DB:SRPB

Stock Analysis Report

Executive Summary

Sharp Corporation manufactures and distributes electronic communication equipment, electronic equipment, electronic application equipment, and electronic components in Japan, the Americas, Europe, China, and internationally.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Sharp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

SRPB

-1.4%

DE Consumer Durables

1.4%

DE Market


1 Year Return

-29.5%

SRPB

-6.4%

DE Consumer Durables

3.8%

DE Market

Return vs Industry: SRPB underperformed the German Consumer Durables industry which returned -6.4% over the past year.

Return vs Market: SRPB underperformed the German Market which returned 3.8% over the past year.


Shareholder returns

SRPBIndustryMarket
7 Day3.2%-1.4%1.4%
30 Day-0.8%-1.2%1.3%
90 Day-7.4%-10.6%3.1%
1 Year-29.5%-29.5%-4.2%-6.4%7.0%3.8%
3 Year-26.9%-26.9%-8.6%-16.3%18.5%8.3%
5 Yearn/a27.0%9.9%42.2%22.9%

Price Volatility Vs. Market

How volatile is Sharp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sharp undervalued compared to its fair value and its price relative to the market?

11.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SRPB (€2.58) is trading above our estimate of fair value (€1.52)

Significantly Below Fair Value: SRPB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SRPB is good value based on its PE Ratio (11.7x) compared to the Consumer Durables industry average (16.9x).

PE vs Market: SRPB is good value based on its PE Ratio (11.7x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: SRPB is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: SRPB is overvalued based on its PB Ratio (3.1x) compared to the DE Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Sharp forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRPB's forecast earnings growth (4% per year) is above the savings rate (0.2%).

Earnings vs Market: SRPB's earnings (4% per year) are forecast to grow slower than the German market (12.6% per year).

High Growth Earnings: SRPB's earnings are forecast to grow, but not significantly.

Revenue vs Market: SRPB's revenue (0.3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: SRPB's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRPB's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has Sharp performed over the past 5 years?

43.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SRPB's earnings have grown significantly by 43.4% per year over the past 5 years.

Accelerating Growth: SRPB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SRPB had negative earnings growth (-5%) over the past year, making it difficult to compare to the Consumer Durables industry average (-21.1%).


Return on Equity

High ROE: Whilst SRPB's Return on Equity (25.35%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: SRPB's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: SRPB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sharp's financial position?


Financial Position Analysis

Short Term Liabilities: SRPB's short term assets (¥1,117.9B) exceeds its short term liabilities (¥903.9B)

Long Term Liabilities: SRPB's short term assets (1,117.9B) exceeds its long term liabilities (675.2B)


Debt to Equity History and Analysis

Debt Level: SRPB's debt to equity ratio (289.4%) is considered high

Reducing Debt: SRPB's debt to equity ratio has reduced from 511% to 289.4% over the past 5 years.

Debt Coverage: SRPB's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: SRPB's interest payments on its debt are well covered by EBIT (283.4x coverage).


Balance Sheet

Inventory Level: SRPB has a high level of physical assets or inventory.

Debt Coverage by Assets: SRPB's debt is covered by short term assets (assets are 1.444800x debt).


Next Steps

Dividend

What is Sharp's current dividend yield, its reliability and sustainability?

1.58%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.5%markettop25%3.8%industryaverage3.3%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SRPB's dividend (1.58%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: SRPB's dividend (1.58%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: SRPB's dividend payments have been volatile in the past 10 years.

Growing Dividend: SRPB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.5%), SRPB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Sharp's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Jeng-Wu Tai (66yo)

3.2yrs

Tenure

0

Mr. Jeng-Wu Tai has been the Chief Executive Officer and President of Sharp Corporation since August 16, 2016 and its Chairman since June 2018. Mr. Tai serves as President of Shenzhen Fujun Material Techno ...


Management Age and Tenure

3.3yrs

Average Tenure

Experienced Management: SRPB's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

0.8yrs

Average Tenure

Experienced Board: SRPB's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Bob Ishida (60yo)

    Executive VP

    • Tenure: 1.3yrs
  • Jim Sanduski

    President of Sharp Home Electronics Company of America

    • Tenure: 0yrs
  • Fujikazu Nakayama

    Sr. Exe. Managing Officer

    • Tenure: 9.8yrs
  • Katsuaki Nomura

    EVP, Head of Corp. Strategic Planning & Control Group

    • Tenure: 0yrs
  • Jeng-Wu Tai (66yo)

    Chairman

    • Tenure: 3.2yrs
  • Satoshi Sakakibara

    Exec. Officer

    • Tenure: 0yrs
  • Yoshihiro Hashimoto

    Executive Managing Officer

    • Tenure: 4yrs
  • Chien-Erh Wang

    Executive Managing Officer

    • Tenure: 0yrs
  • Michael Kelly

    Senior Vice President of Sharp Manufacturing Company of America

    • Tenure: 2.3yrs

Board Members

  • Bob Ishida (60yo)

    Executive VP

    • Tenure: 1.3yrs
  • Katsuaki Nomura

    EVP, Head of Corp. Strategic Planning & Control Group

    • Tenure: 0yrs
  • Jeng-Wu Tai (66yo)

    Chairman

    • Tenure: 3.2yrs
  • Yasuo Himeiwa

    Outside Director

    • Tenure: 0yrs
  • Hsu-Tung Lu

    Outside Director

    • Tenure: 0yrs
  • Kwok-Fai Woo

    Director

    • Tenure: 0.8yrs
  • Chung-Cheng Lin

    Director

    • Tenure: 0.8yrs
  • Wei-Ming Chen

    Director

    • Tenure: 0.8yrs
  • Youichi Tsusue

    Director

    • Tenure: 0.8yrs

Company Information

Sharp Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sharp Corporation
  • Ticker: SRPB
  • Exchange: DB
  • Founded: 1912
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: JP¥770.890b
  • Listing Market Cap: JP¥6.377b
  • Shares outstanding: 610.85m
  • Website: https://www.sharp-world.com

Number of Employees


Location

  • Sharp Corporation
  • 1 Takumi-cho
  • Sakai-ku
  • Sakai
  • Osaka
  • 590-8522
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHCA.YOTCPK (Pink Sheets LLC)UNSP ADR EA REP 0.25 ORD (POST REV SPLT)USUSDJan 1980
SRPBDB (Deutsche Boerse AG)UNSP ADR EA REP 0.25 ORD (POST REV SPLT)DEEURJan 1980
SHCA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6753TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
SRPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Sharp Corporation manufactures and distributes electronic communication equipment, electronic equipment, electronic application equipment, and electronic components in Japan, the Americas, Europe, China, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 21:51
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.