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Shimano
(7309)
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Rating:71Outperform
Price Target:
¥21,492.00
▲(15.74% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by strong financial resilience (very low leverage) tempered by a clear recent step-down in profitability and free cash flow. Technicals are supportive with price above major moving averages and positive MACD, while valuation is a headwind given the ~30x P/E and only modest dividend yield.
Positive Factors
Balance Sheet Strength
Shimano’s very low leverage and large equity base give it durable financial flexibility. This reduces refinancing and solvency risk, enables steady capital allocation to R&D, manufacturing and distribution, and preserves the firm's ability to weather industry cyclicality over the medium term.
Negative Factors
Falling Profitability
Consecutive revenue declines and a sharp 2025 margin drop point to persistent pressure on core profitability. Lower margins reduce reinvestment capacity and returns to shareholders and may indicate lasting headwinds in mix, pricing or cost structure that will constrain medium-term earnings resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Shimano’s very low leverage and large equity base give it durable financial flexibility. This reduces refinancing and solvency risk, enables steady capital allocation to R&D, manufacturing and distribution, and preserves the firm's ability to weather industry cyclicality over the medium term.
Read all positive factors
Shimano (7309) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.75T
Dividend Yield1.73%
Average Volume (3M)362.85K
Price to Earnings (P/E)30.2
Beta (1Y)0.33
Revenue Growth0.93%
EPS Growth63.95%
CountryJP
Employees10,242
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)670.56
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
¥18,690.83Price Target Upside0.65% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)571.02
Revenue Forecast (FY)¥487.90B
Shimano Business Overview & Revenue Model
Company Description
Shimano Inc. specializes in the design, manufacturing, and supply of bicycle components, fishing equipment, and gear for rowing. Additionally, the corporation designs and develops a range of lifestyle merchandise, such as apparel, footwear, bags, ...
How the Company Makes Money
Shimano makes money primarily by selling branded hardware products across three main business segments: (1) Bicycle Components, (2) Fishing Tackle, and (3) Rowing Equipment. The largest share of revenue typically comes from Bicycle Components, whe...
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 | 475.89B | 466.24B | 450.99B | 474.36B | 628.91B | 546.51B |
| Gross Profit | 168.53B | 166.62B | 172.30B | 182.51B | 265.64B | 240.46B |
| EBITDA | 98.13B | 83.67B | 123.75B | 107.59B | 195.26B | 172.59B |
| Net Income | 57.98B | 33.99B | 76.33B | 61.14B | 128.18B | 115.94B |
Balance Sheet | ||||||
| Total Assets | 949.24B | 938.25B | 958.95B | 871.73B | 826.41B | 705.37B |
| Cash, Cash Equivalents and Short-Term Investments | 463.72B | 477.32B | 534.04B | 493.93B | 430.43B | 364.52B |
| Total Debt | 0.00 | 4.03B | 3.56B | 3.39B | 5.38B | 6.26B |
| Total Liabilities | 73.57B | 68.75B | 75.34B | 69.33B | 85.32B | 88.72B |
| Stockholders Equity | 874.11B | 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 Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥106.70B | 15.36 | ― | 3.16% | 1.66% | 9.39% | |
71 Outperform | ¥1.75T | 30.21 | 4.37% | 1.84% | 0.93% | 63.95% | |
66 Neutral | ¥8.50B | 7.88 | ― | 3.96% | 6.27% | -62.11% | |
65 Neutral | ¥50.16B | 10.66 | ― | 3.63% | 3.84% | 4.87% | |
64 Neutral | ¥4.26B | 13.96 | ― | 4.55% | 2.57% | 18.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥228.32B | 19.78 | 16.02% | 0.96% | 15.09% | 12.17% |
* Consumer Cyclical Sector Average
JP:7309
Shimano
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Shimano Corporate Events
Shimano Advances ¥50 Billion Share Buyback, Repurchases 362,400 Shares in July
Aug 3, 2026
Shimano has repurchased 362,400 shares of its common stock for approximately ¥6.6 billion during the period from July 1 to July 31, 2026, under its ongoing share buyback program authorized by the board in February. This latest transaction for...
Shimano lifts H1 profit and dividend but flags margin pressure in FY2026 outlook
Jul 28, 2026
Shimano reported a 4.1% rise in first-half FY2026 net sales to ¥247.1 billion, while operating income slipped 3.1% to ¥27.2 billion, but ordinary income surged 151.6% and net income attributable to owners jumped more than sixfold, liftin...
Shimano Advances Share Buyback, Uses Half of ¥50 Billion Authorization
Jul 1, 2026
Shimano has repurchased 310,800 shares of its common stock between June 1 and June 30, 2026, at a total cost of about ¥5.1 billion, as part of a broader share buyback program authorized by its board. The move forms part of a larger plan appro...
Shimano Advances ¥50 Billion Share Buyback Program With May Purchases
Jun 1, 2026
Shimano Inc. said it repurchased 107,800 shares of its common stock in May 2026 for about ¥1.8 billion, continuing a previously approved share buyback program. The company is using both off-auction own share repurchase trading and regular mar...
Shimano Completes Disposal of Treasury Shares for Executive Restricted Stock Pay
May 8, 2026
Shimano Inc. has completed the payment process for the disposal of 3,746 treasury shares, which are being used as restricted stock remuneration for its management. The shares, priced at 16,855 yen each for a total value of 63,138,830 yen, were all...
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.