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Yamaha Corporation (JP:7951)
:7951
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Yamaha (7951) AI Stock Analysis

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JP:7951

Yamaha

(OTC:7951)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
¥1,061.00
▲(6.49% Upside)
Yamaha's overall stock score is primarily influenced by its strong balance sheet, despite challenges in profitability and cash flow. The technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation. The earnings call reflects a cautious outlook with both positive forecasts and significant challenges.

Yamaha (7951) vs. iShares MSCI Japan ETF (EWJ)

Yamaha Business Overview & Revenue Model

Company DescriptionYamaha Corporation, together with its subsidiaries, engages in the musical instruments, audio equipment, and other businesses worldwide. It manufactures and sells pianos; guitars; digital musical instruments; wind, string, and percussion instruments; other music-related products; and produces and sells audio and visual media software, as well as manages music and other schools. The company also provides professional audio equipment, music production equipment and software, audiovisual equipment, commercial online karaoke systems, network devices, and unified communication devices. In addition, it offers electronic devices, factory automation equipment, automobile interior wood components, and golf products; and operates resorts. The company was founded in 1887 and is headquartered in Hamamatsu, Japan.
How the Company Makes MoneyYamaha Corporation generates revenue through multiple streams. The primary revenue source is its musical instruments segment, which includes the sale of pianos, string instruments, and digital musical instruments. This is complemented by the company's audio equipment division, which sells professional audio products and consumer audio devices. Yamaha also earns income from its electronic devices and components segment, which provides semiconductors and other electronic parts. Additionally, Yamaha engages in strategic partnerships and collaborations to enhance its product offerings and expand market reach. The company's earnings are further supported by its global distribution network, which allows it to market and sell products across diverse regions, enhancing its revenue potential.

Yamaha Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
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.
Q1-2026 Updates
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.
Structural Reforms in Piano Manufacturing
The positive impact from structural reforms in piano manufacturing amounted to JPY 600 million in Q1 and is expected to contribute a positive JPY 2 billion for the full year.
Strong Performance in Guitars and Other Instruments
Sales of wind, strings, percussion instruments, and guitars performed well, contributing to increased revenue in those categories. Guitars are expected to see double-digit growth at 111% year-on-year.
New Product Launches
Launched new products including digital panels, electronic drums, routers for corporate use, and condenser microphones, pursuing intrinsic product value refined through technology and sensitivity.
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.
Impact of Tariffs and Exchange Rates
Negative impact of JPY 1.1 billion due to exchange rates and JPY 1.8 billion due to additional tariffs in Q1. For the full year, a negative impact of JPY 3.1 billion from exchange rates and JPY 11.2 billion from tariffs is expected.
Audio Equipment Sales Decline
Marked decline in sales of audio equipment for professional use, especially in Europe, and a decrease in high-margin entertainment PA products.
Weak Piano Sales
Piano sales remained sluggish, with significant revenue decline expected in both the U.S. and China.
ROE and ROIC Challenges
ROE target revised downward to 5.0% due to tariffs and other factors, with a challenging forecasted ROIC of 4.9%.
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
Yamaha's financial statements reflect strong balance sheet fundamentals with low leverage, but challenges in profitability and cash flow generation. The decline in revenue and profit margins, coupled with reduced cash flow growth, suggests potential headwinds.
Income Statement
70
Positive
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
75
Positive
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
65
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue453.82B462.08B462.87B451.41B408.20B372.63B
Gross Profit169.63B176.14B171.08B166.00B149.80B138.00B
EBITDA46.51B25.33B59.21B70.26B70.73B54.79B
Net Income6.32B13.35B29.64B38.18B37.27B26.61B
Balance Sheet
Total Assets582.41B591.28B666.84B594.25B580.66B557.62B
Cash, Cash Equivalents and Short-Term Investments103.17B105.02B106.45B103.89B172.50B129.34B
Total Debt29.07B19.96B17.93B17.67B27.90B28.53B
Total Liabilities136.77B141.17B155.03B136.30B163.79B160.66B
Stockholders Equity444.40B448.83B510.59B456.84B415.71B395.96B
Cash Flow
Free Cash Flow26.35B32.35B20.92B-35.57B21.49B45.65B
Operating Cash Flow49.28B55.28B43.84B-14.84B36.02B58.23B
Investing Cash Flow10.79B8.11B-15.90B-21.56B43.71B-5.79B
Financing Cash Flow-47.51B-63.14B-37.26B-35.29B-44.43B-20.60B

Yamaha Technical Analysis

Technical Analysis Sentiment
Positive
Last Price996.30
Price Trends
50DMA
1013.13
Positive
100DMA
1014.09
Positive
200DMA
1051.81
Negative
Market Momentum
MACD
4.82
Negative
RSI
58.80
Neutral
STOCH
78.09
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 996.3 is below the 20-day moving average (MA) of 1001.54, below the 50-day MA of 1013.13, and below the 200-day MA of 1051.81, indicating a neutral trend. The MACD of 4.82 indicates Negative momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 78.09 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
89.04B15.0015.59%4.99%-4.39%-27.30%
71
Outperform
280.25B16.5315.37%1.79%17.05%66.00%
68
Neutral
318.61B27.3015.31%0.57%23.05%31.52%
67
Neutral
1.39T39.508.65%2.03%10.17%-32.40%
64
Neutral
22.47B43.480.91%3.63%-6.74%-69.87%
63
Neutral
$494.35B77.381.32%2.48%-3.20%-79.66%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7951
Yamaha
996.30
-181.38
-15.40%
SHMDF
Shimano
110.00
-71.02
-39.23%
YONXF
Yonex Co
24.89
10.76
76.15%
JP:7867
Tomy Company, Ltd.
3,126.00
-718.65
-18.69%
JP:7944
Roland Corporation
3,405.00
-157.61
-4.42%
JP:7952
Kawai Musical Instruments Manufacturing Co., Ltd.
2,624.00
-245.28
-8.55%

Yamaha Corporate Events

Yamaha Faces Revenue Decline Amid Tariff Challenges
Aug 1, 2025

Yamaha Corporation reported a decrease in revenue for the first quarter of FY2026.3, primarily due to a slowdown in audio equipment sales and a slow recovery in musical instrument sales, compounded by the appreciation of the yen. The company has revised its full-year earnings forecasts downward to account for the impact of additional U.S. tariffs, and it is implementing measures to mitigate these effects.

The most recent analyst rating on (JP:7951) stock is a Hold with a Yen3500.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

Yamaha Reports Decline in Q1 Revenue and Revises FY2026 Outlook
Aug 1, 2025

Yamaha Corporation reported a decline in revenue and profit for the first quarter of FY2026.3, largely due to decreased sales in China and the impact of U.S. tariffs. The company has revised its full-year earnings forecast downward, reflecting ongoing challenges in the business environment, including currency fluctuations and additional tariffs.

The most recent analyst rating on (JP:7951) stock is a Hold with a Yen3500.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

Yamaha Reports Decline in Q1 FY2026 Financial Results
Aug 1, 2025

Yamaha Corporation reported a decline in its financial performance for the first quarter of FY2026, with revenue dropping by 7.4% and core operating profit falling by 49.2% compared to the same period last year. Despite the challenging quarter, Yamaha’s cash flow from operating activities remained positive, and the company revised its financial forecasts for the fiscal year, indicating a cautious outlook amid market uncertainties.

The most recent analyst rating on (JP:7951) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

Yamaha Completes Treasury Stock Disposal for Compensation
Jun 19, 2025

Yamaha Corporation has completed the payment for the disposal of treasury stock as part of its restricted stock compensation plan. This move involves the disposal of 446,400 shares of common stock, with a total disposal value of ¥451,087,200, and is aimed at compensating directors and officers, potentially impacting the company’s financial structure and stakeholder interests.

The most recent analyst rating on (JP:7951) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

Yamaha Announces Treasury Stock Disposal for Restricted Stock Compensation
Jun 2, 2025

Yamaha Corporation has announced a decision to dispose of treasury stock as part of a Restricted Stock Compensation Plan aimed at promoting sustainable corporate value and shared value with shareholders. This plan involves granting monetary compensation to eligible directors and officers, allowing them to hold newly issued or disposed treasury stocks. The plan includes a clawback clause for accountability and performance conditions linked to financial, non-financial, and corporate value targets, with a three-year allotment period.

The most recent analyst rating on (JP:7951) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

Yamaha Unveils ‘Rebuild & Evolve’ Plan to Navigate Dynamic Market Changes
May 8, 2025

Yamaha Corporation has announced its new medium-term management plan, ‘Rebuild & Evolve,’ which will guide the company from April 2025 for three years. This plan follows the ‘Make Waves 2.0’ initiative, which faced challenges due to rapid market changes and did not meet financial targets. The new plan aims to restore earnings to pre-pandemic levels, explore new business areas, and strengthen governance and human capital. Yamaha seeks to leverage technological innovations and evolving consumer behaviors to create unique value and expand its market presence.

Yamaha Announces Strategic Board Changes Ahead of Shareholders’ Meeting
May 8, 2025

Yamaha Corporation has announced changes in its board of directors, which will be proposed at the upcoming Ordinary General Shareholders’ Meeting on June 20, 2025. The changes include the appointment of Shuji Ito and Saimon Nogami as new outside directors, while Mikio Fujitsuka is set to resign. These management changes are expected to strengthen Yamaha’s governance and strategic direction, potentially impacting its market positioning and stakeholder relations positively.

Yamaha Corporation Reports Stable FY2025 Results Amid Market Challenges
May 8, 2025

Yamaha Corporation’s fiscal year 2025 results showed stable revenue, with strong performance in B2B audio equipment offsetting weak sales in musical instruments, particularly in China. Despite a decrease in net income due to restructuring expenses, the company anticipates revenue growth in the next fiscal year driven by a global recovery in musical instrument sales, although uncertainties remain regarding U.S. tariffs.

Yamaha Reports FY2025 Financial Results and FY2026 Outlook
May 8, 2025

Yamaha Corporation reported its financial results for FY2025, showing a slight decrease in revenue but an increase in core operating profit due to higher demand for business audio equipment and digital pianos, alongside the impact of yen depreciation. Despite challenges in the Chinese market affecting musical instrument sales, structural reforms and exchange rate benefits helped improve profitability. Looking ahead to FY2026, Yamaha forecasts a decrease in revenue but anticipates an increase in profit, driven by improved profitability in the musical instruments business, although uncertainties such as U.S. tariffs remain.

Yamaha Reports FY2025 Financial Results with Decline in Profits
May 8, 2025

Yamaha Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decrease in revenue by 0.2% to ¥462,080 million. Despite a 9.1% increase in core operating profit, the company experienced a significant decline in operating profit and profit before income taxes by 28.6% and 40.3%, respectively. The company also conducted a 3-for-1 stock split, affecting earnings per share calculations. Cash flows from operating activities increased, while cash flows from financing activities saw a notable decrease. The dividend per share was adjusted in light of the stock split, with a forecasted reduction for the next fiscal year.

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.Date of analysis: Sep 20, 2025