Yonex Co (7906) AI Stock Analysis

• Market Cap: ¥280.41B
• Dividend Yield: 0.71%
• Average Volume (3M): 269.71K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.73
• Revenue Growth: 20.06%
• EPS Growth: 17.89%
• Country: JP
• Employees: 2,633
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 24.95
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥3,444.00 ▲(6.63% Upside)

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 Growth

Yonex's strong revenue growth indicates robust demand for its products, enhancing its market position and supporting long-term financial health.

Cash Generation

Efficient cash generation allows Yonex to reinvest in growth opportunities and maintain financial flexibility, supporting sustainable operations.

Balance Sheet Strength

A strong balance sheet with low leverage and high equity ratio provides Yonex with stability and reduces financial risk, enabling long-term resilience.

Negative Factors

Dividend Yield

A low dividend yield may deter income-focused investors and limit the attractiveness of Yonex's stock for those seeking regular income.

Free Cash Flow to Net Income

The need to improve free cash flow relative to net income suggests potential challenges in converting profits into cash, impacting liquidity.

Technical Analysis

Bearish technical indicators may reflect underlying market concerns, potentially affecting investor confidence and stock performance in the near term.

Yonex Co Business Overview & Revenue Model

Company Description

Yonex Co., Ltd. is a leading manufacturer and supplier of sports equipment, primarily focusing on badminton, tennis, and golf. Established in 1946, the company operates in the sporting goods sector, offering a diverse range of products including rackets, strings, shoes, and apparel. Yonex is renowned for its innovation and quality, catering to both amateur and professional athletes worldwide, and is actively involved in sponsoring major tournaments and athletes to enhance its brand presence.

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 with strong revenue growth, effective cost management, low leverage, and impressive equity utilization. The company shows significant improvements in cash generation, positioning it well for future growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: Negative
• Last Price: 3230.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3230 is below the 20-day moving average (MA) of 3346.00, below the 50-day MA of 3660.40, and above the 200-day MA of 3129.92, indicating a neutral trend. The MACD of -136.94 indicates Negative momentum. The RSI at 35.35 is Neutral, neither overbought nor oversold. The STOCH value of 34.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7906.

Yonex Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7839	79 Outperform	¥99.24B	15.38	―	3.24%	-9.58%	-14.06%
8135	78 Outperform	¥8.79B	3.02	―	4.01%	7.77%	247.26%
7740	74 Outperform	¥173.48B	13.67	―	3.48%	-5.65%	-16.35%
7867	63 Neutral	¥244.39B	15.20	―	2.20%	10.50%	27.82%
7906	62 Neutral	¥280.41B	23.98	15.93%	0.71%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7990	61 Neutral	¥46.14B	9.05	―	4.01%	0.74%	41.25%

Yonex Co Corporate Events

Yonex Co. Revises Earnings Forecast Upwards Amid Strong Market Performance

Yonex Co., Ltd. has revised its full-year earnings forecast for the fiscal year ending March 31, 2026, due to strong market performance and favorable currency exchange rates. The company expects higher net sales and profits, driven by robust sports demand and effective marketing strategies, despite increased SG&A expenses from strategic growth investments.

Yonex Co. Reports Strong Financial Growth and Upward Forecast

Yonex Co., Ltd. reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with net sales rising by 18.8% year-on-year to 79,532 million yen. The company also revised its forecast for the fiscal year ending March 31, 2026, anticipating a 17.2% increase in net sales, reflecting its strong market positioning and growth strategy.