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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Suzuki Motor Corp.

Isuzu Motors Ltd.

Toyota Motor Corp.

Mazda Motor Corp.

Hino Motors, Ltd.

Mitsubishi Motors Corp.

Yamaha Motor Co., Ltd.

Subaru Corp.

Shimano, Inc.

Honda Motor Co., Ltd.

Nissan Motor Co., Ltd.

Why is Yamaha Motor Co., Ltd. ?

High Management Efficiency with a high ROCE of 13.46%

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt company with Weak Long Term Fundamental Strength

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

NET PROFIT(Q) At JPY -27,278 MM has Fallen at -808.84%
ROCE(HY) Lowest at 1.4%
DEBT-EQUITY RATIO (HY) Highest at 57 %

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 -9.70%, its profits have fallen by -51.3%
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.70% 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.

-9.7%

161.75

33.91%

Japan Nikkei 225

38.94%

1.30

28.24%

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)

1.23

Tax Ratio

35.45%

Dividend Payout Ratio

45.40%

Pledged Shares

Institutional Holding

0.04%

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

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.14% (YoY

CASH AND EQV(HY)

Highest at JPY 777,510 MM

-20What is not working for the Company

NET PROFIT(Q)

At JPY -27,278 MM has Fallen at -808.84%

ROCE(HY)

Lowest at 1.4%

DEBT-EQUITY RATIO (HY)

Highest at 57 %

INTEREST(Q)

At JPY 3,303 MM has Grown at 179.68%

INTEREST COVERAGE RATIO(Q)

Lowest at 528.13

PRE-TAX PROFIT(Q)

At JPY 16,921 MM has Fallen at -31.68%

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

Cash and Eqv

Highest at JPY 777,510 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.14% (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 25,558 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 -27,278 MM has Fallen at -808.84%

over average net sales of the previous four periods of JPY 3,848.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 3,303 MM has Grown at 179.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 528.13

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 57 % 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

Pre-Tax Profit

At JPY 16,921 MM has Fallen at -31.68%

over average net sales of the previous four periods of JPY 24,766.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)