Global Senior Analyst, Fundamental Equity Research

Emile Farsoun

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/yamaha-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:7411:1" rel="noopener">Yamaha Motor (7272 JP)</a> offers a strong risk reward and compelling story at current price. We believe the current valuation is cheap with the stock trading at a forward P/E of 8.8x and a forward EV/EBITDA of 5.5x. In addition, the dividend yield is 4.4%.The investment case is based on rising growth and profitability across all three segments, driven by rising share and better pricing, as well as cost restructuring.Moreover, the Japan Automotive Daily reported on December 21 that Yamaha Motor plans to develop motors for electric vehicles (EVs) and could announce details of a prototype as early as February next year. This would further enhance the overall growth story.

Yamaha Motor (7272 JP) offers a strong risk reward and compelling story at current price. We believe the current valuation is cheap with the stock trading at a forward P/E of 8.8x and a forward EV/EBITDA of 5.5x. In addition, the dividend yield is 4.4%.The investment case is based on rising growth and profitability across all three segments, driven by rising share and better pricing, as well as cost restructuring.Moreover, the Japan Automotive Daily reported on December 21 that Yamaha Motor plans to develop motors for electric vehicles (EVs) and could announce details of a prototype as early as February next year. This would further enhance the overall growth story.

Yamaha Motor

Yamaha Motor (7272 JP): A New Buy Idea