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Kawai Musical Instruments Manufacturing Co., Ltd. (JP:7952)
:7952
Japanese Market

Kawai Musical Instruments Manufacturing Co., Ltd. (7952) AI Stock Analysis

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JP:7952

Kawai Musical Instruments Manufacturing Co., Ltd.

(7952)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
¥3,167.00
▲(21.11% Upside)
Action:ReiteratedDate:12/20/25
The overall stock score is primarily influenced by the company's challenging financial performance, characterized by declining revenues and profitability. Technical analysis indicates a bearish trend, further impacting the score. The valuation component provides some support due to a reasonable dividend yield, but the high P/E ratio suggests caution. The absence of earnings call and corporate events data means these factors do not influence the score.
Positive Factors
Strong Balance Sheet
A high equity ratio and low debt-to-equity provide durable financial stability, giving the company capacity to absorb cyclical sales shocks, finance targeted investments or product development, and support distributor relationships without high refinancing risk over the next several quarters.
Negative Factors
Declining Revenues
A near 9% revenue decline signals weakening demand or lost share, reducing scale benefits and pressuring fixed-cost absorption. Sustained top-line contraction risks forcing margin cuts, slower dealer restocking, and the need for strategic shifts to regain growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
A high equity ratio and low debt-to-equity provide durable financial stability, giving the company capacity to absorb cyclical sales shocks, finance targeted investments or product development, and support distributor relationships without high refinancing risk over the next several quarters.
Read all positive factors

Kawai Musical Instruments Manufacturing Co., Ltd. (7952) vs. iShares MSCI Japan ETF (EWJ)

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 manufacturing and selling musical instruments, with its core revenue stream coming from piano-related products. Key sources of earnings include: (1) Sales of acoustic pianos: Revenue is generated from the sale of upr...

Kawai Musical Instruments Manufacturing Co., Ltd. Financial Statement Overview

Summary
The company faces a challenging financial landscape with declining revenues and profitability. The income statement shows a revenue decrease of approximately 9.06% and a significant drop in net profit margin from 3.47% to 0.56%. Despite a solid equity base and low leverage, cash flow constraints and operational inefficiencies pose risks to financial health.
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
55
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue73.11B72.92B80.19B87.77B85.70B67.52B
Gross Profit18.38B18.30B20.71B22.82B23.48B18.10B
EBITDA2.27B2.15B4.87B6.71B8.24B5.07B
Net Income518.00M405.00M2.78B3.67B5.05B2.58B
Balance Sheet
Total Assets74.43B76.04B75.37B72.04B69.38B60.70B
Cash, Cash Equivalents and Short-Term Investments13.55B13.30B18.23B19.32B22.66B19.47B
Total Debt10.21B9.51B8.74B9.22B10.43B11.65B
Total Liabilities31.99B31.50B32.23B33.57B35.82B32.76B
Stockholders Equity42.44B44.54B42.93B38.26B33.38B27.82B
Cash Flow
Free Cash Flow0.00-3.17B405.00M-1.80B4.24B4.24B
Operating Cash Flow0.00-1.61B1.56B-530.00M5.14B5.04B
Investing Cash Flow0.00-2.46B-1.13B-1.53B-1.02B-1.07B
Financing Cash Flow0.00-951.00M-1.77B-2.19B-1.72B4.88B

Kawai Musical Instruments Manufacturing Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2615.00
Price Trends
50DMA
2782.16
Positive
100DMA
2659.28
Positive
200DMA
2588.23
Positive
Market Momentum
MACD
69.09
Negative
RSI
60.14
Neutral
STOCH
75.60
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 2800.73, below the 50-day MA of 2782.16, and above the 200-day MA of 2588.23, indicating a bullish trend. The MACD of 69.09 indicates Negative momentum. The RSI at 60.14 is Neutral, neither overbought nor oversold. The STOCH value of 75.60 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥181.54B12.353.40%6.12%-3.75%
67
Neutral
¥539.90B11.823.68%2.35%-4.47%-4.52%
64
Neutral
¥25.44B12.573.56%-5.25%-4.95%
63
Neutral
¥247.57B43.092.18%10.50%27.82%
63
Neutral
¥112.83B43.704.78%-1.25%9.33%
62
Neutral
¥2.55T18.6915.67%1.94%9.86%-1.06%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7952
Kawai Musical Instruments Manufacturing Co., Ltd.
2,960.00
610.60
25.99%
JP:7832
BANDAI NAMCO Holdings
3,939.00
-650.45
-14.17%
JP:7951
Yamaha
1,215.50
204.06
20.17%
JP:7458
Daiichikosho Co., Ltd.
1,748.50
100.97
6.13%
JP:7867
Tomy Company, Ltd.
2,761.50
-193.24
-6.54%
JP:7944
Roland Corporation
4,315.00
1,448.72
50.54%

Kawai Musical Instruments Manufacturing Co., Ltd. Corporate Events

Kawai Enhances Shareholder Perks With New Music-Focused Benefits
Feb 12, 2026
Kawai Musical Instruments Manufacturing has approved an enhancement of its shareholder benefit program, aiming to make its stock more attractive and broaden its investor base over the medium to long term. The revised scheme continues to cover shar...
Kawai Musical Instruments Swings Back to Profit and Lifts Full-Year Outlook
Feb 12, 2026
Kawai Musical Instruments Manufacturing reported consolidated net sales of ¥53.31 billion for the nine months ended December 31, 2025, a 2.1% year-on-year decline, but returned to profitability with operating profit of ¥2 million and ord...
Kawai Slashes FY2026 Profit Outlook as Instrument and Auto-Parts Demand Weakens
Feb 12, 2026
Kawai Musical Instruments Manufacturing Co., Ltd., a leading Japanese maker of musical instruments and provider of music education services, also produces material processing components for sectors such as automotive, positioning itself across bot...
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.Date of analysis: Dec 20, 2025