Yonex Co (7906) AI Stock Analysis

• Market Cap: ¥329.02B
• Dividend Yield: 0.72%
• Average Volume (3M): 269.71K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.80
• Revenue Growth: 20.06%
• EPS Growth: 17.89%
• Country: JP
• Employees: 2,633
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): N/A
• Shares Outstanding: 92,870,800
• 10 Day Avg. Volume: 219,360
• 30 Day Avg. Volume: 269,713
• PEG Ratio: 0.97
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 28.67
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥4,010.00 ▲(17.77% Upside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Yonex Co's strong financial performance is the most significant factor, showcasing robust revenue growth, effective cost management, and financial stability. However, technical analysis indicates bearish momentum, which negatively impacts the stock score. The valuation suggests moderate pricing, but the low dividend yield limits income potential. Overall, while the company is financially sound, current market conditions and valuation metrics suggest caution.

Positive Factors

Revenue and Margin Strength

Sustained ~18.8% revenue growth paired with high gross and healthy EBIT/net margins signals durable demand and pricing power in core product lines. These margins support reinvestment in R&D, athlete sponsorships and distribution, underpinning competitive positioning over the next several quarters.

Low Leverage & Strong Capital Base

Very low debt and a high equity ratio provide financial flexibility to fund growth, weather downturns, and pursue strategic initiatives without heavy refinancing risk. Above-average ROE indicates effective capital deployment, supporting durable shareholder value creation.

Improving Cash Generation

Robust FCF growth and OCF exceeding net income demonstrate improving cash conversion and operational efficiency. Strong cash generation enables consistent funding for capex, product development and selective shareholder returns, strengthening balance sheet resilience over time.

Negative Factors

Declining EPS

A negative EPS growth rate despite revenue increases points to per-share profit pressure, possibly from higher operating costs, margin mix shifts or share-count effects. Persistent EPS decline can constrain long-term per-share value creation and investor confidence if not addressed.

Cash Conversion Gap

FCF-to-net-income below 1 indicates not all reported earnings convert to cash, exposing the company to working-capital swings and limiting available cash for investments or returns. This structural conversion gap may pressure liquidity and strategic flexibility if persistent.

Cyclical End-Market Exposure

Concentration in discretionary sporting goods, especially racket sports and golf, ties revenue to consumer leisure spending and tournament cycles. This structural cyclicality can produce uneven demand and margin volatility across economic cycles and seasonal patterns over coming quarters.

Yonex Co Business Overview & Revenue Model

Company Description

YONEX Co., Ltd. engages in the manufacture and sale of sporting goods in Japan. The company offers badminton and tennis equipment, including racquets, shuttlecocks, strings, apparel, shoes, bags, balls, etc.; and golf equipment, such as woods, irons, putters, shafts, apparel, shoes, bags, accessories, etc. It is also involved in golf course management activities. The company was founded in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Yonex generates revenue through the sale of a wide array of sporting goods, primarily badminton and tennis equipment. Key revenue streams include the sale of rackets, strings, and footwear, as well as apparel designed for performance and comfort. The company benefits from significant partnerships with professional athletes and sponsorship deals in various sports events, which enhance its brand visibility and drive sales. Additionally, Yonex capitalizes on its strong presence in international markets, leveraging distribution channels and retail partnerships to reach a broader customer base. Seasonal promotions and product launches also contribute to revenue, as the company continually innovates to meet the demands of competitive athletes and enthusiasts alike.

Yonex Co Financial Statement Overview

Summary

Yonex Co demonstrates robust financial health across all verticals. The income statement reveals strong revenue and profit growth, supported by efficient cost management. The balance sheet highlights low leverage and effective equity utilization, while the cash flow statement shows significant improvements in cash generation. Overall, Yonex Co is well-positioned for future growth with a stable financial foundation.

Income Statement

Yonex Co has demonstrated strong revenue growth with a remarkable increase of 18.77% from 2024 to 2025. The company maintains a healthy gross profit margin of 43.69% and a solid net profit margin of 7.66% for 2025. The EBIT margin is 10.25%, indicating effective cost management. EBITDA margin stands at 13.24%, reflecting strong operational efficiency.

Balance Sheet

The company displays a robust balance sheet with a Debt-to-Equity ratio of 0.16, showcasing low leverage. Return on Equity (ROE) is impressive at 15.31%, reflecting effective utilization of equity. The equity ratio is at a healthy 63.17%, indicating a strong equity base. Overall, the balance sheet suggests financial stability and low risk.

Cash Flow

Yonex Co exhibits a strong Free Cash Flow growth rate of 43.15% from 2024 to 2025, signaling efficient cash generation. The Operating Cash Flow to Net Income ratio of 1.23 indicates good cash conversion capabilities. The Free Cash Flow to Net Income ratio is 0.68, suggesting a need for continued focus on improving free cash flow relative to net income.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	147.06B	138.28B	116.44B	107.02B	74.49B	51.55B
Gross Profit	66.78B	60.42B	51.61B	45.91B	33.40B	21.28B
EBITDA	20.93B	18.32B	15.60B	12.50B	9.59B	3.82B
Net Income	12.03B	10.59B	8.86B	7.33B	5.78B	1.10B
Balance Sheet
Total Assets	116.69B	109.55B	91.23B	79.42B	66.30B	55.07B
Cash, Cash Equivalents and Short-Term Investments	29.84B	29.48B	23.55B	16.91B	17.92B	13.27B
Total Debt	13.43B	11.90B	8.80B	5.14B	2.45B	2.58B
Total Liabilities	45.35B	40.12B	30.33B	26.32B	20.57B	15.42B
Stockholders Equity	71.13B	69.20B	60.70B	52.92B	45.61B	39.65B
Cash Flow
Free Cash Flow	0.00	7.18B	5.01B	-1.34B	5.73B	3.50B
Operating Cash Flow	0.00	12.98B	12.49B	2.99B	7.43B	4.54B
Investing Cash Flow	0.00	-5.76B	-7.37B	-4.46B	-2.29B	-1.07B
Financing Cash Flow	0.00	-2.61B	764.00M	-480.00M	-1.96B	-1.28B

Yonex Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3405.00
• 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:7906, the sentiment is Positive. The current price of 3405 is below the 20-day moving average (MA) of 3533.50, above the 50-day MA of 3401.90, and above the 200-day MA of 3398.34, indicating a bullish trend. The MACD of 129.67 indicates Negative momentum. The RSI at 63.24 is Neutral, neither overbought nor oversold. The STOCH value of 50.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7906.

Yonex Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8135	78 Outperform	¥11.55B	12.03	―	3.96%	7.77%	247.26%
7847	75 Outperform	¥4.34B	23.89	―	4.78%	-11.24%	-48.52%
7309	63 Neutral	¥1.44T	43.06	5.92%	1.93%	7.64%	22.13%
7906	62 Neutral	¥329.02B	29.59	15.93%	0.72%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4801	61 Neutral	¥27.61B	24.28	―	1.85%	4.17%	-20.08%
7990	61 Neutral	¥51.04B	10.36	―	3.94%	0.74%	41.25%

Yonex Co Corporate Events

Yonex Releases Q1–Q3 FY2026 Consolidated Results and Updates Outlook

Yonex has released its consolidated financial results for the first three quarters of the fiscal year ending March 31, 2026, outlining performance across its main business segments. The company also provided an updated full-year forecast and highlighted key topics and supplemental information, giving investors a structured view of current operations and expectations for the remainder of the fiscal year.

The most recent analyst rating on (JP:7906) stock is a Hold with a Yen3532.00 price target. To see the full list of analyst forecasts on Yonex Co stock, see the JP:7906 Stock Forecast page.

Yonex Lifts Sales and Keeps Outlook Steady as Earnings Grow

Yonex Co., Ltd. reported strong growth for the nine months ended December 31, 2025, with net sales rising 18.4% year on year to ¥120.47 billion and operating profit up 13.5% to ¥12.93 billion, while profit attributable to owners of the parent increased 3.9% to ¥9.61 billion. The balance sheet also strengthened, as total assets climbed to ¥123.67 billion and net assets to ¥76.69 billion, though the equity ratio edged down.

The company maintained its full-year forecast for the fiscal year ending March 31, 2026, projecting net sales of ¥162 billion and a 9.5% increase in profit attributable to owners of the parent to ¥11.6 billion, implying further earnings growth. Yonex also plans a modest dividend increase, targeting a full-year payout of ¥24 per share versus ¥22 in the previous fiscal year, signaling confidence in its earnings trajectory and returning more cash to shareholders.

The most recent analyst rating on (JP:7906) stock is a Hold with a Yen3532.00 price target. To see the full list of analyst forecasts on Yonex Co stock, see the JP:7906 Stock Forecast page.

Yonex Enhances Shareholder Benefit Program With Higher Online Shop Coupons

Yonex Co., Ltd. has announced a partial revision of its shareholder benefit program, increasing the value of discount coupons for shareholders who own 400 or more shares and use the Yonex Official Online Shop in Japan. From the fiscal year ending March 31, 2026, shareholders with less than three years of continuous ownership will see their annual coupon rise from JPY 3,000 to JPY 5,000, while those holding shares for three years or more will see an increase from JPY 6,000 to JPY 10,000, with all other eligibility terms and program conditions unchanged. The move is positioned as a gesture of appreciation for shareholder support and an incentive for medium- to long-term shareholding, while also potentially boosting traffic and sales through the company’s online channel.

The most recent analyst rating on (JP:7906) stock is a Buy with a Yen3629.00 price target. To see the full list of analyst forecasts on Yonex Co stock, see the JP:7906 Stock Forecast page.

Yonex Strengthens Governance With New Nomination and Compensation Advisory Committee

Yonex Co., Ltd. has revamped its corporate governance structure by establishing a Nomination and Compensation Advisory Committee as a voluntary advisory body to the Board of Directors, expanding the scope of its existing Compensation Advisory Committee to include director nomination matters. The new committee, effective January 22, 2026, is intended to enhance the independence, transparency, objectivity, and accountability of the board in decisions on director and executive officer appointments, dismissals, succession planning, evaluation, and compensation, and will be composed of at least three members with a majority and chair drawn from Independent Outside Directors, underscoring the company’s efforts to strengthen governance and oversight for stakeholders.

The most recent analyst rating on (JP:7906) stock is a Hold with a Yen3532.00 price target. To see the full list of analyst forecasts on Yonex Co stock, see the JP:7906 Stock Forecast page.