Kawai Musical Instruments Manufacturing Co., Ltd. AI Stock Analysis
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Kawai Musical Instruments Manufacturing Co., Ltd. (7952) AI Stock Analysis
Kawai Musical Instruments Manufacturing Co., Ltd.
(TSE/TYO:7952)
The overall score of 54 is heavily dragged down by persistent fundamental weakness and operational cash burn. While technical indicators show strong bullish price action and the balance sheet remains exceptionally stable with low debt, declining revenues and a premium valuation present substantial risks to long-term performance.
Kawai Musical Instruments Manufacturing Co., Ltd. (7952) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 26.28B
- Dividend Yield
- 3.11%
- Average Volume (3M)
- 18.57K
- Price to Earnings (P/E)
- 21.9
- Beta (1Y)
- 0.84
- Revenue Growth
- 1.14%
- EPS Growth
- 50.21%
- Country
- Japan
- Employees
- 2,917
- Sector
- General
- Sector Strength
- 55
- Industry
- Leisure
Kawai Musical Instruments Manufacturing Co., Ltd. Business Overview & Revenue Model
Company Description
Kawai Musical Instruments Manufacturing Co., Ltd. manufactures and distributes musical instruments under its prominent Kawai brand, with a particular focus on both acoustic and digital pianos. Beyond instrument production, the company also creates an...
Kawai Musical Instruments Manufacturing Co., Ltd. Financial Statement Overview
Summary
The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.24 and growing equity. However, this is heavily offset by severe operational struggles, including three consecutive years of revenue declines, a plunging net profit margin of 1.58%, and deeply negative free cash flow reaching a deficit of over 3.4 billion in 2026.
Income Statement
30NegativeBalance Sheet
75PositiveCash Flow
20Very Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.36B | 72.05B | 72.92B | 80.19B | 87.77B | 85.70B |
| Gross Profit | 19.45B | 18.74B | 18.30B | 20.71B | 22.82B | 23.48B |
| EBITDA | 2.45B | 2.16B | 2.15B | 4.87B | 6.71B | 8.24B |
| Net Income | 1.19B | 1.14B | 405.00M | 2.78B | 3.67B | 5.05B |
Balance Sheet | ||||||
| Total Assets | 79.58B | 78.88B | 76.04B | 75.37B | 72.04B | 69.38B |
| Cash, Cash Equivalents and Short-Term Investments | 10.03B | 10.76B | 13.30B | 18.23B | 19.32B | 22.66B |
| Total Debt | 11.53B | 11.31B | 9.51B | 8.74B | 9.22B | 10.43B |
| Total Liabilities | 33.58B | 32.13B | 31.50B | 32.23B | 33.57B | 35.82B |
| Stockholders Equity | 46.00B | 46.74B | 44.54B | 42.93B | 38.26B | 33.38B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -3.45B | -3.17B | 405.00M | -1.80B | 4.24B |
| Operating Cash Flow | 0 | -630.00M | -1.61B | 1.56B | -530.00M | 5.14B |
| Investing Cash Flow | 0 | -3.77B | -2.46B | -1.13B | -1.53B | -1.02B |
| Financing Cash Flow | 0 | 1.70B | -951.00M | -1.77B | -2.19B | -1.72B |
Kawai Musical Instruments Manufacturing Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7952, the sentiment is Negative. The current price of 3055.00 is below the 20-day moving average (MA) of 3144.45, below the 50-day MA of 3278.68, and below the 200-day MA of 3106.38, indicating a bearish trend. The MACD of -60.62 indicates Negative momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 57.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7952.
Kawai Musical Instruments Manufacturing Co., Ltd. Peers Comparison
Overall Rating
JP:783285Outperform
JP:795178Outperform
JP:745875Outperform
JP:786772Outperform
JP:794466Neutral- JP:795254Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:7832 | 85Outperform | JPY 4.34T | 27.52 | 18.24% | 1.09% | 12.48% | 27.81% |
| JP:7951 | 78Outperform | JPY 577.66B | 17.81 | 6.69% | 1.98% | 8.11% | 93.86% |
| JP:7458 | 75Outperform | JPY 188.55B | 11.40 | ― | 3.98% | 5.10% | 13.99% |
| JP:7867 | 72Outperform | JPY 477.66B | 29.40 | ― | 1.35% | 13.86% | 1.66% |
| JP:7944 | 66Neutral | JPY 101.59B | 27.61 | ― | 4.36% | 9.71% | -46.89% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:7952 | 54Neutral | JPY 26.64B | 21.91 | ― | 3.11% | 1.14% | 50.21% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:7952 | Kawai Musical Instruments Manufacturing Co., Ltd. | 3055.00 | 646.63 | 26.85% | |
| JP:7832 | BANDAI NAMCO Holdings | 6900.00 | 2448.41 | 55.00% | |
| JP:7951 | Yamaha Corporation | 1311.00 | 267.15 | 25.59% | |
| JP:7458 | Daiichikosho Co., Ltd. | 1832.00 | 307.19 | 20.15% | |
| JP:7867 | Tomy Company, Ltd. | 5353.00 | 2471.80 | 85.79% | |
| JP:7944 | Roland Corporation | 3895.00 | 515.22 | 15.24% |
Kawai Musical Instruments Manufacturing Co., Ltd. Corporate Events
Kawai Reports 2.1% Higher Half-Year Net Sales
For the six months ended September 30, 2026, Kawai Musical Instruments Manufacturing Co., Ltd. reported net sales of ¥35,919 million, up 2.1% year on year. Operating loss narrowed to ¥86 million from ¥415 million, while ordinary profit was ¥30 millio...
Kawai Revises Fiscal 2027 Consolidated Financial Forecasts
Kawai Musical Instruments Manufacturing Co., Ltd. operates a Musical Instrument Education Business selling musical instruments, with Japan and Europe identified as markets where sales fell short of plan. The company revised its full-year consolidated...
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.
Date of analysis: Aug 17, 2026