Yonex Co (7906) AI Stock Analysis

• Market Cap: $337.71B
• Dividend Yield: 0.54%
• Average Volume (3M): 414.35K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 0.71
• Revenue Growth: 23.05%
• EPS Growth: 31.52%
• Country: JP
• Employees: 2,633
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 49.60
• Shares Outstanding: 92,870,800
• 10 Day Avg. Volume: 292,360
• 30 Day Avg. Volume: 414,350
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 3.89
• Enterprise Value/Ebitda: 12.01
• 1Y Price Target: $3,127.21
• Price Target Upside: -18.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥3,153.00 ▼(-17.57% Downside)

Yonex Co's strong financial performance underpins the stock's score, with robust revenue growth and financial stability. Technical indicators show bullish trends but also highlight overbought conditions, suggesting caution for investors. The valuation component indicates potential overvaluation, tempering the overall score.

Yonex Co Business Overview & Revenue Model

Company Description

Yonex Co., Ltd. (7906) is a global leader in the sports equipment industry, primarily focusing on the production and sale of badminton, tennis, and golf equipment. The company is well-known for its high-quality racquets, shuttlecocks, and other sporting goods, catering to both amateur and professional athletes. Yonex also offers a range of sportswear and accessories, enhancing the performance and style of sports enthusiasts worldwide.

How the Company Makes Money

Yonex Co., Ltd. generates revenue through the design, manufacture, and sale of sporting goods, particularly excelling in the badminton and tennis segments. The company's primary revenue streams include the sale of badminton racquets, shuttlecocks, tennis racquets, and golf clubs. Yonex holds a strong market position by investing in research and development to produce innovative and high-performance products. The company also benefits from sponsorship deals and partnerships with professional athletes and sports events, enhancing its brand visibility and driving sales. Additionally, Yonex's global distribution network and strategic retail partnerships contribute to its earnings by ensuring widespread availability of its products.

Yonex Co Financial Statement Overview

Summary

Yonex Co demonstrates robust financial health with strong revenue and profit growth, low leverage, and effective cash generation. The income statement shows significant revenue growth and healthy profit margins. The balance sheet indicates financial stability with low debt levels, and the cash flow statement highlights improvements in cash generation.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.28B	116.44B	107.02B	74.49B	51.55B
Gross Profit	60.42B	51.61B	45.91B	33.40B	21.28B
EBITDA	18.32B	15.60B	12.50B	9.59B	3.82B
Net Income	10.59B	8.86B	7.33B	5.78B	1.10B
Balance Sheet
Total Assets	109.55B	91.23B	79.42B	66.30B	55.07B
Cash, Cash Equivalents and Short-Term Investments	29.48B	23.55B	16.91B	17.92B	13.27B
Total Debt	11.21B	8.80B	5.14B	1.96B	2.58B
Total Liabilities	40.12B	30.33B	26.32B	20.57B	15.42B
Stockholders Equity	69.20B	60.70B	52.92B	45.61B	39.65B
Cash Flow
Free Cash Flow	7.18B	5.01B	-1.34B	5.73B	3.50B
Operating Cash Flow	12.98B	12.49B	2.99B	7.43B	4.54B
Investing Cash Flow	-5.76B	-7.37B	-4.46B	-2.29B	-1.07B
Financing Cash Flow	-2.61B	764.00M	-480.00M	-1.96B	-1.28B

Yonex Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3825.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3825 is below the 20-day moving average (MA) of 4095.25, above the 50-day MA of 3611.70, and above the 200-day MA of 2674.49, indicating a neutral trend. The MACD of 59.16 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 11.80 is Positive, 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	80 Outperform	9.12B	3.21	20.56%	3.86%	7.24%	216.11%
7839	80 Outperform	99.41B	15.25	24.98%	3.77%	-3.75%	-8.15%
7740	77 Outperform	172.81B	12.67	17.64%	11.92%	2.17%	0.64%
7990	74 Outperform	55.12B	11.25	7.84%	3.33%	0.66%	31.91%
7867	71 Outperform	287.51B	16.67	15.37%	1.76%	17.05%	66.00%
7906	68 Neutral	$337.71B	27.76	18.19%	0.54%	23.05%	31.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Yonex Co Corporate Events

Yonex Co. Reports Strong Financial Growth in Q1 2025

Yonex Co., Ltd. reported a significant increase in its consolidated financial results for the three months ended June 30, 2025, with net sales rising by 28.3% year-on-year. Operating profit saw an impressive growth of 89.1%, and profit attributable to owners of the parent increased by 51.5%. The company also announced a forecasted increase in annual dividends per share for the fiscal year ending March 31, 2026, indicating a positive outlook for stakeholders.

Yonex Co. Announces Disposal of Treasury Stock for Director Compensation

Yonex Co., Ltd. has announced the disposal of 16,700 shares of its treasury stock as part of a restricted stock compensation plan for its directors, excluding external directors. This move aims to align the interests of the directors with those of the shareholders by providing long-term incentives and enhancing value-sharing. The transfer restriction period for these shares is set at 50 years, ensuring that directors remain committed to the company’s growth and stability over the long term.

Yonex Co. Reports Strong Financial Growth and Positive Outlook

Yonex Co., Ltd. reported significant growth in its financial results for the fiscal year ended March 31, 2025, with net sales increasing by 18.8% and operating profit rising by 22.1% compared to the previous year. The company also announced an increase in annual dividends per share and projected continued growth in sales and profits for the next fiscal year, indicating a positive outlook for stakeholders.