Yamaha (7951) AI Stock Analysis

• Market Cap: $493.62B
• Dividend Yield: 2.55%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 37.0
• Beta (1Y): 0.91
• Revenue Growth: -0.17%
• EPS Growth: -54.29%
• Country: JP
• Employees: 19,134
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Leisure
• EPS (TTM): -1.55
• Shares Outstanding: 503,000,000
• 10 Day Avg. Volume: 1,913,940
• 30 Day Avg. Volume: 1,647,523
• PEG Ratio: 6.32
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -24.54
• 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: $1,127.84
• Price Target Upside: 11.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ¥1,128.00 ▲(11.08%Upside)

Yamaha's overall stock score is influenced by strong financial health and positive earnings call sentiment. However, high valuation metrics and technical indicators reflecting neutral momentum temper the overall assessment. Strategic plans and operational efficiency improvements remain critical for future performance.

Yamaha Business Overview & Revenue Model

Company Description

Yamaha Corporation (7951) is a multinational corporation headquartered in Japan, recognized globally for its diverse range of products and services across several sectors. The company is primarily involved in the manufacturing and distribution of musical instruments, audio equipment, and electronic devices. Additionally, Yamaha has a significant presence in the motorcycle and marine industries through its affiliate Yamaha Motor Co., Ltd. Yamaha is renowned for its innovation and quality, making it a leading brand in both consumer and professional markets.

How the Company Makes Money

Yamaha Corporation makes money through a diversified revenue model that includes several key streams. A significant portion of its revenue comes from the sale of musical instruments, such as pianos, guitars, and drums, which are popular worldwide for their quality and craftsmanship. The company also generates income from audio equipment, including speakers and professional audio systems, serving both consumer and commercial clients. Another critical revenue stream is derived from the electronic devices segment, which encompasses a variety of products ranging from semiconductor manufacturing to industrial machinery. Furthermore, Yamaha benefits from its affiliation with Yamaha Motor Co., Ltd., which contributes to earnings through the sales of motorcycles, outboard motors, and other transportation products. Strategic partnerships and a strong global distribution network further enhance Yamaha's ability to reach diverse markets and maintain its competitive edge.

Yamaha Financial Statement Overview

Summary

Yamaha's financial performance is solid, characterized by strong cost management and low leverage. However, profitability challenges are present due to declining net income and moderate operating margins. Cash flow indicators show resilience with recent improvements, but past volatility is a concern.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 1015.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1015.5 is above the 20-day moving average (MA) of 1007.83, below the 50-day MA of 1015.59, and below the 200-day MA of 1095.05, indicating a neutral trend. The MACD of 1.74 indicates Negative momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 53.95 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
7944	76 Outperform	¥81.84B	12.59		5.43%	-1.74%	-11.79%
7309	76 Outperform	¥1.79T	29.23	7.32%	1.65%	3.37%	-2.27%
7867	75 Outperform	¥289.48B	17.72		1.73%	20.12%	69.12%
7951	72 Outperform	$493.62B	36.97	2.69%	2.55%	-0.17%	-54.29%
7906	68 Neutral	$257.32B	24.10	16.08%	0.07%	18.75%	20.42%
Sector *	67 Neutral	¥253.34B	13.18	6.44%	2.78%	5.06%	-11.83%
7952	51 Neutral	¥22.49B	55.56		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.