Yamaha Motor Co., Ltd. (7272) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Toyota Motor Corp.

Mazda Motor Corp.

Suzuki Motor Corp.

Isuzu Motors Ltd.

Yamaha Motor Co., Ltd.

Subaru Corp.

Honda Motor Co., Ltd.

Hino Motors, Ltd.

Shimano, Inc.

Nissan Motor Co., Ltd.

Mitsubishi Motors Corp.

Why is Yamaha Motor Co., Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 13.46%

Healthy long term growth as Net Sales has grown by an annual rate of 9.43% and Operating profit at 7.51%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 35.27

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At JPY 53,106 MM has Grown at -53.04%
ROCE(HY) Lowest at 4.07%
DEBT-EQUITY RATIO (HY) Highest at 52.1 %

With ROCE of 8.37%, it has a very attractive valuation with a 0.99 Enterprise value to Capital Employed

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 -12.38%, its profits have fallen by -51.3%
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.38% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Yamaha Motor Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Yamaha Motor Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Yamaha Motor Co., Ltd.

-14.36%

184.67

31.52%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.43%

EBIT Growth (5y)

7.51%

EBIT to Interest (avg)

35.27

Debt to EBITDA (avg)

1.66

Net Debt to Equity (avg)

0.91

Sales to Capital Employed (avg)

1.24

Tax Ratio

35.45%

Dividend Payout Ratio

45.40%

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

13.46%

ROE (avg)

15.09%

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

0.98

EV to EBIT

11.80

EV to EBITDA

7.54

EV to Capital Employed

0.99

EV to Sales

0.68

PEG Ratio

Dividend Yield

0.03%

ROCE (Latest)

8.37%

ROE (Latest)

8.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 108.04%

CASH AND EQV(HY)

Highest at JPY 721,870 MM

-14What is not working for the Company

NET PROFIT(HY)

At JPY 53,106 MM has Grown at -53.04%

ROCE(HY)

Lowest at 4.07%

DEBT-EQUITY RATIO (HY)

Highest at 52.1 %

INTEREST(Q)

At JPY 4,468 MM has Grown at 35.68%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.14%

Here's what is working for Yamaha Motor Co., Ltd.

Dividend Payout Ratio

Highest at 108.04% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Cash and Eqv

Highest at JPY 721,870 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 21,325 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 Motor Co., Ltd.

Net Profit

At JPY 53,106 MM has Grown at -53.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 4,468 MM has Grown at 35.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 52.1 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 4.14%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio