Yamaha (7951) AI Stock Analysis

• Market Cap: ¥526.54B
• Dividend Yield: 2.39%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.85
• Revenue Growth: -4.47%
• EPS Growth: -4.52%
• Country: JP
• Employees: 19,134
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 5.26
• Shares Outstanding: 503,000,000
• 10 Day Avg. Volume: 1,352,670
• 30 Day Avg. Volume: 1,744,936
• PEG Ratio: -0.79
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 17.31
• 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: ¥1,099.69
• Price Target Upside: 11.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 52.12
• Revenue Forecast (FY): ¥446.83B

• Rating: 68 Neutral
• Price Target: ¥1,176.00 ▲(18.70% Upside)

Yamaha's stock score is primarily driven by its solid financial stability and positive technical indicators. However, concerns about declining revenue and high valuation metrics temper the overall score. The absence of earnings call insights or notable corporate events means these factors did not influence the score.

Positive Factors

Financial Stability

Yamaha's low debt levels indicate conservative financial management, providing stability and flexibility to invest in growth opportunities.

Cash Generation

Improved cash generation enhances Yamaha's ability to fund operations, invest in new projects, and return value to shareholders.

Gross Profit Margin

A strong gross profit margin indicates efficient production and pricing strategies, supporting long-term profitability.

Negative Factors

Revenue Decline

Declining revenue poses a risk to future profitability and market position, necessitating strategic adjustments to reverse the trend.

Net Profit Margin

A declining net profit margin indicates challenges in cost management or pricing, potentially impacting long-term earnings.

Earnings Conversion

Low conversion of earnings into cash suggests potential issues in cash flow management, which could affect liquidity and investment capacity.

Yamaha Business Overview & Revenue Model

Company Description

Yamaha Corporation (7951) is a diversified multinational company based in Japan, primarily known for its production of musical instruments, audio equipment, and electronics. Founded in 1887, Yamaha operates in several sectors including musical instruments, audio and visual equipment, and lifestyle products. Its core products include pianos, guitars, synthesizers, and a wide range of professional audio equipment, as well as musical software and services. Additionally, the company has a presence in the marine and robotics industries, further broadening its product offerings.

How the Company Makes Money

Yamaha generates revenue through multiple key streams. The largest share comes from its musical instruments division, which includes both traditional instruments like pianos and modern electronic instruments such as keyboards and synthesizers. The audio equipment segment, offering professional audio products, home theater systems, and portable audio devices, also contributes significantly to its earnings. Furthermore, Yamaha earns revenue from its AV (Audio-Visual) products, including receivers and sound systems. The company also benefits from licensing agreements and partnerships in music education and software development, which provide additional revenue opportunities. Seasonal sales, particularly during the holiday season, and the growth of online sales channels further enhance its revenue generation capabilities.

Yamaha Financial Statement Overview

Summary

Yamaha's financial statements reflect a company with strong balance sheet fundamentals but facing challenges in profitability and cash flow generation. The decline in revenue and profit margins, coupled with reduced cash flow growth, suggests potential headwinds. However, the low leverage and solid equity base provide a cushion against financial volatility.

Income Statement

Yamaha's income statement shows a stable gross profit margin around 38%, indicating consistent cost management. However, the net profit margin has decreased significantly in the TTM period to 2.89% from previous years, reflecting reduced profitability. Revenue growth has been negative recently, which is a concern for future earnings potential. The EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.044, indicating conservative leverage. Return on equity has decreased to 2.74% in the TTM period, reflecting lower profitability. The equity ratio remains healthy, suggesting a solid financial foundation with a high proportion of equity financing.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio is stable, but the free cash flow to net income ratio has decreased, indicating less cash being generated relative to net income. This could impact future investment and dividend capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	450.31B	462.08B	462.87B	451.41B	408.20B	372.63B
Gross Profit	165.62B	176.14B	171.08B	166.00B	149.80B	138.00B
EBITDA	53.68B	46.82B	59.21B	70.26B	70.73B	54.79B
Net Income	17.84B	13.35B	29.64B	38.18B	37.27B	26.61B
Balance Sheet
Total Assets	598.44B	591.28B	666.84B	594.25B	580.66B	557.62B
Cash, Cash Equivalents and Short-Term Investments	111.81B	105.02B	106.45B	103.89B	172.50B	129.34B
Total Debt	21.52B	19.96B	17.93B	17.67B	27.90B	28.53B
Total Liabilities	137.16B	141.17B	155.03B	136.30B	163.79B	160.66B
Stockholders Equity	460.07B	448.83B	510.59B	456.84B	415.71B	395.96B
Cash Flow
Free Cash Flow	32.52B	32.35B	20.92B	-35.57B	21.49B	45.65B
Operating Cash Flow	50.93B	55.28B	43.84B	-14.84B	36.02B	58.23B
Investing Cash Flow	-7.51B	8.11B	-15.90B	-21.56B	43.71B	-5.79B
Financing Cash Flow	-54.94B	-63.14B	-37.26B	-35.29B	-44.43B	-20.60B

Yamaha Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 990.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7951, the sentiment is Positive. The current price of 990.7 is below the 20-day moving average (MA) of 1067.78, below the 50-day MA of 1034.24, and below the 200-day MA of 1027.58, indicating a bullish trend. The MACD of 13.32 indicates Positive momentum. The RSI at 59.65 is Neutral, neither overbought nor oversold. The STOCH value of 53.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7951.

Yamaha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7944	75 Outperform	¥93.35B	13.46	―	4.76%	-1.25%	9.33%
7951	68 Neutral	¥526.54B	28.68	3.68%	2.39%	-4.47%	-4.52%
7309	65 Neutral	$1.44T	28.97	5.92%	1.94%	7.64%	22.13%
7867	63 Neutral	¥245.06B	15.24	―	2.19%	10.50%	27.82%
7906	62 Neutral	¥278.24B	23.79	15.93%	0.72%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7952	56 Neutral	¥20.86B	26.16	―	3.91%	-5.25%	-4.95%

Yamaha Corporate Events

Yamaha Announces Progress in Treasury Stock Acquisition

Yamaha Corporation has announced the acquisition of 3,136,500 treasury shares, amounting to approximately ¥3.3 billion, as part of its ongoing share buyback program. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 20 million shares, representing 4.4% of outstanding shares, with a maximum budget of ¥15 billion, aimed at enhancing shareholder value and optimizing capital structure.

Yamaha Announces Strategic Acquisition of Treasury Stock

Yamaha Corporation has announced its decision to acquire up to 20 million shares of its own stock, representing 4.4% of its outstanding shares, with a maximum acquisition cost of ¥15 billion. This move aims to enhance shareholder returns and improve capital efficiency, reflecting Yamaha’s strategic focus on optimizing its financial structure and delivering value to its stakeholders.

Yamaha Faces Revenue and Profit Decline Amid Market Challenges

Yamaha Corporation reported a decline in revenue and core operating profit for the first half of FY2026.3, attributed to sluggish market conditions in China, reduced demand for professional audio equipment, and a delayed recovery in Europe. The company anticipates continued challenges for the full fiscal year, with expectations of declining revenue and profit due to ongoing U.S. tariffs and unfavorable product and regional sales mix.

Yamaha Adjusts Full-Year Forecast Despite Q2 Revenue Dip

Yamaha Corporation reported a decrease in revenue and core operating profit for the second quarter of the fiscal year ending March 2026, primarily due to lower piano sales in China and a slowdown in demand for professional audio equipment. Despite these challenges, the company revised its full-year earnings forecast upwards, driven by increased sales of musical instruments in North America and favorable exchange rate revisions, indicating a positive outlook for the remainder of the fiscal year.

Yamaha Reports Q2 FY2026 Financial Results with Increased Profitability

Yamaha Corporation reported its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026, showing a decrease in revenue by 5.2% compared to the previous year. Despite the drop in revenue, the company experienced a significant increase in interim profit before income taxes by 56.6%, indicating improved profitability. The company also highlighted a 3-for-1 stock split that took place in October 2024, affecting earnings per share calculations. The financial forecast for the fiscal year 2026 anticipates a slight decline in revenue but a substantial increase in profit attributable to owners of the parent, suggesting a focus on enhancing operational efficiency.