 49.29 | 2.56% | 3.71% | -4.66% | -61.05% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥573.22B | 8.87 | ― | ― | -9.17% | ― | |
58 Neutral | $2.85T | 113.80 | 0.81% | 2.48% | -1.48% | -75.67% |
* Technology Sector Average
JP:6752
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JVCKENWOOD Corporation
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Sharp Corporation
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-110.70
-11.10%
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.