Shimano (7309) AI Stock Analysis

• Market Cap: $1.46T
• Dividend Yield: 1.95%
• Average Volume (3M): 510.50K
• Price to Earnings (P/E): 41.4
• Beta (1Y): 0.44
• Revenue Growth: 10.17%
• EPS Growth: -32.40%
• Country: JP
• Employees: 10,130
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Leisure
• EPS (TTM): -65.30
• Shares Outstanding: 87,710,000
• 10 Day Avg. Volume: 422,760
• 30 Day Avg. Volume: 510,500
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 2.96
• Enterprise Value/Gross Profit: 7.70
• Enterprise Value/Ebitda: 13.17
• 1Y Price Target: $17,749.30
• Price Target Upside: 6.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ¥17,821.00 ▲(7.39% Upside)

Shimano's overall stock score is driven primarily by its strong financial performance, which is a major strength due to robust profitability and a solid balance sheet. However, the technical analysis indicates bearish momentum, which is a significant risk factor. The high P/E ratio suggests potential overvaluation, although the dividend yield offers some compensation. The absence of recent earnings call data and corporate events means that these factors did 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 through the sale of its comprehensive range of cycling components, which include drivetrains, brakes, wheels, and pedals, among others. It supplies these components to bicycle manufacturers and retailers worldwide, making it a crucial part of the global cycling industry. Additionally, Shimano's fishing tackle division contributes significantly to its revenues, offering products like reels, rods, and lines that are distributed through a wide network of dealers. The company's revenue is further bolstered by its rowing equipment segment, though this remains a smaller portion of its overall income. Key revenue streams thus include direct sales to manufacturers, retail distribution, and strategic partnerships with major players in the cycling and fishing industries. Shimano's strong brand reputation and commitment to quality and innovation are significant factors that support its earnings and market position.

Shimano Financial Statement Overview

Summary

Shimano presents a strong financial picture 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, attention should be paid to the slight downturn in revenue in 2024 to ensure it does not signal a longer-term trend.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	450.99B	474.36B	628.91B	546.51B	378.04B
Gross Profit	172.30B	182.51B	265.64B	231.42B	153.08B
EBITDA	123.75B	107.59B	190.15B	167.04B	100.97B
Net Income	76.33B	61.14B	128.18B	115.94B	63.47B
Balance Sheet
Total Assets	958.95B	871.73B	826.41B	705.37B	590.42B
Cash, Cash Equivalents and Short-Term Investments	534.04B	493.93B	430.43B	364.52B	305.61B
Total Debt	3.56B	3.39B	5.38B	6.26B	2.35B
Total Liabilities	75.34B	69.34B	85.32B	88.72B	60.63B
Stockholders Equity	882.39B	801.17B	740.11B	615.99B	529.29B
Cash Flow
Free Cash Flow	50.21B	83.25B	83.17B	92.41B	63.48B
Operating Cash Flow	87.03B	114.57B	110.68B	112.44B	91.05B
Investing Cash Flow	-35.81B	-31.76B	-33.38B	-20.13B	-28.33B
Financing Cash Flow	-49.48B	-43.96B	-58.42B	-58.77B	-17.91B

Shimano Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16595.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 16595 is below the 20-day moving average (MA) of 16632.75, below the 50-day MA of 18942.93, and below the 200-day MA of 20271.56, indicating a bearish trend. The MACD of -678.43 indicates Negative momentum. The RSI at 37.18 is Neutral, neither overbought nor oversold. The STOCH value of 56.95 is Neutral, 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
7309	67 Neutral	$1.46T	41.39	4.25%	1.95%	10.17%	-32.40%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
YONXF	―	$2.54B	31.87	18.19%	0.39%	―	―
7944	81 Outperform	¥88.12B	14.78		5.04%	-4.39%	-27.30%
7839	79 Outperform	¥98.87B	15.55		3.80%	-3.75%	-8.15%
7740	77 Outperform	¥168.15B	12.38		12.34%	2.17%	0.64%
7990	74 Outperform	¥54.27B	11.07		3.43%	0.66%	31.91%

Shimano Corporate Events

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 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.

Shimano Completes Treasury Share Disposal for Stock Remuneration

Shimano Inc. has completed the payment process for the disposal of 3,214 treasury shares as restricted stock remuneration, following a resolution at its Board of Directors meeting. This move involves a total value of 65,324,550 yen and is aimed at compensating directors and executive officers, potentially impacting the company’s financial strategies and stakeholder relations.