# The Yokohama Rubber Company (5101.JP)

Canonical: https://gigainvestors.com/s/5101.JP

Analysis as of: 2026-10-15T07:10:33.656Z. Financial observations: FY2012–FY2025.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 7,024.00 per share; close as of 2026-10-15.

Estimated value: low JPY 5,838.84 per share, central JPY 6,572.62 per share, high JPY 7,549.43 per share. Buy at or below the central value JPY 6,572.62 per share. Valuation as of 2026-10-15T07:10:33.656Z; scenarios are not confidence intervals.

Expected annual return: 9.5% at the stated quote. About 9.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2018: 0.08×

- FY2019: 0.09×

- FY2020: 0.07×

- FY2021: 0.12×

- FY2022: 0.08×

- FY2023: 0.10×

- FY2024: 0.11×

- FY2025: 0.12×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.8%

- ROIC, second-lowest year: 5.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.4%

- ROIC including acquisitions, ten-year median: 5.3%

- Typical minus recent gross margin: -1.1 pp

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.2%

- FY2018: 7.6%

- FY2019: 8.0%

- FY2020: 5.6%

- FY2021: 10.3%

- FY2022: 6.7%

- FY2023: 7.8%

- FY2024: 8.7%

- FY2025: 9.2%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.95×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 339B

- Net income, five-year total: JPY 359B

- Return on incremental invested capital: 10.3%

- Working capital / revenue, annual change: 1.3 pp

- Working capital / revenue, final three-year average: 41.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.14×

- FY2022: 1.00×

- FY2023: 0.87×

- FY2024: 0.87×

- FY2025: 0.91×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- Per-share earnings: 58.39 to 467.81 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.7%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: JPY 613B

- Diluted shares, 10-year annual growth: -0.7%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 29.7%

- Per-share value change: JPY 409.42

- Per-share value, starting three-year median: JPY 58.39

- Per-share value, ending three-year median: JPY 467.81

- Average buyback yield: 0.0%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: JPY 512B

- ROIC, last three-year median: 8.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: JPY 58.39

- FY2017: JPY 249.32

- FY2018: JPY 222.12

- FY2019: JPY 261.61

- FY2020: JPY 164.09

- FY2021: JPY 408.47

- FY2022: JPY 286.38

- FY2023: JPY 419.32

- FY2024: JPY 467.81

- FY2025: JPY 668.55

### accounting: pass

- Sloan accruals: -1.5%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.29×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.45×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.7%

- FY2017: -2.2%

- FY2018: -5.5%

- FY2019: -3.7%

- FY2020: -6.0%

- FY2021: -0.3%

- FY2022: 0.6%

- FY2023: -5.8%

- FY2024: -1.1%

- FY2025: -1.5%

## Holders

## Price story

Price needs cash profits to grow 1.8% a year for ten years · sales +12.8%

Story as of 2026-10-16T10:00:14.301Z; price observation 2026-10-15.

Price needs cash profits to grow 1.8% a year for ten years

### Sales · FY2024–2025

sales +12.8%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XSMJ.pdf; observed 2026-03-25.

- FY2016: JPY 574B 

- FY2017: JPY 646B 

- FY2018: JPY 650B 

- FY2019: JPY 650B 

- FY2020: JPY 551B 

- FY2021: JPY 671B 

- FY2022: JPY 860B 

- FY2023: JPY 985B 

- FY2024: JPY 1.09T 

- FY2025: JPY 1.23T 

### Gross margin · FY2025

gross margin 36.2%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XSMJ.pdf; observed 2026-03-25.

- FY2016: 37.0% 

- FY2018: 33.2% 

- FY2019: 32.2% 

- FY2020: 31.8% 

- FY2021: 33.3% 

- FY2022: 33.4% 

- FY2023: 33.1% 

- FY2024: 35.6% 

- FY2025: 36.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 1.2 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XSMJ.pdf (filed 2026-03-25); FY2025: revenue 1234959000000; grossProfit 446805000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 33.1% to 36.2% during 2023–25; it earns 7.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2023: grossProfit / revenue = 33.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2024: grossProfit / revenue = 35.6%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XSMJ.pdf (filed 2026-03-25); FY2025: grossProfit / revenue = 36.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); 10-year return on capital observations [[2016,0.052298438617039075],[2018,0.07612772056039156],[2019,0.07979406005112014],[2020,0.05559324902536529],[2021,0.10258305027404019],[2022,0.06731655378908778],[2023,0.07807285170884212],[2024,0.08747567692982666],[2025,0.09222330417575657]]; median 0.07807285170884212. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 33% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XSMJ.pdf (filed 2026-03-25); Gross margin observations: [[2021,0.3333750739778387],[2022,0.33431922061833147],[2023,0.3307419928085226]]; range within 2 percentage points.

### Where the cash goes

Earns 10.3% on new investment; paid dividends in 9 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2016: growth capex 0; upkeep 32049000000; owner earnings 10516000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2018: growth capex 1908339806.5190887; upkeep 44775660193.48091; owner earnings 27640339806.51909. Growth capex / owner earnings = 0.06904183594982428.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2019: growth capex 108966145.86629486; upkeep 50086033854.133705; owner earnings 34266966145.866295. Growth capex / owner earnings = 0.0031799180996196744.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2020: growth capex 0; upkeep 31281000000; owner earnings 39498000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2021: growth capex 0; upkeep 36300000000; owner earnings 74760000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2022: growth capex 4978000000; upkeep 49914000000; owner earnings 45918000000. Growth capex / owner earnings = 0.10841064506293828.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2023: growth capex 0; upkeep 58726000000; owner earnings 58233000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2024: growth capex 11633000000; upkeep 66157000000; cash acquisitions 0; owner earnings 64883000000. Growth capex plus acquisitions / owner earnings = 0.17929195629055378.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XSMJ.pdf (filed 2026-03-25); FY2025: growth capex 38662000000; upkeep 73622000000; cash acquisitions 140527000000; owner earnings 95647000000. Growth capex plus acquisitions / owner earnings = 1.873440881574958.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); Incremental return on capital 0.10301454929832998, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); Dividend observations: [[2016,8339000000],[2018,9937000000],[2019,9950000000],[2020,10431000000],[2021,10277000000],[2022,10603000000],[2023,10767000000],[2024,15429000000],[2025,15861000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price assumes cash profits grow 1.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); Ten-year compound average after fade. Initial solved rate 0.012806313588970109. Price 7024; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -131.28947973742103 → FY2025 606.6984368773601. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 2,067.00 per share

- 2016-12: JPY 2,096.00 per share

- 2017-01: JPY 1,989.00 per share

- 2017-02: JPY 2,234.00 per share

- 2017-03: JPY 2,179.00 per share

- 2017-04: JPY 2,185.00 per share

- 2017-05: JPY 2,160.00 per share

- 2017-06: JPY 2,255.00 per share

- 2017-07: JPY 2,228.00 per share

- 2017-08: JPY 2,035.00 per share

- 2017-09: JPY 2,320.00 per share

- 2017-10: JPY 2,530.00 per share

- 2017-11: JPY 2,516.00 per share

- 2017-12: JPY 2,763.00 per share

- 2018-01: JPY 2,772.00 per share

- 2018-02: JPY 2,651.00 per share

- 2018-03: JPY 2,463.00 per share

- 2018-04: JPY 2,585.00 per share

- 2018-05: JPY 2,370.00 per share

- 2018-06: JPY 2,303.00 per share

- 2018-07: JPY 2,384.00 per share

- 2018-08: JPY 2,335.00 per share

- 2018-09: JPY 2,449.00 per share

- 2018-10: JPY 2,192.00 per share

- 2018-11: JPY 2,376.00 per share

- 2018-12: JPY 2,065.00 per share

- 2019-01: JPY 2,304.00 per share

- 2019-02: JPY 2,271.00 per share

- 2019-03: JPY 2,056.00 per share

- 2019-04: JPY 2,093.00 per share

- 2019-05: JPY 1,814.00 per share

- 2019-06: JPY 1,980.00 per share

- 2019-07: JPY 2,011.00 per share

- 2019-08: JPY 2,043.00 per share

- 2019-09: JPY 2,161.00 per share

- 2019-10: JPY 2,437.00 per share

- 2019-11: JPY 2,255.00 per share

- 2019-12: JPY 2,131.00 per share

- 2020-01: JPY 1,889.00 per share

- 2020-02: JPY 1,757.00 per share

- 2020-03: JPY 1,343.00 per share

- 2020-04: JPY 1,391.00 per share

- 2020-05: JPY 1,627.00 per share

- 2020-06: JPY 1,514.00 per share

- 2020-07: JPY 1,342.00 per share

- 2020-08: JPY 1,661.00 per share

- 2020-09: JPY 1,491.00 per share

- 2020-10: JPY 1,491.00 per share

- 2020-11: JPY 1,523.00 per share

- 2020-12: JPY 1,534.00 per share

- 2021-01: JPY 1,642.00 per share

- 2021-02: JPY 1,840.00 per share

- 2021-03: JPY 1,980.00 per share

- 2021-04: JPY 2,031.00 per share

- 2021-05: JPY 2,206.00 per share

- 2021-06: JPY 2,379.00 per share

- 2021-07: JPY 2,173.00 per share

- 2021-08: JPY 1,877.00 per share

- 2021-09: JPY 2,015.00 per share

- 2021-10: JPY 1,922.00 per share

- 2021-11: JPY 1,766.00 per share

- 2021-12: JPY 1,843.00 per share

- 2022-01: JPY 1,662.00 per share

- 2022-02: JPY 1,607.00 per share

- 2022-03: JPY 1,692.00 per share

- 2022-04: JPY 1,738.00 per share

- 2022-05: JPY 1,654.00 per share

- 2022-06: JPY 1,837.00 per share

- 2022-07: JPY 1,937.00 per share

- 2022-08: JPY 2,289.00 per share

- 2022-09: JPY 2,216.00 per share

- 2022-10: JPY 2,328.00 per share

- 2022-11: JPY 2,255.00 per share

- 2022-12: JPY 2,058.00 per share

- 2023-01: JPY 2,125.00 per share

- 2023-02: JPY 2,584.00 per share

- 2023-03: JPY 2,797.00 per share

- 2023-04: JPY 2,939.00 per share

- 2023-05: JPY 2,933.00 per share

- 2023-06: JPY 3,150.00 per share

- 2023-07: JPY 3,183.00 per share

- 2023-08: JPY 2,964.50 per share

- 2023-09: JPY 3,112.00 per share

- 2023-10: JPY 2,756.50 per share

- 2023-11: JPY 3,289.00 per share

- 2023-12: JPY 3,233.00 per share

- 2024-01: JPY 3,519.00 per share

- 2024-02: JPY 3,979.00 per share

- 2024-03: JPY 4,034.00 per share

- 2024-04: JPY 4,137.00 per share

- 2024-05: JPY 3,940.00 per share

- 2024-06: JPY 3,557.00 per share

- 2024-07: JPY 3,457.00 per share

- 2024-08: JPY 3,325.00 per share

- 2024-09: JPY 3,212.00 per share

- 2024-10: JPY 3,161.00 per share

- 2024-11: JPY 3,031.00 per share

- 2024-12: JPY 3,400.00 per share

- 2025-01: JPY 3,508.00 per share

- 2025-02: JPY 3,340.00 per share

- 2025-03: JPY 3,442.00 per share

- 2025-04: JPY 3,125.00 per share

- 2025-05: JPY 3,642.00 per share

- 2025-06: JPY 3,972.00 per share

- 2025-07: JPY 4,350.00 per share

- 2025-08: JPY 5,496.00 per share

- 2025-09: JPY 5,485.00 per share

- 2025-10: JPY 5,526.00 per share

- 2025-11: JPY 6,193.00 per share

- 2025-12: JPY 6,017.00 per share

- 2026-01: JPY 6,090.00 per share

- 2026-02: JPY 7,882.00 per share

- 2026-03: JPY 5,821.00 per share

- 2026-04: JPY 6,297.00 per share

- 2026-05: JPY 7,179.00 per share

- 2026-06: JPY 7,243.00 per share

- 2026-07: JPY 7,669.00 per share

- 2026-08: JPY 7,429.00 per share

- 2026-09: JPY 7,135.00 per share

- 2026-10: JPY 7,337.00 per share

## Annual estimated value (JPY per share)

- FY2022: low JPY 4,257.33 per share, central JPY 5,925.73 per share, high JPY 6,897.23 per share

- FY2023: low JPY 5,423.36 per share, central JPY 7,539.19 per share, high JPY 8,771.25 per share

- FY2024: low JPY 5,909.50 per share, central JPY 7,702.11 per share, high JPY 8,899.74 per share

- FY2025: low JPY 5,599.12 per share, central JPY 6,298.80 per share, high JPY 7,230.21 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T07:10:33.656Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XSMJ.pdf); period 2025-12-31, filed 2026-03-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.