Yamaha logged a 0.0% change during today's afternoon session, and is now trading at a price of $37.03 per share. The S&P 500 index moved -0.6% and the Nasdaq posted a -0.4% change.
Yamaha shares moved -19.6% over the last 52 weeks, with a high of $48.07 and a low of $37.03. During this time, the stock lagged the S&P 500 index by -7.2%. As of January 2022, the company's 50-day average price is $39.13. Yamaha Corporation, together with its subsidiaries, engages in the musical instruments, audio equipment, and other businesses in Japan and internationally. The Consumer Cyclical company has 19,895 full time employees and is based in Hamamatsu, Japan. Yamaha has returned a 178.3% dividend yield over the last 12 months.
The Company Has an Irregular Stream of Positive Cash Flows:
| 2019-03-31 | 2020-03-31 | 2021-03-31 | 2022-03-31 | |
|---|---|---|---|---|
| Revenue (MM) | $437,416 | $414,227 | $372,630 | $408,197 |
| Revenue Growth | n/a | -5.3% | -10.04% | 9.54% |
| Gross Margins | 41.6% | 40.6% | 38.4% | 37.9% |
| Gross Margins Growth | n/a | -2.4% | -5.42% | -1.3% |
| Operating Margins | 12.8% | 10.5% | 9.4% | 12.1% |
| Operating Margins Growth | n/a | -17.97% | -10.48% | 28.72% |
| Earnings Per Share | $240.94 | $194.71 | $151.39 | $214.79 |
| EPS Growth | n/a | -19.19% | -22.25% | 41.88% |
| Free Cash Flow (MM) | $10,042 | $36,689 | $45,653 | $21,486 |
| FCF Growth | n/a | 265.36% | 24.43% | -52.94% |
| Capital Expenditures (MM) | -$20,192 | -$20,473 | -$12,572 | -$14,530 |
| Net Debt / EBITDA | -1.39 | -1.17 | -2.08 | -2.16 |
Yamaha Is Currently Fairly Valued:
Yamaha has a trailing twelve month P/E ratio of 22.6 compared to the Consumer Cyclical sector's average of 24.11. The company doesn't issue forward earnings guidance, and the annual average growth rate of its last 4 years of reported EPS is 0.33%. On this basis, the company's PEG ratio is 68.41, which suggests that it is overpriced.
However, Yamaha is likely undervalued in terms of its equity because its P/B ratio is 0.0 compared to its sector average of 3.11. The company's shares are currently trading -98.9% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 200.46 * 2607.372) = $3429.31
Yamaha's elevated P/B ratio notwithstanding, the company's strong cash flows and healthy debt levels factor towards it being fairly valued.
