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Yamaha Motor Co Ltd (JP:7272)
:7272

Yamaha Motor Co (7272) AI Stock Analysis

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Yamaha Motor Co

(OTC:7272)

71Outperform
Yamaha Motor Co's overall stock score reflects strong financial performance with consistent revenue growth and improving cash flows. However, the technical analysis points to a bearish trend, and the earnings call highlights profit declines due to one-off expenses. The stock's valuation appears attractive with a low P/E ratio and a high dividend yield. The guidance for 2025 is optimistic, but the company faces challenges like rising costs and specific business segment declines.

Yamaha Motor Co (7272) vs. S&P 500 (SPY)

Yamaha Motor Co Business Overview & Revenue Model

Company DescriptionYamaha Motor Co., Ltd. is a Japanese multinational corporation primarily known for its motorcycles, marine products such as boats and outboard motors, and other motorized products. Founded in 1955 and headquartered in Iwata, Shizuoka, Japan, Yamaha Motor is a key player in the global automotive and marine industry. The company operates in several segments, including motorcycles, marine, power products, and financial services, offering a wide range of innovative and high-quality products to meet the diverse needs of its customers worldwide.
How the Company Makes MoneyYamaha Motor Co. generates revenue through a diversified portfolio of products and services across multiple segments. The primary revenue streams include the sale of motorcycles, marine products, and power products. In particular, the motorcycle segment is a significant contributor to the company's earnings, driven by strong demand in emerging markets and developed countries alike. The marine segment, which includes outboard motors, boats, and personal watercraft, also plays a crucial role in the company's financial performance. Additionally, Yamaha Motor Co. offers financial services, providing leasing and loans to support product sales, which further enhances its revenue. Strategic partnerships, technological innovations, and a strong global distribution network are key factors that contribute to the company's profitability and market presence.

Yamaha Motor Co Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.58T2.41T2.25T1.81T1.47T
Gross Profit
821.97B715.35B633.75B506.84B371.81B
EBIT
179.44B250.66B224.86B182.34B81.67B
EBITDA
257.52B314.20B284.69B233.47B129.91B
Net Income Common Stockholders
108.07B164.12B174.44B155.58B53.07B
Balance SheetCash, Cash Equivalents and Short-Term Investments
373.00B338.84B288.78B276.41B272.37B
Total Assets
2.78T2.57T2.18T1.83T1.64T
Total Debt
951.97B843.87B602.69B458.51B466.94B
Net Debt
578.97B505.03B313.91B182.10B194.56B
Total Liabilities
1.56T1.39T1.13T932.25B891.76B
Stockholders Equity
1.16T1.12T1.00T859.23B714.64B
Cash FlowFree Cash Flow
60.97B-29.76B-18.47B74.57B59.09B
Operating Cash Flow
176.85B80.15B70.92B141.34B110.49B
Investing Cash Flow
-128.75B-116.97B-74.16B-51.03B-43.95B
Financing Cash Flow
-46.43B95.26B23.10B-93.49B83.67B

Yamaha Motor Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1130.50
Price Trends
50DMA
1170.88
Negative
100DMA
1240.70
Negative
200DMA
1279.15
Negative
Market Momentum
MACD
-22.14
Negative
RSI
50.95
Neutral
STOCH
84.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7272, the sentiment is Neutral. The current price of 1130.5 is above the 20-day moving average (MA) of 1095.65, below the 50-day MA of 1170.88, and below the 200-day MA of 1279.15, indicating a neutral trend. The MACD of -22.14 indicates Negative momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 84.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7272.

Yamaha Motor Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.72T4.3115.47%4.26%6.27%19.66%
78
Outperform
¥31.52T6.2814.89%3.39%6.94%15.37%
71
Outperform
$6.88T6.538.11%4.78%12.25%15.01%
71
Outperform
$1.03T9.739.29%4.24%6.68%-32.72%
70
Outperform
$569.95B6.878.90%3.93%-0.06%-39.78%
68
Neutral
$3.29T8.5014.33%2.46%14.46%62.35%
60
Neutral
$6.85B11.573.09%4.18%2.37%-21.38%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7272
Yamaha Motor Co
1,130.50
-228.55
-16.82%
JP:7203
Toyota Motor
2,690.00
-707.37
-20.82%
JP:7211
Mitsubishi Motors
390.90
-64.78
-14.22%
JP:7269
Suzuki Motor
1,680.00
-93.75
-5.29%
JP:7267
Honda Motor Co
1,437.50
-236.13
-14.11%
JP:7270
SUBARU
2,613.00
-570.38
-17.92%

Yamaha Motor Co Earnings Call Summary

Earnings Call Date: Feb 12, 2025 | % Change Since: -8.79% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed sentiment with notable achievements in revenue growth and strategic investments in new technologies, balanced against significant declines in profits due to one-off expenses and challenges in the marine and SPV businesses.
Highlights
Increased Revenue in 2024
Yamaha Motor achieved a revenue of JPY2,576.2 billion in 2024, which is 107% compared to the previous year, despite lower profits.
Motorcycle Business Growth
There was outstanding growth in unit sales in Brazil and India, with stable supply of premium models in Indonesia.
2025 Forecast for Higher Revenue and Profits
Yamaha Motor forecasts revenue of JPY2.7 trillion and operating income of JPY230 billion in 2025, indicating expectations for higher revenue and operating income.
Investment in New Technologies and Expansion
Yamaha Motor plans to increase R&D expenditures by JPY130 billion over the previous MTP, focusing on new technologies like software services and intelligent systems.
Lowlights
Lower Profits in 2024
Profits fell approximately JPY62 billion from last year, primarily due to one-off expenses such as reviewing unprofitable business structures and quality-related provisions related to recalls.
Marine Business Challenges
The marine business experienced lower operating profit and demand decline, with production reduction due to inventory adjustments.
SPV Business Decline
In 2024, the SPV business saw lower revenue and profits due to prolonged demand stagnation in Europe and expenses related to withdrawal from the North American market.
Impact of One-off Factors
Approximately JPY50 billion of profit loss in 2024 was due to transient impacts such as expenses for reviewing business structures and fixed asset impairments.
Company Guidance
In the recent earnings call, Yamaha Motor provided guidance emphasizing several key financial metrics and strategic initiatives for the fiscal year 2024 and beyond. The company reported a revenue increase to JPY2,576.2 billion, marking a 107% year-on-year growth, while operating income fell to JPY181.5 billion, representing a 74% decrease compared to the previous year. The operating income ratio dropped by 3.1 points to 7%, and net income attributable to owners of the parent was JPY108.1 billion, down to 68% from the previous year. Earnings per share (EPS) stood at JPY110.12, a 70% reduction from the prior year. The company attributed the profit decline to one-off factors totaling approximately JPY50 billion, including business structure reviews and quality-related costs. Looking forward to fiscal 2025, Yamaha Motor anticipates higher revenues of JPY2.7 trillion and operating income of JPY230 billion, with an improved operating income ratio of 8.5%. They forecast net income attributable to owners of the parent to be JPY140 billion, with EPS at JPY143.21. The company plans for an annual dividend of JPY50 per share and share buybacks totaling JPY10 billion, maintaining a total payout ratio above 40%. Despite challenges like rising raw material prices and labor costs, Yamaha Motor aims to enhance its core motorcycle business through premium strategies and expects a gradual recovery in the marine business. The company is also focusing on robotics and generative AI-related demand, anticipating a market recovery in China by the second half of the year.

Yamaha Motor Co Corporate Events

Yamaha Motor Co. Expands Investment in Robotics Plus Limited
Apr 24, 2025

Yamaha Motor Co., Ltd. has announced a capital increase in its New Zealand subsidiary, Robotics Plus Limited, through its U.S. subsidiary, Yamaha Agriculture Inc. This investment will make Robotics Plus Limited a specified subsidiary, with its capital exceeding 10% of Yamaha’s total capital. The move is expected to have minimal impact on Yamaha’s consolidated business results for the fiscal year ending December 2025.

Yamaha Motor Unveils New Medium-Term Management Plan for Sustainable Growth
Mar 26, 2025

Yamaha Motor Co., Ltd. has outlined its new medium-term management plan, focusing on enhancing the competitiveness of its core businesses and acquiring new technologies to expand human potential. The plan emphasizes sustainable growth, economic value increase, and social value creation through human capital management and governance, aiming for carbon neutrality and strengthening the Yamaha brand’s market position.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.