Shimano (7309) AI Stock Analysis

• Market Cap: $1.53T
• Dividend Yield: 1.99%
• Average Volume (3M): 362.85K
• Price to Earnings (P/E): 42.9
• Beta (1Y): 0.47
• Revenue Growth: 10.17%
• EPS Growth: -32.40%
• Country: JP
• Employees: 10,130
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 138.26
• Shares Outstanding: 87,710,000
• 10 Day Avg. Volume: 334,790
• 30 Day Avg. Volume: 362,853
• PEG Ratio: 0.96
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 4.24
• P/FCF Ratio: 38.11
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 7.85
• Enterprise Value/Ebitda: 16.61
• 1Y Price Target: $19,885.30
• Price Target Upside: 22.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: ¥19,777.00 ▲(21.70% Upside)

Shimano's overall stock score is driven by its strong financial performance, which is the most significant factor. The technical analysis provides a moderately positive outlook, while the valuation suggests caution due to a high P/E ratio. The absence of earnings call data and corporate events means these components do not influence the score.

Shimano Business Overview & Revenue Model

Company Description

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. The company also plans and develops lifestyle gear products, such as apparel items, shoes, bags, and related items. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. The company was founded in 1921 and is headquartered in Sakai, Japan.

How the Company Makes Money

Shimano generates revenue primarily through the sale of cycling and fishing products. Its key revenue streams include the manufacturing and distribution of bicycle components, such as drivetrains, brakes, wheels, and accessories, which contribute significantly to its earnings. In addition, Shimano offers a variety of fishing products, including reels, rods, and tackle, which also form an essential part of its revenue portfolio. The company benefits from strong brand loyalty and a global distribution network, including partnerships with major retailers and online platforms. Additionally, Shimano's focus on innovation and quality helps maintain premium pricing for its products, further enhancing its profitability.

Shimano Financial Statement Overview

Summary

Shimano demonstrates strong financial performance with consistent revenue growth, solid profitability, and a robust balance sheet characterized by low leverage and high equity. The company's ability to generate cash flow supports its growth and strategic plans. However, the slight downturn in revenue in 2024 warrants attention.

Income Statement

Shimano has shown consistent revenue growth over the years, with a significant jump in total revenue from 2019 to 2023, indicating strong market demand and effective sales strategies. The gross profit margin remains robust, showcasing efficient production and cost management. Net profit margin has also improved, reflecting enhanced profitability. However, there is a slight decline in revenue in 2024, which could be a point of concern if the trend continues.

Balance Sheet

The company exhibits a strong balance sheet with a very low debt-to-equity ratio, indicating minimal leverage and a conservative financing approach. The equity ratio is high, signifying a strong asset base funded by shareholders' equity. Return on equity has been solid, showcasing the company's ability to generate profit from its equity base. Overall, Shimano's balance sheet is a significant strength, reflecting financial stability and low risk.

Cash Flow

Shimano's cash flow statement is robust, with consistent operating cash flow that exceeds net income, indicating quality earnings. The free cash flow has been substantial, supporting potential reinvestment opportunities without reliance on external financing. While there was a decline in free cash flow in 2024, the overall cash generation remains healthy, supporting operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	471.51B	450.99B	474.36B	628.91B	546.51B	378.04B
Gross Profit	175.00B	172.30B	182.51B	265.64B	231.42B	153.08B
EBITDA	82.65B	123.75B	107.59B	195.26B	172.59B	103.20B
Net Income	36.59B	76.33B	61.14B	128.18B	115.94B	63.47B
Balance Sheet
Total Assets	903.79B	958.95B	871.73B	826.41B	705.37B	590.42B
Cash, Cash Equivalents and Short-Term Investments	463.51B	534.04B	493.93B	430.43B	364.52B	305.61B
Total Debt	3.06B	3.56B	3.39B	5.38B	6.26B	2.35B
Total Liabilities	77.03B	75.34B	69.34B	85.32B	88.72B	60.63B
Stockholders Equity	825.76B	882.39B	801.17B	740.11B	615.99B	529.29B
Cash Flow
Free Cash Flow	0.00	50.21B	83.25B	83.17B	92.41B	63.48B
Operating Cash Flow	0.00	87.03B	114.57B	110.68B	112.44B	91.05B
Investing Cash Flow	0.00	-35.81B	-31.76B	-33.38B	-20.13B	-28.33B
Financing Cash Flow	0.00	-49.48B	-43.96B	-58.42B	-58.77B	-17.91B

Shimano Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16250.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7309, the sentiment is Negative. The current price of 16250 is below the 20-day moving average (MA) of 17385.75, below the 50-day MA of 16856.40, and below the 200-day MA of 19386.75, indicating a bearish trend. The MACD of 98.95 indicates Positive momentum. The RSI at 38.06 is Neutral, neither overbought nor oversold. The STOCH value of 17.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7309.

Shimano Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7740	―	¥182.31B	13.37	―	3.33%	2.17%	0.64%
7309	―	$1.53T	42.85	5.92%	1.99%	10.17%	-32.40%
7906	―	$343.78B	28.26	18.19%	0.56%	23.05%	31.52%
7839	―	¥90.39B	13.79	―	3.62%	-3.75%	-8.15%
7990	―	¥55.51B	11.32	―	3.40%	0.66%	31.91%
7944	―	¥86.16B	14.39	―	5.13%	-4.39%	-27.30%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Shimano Corporate Events

Shimano Completes Share Repurchase to Boost Shareholder Returns

Shimano Inc. has completed the acquisition of its own shares, reaching the upper limit set by its Board of Directors. This move is part of the company’s strategy to enhance shareholder returns, maintaining stable dividends while aligning with business performance. The acquisition involved purchasing a total of 2,603,300 shares, amounting to approximately 50 billion yen, as part of a broader plan to acquire up to 100 billion yen in treasury stock over two years.

The most recent analyst rating on (JP:7309) stock is a Buy with a Yen19506.00 price target. To see the full list of analyst forecasts on Shimano stock, see the JP:7309 Stock Forecast page.

Shimano Reports Mixed Financial Results for First Nine Months of FY2025

Shimano Inc. reported its consolidated financial results for the first nine months of FY2025, showing a 4.8% increase in net sales compared to the same period in FY2024. However, the company experienced significant declines in operating income, ordinary income, and net income attributable to owners of the parent, with decreases of 27.8%, 48.1%, and 61.0%, respectively. Despite these challenges, Shimano maintained a strong shareholders’ equity ratio of 91.9%. The company also announced a forecasted dividend increase for FY2025, reflecting a positive outlook despite current financial pressures.

The most recent analyst rating on (JP:7309) stock is a Buy with a Yen19506.00 price target. To see the full list of analyst forecasts on Shimano stock, see the JP:7309 Stock Forecast page.

Shimano Inc. Completes Share Buyback as Part of Strategic Repurchase Plan

Shimano Inc. announced the acquisition of 500,600 of its own shares, amounting to 8.2 billion yen, as part of a broader share repurchase plan authorized by the Board of Directors. This move reflects the company’s strategic efforts to manage its capital structure and potentially enhance shareholder value, with a total of 2,145,500 shares acquired so far under the current resolution.

The most recent analyst rating on (JP:7309) stock is a Buy with a Yen24000.00 price target. To see the full list of analyst forecasts on Shimano stock, see the JP:7309 Stock Forecast page.

Shimano Inc. Announces Share Buyback to Optimize Capital Structure

Shimano Inc. has announced the acquisition of its own shares, acquiring a total of 227,200 shares worth 3,796,594,000 yen during August 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 2,700,000 shares by January 2026, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:7309) stock is a Hold with a Yen17000.00 price target. To see the full list of analyst forecasts on Shimano stock, see the JP:7309 Stock Forecast page.

Shimano Inc. Increases Share Repurchase Limit to Enhance Shareholder Returns

Shimano Inc. announced an increase in the maximum number of its own shares to be repurchased, raising the limit from 2,500,000 to 2,700,000 shares. This decision aims to enhance shareholder returns, improve capital efficiency, and allow for more flexible capital policies, reflecting the company’s response to stock market trends and its strategic financial management.

The most recent analyst rating on (JP:7309) stock is a Buy with a Yen26300.00 price target. To see the full list of analyst forecasts on Shimano stock, see the JP:7309 Stock Forecast page.

Shimano Reaches Preliminary Settlement in U.S. Crankset Lawsuit

Shimano Inc. has announced a development in a lawsuit involving its U.S. subsidiary concerning bonded 11-speed HOLLOWTECH II road cranksets. A preliminary approval order has been issued based on a settlement agreement, with final court approval expected early next year. The terms of the settlement are considered reasonable by Shimano, and they will disclose further details as required by law.

The most recent analyst rating on (JP:7309) stock is a Buy with a Yen26300.00 price target. To see the full list of analyst forecasts on Shimano stock, see the JP:7309 Stock Forecast page.

Shimano Inc. Reports Mixed Financial Results for H1 2025

Shimano Inc. is a leading Japanese multinational company specializing in the production of cycling components, fishing tackle, and other related products, operating primarily in the sporting goods industry.

Shimano Revises 2025 Earnings Forecast Amid Market Challenges

Shimano Inc. announced discrepancies between its forecasted and actual financial results for the second quarter of 2025, leading to a revision of its full-year earnings forecast. While net sales in the European market exceeded expectations due to favorable weather, increased operating and non-operating expenses, including foreign exchange losses, resulted in lower-than-expected operating and net income. The company anticipates continued inventory adjustments in the Chinese market, which may further impact profit margins due to increased expenses during production adjustments.

The most recent analyst rating on (JP:7309) stock is a Buy with a Yen26300.00 price target. To see the full list of analyst forecasts on Shimano stock, see the JP:7309 Stock Forecast page.

Shimano Reports Mixed Financial Results for First Half of FY2025

Shimano Inc. reported its consolidated financial results for the first half of FY2025, showing a 9.5% increase in net sales compared to the previous year. However, the company experienced significant declines in operating income, ordinary income, and net income attributable to owners of the parent, reflecting challenges in maintaining profitability. The company also announced an increase in dividends per share, indicating a commitment to returning value to shareholders despite the financial setbacks.

The most recent analyst rating on (JP:7309) stock is a Buy with a Yen26300.00 price target. To see the full list of analyst forecasts on Shimano stock, see the JP:7309 Stock Forecast page.