Yamaha (7951) AI Stock Analysis

• Market Cap: ¥528.97B
• Dividend Yield: 2.35%
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 39.6
• Beta (1Y): 0.92
• Revenue Growth: -0.17%
• EPS Growth: -54.29%
• Country: JP
• Employees: 19,134
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Leisure
• EPS (TTM): -1.55
• Shares Outstanding: 503,000,000
• 10 Day Avg. Volume: 1,119,060
• 30 Day Avg. Volume: 1,450,153
• PEG Ratio: -0.91
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.25
• 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: ¥1,124.52
• Price Target Upside: 4.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ¥1,199.00 ▲(11.17%Upside)

Yamaha's overall stock score reflects strong financial health and positive technical momentum. The high valuation and challenges in the musical instruments segment, alongside tariff impacts, weigh on the score. The company's strategic initiatives and growth in the Audio Equipment business are positive factors.

Yamaha Business Overview & Revenue Model

Company Description

Yamaha 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 Money

Yamaha 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 Financial Statement Overview

Summary

Yamaha demonstrates strong financial health with efficient cost management and low leverage, supported by a robust balance sheet. Despite recent net income declines, cash flow indicators show resilience. The company is well-positioned but must enhance profitability to sustain growth.

Income Statement

Yamaha's income statement shows stable revenue with a slight decline over the past year. The gross profit margin is robust at 38.1% for the latest annual period, indicating efficient cost management. However, the net profit margin decreased significantly from the previous year due to a drop in net income. The EBIT margin stands at 7.9%, reflecting moderate operating efficiency, while the EBITDA margin of 10.1% suggests decent earnings before accounting for depreciation and amortization.

Balance Sheet

The balance sheet for Yamaha is strong, with a low debt-to-equity ratio of 0.04, indicating low leverage and financial stability. Return on equity is presently 3.0%, displaying a decline due to reduced net income. The equity ratio is high at 75.9%, suggesting a substantial portion of the company's assets are financed by shareholders' equity, which is a positive indicator of financial health.

Cash Flow

Yamaha's cash flow statement shows a healthy operating cash flow to net income ratio of 4.1, which suggests strong cash generation relative to net income. However, the free cash flow growth rate is 54.6%, indicating significant improvement, although it follows a period of negative free cash flow. The free cash flow to net income ratio is 2.4, highlighting efficient conversion of earnings to cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	462.08B	462.87B	451.41B	408.20B	372.63B
Gross Profit	176.14B	171.08B	171.14B	154.72B	142.91B
EBITDA	46.82B	59.21B	70.26B	61.19B	54.79B
Net Income	13.35B	29.64B	38.18B	37.27B	26.61B
Balance Sheet
Total Assets	591.28B	666.84B	594.25B	580.93B	557.62B
Cash, Cash Equivalents and Short-Term Investments	99.82B	106.45B	104.97B	176.85B	137.92B
Total Debt	19.96B	17.93B	17.67B	27.90B	28.53B
Total Liabilities	141.16B	155.03B	136.30B	165.00B	160.67B
Stockholders Equity	448.83B	510.59B	456.84B	414.77B	395.96B
Cash Flow
Free Cash Flow	32.35B	20.92B	-35.57B	21.49B	45.65B
Operating Cash Flow	55.28B	43.84B	-14.84B	36.02B	58.23B
Investing Cash Flow	8.11B	-15.90B	-21.56B	43.71B	-5.79B
Financing Cash Flow	-63.14B	-37.26B	-35.29B	-44.43B	-20.60B

Yamaha Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1078.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1078.5 is above the 20-day moving average (MA) of 1035.69, above the 50-day MA of 1019.46, and below the 200-day MA of 1081.93, indicating a neutral trend. The MACD of 19.21 indicates Negative momentum. The RSI at 60.44 is Neutral, neither overbought nor oversold. The STOCH value of 88.69 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7309	80 Outperform	$1.88T	52.22	4.25%	1.97%	10.17%	-32.21%
7944	77 Outperform	¥83.81B	12.89		5.30%	-1.74%	-11.79%
7951	73 Outperform	¥528.97B	39.62	2.69%	2.35%	-0.17%	-54.29%
7867	68 Neutral	¥282.67B	17.31		1.76%	20.12%	69.12%
7906	68 Neutral	¥259.57B	24.32	16.08%	0.40%	18.75%	20.42%
Sector *	61 Neutral	C$5.24B	8.14	20.23%	3.75%	3.11%	8.11%
7952	61 Neutral	¥22.60B	55.82		3.63%	-9.07%	-85.45%

Yamaha Corporate Events

Yamaha Completes Treasury Stock Disposal for Compensation

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

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

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

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

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

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

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.