Yamaha (7951) AI Stock Analysis

• Market Cap: ¥473.67B
• Dividend Yield: 2.55%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 75.3
• Beta (1Y): 0.84
• Revenue Growth: -3.20%
• EPS Growth: -79.66%
• Country: JP
• Employees: 19,134
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): N/A
• Shares Outstanding: 503,000,000
• 10 Day Avg. Volume: 1,447,060
• 30 Day Avg. Volume: 1,574,270
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,099.76
• Price Target Upside: 11.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥1,040.00 ▲(4.98% Upside)

Yamaha's overall stock score is driven by strong balance sheet fundamentals but offset by challenges in profitability, cash flow, and valuation concerns. The earnings call provided some positive forecasts but also highlighted significant challenges, leading to a cautious outlook.

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

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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	453.82B	462.08B	462.87B	451.41B	408.20B	372.63B
Gross Profit	169.63B	176.14B	171.08B	166.00B	149.80B	138.00B
EBITDA	46.51B	25.33B	59.21B	70.26B	70.73B	54.79B
Net Income	6.32B	13.35B	29.64B	38.18B	37.27B	26.61B
Balance Sheet
Total Assets	582.41B	591.28B	666.84B	594.25B	580.66B	557.62B
Cash, Cash Equivalents and Short-Term Investments	103.17B	105.02B	106.45B	103.89B	172.50B	129.34B
Total Debt	29.07B	19.96B	17.93B	17.67B	27.90B	28.53B
Total Liabilities	136.77B	141.17B	155.03B	136.30B	163.79B	160.66B
Stockholders Equity	444.40B	448.83B	510.59B	456.84B	415.71B	395.96B
Cash Flow
Free Cash Flow	26.35B	32.35B	20.92B	-35.57B	21.49B	45.65B
Operating Cash Flow	49.28B	55.28B	43.84B	-14.84B	36.02B	58.23B
Investing Cash Flow	10.79B	8.11B	-15.90B	-21.56B	43.71B	-5.79B
Financing Cash Flow	-47.51B	-63.14B	-37.26B	-35.29B	-44.43B	-20.60B

Yamaha Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 990.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 990.7 is below the 20-day moving average (MA) of 1004.96, below the 50-day MA of 993.60, and below the 200-day MA of 1028.53, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 40.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7951.

Yamaha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7309	―	$1.53T	42.85	5.92%	1.99%	7.64%	22.13%
7906	―	$343.78B	28.26	18.19%	0.56%	23.05%	31.52%
7867	―	¥292.08B	16.41	―	1.90%	17.05%	66.00%
7944	―	¥86.16B	14.39	―	5.13%	-4.39%	-27.30%
7951	―	¥473.67B	75.31	1.32%	2.55%	-3.20%	-79.66%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7952	―	¥22.53B	43.03	―	3.73%	-6.74%	-69.87%

Yamaha Corporate Events

Yamaha’s Earnings Call: Balancing Challenges and Growth

The recent earnings call from Yamaha Corporation presented a mixed sentiment, reflecting both challenges and growth opportunities. The company faced significant impacts from currency exchange rates and tariffs, yet areas such as guitar sales and emerging markets showed promising growth. Yamaha is actively implementing countermeasures and remains committed to strategic investments aimed at driving future growth. Overall, the sentiment conveyed was balanced, highlighting both positive and negative aspects.

Yamaha Corporation Reports Decline in Q1 Earnings

Yamaha Corporation, a leading entity in the musical instruments and audio equipment industry, is renowned for its diverse range of products including pianos, digital instruments, and professional audio equipment. The company operates primarily in the musical instruments and audio equipment sectors, with additional ventures in automobile components and factory automation.

Yamaha Faces Revenue Decline Amid Tariff Challenges

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

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

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.