Yamaha (OTC:YAMHF) continues to surge

While many traders are getting carried away by overanalyzing consumer cyclical space, it is reasonable to digest Yamaha Motor Ord. We will evaluate if Yamaha shares are reasonably priced going into June. Here I will also expose some primary fundamental factors affecting Yamaha's services, and outline how it will impact the outlook for investors this year.
Published over a year ago
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Reviewed by Michael Smolkin

This firm reported the revenue of 1470 B. Net Income was 53.07 B with profit before overhead, payroll, taxes, and interest of 371.81 B.
The performance of Yamaha Motor Co in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Yamaha's stock prices. When investing in Yamaha, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Yamaha Pink Sheet can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Yamaha carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Yamaha earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Yamaha dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Yamaha one year expected dividend income is about USD0.14 per share.
Investing in stocks that pay dividends, such as pink sheet of Yamaha Motor Co, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Yamaha must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Yamaha. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Yamaha's Liquidity

Yamaha financial leverage refers to using borrowed capital as a funding source to finance Yamaha Motor Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Yamaha financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Yamaha's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Yamaha's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Yamaha's total debt and its cash.

What is the case for Yamaha Investors

Yamaha Motor Ord owns a total of 349.43 Million outstanding shares. Over half of Yamaha Motor Ord outstanding shares are owned by institutional investors. These institutional investors are typically referred to corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Yamaha Motor Ord. Please watch out for any change in the institutional holdings of Yamaha Motor Ord as this could mean something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Ownership Breakdown

Retail Investors
31.6%
Insiders
16.25%
Institutions
52.15%
Retail Investors31.6
Insiders16.25
Institutions52.15

Yamaha implied volatility may change after the surge

The coefficient of variation is down to 2170.76 as of today. Yamaha Motor Ord currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of -0.02. However, we advise investors to further question Yamaha Motor Ord expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Yamaha's otc stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Yamaha's otc stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Bottom Line

Although few other entities within the auto manufacturers industry are still a little expensive, even after the recent corrections, Yamaha may offer a potential longer-term growth to shareholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of Yamaha at this time. The Yamaha Motor Ord risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Yamaha.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Yamaha Motor Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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