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Market Cap

JP¥2.5t

Last Updated

2021/04/11 08:13 UTC

Data Sources

Company Financials +

Executive Summary

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. More Details

Rewards

Earnings are forecast to grow 6.84% per year

Earnings grew by 22.2% over the past year

Risk Analysis

No risks detected for 7309 from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Shimano's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7309 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7309's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.3%

7309

1.3%

JP Leisure

-0.5%

JP Market


1 Year Return

71.2%

7309

51.9%

JP Leisure

37.5%

JP Market

Return vs Industry: 7309 exceeded the JP Leisure industry which returned 50.9% over the past year.

Return vs Market: 7309 exceeded the JP Market which returned 39.2% over the past year.


Shareholder returns

7309IndustryMarket
7 Day-2.3%1.3%-0.5%
30 Day7.9%4.9%1.8%
90 Day8.2%4.2%5.2%
1 Year73.8%71.2%54.4%51.9%40.5%37.5%
3 Year90.4%83.9%55.5%47.3%21.1%12.7%
5 Year62.1%53.7%81.6%65.8%59.5%41.9%

Long-Term Price Volatility Vs. Market

How volatile is Shimano's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shimano undervalued compared to its fair value and its price relative to the market?

38.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7309 (¥26465) is trading above our estimate of fair value (¥11118.1)

Significantly Below Fair Value: 7309 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7309 is poor value based on its PE Ratio (38.7x) compared to the JP Leisure industry average (28.1x).

PE vs Market: 7309 is poor value based on its PE Ratio (38.7x) compared to the JP market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: 7309 is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: 7309 is overvalued based on its PB Ratio (4.6x) compared to the JP Leisure industry average (1.2x).


Future Growth

How is Shimano forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7309's forecast earnings growth (6.8% per year) is above the savings rate (0%).

Earnings vs Market: 7309's earnings (6.8% per year) are forecast to grow slower than the JP market (16.5% per year).

High Growth Earnings: 7309's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7309's revenue (5.7% per year) is forecast to grow slower than the JP market (5.7% per year).

High Growth Revenue: 7309's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7309's Return on Equity is forecast to be low in 3 years time (12.9%).


Past Performance

How has Shimano performed over the past 5 years?

-0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7309 has high quality earnings.

Growing Profit Margin: 7309's current net profit margins (16.8%) are higher than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: 7309's earnings have declined by 0.1% per year over the past 5 years.

Accelerating Growth: 7309's earnings growth over the past year (22.2%) exceeds its 5-year average (-0.1% per year).

Earnings vs Industry: 7309 earnings growth over the past year (22.2%) exceeded the Leisure industry -26.3%.


Return on Equity

High ROE: 7309's Return on Equity (12%) is considered low.


Financial Health

How is Shimano's financial position?


Financial Position Analysis

Short Term Liabilities: 7309's short term assets (¥423.5B) exceed its short term liabilities (¥53.9B).

Long Term Liabilities: 7309's short term assets (¥423.5B) exceed its long term liabilities (¥6.7B).


Debt to Equity History and Analysis

Debt Level: 7309's debt to equity ratio (0%) is considered satisfactory.

Reducing Debt: 7309's debt to equity ratio has reduced from 2.7% to 0% over the past 5 years.

Debt Coverage: 7309's debt is well covered by operating cash flow (455250%).

Interest Coverage: 7309 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Shimano current dividend yield, its reliability and sustainability?

0.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 7309's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.2%).

High Dividend: 7309's dividend (0.59%) is low compared to the top 25% of dividend payers in the JP market (2.78%).


Stability and Growth of Payments

Stable Dividend: 7309 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 7309 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 7309 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 7309's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Yozo Shimano (72 yo)

20.08yrs

Tenure

JP¥105,000,000

Compensation

Mr. Yozo Shimano has been the President and a Director of Shimano Inc. since March 2001 and served as its Senior Managing Director. Mr. Shimano has been the Chairman of the Board of Shimano (Kunshan) Bicyc...


CEO Compensation Analysis

Compensation vs Market: Yozo's total compensation ($USD957.08K) is below average for companies of similar size in the JP market ($USD1.82M).

Compensation vs Earnings: Yozo's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 7309's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: 7309's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Shimano Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shimano Inc.
  • Ticker: 7309
  • Exchange: TSE
  • Founded: 1921
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: JP¥2.453t
  • Shares outstanding: 92.70m
  • Website: https://www.shimano.com

Number of Employees


Location

  • Shimano Inc.
  • 3-77 Oimatsu-cho
  • Sakai-ku
  • Sakai
  • Osaka
  • 590-8577
  • Japan

Listings


Biography

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 08:13
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.