Shimano (7309) AI Stock Analysis

• Market Cap: ¥1.52T
• Dividend Yield: 1.93%
• Average Volume (3M): 362.85K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.45
• Revenue Growth: 7.64%
• EPS Growth: 22.13%
• Country: JP
• Employees: 10,130
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 138.26
• Shares Outstanding: 86,530,000
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥16,900.00
• Price Target Upside: 1.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥18,952.00 ▲(13.35% Upside)

Shimano's strong financial performance is a key strength, supported by consistent revenue growth, profitability, and a robust balance sheet. However, technical analysis indicates bearish momentum, with the stock trading below major moving averages and in oversold conditions. The high P/E ratio suggests the stock may be overvalued, though the dividend yield offers some compensation. Investors should monitor the slight revenue downturn in 2024 and the current technical indicators for potential risks.

Positive Factors

Balance Sheet Strength

Shimano's minimal leverage and high equity ratio provide durable financial flexibility. This funding conservatism supports sustained investment in R&D and capex, cushions cyclical downturns, and enables strategic options like dividends or targeted M&A without relying on external financing.

Cash Flow Generation

Operating cash flow consistently exceeding accounting profits indicates high earnings quality and strong internal funding. Robust free cash flow supports long-term reinvestment, product development, and shareholder distributions while reducing reliance on debt, strengthening the firm's resilience over time.

Market Position & Revenue Trend

Steady top-line growth and healthy margins reflect durable demand for Shimano's branded components and aftermarket mix. Strong brand and multi-tier product positioning drive recurring upgrade and replacement purchases, supporting long-term revenue stability across consumer and OEM channels.

Negative Factors

2024 Revenue Dip

A revenue decline in 2024, if persistent, could indicate weakening end-market demand or lost OEM share. That trend risks margin pressure and reduced cash generation, making it harder to sustain investment levels and dividends absent corrective product, pricing, or distribution actions.

Revenue Concentration

Heavy reliance on bicycle components concentrates exposure to cycling OEM cycles, category trends, and supplier switching. Structural shifts such as e-bike platform competition, OEM specification changes, or geographic demand swings could disproportionately affect revenue and limit diversification benefits.

Free Cash Flow Decline

A 2024 drop in free cash flow reduces available internal funding for capex, R&D, and shareholder returns. If the decline reflects structural demand weakness rather than timing, it could constrain strategic investments and capital allocation flexibility over the medium term.

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, robust profitability, and a solid balance sheet characterized by low leverage and high equity. The company's ability to generate substantial cash flow supports its growth and strategic plans. However, the slight downturn in revenue in 2024 warrants attention 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	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: Positive
• Last Price: 16720.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 16720 is below the 20-day moving average (MA) of 17060.50, above the 50-day MA of 16626.64, and below the 200-day MA of 17791.81, indicating a neutral trend. The MACD of 229.71 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 76.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7309.

Shimano Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7839	79 Outperform	¥95.27B	15.57	―	3.29%	-9.58%	-14.06%
7944	75 Outperform	¥99.49B	14.34	―	4.78%	-1.25%	9.33%
7740	74 Outperform	¥171.31B	13.50	―	3.47%	-5.65%	-16.35%
7309	65 Neutral	¥1.52T	30.59	5.92%	1.93%	7.64%	22.13%
7906	62 Neutral	¥282.58B	24.16	15.93%	0.72%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7990	61 Neutral	¥47.82B	9.38	―	3.94%	0.74%	41.25%

Shimano Corporate Events

Shimano to Receive Significant Dividend from Singapore Subsidiary

Shimano Inc. announced it will receive a significant dividend from its consolidated subsidiary, Shimano (Singapore) Pte. Ltd., amounting to approximately 50,028 million yen. This dividend will be recorded as non-operating income in Shimano’s non-consolidated financial statements for 2025, with no impact on its consolidated performance for the fiscal year.

The most recent analyst rating on (JP:7309) stock is a Hold with a Yen16754.00 price target. To see the full list of analyst forecasts on Shimano stock, see the JP:7309 Stock Forecast page.

Shimano Announces Treasury Stock Cancellation

Shimano Inc. announced the cancellation of 1,180,000 shares of its treasury stock, which represents 1.35% of its total shares before cancellation. This strategic move, effective November 26, 2025, is likely to impact the company’s share value and reflects its ongoing efforts to optimize its capital structure.

The most recent analyst rating on (JP:7309) stock is a Buy with a Yen19777.00 price target. To see the full list of analyst forecasts on Shimano stock, see the JP:7309 Stock Forecast page.