Yamaha Corporation (JP:7951)
:7951
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Yamaha
(7951)
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Rating:67Neutral
Price Target:
¥1,267.00
▲(27.89% Upside)
Action:ReiteratedDate:02/06/26
The score is driven primarily by mixed financial performance: strong solvency and sharp TTM revenue growth are offset by lower margins, reduced ROE, and softer/volatile cash flow. Technicals are supportive with a clear uptrend and positive momentum, but valuation is a headwind due to an elevated P/E relative to current profitability.
Positive Factors
Conservative balance sheet
Very low leverage (debt-to-equity ~0.09) and a large equity base give Yamaha durable financial flexibility. This conservative capital structure supports investment, M&A optionality, and resilience through industry cycles, reducing solvency risk and funding constraints.
Negative Factors
Margin compression
Material decline in operating and net margins versus prior years indicates weaker profitability or adverse mix/cost pressure. Persistently lower margins reduce retained earnings for reinvestment and make earnings more sensitive to revenue swings, challenging long-term return sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage (debt-to-equity ~0.09) and a large equity base give Yamaha durable financial flexibility. This conservative capital structure supports investment, M&A optionality, and resilience through industry cycles, reducing solvency risk and funding constraints.
Read all positive factors
Yamaha (7951) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥551.24B
Dividend Yield2.35%
Average Volume (3M)1.38M
Price to Earnings (P/E)11.8
Beta (1Y)0.89
Revenue Growth-4.47%
EPS Growth-4.52%
CountryJP
Employees19,134
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)23.11
Shares Outstanding503,000,000
10 Day Avg. Volume1,399,630
30 Day Avg. Volume1,375,016
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)1.25
Price to Sales (P/S)1.21
P/FCF Ratio17.31
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)55.78
Revenue Forecast (FY)¥454.65B
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 ins...
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...
Yamaha Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 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
63
Positive
Balance Sheet
82
Very Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 452.40B | 462.08B | 462.87B | 451.41B | 408.20B | 372.63B |
| Gross Profit | 166.82B | 169.42B | 165.29B | 166.00B | 149.80B | 138.00B |
| EBITDA | 50.33B | 58.22B | 54.68B | 65.14B | 60.34B | 57.77B |
| Net Income | 19.25B | 13.35B | 29.64B | 38.18B | 37.27B | 26.61B |
Balance Sheet | ||||||
| Total Assets | 628.81B | 591.28B | 666.84B | 594.21B | 580.66B | 557.62B |
| Cash, Cash Equivalents and Short-Term Investments | 118.78B | 99.82B | 101.59B | 103.89B | 172.50B | 129.34B |
| Total Debt | 33.33B | 19.96B | 17.93B | 17.67B | 27.90B | 28.53B |
| Total Liabilities | 151.90B | 141.16B | 155.02B | 136.26B | 163.79B | 160.66B |
| Stockholders Equity | 475.55B | 448.83B | 510.59B | 456.84B | 415.71B | 395.96B |
Cash Flow | ||||||
| Free Cash Flow | 30.43B | 32.35B | 20.92B | -35.57B | 21.49B | 45.65B |
| Operating Cash Flow | 45.78B | 55.28B | 43.84B | -14.84B | 36.02B | 58.23B |
| Investing Cash Flow | -5.37B | 8.11B | -15.90B | -21.56B | 43.71B | -5.79B |
| Financing Cash Flow | -38.99B | -63.14B | -37.26B | -35.29B | -44.43B | -20.60B |
Yamaha Technical Analysis
Positive
990.70
Price Trends
1153.90
Negative
1119.26
Positive
1058.83
Positive
Market Momentum
-9.01
Negative
51.02
Neutral
82.53
Negative
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 1122.97, below the 50-day MA of 1153.90, and below the 200-day MA of 1058.83, indicating a neutral trend. The MACD of -9.01 indicates Negative momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 82.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7951.
Yamaha Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥178.12B | 12.35 | ― | 3.40% | 6.12% | -3.75% | |
67 Neutral | ¥551.24B | 11.82 | 3.68% | 2.35% | -4.47% | -4.52% | |
64 Neutral | ¥24.62B | 12.57 | ― | 3.56% | -5.25% | -4.95% | |
63 Neutral | ¥104.07B | 43.70 | ― | 4.78% | -1.25% | 9.33% | |
62 Neutral | ¥2.61T | 18.69 | 15.67% | 1.94% | 9.86% | -1.06% | |
62 Neutral | ¥248.15B | 43.09 | ― | 2.18% | 10.50% | 27.82% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
JP:7951
Yamaha
1,138.50
-3.08
-0.27%
JP:7832
BANDAI NAMCO Holdings
4,022.00
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-19.25%
JP:7458
Daiichikosho Co., Ltd.
1,715.50
22.76
1.34%
JP:7867
Tomy Company, Ltd.
2,768.00
-663.90
-19.34%
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Roland Corporation
3,980.00
400.71
11.20%
JP:7952
Kawai Musical Instruments Manufacturing Co., Ltd.
2,864.00
11.00
0.39%
Yamaha Corporate Events
Yamaha to Exit Golf Products Business Amid Portfolio Restructuring
Feb 4, 2026
Yamaha Corporation will exit its golf products business, ending shipments to Japanese retailers by June 30, 2026, as part of a broader drive to optimize management resource allocation and reshape its business portfolio. The decision follows persis...
Yamaha’s Currency Lift Faces Pressure From China Slump and Tariffs
Feb 4, 2026
Yamaha reported weaker third-quarter FY2026.3 performance as sluggish Chinese demand, fading pro-audio boom, and new U.S. tariffs drove lower revenue and core operating profit, though a weaker yen prompted an upward revenue forecast while profit e...
Yamaha lifts full-year outlook despite Q3 profit squeeze
Feb 4, 2026
Third-quarter FY2026.3 revenue fell 2.8% to ¥341.0 billion and core operating profit dropped 21.3% to ¥25.1 billion amid weak Chinese piano demand, softer professional audio sales, and yen appreciation, though net income improved as last...
Yamaha’s Q3 Profit Surges Despite Softer Revenue
Feb 4, 2026
Yamaha’s third-quarter FY2026.3 revenue slipped 2.8% to ¥341.0 billion while core operating profit fell 21.3%, yet higher investment income drove operating profit up 20.1% and profit attributable to owners of parent surged 41.3% to ...
Yamaha Advances Share Buyback, Acquires ¥3.1 Billion in Treasury Stock in January
Feb 2, 2026
Yamaha Corporation has continued its share buyback program, acquiring 2,762,600 of its own common shares on the Tokyo Stock Exchange between January 1 and January 31, 2026, for a total of approximately ¥3.13 billion. This activity forms part ...
Yamaha Advances Share Buyback, Acquires ¥3.0 Billion in Treasury Stock
Jan 5, 2026
Yamaha Corporation has continued executing its previously announced share buyback program, acquiring 2,812,600 of its own common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, at a total cost of approximately ¥3....
Yamaha Announces Progress in Treasury Stock Acquisition
Dec 1, 2025
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...
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.