Yamaha (7951) AI Stock Analysis

• Market Cap: ¥578.11B
• Dividend Yield: 2.35%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.88
• Revenue Growth: -4.47%
• EPS Growth: -4.52%
• Country: JP
• Employees: 19,134
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 23.11
• Shares Outstanding: 503,000,000
• 10 Day Avg. Volume: 1,399,630
• 30 Day Avg. Volume: 1,375,016
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 56.36
• Revenue Forecast (FY): ¥454.93B

• Rating: 67 Neutral
• Price Target: ¥1,267.00 ▲(27.89% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 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.

Strong recent revenue growth

A robust TTM revenue increase (~+46.5%) signals expanding top-line demand across product lines. Sustained revenue momentum can improve scale economics, fund R&D and channel expansion, and help regain operating leverage if maintained over the medium term.

Diversified, global business model

Multiple end markets (musical instruments, pro/consumer audio, education) and a global sales network reduce single-market exposure. This diversification stabilizes revenue streams across cycles and supports cross-selling and durable demand from institutions and entertainment sectors.

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.

Low and falling ROE

Declining ROE shows capital is being deployed less efficiently despite a strong equity base. Sustained low ROE can limit shareholder value creation, constrain dividend and buyback capacity, and signal the need for strategic actions to lift capital productivity over time.

Volatile cash generation

Although current cash generation is positive, the negative FCF growth and prior years' cash shortfalls indicate volatility. Irregular free cash flow limits reliable funding for capex, dividends, or restructuring, increasing execution risk across investment cycles.

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

Strong balance sheet with low leverage (debt-to-equity ~0.09) supports resilience, but profitability has weakened (TTM net margin ~4.3% vs ~6.4% FY2024; EBIT margin ~8.1% vs ~11–13% prior years) and ROE is lower (~3.9% TTM). Cash flow is positive but volatile and recently softer (TTM FCF growth -6.4%).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew sharply (+46.5%), but profitability is meaningfully lower than prior years: net margin is ~4.3% TTM versus ~6.4% (FY2024) and ~8–9% (FY2022–FY2023). Operating profitability also compressed (EBIT margin ~8.1% TTM vs ~11–13% in FY2022–FY2023), suggesting higher costs and/or weaker mix. Gross margin is relatively steady around ~37–38%, which is a stabilizer, but the drop in bottom-line performance keeps the score in the mid-range.

Balance Sheet

The balance sheet looks conservatively financed with low leverage: debt-to-equity is ~0.09 TTM (still modest, though higher than recent annual levels). Equity remains large relative to assets, providing resilience. The main drawback is weaker shareholder returns recently (ROE ~3.9% TTM, down from ~5.8% in FY2024 and ~8–9% in FY2022–FY2023), indicating capital is being employed less efficiently despite the strong capitalization.

Cash Flow

Cash generation is positive in TTM with operating cash flow of ~45.8B and free cash flow of ~30.4B, but free cash flow declined versus the prior period (TTM free cash flow growth -6.4%). Cash conversion is also only moderate, with free cash flow running at ~66% of net income TTM. The history shows volatility (including a negative operating and free cash flow year in FY2023), which increases risk and limits the score despite current positive cash flow.

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	176.14B	171.08B	166.00B	149.80B	138.00B
EBITDA	57.23B	46.82B	59.21B	70.26B	70.73B	54.79B
Net Income	19.25B	13.35B	29.64B	38.18B	37.27B	26.61B
Balance Sheet
Total Assets	628.81B	591.28B	666.84B	594.25B	580.66B	557.62B
Cash, Cash Equivalents and Short-Term Investments	118.78B	105.02B	106.45B	103.89B	172.50B	129.34B
Total Debt	42.93B	19.96B	17.93B	17.67B	27.90B	28.53B
Total Liabilities	151.90B	141.17B	155.03B	136.30B	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

• 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 1196.40, below the 50-day MA of 1151.67, and below the 200-day MA of 1047.01, indicating a neutral trend. The MACD of 13.07 indicates Positive momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 57.38 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
7458	72 Outperform	¥180.97B	12.61	―	3.40%	6.12%	-3.75%
7951	67 Neutral	¥578.11B	28.46	3.68%	2.35%	-4.47%	-4.52%
7952	64 Neutral	¥25.50B	24.81	―	3.56%	-5.25%	-4.95%
7867	63 Neutral	¥259.14B	22.34	―	2.18%	10.50%	27.82%
7944	63 Neutral	¥105.77B	49.27	―	4.78%	-1.25%	9.33%
7832	62 Neutral	¥2.72T	23.76	15.67%	1.94%	9.86%	-1.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Yamaha Corporate Events

Yamaha to Exit Golf Products Business Amid Portfolio Restructuring

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 persistent losses in a segment that accounted for just 0.7% of consolidated revenue, pressured by intensifying global competition, forex and raw material cost headwinds, and a shrinking golfing population, and will result in ¥2.0 billion in restructuring expenses already reflected in its earnings forecast; Yamaha plans to maintain after-sales support for existing golf products and redeploy capital and capabilities toward higher-growth, higher-advantage businesses to enhance long-term corporate value while managing the transition for partners and stakeholders.

The most recent analyst rating on (JP:7951) stock is a Buy with a Yen1198.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

Yamaha’s Currency Lift Faces Pressure From China Slump and Tariffs

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 expectations stayed flat, signaling external pressures outweigh offsets. Investors now face a company relying on currency tailwinds to counter regional slowdowns and tariff headwinds, highlighting an uncertain near-term outlook for stakeholders seeking margin stability.

The most recent analyst rating on (JP:7951) stock is a Buy with a Yen1198.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

Yamaha lifts full-year outlook despite Q3 profit squeeze

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 year’s impairment charges did not recur. Segment pressures were offset by resilient sales of digital instruments, mid- to high-end winds, and acoustic guitars, prompting Yamaha to raise its full-year revenue outlook to ¥462.0 billion and profit attributable forecast to ¥24.0 billion, citing strength in North America and Europe plus favorable FX despite ongoing audio and piano headwinds and planned golf business exit costs.

The most recent analyst rating on (JP:7951) stock is a Buy with a Yen1198.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

Yamaha’s Q3 Profit Surges Despite Softer Revenue

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 ¥20.2 billion, reflecting better cost control and an improved financial position with total equity rising to ¥476.9 billion. Management maintained full-year revenue guidance of ¥462.0 billion but trimmed core operating profit expectations to ¥33.0 billion, signaling ongoing margin pressure even as they project a near-80% jump in annual earnings per share and plan to keep dividends at ¥26 per share post-split, underscoring a cautious but shareholder-friendly stance amid flat demand.

The most recent analyst rating on (JP:7951) stock is a Buy with a Yen1198.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

Yamaha Advances Share Buyback, Acquires ¥3.1 Billion in Treasury Stock in January

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 of a previously authorized board resolution allowing up to 20 million shares and ¥15 billion in repurchases through March 31, 2026, under which Yamaha has so far bought back 8,711,700 shares for about ¥9.47 billion; the ongoing buyback underscores management’s focus on capital efficiency and shareholder returns, potentially supporting earnings per share and signaling confidence in the company’s valuation.

The most recent analyst rating on (JP:7951) stock is a Buy with a Yen1198.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

Yamaha Advances Share Buyback, Acquires ¥3.0 Billion in Treasury Stock

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 ¥3.03 billion. This brings the cumulative volume purchased under the board-approved program, which authorizes buybacks of up to 20 million shares or ¥15 billion through March 31, 2026, to 5,949,100 shares for about ¥6.34 billion, signaling ongoing capital management aimed at enhancing shareholder value and potentially improving earnings per share through a reduced share count.

The most recent analyst rating on (JP:7951) stock is a Hold with a Yen1176.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.

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.

The most recent analyst rating on (JP:7951) stock is a Buy with a Yen1199.00 price target. To see the full list of analyst forecasts on Yamaha stock, see the JP:7951 Stock Forecast page.