Shimano (7309) AI Stock Analysis

• Market Cap: ¥1.78T
• Dividend Yield: 1.51%
• Average Volume (3M): 298.59K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.39
• Revenue Growth: 3.37%
• EPS Growth: -2.27%
• Country: JP
• Employees: 10,130
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Leisure
• EPS (TTM): 110.20
• Shares Outstanding: 87,710,000
• 10 Day Avg. Volume: 302,770
• 30 Day Avg. Volume: 298,590
• PEG Ratio: -1.59
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥24,202.12
• Price Target Upside: 18.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: ¥23,128.00 ▲(13.48%Upside)

Shimano's strong financial performance, characterized by revenue growth, a robust balance sheet, and quality cash flow, is the most significant factor contributing to its stock score. Technical analysis presents a mixed view, with neutral momentum indicators. The relatively high P/E ratio suggests potential overvaluation, which is a concern for valuation. Absence of earnings call data and notable corporate events leaves these areas unassessed.

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 makes money primarily through the sale of its cycling components, which account for a significant portion of its revenue. The company's products are sold to bicycle manufacturers and retailers globally, with a strong presence in Asia, Europe, and North America. Shimano's fishing division also contributes to its earnings by offering a wide array of products that cater to both recreational and professional anglers. Additionally, Shimano benefits from strategic partnerships with bicycle manufacturers and its reputation for reliability and innovation, which drive demand for its products. The company also invests in research and development to maintain its competitive edge and expand its market reach.

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
	EBIT
65.08B	83.65B	169.16B	148.29B	82.70B
	EBITDA
123.75B	107.59B	190.15B	167.04B	100.97B
	Net Income Common Stockholders
76.33B	61.14B	128.18B	115.94B	63.47B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
534.04B	493.93B	430.43B	364.52B	305.61B
	Total Assets
958.95B	871.73B	826.41B	705.37B	590.42B
	Total Debt
3.56B	3.39B	5.38B	6.26B	2.35B
	Net Debt
-526.75B	-478.59B	-425.05B	-358.26B	-303.26B
	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: 20380.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 20380 is below the 20-day moving average (MA) of 20418.50, above the 50-day MA of 20225.10, and below the 200-day MA of 22016.69, indicating a neutral trend. The MACD of 228.88 indicates Positive momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 24.98 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	77 Outperform	¥1.78T	29.11	7.32%	1.51%	3.37%	-2.27%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
YONXF		$1.73B	21.08	16.08%	0.86%	―	―
7740	82 Outperform	¥131.84B	10.03		6.13%	14.84%	20.61%
7944	76 Outperform	¥83.15B	12.79		5.34%	-1.74%	-11.79%
7839	75 Outperform	¥86.58B	12.69		4.34%	-2.75%	-7.80%
7990	72 Outperform	¥46.83B	9.80		3.88%	-1.61%	-14.35%

Shimano Corporate Events

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.

Shimano Inc. Advances Share Repurchase Program

Shimano Inc. has announced the acquisition of 633,900 of its own shares, amounting to 13,165,587,000 yen, as part of its ongoing share repurchase program. This move is part of a larger plan approved by the Board of Directors to acquire up to 2,500,000 shares by January 2026, which aims to enhance shareholder value and optimize capital structure.

Shimano Announces Disposal of Treasury Shares as Restricted Stock Remuneration

Shimano Inc. announced a resolution to dispose of treasury shares as restricted stock remuneration, aimed at incentivizing directors and executive officers to enhance corporate value and align interests with shareholders. This move is part of a stock remuneration plan approved in 2023, involving the allotment of 3,214 shares to eligible directors and executive officers, with transfer restrictions in place until retirement, reflecting a strategic effort to bolster long-term company performance and stakeholder alignment.

Shimano Announces Treasury Stock Cancellation

Shimano Inc. announced its decision to cancel 1,410,000 shares of its treasury stock, which constitutes 1.58% of its total shares, as part of a strategic move to optimize its capital structure. This cancellation, effective May 1, 2025, will reduce the total number of shares to 87,710,000, potentially impacting shareholder value and market perception positively.

Shimano Inc. Advances Share Buyback Program

Shimano Inc. has announced the acquisition of 633,900 of its own shares, valued at over 13 billion yen, as part of a larger plan approved by its Board of Directors to repurchase up to 2.5 million shares. This strategic move is expected to enhance shareholder value and optimize the company’s capital structure, reflecting its strong financial position and commitment to returning value to shareholders.

Shimano Inc. Reports Q1 FY2025 Financial Results with Increased Sales and Dividend Forecast

Shimano Inc. reported its consolidated financial results for the first quarter of FY2025, showing a 12.9% increase in net sales compared to the previous year, despite a significant decrease in net income attributable to owners of the parent by 58.7%. The company also announced a forecasted increase in dividends for FY2025, indicating a positive outlook for stakeholders despite challenges in ordinary income and net income performance.

Shimano Announces Share Buyback to Enhance Shareholder Value

Shimano Inc. announced the acquisition of 517,300 of its own shares, valued at 11.33 billion yen, as part of a broader buyback plan approved by the Board of Directors. This move is part of a strategic initiative to enhance shareholder value and optimize capital structure, with potential implications for market perception and stock performance.