Yamaha Corp. (7951) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nintendo Co., Ltd.

Bandai Namco Holdings, Inc.

Yonex Co., Ltd.

Roland Corp.

GLOBERIDE, Inc.

Fujishoji Co., Ltd.

Tomy Co., Ltd.

Mars Group Holdings Corp.

Yamaha Corp.

Alpen Co., Ltd.

Snow Peak, Inc. (Japan)

Why is Yamaha Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.43

Poor long term growth as Net Sales has grown by an annual rate of 4.45% and Operating profit at 0.83% over the last 5 years

With a growth in Net Sales of 9.92%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
NET PROFIT(HY) At JPY 13,965 MM has Grown at 72.64%
DIVIDEND PAYOUT RATIO(Y) Highest at 163.32%
RAW MATERIAL COST(Y) Fallen by -9.04% (YoY)

With ROE of 4.07%, it has a expensive valuation with a 1.21 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 15.58%, its profits have fallen by -17.2%

Underperformed the market in the last 1 year

The stock has generated a return of 15.58% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yamaha Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Yamaha Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Yamaha Corp.

13.04%

82.94

27.99%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.45%

EBIT Growth (5y)

0.83%

EBIT to Interest (avg)

13.43

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.94

Tax Ratio

40.04%

Dividend Payout Ratio

91.86%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

12.42%

ROE (avg)

6.58%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.21

EV to EBIT

15.99

EV to EBITDA

9.50

EV to Capital Employed

1.26

EV to Sales

1.06

PEG Ratio

Dividend Yield

ROCE (Latest)

7.86%

ROE (Latest)

4.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

NET PROFIT(HY)

At JPY 13,965 MM has Grown at 72.64%

DIVIDEND PAYOUT RATIO(Y)

Highest at 163.32%

RAW MATERIAL COST(Y)

Fallen by -9.04% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.92 times

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.11 times

Here's what is working for Yamaha Corp.

Net Profit

At JPY 13,965 MM has Grown at 72.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 1.92 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 163.32%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -9.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 5,310 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Yamaha Corp.

Debtors Turnover Ratio

Lowest at 5.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio