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Market Cap

JP¥1.1t

Last Updated

2021/04/17 08:14 UTC

Data Sources

Company Financials +

Executive Summary

Yamaha Corporation, together with its subsidiaries, engages in the musical instruments, audio equipment, and other businesses worldwide. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Yamaha's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7951 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7951's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

7951

0.7%

JP Leisure

0.1%

JP Market


1 Year Return

43.8%

7951

50.1%

JP Leisure

37.4%

JP Market

Return vs Industry: 7951 underperformed the JP Leisure industry which returned 50.1% over the past year.

Return vs Market: 7951 exceeded the JP Market which returned 37.4% over the past year.


Shareholder returns

7951IndustryMarket
7 Day-0.8%0.7%0.1%
30 Day-1.3%1.6%-1.2%
90 Day1.6%3.0%5.7%
1 Year45.5%43.8%52.5%50.1%40.3%37.4%
3 Year32.3%27.6%53.9%45.7%21.3%12.9%
5 Year101.8%88.9%82.6%66.7%57.3%40.0%

Long-Term Price Volatility Vs. Market

How volatile is Yamaha's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Yamaha undervalued compared to its fair value and its price relative to the market?

56.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7951 (¥6290) is trading above our estimate of fair value (¥3483.28)

Significantly Below Fair Value: 7951 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7951 is poor value based on its PE Ratio (56.7x) compared to the JP Leisure industry average (29x).

PE vs Market: 7951 is poor value based on its PE Ratio (56.7x) compared to the JP market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: 7951 is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: 7951 is overvalued based on its PB Ratio (3.1x) compared to the JP Leisure industry average (1.1x).


Future Growth

How is Yamaha forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7951's forecast earnings growth (17.1% per year) is above the savings rate (0%).

Earnings vs Market: 7951's earnings (17.1% per year) are forecast to grow faster than the JP market (14.2% per year).

High Growth Earnings: 7951's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7951's revenue (6.5% per year) is forecast to grow faster than the JP market (5.7% per year).

High Growth Revenue: 7951's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7951's Return on Equity is forecast to be low in 3 years time (11.5%).


Past Performance

How has Yamaha performed over the past 5 years?

-6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7951 has high quality earnings.

Growing Profit Margin: 7951's current net profit margins (5.4%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: 7951's earnings have declined by 6.4% per year over the past 5 years.

Accelerating Growth: 7951's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7951 had negative earnings growth (-51.7%) over the past year, making it difficult to compare to the Leisure industry average (-26.3%).


Return on Equity

High ROE: 7951's Return on Equity (5.4%) is considered low.


Financial Health

How is Yamaha's financial position?


Financial Position Analysis

Short Term Liabilities: 7951's short term assets (¥279.6B) exceed its short term liabilities (¥98.2B).

Long Term Liabilities: 7951's short term assets (¥279.6B) exceed its long term liabilities (¥54.3B).


Debt to Equity History and Analysis

Debt Level: 7951's debt to equity ratio (2.8%) is considered satisfactory.

Reducing Debt: 7951's debt to equity ratio has reduced from 5.6% to 2.8% over the past 5 years.

Debt Coverage: 7951's debt is well covered by operating cash flow (512.7%).

Interest Coverage: 7951 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Yamaha current dividend yield, its reliability and sustainability?

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 7951's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.21%).

High Dividend: 7951's dividend (1.05%) is low compared to the top 25% of dividend payers in the JP market (2.79%).


Stability and Growth of Payments

Stable Dividend: 7951's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7951's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.5%), 7951's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Tak Nakata

7.83yrs

Tenure

JP¥195,000,000

Compensation

Mr. Takuya Nakata, also known as Tak, has been the President of Yamaha Corporation (formerly, Nippon Gakki Co., Ltd.) since June 1, 2013 and has been its Representative Executive Officer and Director since...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Tak's total compensation is reasonable compared to companies of similar size in the JP market.

Compensation vs Earnings: Tak's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 7951's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: 7951's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Yamaha Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yamaha Corporation
  • Ticker: 7951
  • Exchange: TSE
  • Founded: 1887
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: JP¥1.107t
  • Shares outstanding: 175.80m
  • Website: https://www.yamaha.com

Number of Employees


Location

  • Yamaha Corporation
  • 10-1, Nakazawa-cho
  • Naka-ku
  • Hamamatsu
  • Shizuoka
  • 430-8650
  • Japan

Listings


Biography

Yamaha Corporation, together with its subsidiaries, engages in the musical instruments, audio equipment, and other businesses worldwide. The company manufactures and sells pianos; digital musical instrumen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/17 08:14
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.