Shimano (7309) AI Stock Analysis

• Market Cap: ¥1.42T
• Dividend Yield: 1.96%
• Average Volume (3M): 362.85K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.47
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥16,754.00 ▲(1.57% 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

Strong Balance Sheet

Shimano's low leverage and high equity indicate financial stability, reducing risk and providing flexibility for strategic investments.

Cash Generation Ability

Strong cash flow supports reinvestment opportunities and strategic growth without needing external financing, enhancing long-term sustainability.

Revenue Growth Trends

Sustained revenue growth reflects strong market demand and effective sales strategies, bolstering Shimano's market position.

Negative Factors

Revenue Decline in 2024

A downturn in revenue, if persistent, may indicate challenges in market demand or competitive pressures, impacting future growth.

Earnings Decline

A significant decline in earnings per share suggests potential profitability issues, which could affect investor confidence and future investments.

Free Cash Flow Decline

Reduced free cash flow may limit Shimano's ability to fund new projects or return capital to shareholders, affecting long-term growth prospects.

Shimano Business Overview & Revenue Model

Company Description

Shimano Inc. is a leading global manufacturer of cycling, fishing, and rowing equipment, renowned for its innovative technologies and high-quality products. Founded in 1921 and headquartered in Sakai, Japan, Shimano operates primarily in the cycling and fishing sectors, producing a wide range of components, including bicycle gears, brakes, fishing reels, and rods. The company is committed to enhancing the user experience through continuous product development and sustainability efforts, catering to both recreational and professional markets.

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 cash flow supports its growth and strategic plans. However, the slight downturn in revenue in 2024 requires monitoring to ensure it does not indicate 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: Negative
• Last Price: 16495.00
• 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 16495 is above the 20-day moving average (MA) of 16166.50, below the 50-day MA of 16610.50, and below the 200-day MA of 18641.48, indicating a neutral trend. The MACD of 89.38 indicates Negative momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 68.34 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
7839	79 Outperform	¥99.24B	15.38	―	3.24%	-9.58%	-14.06%
7944	75 Outperform	¥92.30B	13.30	―	4.82%	-1.25%	9.33%
7740	74 Outperform	¥173.48B	13.67	―	3.48%	-5.65%	-16.35%
7309	65 Neutral	¥1.42T	28.62	5.92%	1.96%	7.64%	22.13%
7906	62 Neutral	¥280.41B	23.98	15.93%	0.71%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7990	61 Neutral	¥46.14B	9.05	―	4.01%	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.

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.

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.

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.

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.