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Panasonic Corporation (JP:6752)
:6752
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Panasonic
(OTC:6752)
68Neutral
Positive Factors
Analyst's Recommendation
Analyst raises estimates and price target, upgrading to BUY.
Earnings
2Q Group OP was ¥132b, which was a significant increase of 29.1% year over year and exceeded the consensus.
Restructuring
Panasonic’s restructuring shows promise with a disciplined top-down cost focus, hyperscaler battery business growth, and governance changes.
Negative Factors
Past Performance
The company's inconsistent past and overly diversified portfolio warrant caution.
Panasonic (6752) vs. S&P 500 (SPY)
Market Cap
$3.55T
Dividend Yield2.6%
Average Volume (3M)9.26M
Price to Earnings (P/E)10.7
Beta (1Y)1.10
Revenue Growth1.72%
EPS Growth-33.60%
CountryJP
Employees208,431
SectorTechnology
Sector Strength46
IndustryConsumer Electronics
Share Statistics
EPS (TTM)142.74
Shares Outstanding2,454,446,500
10 Day Avg. Volume8,670,870
30 Day Avg. Volume9,255,056
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2,321.33Price Target Upside52.67% 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
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 8.60T | 8.50T | 8.38T | 7.39T | 6.70T | 7.49T | Gross Profit |
| 2.61T | 2.49T | 2.26T | 2.08T | 1.97T | 2.15T | EBIT |
| 413.31B | 390.00B | 288.57B | 357.53B | 258.60B | 293.75B | EBITDA |
| 848.80B | 845.50B | 718.31B | 731.06B | 615.19B | 698.09B | Net Income Common Stockholders |
| 333.22B | 443.99B | 265.50B | 255.33B | 165.08B | 225.71B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.26T | 1.35T | 989.16B | 1.42T | 1.74T | 1.16T | Total Assets |
| 9.70T | 9.41T | 8.06T | 8.02T | 6.85T | 6.22T | Total Debt |
| 1.60T | 1.63T | 1.46T | 1.90T | 1.45T | 1.47T | Net Debt |
| 533.97B | 506.65B | 637.61B | 691.41B | -145.80B | 454.81B | Total Liabilities |
| 4.59T | 4.69T | 4.27T | 4.68T | 4.08T | 4.06T | Stockholders Equity |
| 4.91T | 4.54T | 3.62T | 3.16T | 2.59T | 2.00T |
| Cash Flow | Free Cash Flow | ||||
| 189.34B | 219.70B | 150.86B | -45.15B | 207.61B | 85.02B | Operating Cash Flow |
| 971.30B | 866.90B | 520.74B | 252.63B | 504.04B | 430.30B | Investing Cash Flow |
| -876.35B | -591.88B | -344.03B | -796.15B | 176.60B | -206.10B | Financing Cash Flow |
| -163.22B | -70.46B | -607.01B | 58.91B | -177.70B | 48.22B |
Panasonic Technical Analysis
Negative
1520.50
Price Trends
1730.08
Negative
1633.01
Negative
1434.62
Positive
Market Momentum
-69.67
Positive
42.05
Neutral
65.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6752, the sentiment is Negative. The current price of 1520.5 is below the 20-day moving average (MA) of 1605.05, below the 50-day MA of 1730.08, and above the 200-day MA of 1434.62, indicating a neutral trend. The MACD of -69.67 indicates Positive momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 65.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6752.
Panasonic Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥20.45T | 17.92 | 14.40% | 0.53% | 9.56% | 26.52% | |
71 Outperform | ¥15.37T | 26.97 | 10.16% | 1.19% | -4.69% | -27.45% | |
69 Neutral | $5.30T | 16.77 | 19.16% | 0.95% | 0.40% | 152.61% | |
68 Neutral | $3.55T | 10.65 | 7.23% | 2.60% | 1.72% | -33.60% | |
67 Neutral | €5.27T | 15.06 | 9.27% | 1.98% | 4.88% | 34.48% | |
59 Neutral | $9.97B | 10.09 | -6.45% | 3.08% | 7.41% | -11.59% | |
44 Neutral | ¥541.67B | ― | ― | -5.57% | 38.15% |
* Technology Sector Average
Performance Comparison
JP:6752
Panasonic
1,550.50
194.09
14.31%
JP:6753
Sharp Corporation
835.50
4.50
0.54%
JP:6503
Mitsubishi Electric
2,557.50
115.43
4.73%
JP:6501
Hitachi,Ltd.
3,520.00
803.40
29.57%
JP:6758
Sony
3,537.00
984.64
38.58%
JP:6702
Fujitsu
2,941.00
443.87
17.78%
Panasonic Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 0.60% | Next Earnings Date: May 8, 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.Highlights
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.
Lowlights
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.