Shimano Inc. (7309.T) stock analysis

In our weekly check, Shimano Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 8, red flags: 5.

About Shimano Inc.

Shimano Inc. is a Consumer Cyclical company (Leisure) based in Japan, listed on JPX as 7309.T.

What our checks show for 7309.T

Red flags

• The net margin fell by 13.9 points over 5 years, to 7.3%: the company keeps less of each sale as profit.
• The gross margin fell by 8.3 points, to 35.7%: costs are rising faster than prices.
• Revenue fell 9.5% a year over the last 3 years.
• The dividend takes 13257% of profit: little cushion if profit falls.
• Recovering from its deepest fall took about 3.6 years.

Warning signs

• Operating profit covers interest only 3 times: a weak year could make the payments hard.
• Earnings per share fell 34.9% a year over the last 3 years.
• Net profit fell 35.8% a year over the last 3 years.
• The net margin is only 7.3%: little room if costs rise.
• The price is 30.6 times earnings (P/E): the market already pays for a lot of future growth.
• The stock has fallen as much as 59% from a peak. Would you have held through that?
• Thinly traded (about 291 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 7%.

Strengths

• Debt is low: 0x equity.
• Operating cash flow is 1.88x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 28.5% a year over the next years.
• Analysts expect the net margin to improve by 4.1 points from today's 7.3%.
• A large company: market value $11.1 billion.
• Beta 0.42: the stock usually moves less than the market.

Similar companies

7832.T · 4661.T · 2020.HK · 9992.HK

Questions

What grade does Shimano Inc. (7309.T) have?

In our weekly check, Shimano Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 8, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 7309.T stock?

This week's biggest flags for Shimano Inc.: Margins falling, Gross margin falling, Weak revenue growth. In total 13 of 25 checks show a warning or a red flag.

What does Shimano Inc. do?

Shimano Inc. is a Consumer Cyclical company (Leisure) based in Japan, listed on JPX as 7309.T.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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