Shimano Inc. (JP:7309)
:7309
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Shimano
(7309)
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Rating:63Neutral
Price Target:
¥18,158.00
▲(8.60% Upside)
Action:ReiteratedDate:02/18/26
The score is primarily supported by very strong balance-sheet quality and low financial risk, but it is held back by deteriorating profitability/cash flow trends and a high P/E multiple. Technical indicators add a modest negative tilt given below-trend pricing and sub-50 RSI.
Positive Factors
Conservative balance sheet
Shimano’s extremely low leverage and large equity base materially reduce financial risk and provide durable financial flexibility. This balance sheet strength supports steady dividend capacity, funding for capex or product investment, and optionality for strategic moves without straining cash flow.
Negative Factors
Sharp margin compression
Material margin deterioration in 2025 signals weakening core profitability and lower operating leverage. If persistent, this reduces free cash generation and return on capital, constrains reinvestment or shareholder distributions, and may reflect structural pricing or cost pressures rather than a transient blip.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Shimano’s extremely low leverage and large equity base materially reduce financial risk and provide durable financial flexibility. This balance sheet strength supports steady dividend capacity, funding for capex or product investment, and optionality for strategic moves without straining cash flow.
Read all positive factors
Shimano (7309) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.40T
Dividend Yield1.93%
Average Volume (3M)362.85K
Price to Earnings (P/E)42.6
Beta (1Y)0.46
Revenue Growth7.64%
EPS Growth22.13%
CountryJP
Employees10,130
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)205.01
Shares Outstanding86,530,000
10 Day Avg. Volume334,790
30 Day Avg. Volume362,853
Financial Highlights & Ratios
PEG Ratio-0.78
Price to Book (P/B)1.67
Price to Sales (P/S)3.11
P/FCF Ratio51.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥16,406.40Price Target Upside-1.88% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)588.13
Revenue Forecast (FY)¥481.56B
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 Ja...
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 ...
Shimano Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
93
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 471.51B | 466.24B | 450.99B | 474.36B | 628.91B | 546.51B |
| Gross Profit | 175.00B | 166.62B | 172.30B | 182.51B | 265.64B | 240.46B |
| EBITDA | 87.73B | 78.89B | 90.12B | 107.59B | 190.15B | 167.04B |
| Net Income | 36.59B | 33.99B | 76.33B | 61.14B | 128.18B | 115.94B |
Balance Sheet | ||||||
| Total Assets | 903.79B | 938.25B | 958.95B | 871.73B | 826.41B | 705.37B |
| Cash, Cash Equivalents and Short-Term Investments | 463.51B | 477.32B | 534.04B | 493.93B | 430.43B | 364.52B |
| Total Debt | 3.06B | 4.03B | 3.56B | 3.39B | 5.38B | 6.26B |
| Total Liabilities | 77.03B | 68.75B | 75.34B | 69.33B | 85.32B | 88.72B |
| Stockholders Equity | 825.76B | 868.26B | 882.40B | 801.17B | 740.11B | 615.99B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 28.26B | 50.21B | 89.78B | 90.44B | 96.28B |
| Operating Cash Flow | 0.00 | 63.78B | 87.03B | 114.57B | 110.68B | 112.44B |
| Investing Cash Flow | 0.00 | -40.67B | -35.81B | -31.76B | -33.38B | -20.13B |
| Financing Cash Flow | 0.00 | -80.32B | -49.48B | -43.96B | -58.42B | -58.77B |
Shimano Technical Analysis
Negative
16720.00
Price Trends
16960.50
Negative
16611.50
Negative
17234.22
Negative
Market Momentum
-163.63
Negative
45.18
Neutral
33.07
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 16720 is above the 20-day moving average (MA) of 16311.50, below the 50-day MA of 16960.50, and below the 200-day MA of 17234.22, indicating a bearish trend. The MACD of -163.63 indicates Negative momentum. The RSI at 45.18 is Neutral, neither overbought nor oversold. The STOCH value of 33.07 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥9.10B | 16.36 | ― | 3.96% | 7.77% | 247.26% | |
79 Outperform | ¥88.67B | 15.81 | ― | 3.29% | -9.58% | -14.06% | |
75 Outperform | ¥4.02B | 8.35 | ― | 4.78% | -11.24% | -48.52% | |
63 Neutral | ¥1.40T | 42.60 | 5.92% | 1.93% | 7.64% | 22.13% | |
62 Neutral | ¥275.63B | 21.92 | 15.93% | 0.72% | 20.06% | 17.89% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | ¥47.23B | 11.29 | ― | 3.94% | 0.74% | 41.25% |
* Consumer Cyclical Sector Average
JP:7309
Shimano
16,295.00
-4,914.92
-23.17%
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Shimano Corporate Events
Shimano Weighs Cut to Investment Unit to Broaden Retail Access
Feb 10, 2026
Shimano said it recognizes that bringing its minimum investment unit below ¥500,000 would improve access for individual investors, but stressed that its primary objective remains the sustainable enhancement of corporate value. The company not...
Shimano Launches Up to ¥50 Billion Share Buyback to Boost Capital Efficiency
Feb 10, 2026
Shimano’s board has approved a new share buyback framework, authorizing the repurchase of up to 2.95 million common shares, equivalent to 3.4% of shares outstanding excluding treasury stock, for a maximum of ¥50 billion. The program wil...
Shimano Profit Slumps in FY2025 but Dividend and FY2026 Outlook Signal Resilience
Feb 10, 2026
Shimano reported a mixed FY2025, with consolidated net sales edging up 3.4% to ¥466.2 billion but operating income dropping 20.6% and net income attributable to owners of the parent plunging 55.5%, reflecting margin pressure and a sharp fall ...
Shimano Secures Final Court Approval in U.S. Crankset Lawsuit Settlement
Feb 4, 2026
Shimano Inc. said a U.S. court has granted final approval for a settlement in a lawsuit involving certain bonded 11-speed HOLLOWTECH II road cranksets sold by its subsidiary Shimano North America Holding in the United States, concluding a legal pr...
Shimano to Receive Significant Dividend from Singapore Subsidiary
Nov 19, 2025
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...
Shimano Announces Treasury Stock Cancellation
Nov 18, 2025
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 valu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.