Want to see JP:7951 full AI Analyst Report?
Top Page
Yamaha
(7951)
Select Model
Select Model
Rating:73Outperform
Price Target:
¥1,388.00
▲(15.33% Upside)
Action:Upgraded
Date:08/05/26
The score is driven primarily by strong financial resilience (very low leverage) and improving recent free-cash-flow generation, supported by a constructive technical uptrend (price above major moving averages with positive MACD). These positives are tempered by a somewhat expensive valuation (P/E ~23.6) and profitability/cash-flow volatility versus prior peak margins.
Positive Factors
Very low leverage / strong balance sheet
A conservatively financed balance sheet with debt-to-equity near 0.03–0.04 provides durable financial flexibility. This reduces downside risk in downturns, supports sustained capex, R&D and dividend capacity, and enables opportunistic M&A or reinvestment without stressing liquidity.
Negative Factors
Profitability volatility and lower net margins
Net margin falling to ~5.1% from prior ~8.5–9.1% signals structural pressure on earnings quality. Persistent margin compression or recurring cost/mix headwinds could constrain sustainable earnings, limit ROE expansion, and reduce cash available for reinvestment or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
A conservatively financed balance sheet with debt-to-equity near 0.03–0.04 provides durable financial flexibility. This reduces downside risk in downturns, supports sustained capex, R&D and dividend capacity, and enables opportunistic M&A or reinvestment without stressing liquidity.
Read all positive factors
Yamaha (7951) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥611.63B
Dividend Yield1.85%
Average Volume (3M)1.38M
Price to Earnings (P/E)19.6
Beta (1Y)0.81
Revenue Growth5.28%
EPS Growth442.85%
CountryJP
Employees17,886
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)71.74
Shares Outstanding463,000,000
10 Day Avg. Volume1,399,630
30 Day Avg. Volume1,375,016
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)1.04
Price to Sales (P/S)1.07
P/FCF Ratio15.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)68.47
Revenue Forecast (FY)¥486.05B
Yamaha Business Overview & Revenue Model
Company Description
Yamaha Corporation (7951) is a Japan-based manufacturer engaged in the development, production, and sale of musical instruments and audio-related products, as well as related services. The company’s core offerings include a broad range of musical ...
How the Company Makes Money
Yamaha makes money primarily by selling products across its musical instruments and audio businesses through global distribution channels. Key revenue streams include (1) Musical Instruments: sales of instruments and related accessories to individ...
Yamaha Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Negative
The earnings call highlighted positive net profit forecasts and growth in certain musical instrument categories, alongside new product launches. However, significant challenges were noted, including revenue declines, impacts from tariffs and exchange rates, and weak sales in key areas such as pianos and audio equipment. The sentiment of the call reflects a cautious outlook due to these substantial challenges.Positive Updates
Positive Net Profit Forecast
Net profit is forecasted to be JPY 22.5 billion, which represents an increase of JPY 9.1 billion year-on-year.
Negative Updates
Revenue Decline
Revenue was JPY 103.9 billion, declining 7.4% year-on-year, with a 2.8% decline when excluding the impact of exchange rates.
Read all updates
Q1-2026 Updates
Positive
Negative
Positive Net Profit Forecast
Net profit is forecasted to be JPY 22.5 billion, which represents an increase of JPY 9.1 billion year-on-year.
Read all positive updates
Company Guidance
During the call discussing the financial results for the first quarter of the fiscal year ending March 2026, several key metrics were highlighted. Revenue for the quarter was reported at JPY 103.9 billion, with a core operating profit of JPY 4.7 billion, resulting in an operating profit (OP) ratio of 4.5%. The net profit was JPY 2.4 billion, although this represented a decrease of JPY 7 billion year-on-year. The revenue declined by 7.4% compared to the previous year, but when excluding exchange rate impacts, the decline was 2.8%. For the full fiscal year, revenue is forecasted at JPY 452 billion, a decrease of JPY 10.1 billion year-on-year, with the core operating profit expected to be JPY 32 billion, down JPY 4.7 billion from the previous year. The OP ratio is projected at 7.1%, while net profit is forecasted to increase by JPY 9.1 billion to JPY 22.5 billion. The call also outlined expectations for business segments, with the musical instruments business projected to generate JPY 293 billion in revenue and the audio equipment business JPY 139 billion, each reflecting varying profit ratios. Despite challenges such as the appreciation of the yen, additional U.S. tariffs, and a decline in high-margin PA product sales, the company is implementing countermeasures and strategic investments to mitigate these impacts.Yamaha Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 477.75B | 465.30B | 462.08B | 462.87B | 451.41B | 408.20B |
| Gross Profit | 183.13B | 174.97B | 169.42B | 165.29B | 166.00B | 149.80B |
| EBITDA | 62.07B | 56.54B | 44.54B | 59.21B | 70.26B | 70.73B |
| Net Income | 32.03B | 23.70B | 13.35B | 29.64B | 38.18B | 37.27B |
Balance Sheet | ||||||
| Total Assets | 638.95B | 617.57B | 591.28B | 666.84B | 594.21B | 580.66B |
| Cash, Cash Equivalents and Short-Term Investments | 120.91B | 108.95B | 99.82B | 101.59B | 103.89B | 172.50B |
| Total Debt | 23.45B | 16.65B | 19.96B | 17.93B | 17.67B | 27.90B |
| Total Liabilities | 144.41B | 137.83B | 141.16B | 155.02B | 136.26B | 163.79B |
| Stockholders Equity | 493.13B | 478.35B | 448.83B | 510.59B | 456.84B | 415.71B |
Cash Flow | ||||||
| Free Cash Flow | 43.30B | 31.65B | 32.35B | 20.92B | -35.57B | 21.49B |
| Operating Cash Flow | 56.94B | 45.78B | 55.28B | 43.84B | -14.84B | 36.02B |
| Investing Cash Flow | -11.72B | -7.91B | 8.11B | -15.90B | -21.56B | 43.71B |
| Financing Cash Flow | -39.93B | -37.77B | -63.14B | -37.26B | -35.29B | -44.43B |
Yamaha Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥3.47T | 22.81 | 16.78% | 1.99% | 9.12% | 16.20% | |
73 Outperform | ¥611.63B | 19.60 | 5.11% | 2.16% | 5.28% | 442.85% | |
72 Outperform | ¥322.92B | 26.21 | ― | 1.81% | 7.38% | -27.18% | |
71 Outperform | ¥191.04B | 12.11 | ― | 3.40% | 4.38% | -13.98% | |
64 Neutral | ¥112.05B | 77.09 | ― | 4.18% | 8.43% | -75.93% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | ¥30.60B | 26.95 | ― | 2.82% | -2.40% | 129.98% |
* Consumer Cyclical Sector Average
JP:7951
Yamaha
1,406.00
441.20
45.73%
JP:7832
BANDAI NAMCO Holdings
5,429.00
56.13
1.04%
JP:7458
Daiichikosho Co., Ltd.
1,816.00
173.76
10.58%
JP:7867
Tomy Company, Ltd.
3,672.00
329.68
9.86%
JP:7944
Roland Corporation
4,250.00
1,128.73
36.16%
JP:7952
Kawai Musical Instruments Manufacturing Co., Ltd.
3,575.00
1,097.98
44.33%
Yamaha Corporate Events
Yamaha Lifts Net Income Outlook as Digital Instruments and Weak Yen Boost Q1
Aug 4, 2026
Yamaha reported higher first‑quarter revenue for the fiscal year ending March 2027, supported by recovering musical instrument demand and a weaker yen that boosted overseas sales. Core operating profit also rose, driven by a richer product m...
Yamaha Delivers Strong Q1 but Holds FY Outlook Amid Cost and Geopolitical Risks
Aug 4, 2026
Yamaha reported a robust start to the fiscal year ending March 2027, with first quarter revenue up 12.0% to ¥116.3 billion and core operating profit nearly doubling to ¥9.3 billion, aided by solid demand for musical instruments in Wester...
Yamaha Delivers Strong Q1 Rebound and Raises Full-Year Profit Outlook
Aug 4, 2026
Yamaha Corporation reported a sharp rebound in performance for the first quarter of the fiscal year ending March 31, 2027, as revenue rose 12.0% year on year to ¥116.3 billion and core operating profit nearly doubled. Operating profit and pro...
Yamaha Says UK Collective Damages Lawsuit Over Instrument Pricing Dismissed
Jul 15, 2026
Yamaha Corporation announced that a UK collective proceedings lawsuit seeking damages over alleged resale price maintenance involving its subsidiary Yamaha Music Europe GmbH has been dismissed, after the proposed class representative withdrew the ...
Yamaha Revamps Board and Committees Ahead of June Shareholders’ Meeting
May 11, 2026
Yamaha Corporation has announced changes to its board of directors ahead of the 202nd Ordinary General Shareholders’ Meeting on June 29, 2026, appointing Chartered Governance Institute Global Director General Kerrie Waring as a new outside d...
Yamaha Holds Revenue Steady but Sees Profit Squeeze, Targets Growth in FY2027
May 11, 2026
Yamaha reported that for the fiscal year ended March 31, 2026, overall revenue held steady as recovering musical instrument sales and a weaker yen offset soft demand in China and reduced appetite for professional audio equipment in Europe and the ...
Yamaha Balances Profit Rebound with Margin Pressure as It Targets Renewed Growth
May 11, 2026
Yamaha reported a modest 0.7% rise in annual revenue to ¥465.3 billion for the year ended March 31, 2026, driven by stronger guitar and digital instrument sales that offset weaker piano demand in China and a normalization of professional audi...
Yamaha boosts profit and equity base despite weaker core margins
May 11, 2026
Yamaha reported fiscal 2026 revenue of ¥465.3 billion, up 0.7% year on year, while core operating profit fell 13.2% to ¥31.9 billion as margins tightened. Nonetheless, operating profit surged 41.5% and profit before income taxes climbed ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.