Panasonic Holdings (TSE:6752) - Share price, News & Analysis

Q: What is the Fair Price of 6752 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6752 (¥1124.5) is trading below our estimate of [[fair value]] (¥1524.44)

6752 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

6752 Stock Overview

Panasonic Holdings Corporation, together with its subsidiaries, develops, manufactures, sells, and services various electrical and electronic products worldwide.

Rewards

Trading at 26.2% below our estimate of its fair value

Earnings are forecast to grow 5.61% per year

Earnings grew by 54.7% over the past year

Risk Analysis

Dividend of 2.67% is not well covered by earnings

Panasonic Holdings Competitors

Sharp

TSE:6753

JP¥640.8b

Nikon

TSE:7731

JP¥601.2b

Sony Group

TSE:6758

JP¥14.3t

Casio ComputerLtd

TSE:6952

JP¥316.5b

Price History & Performance

Summary of all time highs, changes and price drops for Panasonic Holdings
Historical stock prices
Current Share Price	JP¥1,124.50
52 Week High	JP¥1,541.00
52 Week Low	JP¥1,018.50
Beta	0.98
1 Month Change	-6.17%
3 Month Change	-5.39%
1 Year Change	-12.52%
3 Year Change	21.20%
5 Year Change	-25.75%
Change since IPO	-24.53%

Shareholder Returns

	6752	JP Consumer Durables	JP Market
7D	1.5%	2.3%	3.1%
1Y	-12.5%	-0.9%	-3.5%

Return vs Industry: 6752 underperformed the JP Consumer Durables industry which returned -2.5% over the past year.

Return vs Market: 6752 underperformed the JP Market which returned -4.7% over the past year.

Price Volatility

Is 6752's price volatile compared to industry and market?
6752 volatility
6752 Average Weekly Movement	3.2%
Consumer Durables Industry Average Movement	3.7%
Market Average Movement	4.2%
10% most volatile stocks in JP Market	8.4%
10% least volatile stocks in JP Market	2.2%

Stable Share Price: 6752 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6752's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1918	240,198	Yuki Kusumi	https://holdings.panasonic/global

Panasonic 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.

Panasonic Holdings Fundamentals Summary

How do Panasonic Holdings's earnings and revenue compare to its market cap?
6752 fundamental statistics
Market Cap	JP¥2.62t
Earnings (TTM)	JP¥255.33b
Revenue (TTM)	JP¥7.39t

10.3x

P/E Ratio

0.4x

P/S Ratio

Is 6752 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6752 income statement (TTM)
Revenue	JP¥7.39t
Cost of Revenue	JP¥5.31t
Gross Profit	JP¥2.08t
Other Expenses	JP¥1.83t
Earnings	JP¥255.33b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	109.40
Gross Margin	28.18%
Net Profit Margin	3.45%
Debt/Equity Ratio	48.7%

How did 6752 perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

27%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6752 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6752?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6752. This is calculated by dividing 6752's market cap by their current preferred multiple.
What is 6752's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥2.62t

6752 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	4.6x
PEG Ratio	1.8x

Price to Earnings Ratio vs Peers

How does 6752's PE Ratio compare to its peers?

6752 PE Ratio vs Peers

The above table shows the PE ratio for 6752 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.4x
6753 Sharp	7.5x	-8.5%	JP¥640.8b
7731 Nikon	14.1x	4.3%	JP¥601.2b
6758 Sony Group	16.3x	6.4%	JP¥14.3t
6952 Casio ComputerLtd	19.9x	13.3%	JP¥316.5b
6752 Panasonic Holdings	10.3x	5.6%	JP¥2.6t

Forward PE

Price-To-Earnings vs Peers: 6752 is good value based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (14.4x).

Price to Earnings Ratio vs Industry

How does 6752's PE Ratio compare vs other companies in the JP Consumer Durables Industry?

Price-To-Earnings vs Industry: 6752 is expensive based on its Price-To-Earnings Ratio (10.3x) compared to the JP Consumer Durables industry average (8.5x)

Price to Earnings Ratio vs Fair Ratio

What is 6752's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6752 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.3x
Fair PE Ratio	18.9x

Price-To-Earnings vs Fair Ratio: 6752 is good value based on its Price-To-Earnings Ratio (10.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

Share Price vs Fair Value

What is the Fair Price of 6752 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6752 (¥1124.5) is trading below our estimate of fair value (¥1524.44)

Significantly Below Fair Value: 6752 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 6752 is poor value based on its PEG Ratio (1.8x)

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Future Growth

How is Panasonic Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6752's forecast earnings growth (5.6% per year) is above the savings rate (0.02%).

Earnings vs Market: 6752's earnings (5.6% per year) are forecast to grow slower than the JP market (8.9% per year).

High Growth Earnings: 6752's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6752's revenue (2.9% per year) is forecast to grow slower than the JP market (4.5% per year).

High Growth Revenue: 6752's revenue (2.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6752's Return on Equity is forecast to be low in 3 years time (8.4%).

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Past Performance

How has Panasonic Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6752 has high quality earnings.

Growing Profit Margin: 6752's current net profit margins (3.5%) are higher than last year (2.5%).

Past Earnings Growth Analysis

Earnings Trend: 6752's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: 6752's earnings growth over the past year (54.7%) exceeds its 5-year average (5% per year).

Earnings vs Industry: 6752 earnings growth over the past year (54.7%) exceeded the Consumer Durables industry 24.1%.

Return on Equity

High ROE: 6752's Return on Equity (7.9%) is considered low.

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Financial Health

How is Panasonic Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6752's short term assets (¥4,031.2B) exceed its short term liabilities (¥3,065.5B).

Long Term Liabilities: 6752's short term assets (¥4,031.2B) exceed its long term liabilities (¥1,610.9B).

Debt to Equity History and Analysis

Debt Level: 6752's net debt to equity ratio (6.4%) is considered satisfactory.

Reducing Debt: 6752's debt to equity ratio has reduced from 62.3% to 48.7% over the past 5 years.

Debt Coverage: 6752's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: 6752 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6752's dividend (2.67%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 6752's dividend (2.67%) is low compared to the top 25% of dividend payers in the JP market (3.71%).

Stability and Growth of Payments

Stable Dividend: 6752's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6752's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.4%), 6752's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (375.2%), 6752's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure

CEO

Yuki Kusumi

1.17yrs

Tenure

Mr. Yuki Kusumi serves as Director at Panasonic Connect Co., Ltd. (formerly known as Connected Solutions Company). He serves as Group Chief Strategy Officer at Panasonic Holdings Corporation (formerly know...

Leadership Team

Experienced Management: 6752's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: 6752's board of directors are considered experienced (5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31