Yamaha Motor Co (7272) AI Stock Analysis

• Market Cap: ¥1.18T
• Dividend Yield: 4.17%
• Average Volume (3M): 4.54M
• Price to Earnings (P/E): 74.9
• Beta (1Y): 1.09
• Revenue Growth: -1.83%
• EPS Growth: -89.60%
• Country: JP
• Employees: 54,206
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -28.06
• Shares Outstanding: 1,018,125,100
• 10 Day Avg. Volume: 5,796,340
• 30 Day Avg. Volume: 4,541,630
• PEG Ratio: -0.82
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 44.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 111.75
• Revenue Forecast (FY): ¥2.70T

• Rating: 57 Neutral
• Price Target: ¥1,273.00 ▲(3.12% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weakening earnings and uneven free-cash-flow performance, alongside a very high P/E valuation. These are partially offset by a technically positive price trend above key moving averages and a supportive dividend yield.

Positive Factors

Diversified product portfolio & global channels

Yamaha's broad product mix (motorcycles, marine, power products, industrial equipment) and global dealer/distributor network reduce reliance on any single end market. This structural diversification supports resilient revenue streams across cyclical shifts in consumer and commercial mobility demand.

Multi-year revenue base and gross profit generation

Sustained revenue expansion through 2021–2024 and durable gross-profit generation indicate underlying product demand and manufacturing economics. Even with a 2025 dip, the larger multi-year revenue base provides a platform for recovery and supports long-term margin restoration if cost pressures are addressed.

Reasonable capitalization and historically manageable leverage

Over ¥1.1 trillion of equity and historically sub-1.0 debt-to-equity provide financial flexibility to fund operations, capex and R&D. This capital base helps absorb cyclical earnings swings and supports strategic investments without immediate solvency pressure.

Negative Factors

Sharp profitability deterioration in 2024–2025

A material decline in operating profit, EBITDA and net income signals structural margin pressure or elevated costs. Sustained earnings weakness undermines reinvestment capacity, dividend coverage and the company's ability to stabilize returns absent clear cost or pricing remediation.

Volatile free cash flow conversion

Inconsistent conversion of operating cash into free cash flow—driven by working-capital swings and investment timing—limits predictable funding for buybacks, dividends and capex. Persistent volatility raises execution risk for strategic investments and debt repayment plans.

Rising debt trend reducing financial flexibility

An increase in absolute debt levels during a period of weakening profitability tightens leverage headroom. If earnings do not recover, higher debt raises interest and refinancing risk, constraining capital allocation and potentially necessitating cost cutting or asset sales.

Yamaha Motor Co Business Overview & Revenue Model

Company Description

Yamaha Motor Co., Ltd., together with its subsidiaries, engages in the land mobility, marine products, robotics, and financial services businesses in Japan, North America, Europe, Asia, and internationally. Its Land Mobility segment offers motorcycles, leaning multi-wheelers, all-terrain vehicles, recreational off highway vehicles, snowmobiles, electrically power-assisted bicycles, electric wheelchairs, automobile engines, and automobile components, as well as intermediate parts for products, and knockdown parts. The company's Marine Products segment provides outboard motors, personal watercraft, boats, FRP pools, fishing boats, and utility boats. Its Robotics segment offers surface mounters, semiconductor manufacturing equipment, industrial robots, and industrial-use unmanned helicopters. The company's Financial Services segment provides sales finance and lease related to the company's products. Its Others segment offers golf cars, generators, multi-purpose engines, and snow blowers. Yamaha Motor Co., Ltd. was incorporated in 1918 and is headquartered in Iwata, Japan.

How the Company Makes Money

Yamaha Motor Co. generates revenue through multiple key streams: motorcycle sales, which constitute a significant portion of its earnings; marine products, including outboard motors and personal watercraft; and other motorized products such as ATVs and snowmobiles. The company also earns income from parts and accessories sales, service-related activities, and financial services associated with its products. Significant partnerships with various retailers and distributors globally enhance its market reach. Additionally, Yamaha invests in research and development to innovate and expand its product offerings, driving growth in both existing and emerging markets.

Yamaha Motor Co Financial Statement Overview

Summary

Revenue has grown strongly over 2021–2024, but 2025 revenue dipped and profitability deteriorated sharply in 2024–2025, including a major net income decline. The balance sheet remains reasonably capitalized, though debt has risen recently, and free cash flow has been volatile despite positive operating cash flow.

Income Statement

Revenue expanded strongly from 2021–2024 (with mid-to-high single-digit growth in 2023–2024), but 2025 revenue dipped slightly. Profitability has weakened meaningfully: operating profit and EBITDA fell sharply in 2024–2025, and net income collapsed in 2025 (down dramatically versus 2024), indicating margin pressure and/or higher costs below the operating line. Positives include solid gross profit generation and a multi-year revenue base that remains materially above pre-2021 levels, but the near-term earnings trajectory is the key concern.

Balance Sheet

The balance sheet shows reasonable capitalization with over ¥1.1T of equity in 2024–2025 and a large, stable asset base. Leverage has been manageable historically (debt-to-equity under 1.0 in 2023–2024), but total debt has trended higher in 2024–2025, reducing flexibility if profits remain pressured. Returns on equity were healthy in 2021–2023 and moderated in 2024, consistent with a business moving off peak profitability.

Cash Flow

Cash generation is mixed. Operating cash flow remained positive across the period and was solid in 2024–2025, but free cash flow has been volatile: negative in 2022–2023, strong recovery in 2024, then down in 2025 (and 2025 free cash flow growth is sharply negative). The pattern suggests inconsistent conversion of profits into discretionary cash, likely driven by working-capital swings and/or elevated investment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.53T	2.58T	2.41T	2.25T	1.81T
Gross Profit	784.54B	821.97B	715.35B	633.75B	506.84B
EBITDA	192.17B	280.26B	314.20B	284.69B	253.48B
Net Income	16.11B	108.07B	164.12B	174.44B	155.58B
Balance Sheet
Total Assets	2.90T	2.78T	2.56T	2.18T	1.83T
Cash, Cash Equivalents and Short-Term Investments	398.90B	373.00B	351.46B	299.65B	276.41B
Total Debt	1.04T	951.97B	843.81B	602.69B	458.51B
Total Liabilities	1.70T	1.56T	1.43T	1.13T	932.25B
Stockholders Equity	1.13T	1.16T	1.08T	1.00T	859.23B
Cash Flow
Free Cash Flow	25.34B	60.97B	-29.76B	-18.47B	74.57B
Operating Cash Flow	138.60B	176.85B	80.15B	70.92B	141.34B
Investing Cash Flow	-113.73B	-128.75B	-119.11B	-74.16B	-51.03B
Financing Cash Flow	-2.82B	-46.43B	91.52B	23.10B	-93.49B

Yamaha Motor Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1234.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7272, the sentiment is Positive. The current price of 1234.5 is above the 20-day moving average (MA) of 1167.72, above the 50-day MA of 1184.13, and above the 200-day MA of 1102.10, indicating a bullish trend. The MACD of 20.48 indicates Negative momentum. The RSI at 61.60 is Neutral, neither overbought nor oversold. The STOCH value of 55.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7272.

Yamaha Motor Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7269	74 Outperform	¥4.64T	11.13	12.95%	1.85%	2.99%	9.99%
6201	68 Neutral	¥6.28T	30.27	3.94%	0.78%	2.91%	-11.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7267	59 Neutral	¥5.29T	12.90	5.23%	4.41%	-0.43%	-26.68%
7270	58 Neutral	¥2.12T	20.90	9.73%	3.61%	1.04%	-31.52%
7272	57 Neutral	¥1.18T	74.94	1.38%	4.17%	-1.83%	-89.60%
7201	47 Neutral	¥1.51T	-1.63	-16.69%	―	-3.01%	-755.71%

Yamaha Motor Co Corporate Events

Yamaha Motor to Dispose of Treasury Shares for Performance-Linked Executive Compensation

Yamaha Motor Co., Ltd. plans to dispose of a portion of its treasury shares this fiscal year as part of a performance-linked share compensation program with transfer restrictions, previously approved at its 87th Ordinary General Meeting of Shareholders in 2022. The estimated total payment for treasury shares allocated to directors, executive officers, and fellows is about ¥261.8 million for the current fiscal year, down from approximately ¥292.2 million in the previous year, with final details to be decided at a board meeting scheduled for March 25, 2026.

The move underscores Yamaha Motor’s continued use of equity-based, performance-linked incentives to align management compensation with corporate results and shareholder interests. The slight decrease in the total compensation value versus the prior year may reflect adjustments in performance metrics or participant allocations, and the upcoming board resolution will clarify the scale and specific terms of this year’s share-based awards for key executives and fellows.

The most recent analyst rating on (JP:7272) stock is a Sell with a Yen995.00 price target. To see the full list of analyst forecasts on Yamaha Motor Co stock, see the JP:7272 Stock Forecast page.

Yamaha Motor Earnings Slump as Profit and Margins Weaken in FY2025

Yamaha Motor Co., Ltd. reported a slight 1.6% decline in revenue to ¥2.53 trillion for the fiscal year ended December 31, 2025, while operating profit fell 30.4% and profit attributable to owners of the parent plunged 85.1% year on year. Profitability ratios weakened, with return on equity dropping to 1.4% and the operating margin slipping to 5.0%, and equity attributable to owners of the parent also decreased, signaling pressure on earnings and shareholder returns despite a modest increase in total assets.

The company’s basic earnings per share fell sharply from ¥110.12 to ¥16.59, underscoring the extent of the profit downturn and its impact on investors. Although share of profit from equity-method affiliates increased, it was not enough to offset declines in core profitability, suggesting Yamaha Motor faces a more challenging earnings environment that may weigh on its financial flexibility and valuation in the near term.

The most recent analyst rating on (JP:7272) stock is a Sell with a Yen995.00 price target. To see the full list of analyst forecasts on Yamaha Motor Co stock, see the JP:7272 Stock Forecast page.

Yamaha Motor Slashes 2025 Profit Outlook on Deferred Tax Impact, Eyes Structural Reforms

Yamaha Motor has revised its consolidated forecast for the fiscal year ending December 31, 2025, trimming expected revenue to ¥2.53 trillion while slightly raising operating income to ¥126 billion, but slashing projected net income attributable to owners of the parent to ¥16.5 billion. The steep cut in profit outlook stems from large corporate tax adjustments tied to the reversal of deferred tax assets, triggered by higher costs from additional U.S. tariffs and a shifting business environment at the parent company and its U.S. unit. While near-term earnings will be hit, Yamaha is launching a review of its earnings structure and cost competitiveness, particularly in its U.S. operations, as it works to reinforce its business foundations and improve medium- to long-term profitability and sustainable growth.

The most recent analyst rating on (JP:7272) stock is a Hold with a Yen1385.00 price target. To see the full list of analyst forecasts on Yamaha Motor Co stock, see the JP:7272 Stock Forecast page.

Yamaha Motor Co. Revises Shareholder Benefit Plan to Favor Long-term Investors

Yamaha Motor Co. has announced changes to its shareholder special benefit plan, effective from the fiscal year ending December 31, 2026. The changes aim to enhance the attractiveness of long-term investments by increasing reward points for shareholders with a holding period of three years or more, while discontinuing interim benefits such as the calendar gift.

The most recent analyst rating on (JP:7272) stock is a Hold with a Yen1171.00 price target. To see the full list of analyst forecasts on Yamaha Motor Co stock, see the JP:7272 Stock Forecast page.