Kawai Musical Instruments Manufacturing Co., Ltd. (JP:7952)
:7952
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Kawai Musical Instruments Manufacturing Co., Ltd.
(7952)
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Rating:56Neutral
Price Target:
¥3,214.00
▲(22.91% Upside)
Action:Reiterated
Date:05/16/26
The score is held back primarily by weakening financial performance—multi-year revenue decline, sharply compressed profitability, and negative/volatile operating and free cash flow—despite a solid balance sheet. Technicals are a meaningful offset with a clear uptrend and positive momentum, while valuation is only moderately supportive given a mid-range P/E and ~3% yield.
Positive Factors
Balance sheet strength
Low debt-to-equity (around 0.19–0.31) and steadily growing equity provide durable financial flexibility. This resilience helps the company withstand revenue volatility, supports working-capital needs, and preserves capacity to fund targeted product investment or dealer/channel support without immediate refinancing stress.
Negative Factors
Multi-year revenue decline
Three consecutive years of falling revenue signal structural demand weakness or market-share loss. Sustained top-line contraction reduces operating leverage, erodes scale benefits, and depresses return metrics, making cash generation and investment in distribution or product development harder absent clear growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Low debt-to-equity (around 0.19–0.31) and steadily growing equity provide durable financial flexibility. This resilience helps the company withstand revenue volatility, supports working-capital needs, and preserves capacity to fund targeted product investment or dealer/channel support without immediate refinancing stress.
Read all positive factors
Kawai Musical Instruments Manufacturing Co., Ltd. (7952) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥26.26B
Dividend Yield3.56%
Average Volume (3M)18.44K
Price to Earnings (P/E)24.7
Beta (1Y)0.80
Revenue Growth-1.19%
EPS Growth181.64%
CountryJP
Employees2,895
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)60.36
Shares Outstanding9,011,560
10 Day Avg. Volume21,160
30 Day Avg. Volume18,443
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.52
Price to Sales (P/S)0.34
P/FCF Ratio-7.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)593.4
Revenue Forecast (FY)¥99.50B
Kawai Musical Instruments Manufacturing Co., Ltd. Business Overview & Revenue Model
Company Description
Kawai Musical Instruments Manufacturing Co., Ltd. manufactures and sells musical instruments under the Kawai brand. It offers acoustic and digital piano instruments. The company also develops and sells computer music software, as well as software ...
How the Company Makes Money
Kawai primarily makes money by selling musical instruments, with its core revenue stream coming from pianos—especially acoustic pianos (upright and grand) and digital pianos—sold through domestic and international distribution channels (e.g., deal...
Kawai Musical Instruments Manufacturing Co., Ltd. Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
72
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 73.11B | 72.05B | 72.92B | 80.19B | 87.77B | 85.70B |
| Gross Profit | 18.38B | 18.74B | 18.30B | 20.71B | 22.82B | 23.48B |
| EBITDA | 2.27B | 2.16B | 2.15B | 4.87B | 6.71B | 8.24B |
| Net Income | 518.00M | 1.14B | 405.00M | 2.78B | 3.67B | 5.05B |
Balance Sheet | ||||||
| Total Assets | 74.43B | 78.88B | 76.04B | 75.37B | 72.04B | 69.38B |
| Cash, Cash Equivalents and Short-Term Investments | 13.55B | 10.76B | 13.30B | 18.23B | 19.32B | 22.66B |
| Total Debt | 10.21B | 11.31B | 9.51B | 8.74B | 9.22B | 10.43B |
| Total Liabilities | 31.99B | 32.13B | 31.50B | 32.23B | 33.57B | 35.82B |
| Stockholders Equity | 42.44B | 46.74B | 44.54B | 42.93B | 38.26B | 33.38B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -3.45B | -3.17B | 405.00M | -1.80B | 4.24B |
| Operating Cash Flow | 0.00 | -630.00M | -1.61B | 1.56B | -530.00M | 5.14B |
| Investing Cash Flow | 0.00 | -3.77B | -2.46B | -1.13B | -1.53B | -1.02B |
| Financing Cash Flow | 0.00 | 1.70B | -951.00M | -1.77B | -2.19B | -1.72B |
Kawai Musical Instruments Manufacturing Co., Ltd. Technical Analysis
Positive
2615.00
Price Trends
2906.69
Positive
2829.35
Positive
2654.86
Positive
Market Momentum
48.96
Negative
63.98
Neutral
55.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7952, the sentiment is Positive. The current price of 2615 is below the 20-day moving average (MA) of 2946.15, below the 50-day MA of 2906.69, and below the 200-day MA of 2654.86, indicating a bullish trend. The MACD of 48.96 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 55.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7952.
Kawai Musical Instruments Manufacturing Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥277.47B | 23.96 | ― | 2.18% | 8.08% | -27.93% | |
73 Outperform | ¥2.40T | 16.86 | 15.67% | 1.94% | 8.60% | 10.04% | |
71 Outperform | ¥170.85B | 10.82 | ― | 3.40% | 6.49% | -11.12% | |
70 Neutral | ¥118.98B | 69.00 | ― | 4.78% | 4.15% | -73.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥491.93B | 20.37 | 3.68% | 2.35% | 0.70% | 95.26% | |
56 Neutral | ¥26.26B | 24.65 | ― | 3.56% | -1.19% | 181.64% |
* Consumer Cyclical Sector Average
JP:7952
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Kawai Musical Instruments Manufacturing Co., Ltd. Corporate Events
Kawai Musical Instruments Board Targets Capital-Efficient, Stock Price-Conscious Management
May 14, 2026
Kawai Musical Instruments Manufacturing announced that its board of directors has resolved to pursue management initiatives explicitly focused on the company’s cost of capital and stock price. The move reflects growing emphasis on capital ef...
Kawai Musical Instruments Flags Profit Rebound Despite Weak FY2026 Operating Results
May 14, 2026
Kawai Musical Instruments reported fiscal year 2026 consolidated net sales of ¥72.0 billion, down 1.2% year on year, with operating profit plunging 64.2% to ¥113 million even as ordinary profit more than doubled and profit attributable t...
Kawai Misses Sales and Operating Targets but Beats Profit Forecast on FX and Investment Gains
May 14, 2026
Kawai Musical Instruments Manufacturing reported full-year results for the fiscal year ended March 31, 2026 that slightly missed its earlier revenue and operating profit forecasts, largely because sales in its musical instrument education business...
Kawai Sets Capital-Efficient Management Policy to Boost Market Valuation
May 14, 2026
Kawai Musical Instruments Manufacturing has resolved at its board meeting to advance a management approach that is explicitly conscious of its cost of capital and stock price. The company outlined current challenges, countermeasures, and future pl...
Kawai Sees Profit Surge Despite Weak Margins, Forecasts Strong Earnings Rebound
May 14, 2026
Kawai reported consolidated net sales of ¥72.0 billion for the year ended March 31, 2026, down 1.2% year on year, as operating profit fell sharply to ¥113 million while ordinary profit more than doubled and profit attributable to owners ...
Kawai Misses Sales and Operating Targets but Beats Profit Forecast on FX and Investment Gains
May 14, 2026
Kawai Musical Instruments Manufacturing reported that full-year consolidated results for the fiscal year ended March 31, 2026 diverged from its earlier forecasts, with net sales slightly below projections and operating profit falling sharply short...
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.