• Shimano has revised its FY operating income forecast from 53.00 billion yen to 56.80 billion yen, falling short of the estimated 62.94 billion yen.
• The net income forecast has also been raised from 54.00 billion yen to 66.30 billion yen, which is higher than the expected 60.45 billion yen.
• Meanwhile, the net sales forecast remains at 420.00 billion yen, which is lower than the estimated projected amount of 438.62 billion yen.
• Shimano plans to maintain its dividend at 285.00 yen, slightly lower than the estimate which comes out at 285.56 yen.
• The company’s Q1 net sales totaled 100.56 billion yen, down by 20% compared to last year, however landed higher than the estimate of 97.57 billion yen.
• Operating income for the same period was 13.42 billion yen, a significant drop from the previous year, down 52%, but still above the 9.59 billion yen estimate.
• Q1 income from the Bicycle Components segment fell by 53% from last year to 10.47 billion yen, while that from the Fishing Tackle segment also dropped 50% from last year to 2.96 billion yen, but both were above estimates.
• The Q1 net income saw an increase, rising 17% y/y to 23.69 billion yen, which was higher than the anticipated 11.33 billion yen.
• Sales from the Bicycle Components and Fishing Tackle segments witnessed a decline by 23% and 12% respectively compared to last year.
• The stock currently holds 3 buys, 5 holds, and 2 sells.
Shimano Inc on Smartkarma
Analysts on Smartkarma, such as Mark Chadwick, have released coverage on Shimano Inc, with a positive outlook. Chadwick’s report titled “Shimano (7309) | A Clear Road Ahead” highlights the company’s recent Q3 results, which showed a net sales decline exceeding expectations. Despite this drop, Shimano displayed effective cost control measures, improving margins, and a strong balance sheet. The upbeat sentiment is attributed to the company’s ability to beat profit expectations and maintain financial strength.
The report acknowledges the challenging Q4 outlook but anticipates a market focus on 2024 normalization and Shimano’s relatively low valuation. With a bullish lean on valuations, analysts see potential for the market to overlook short-term challenges and consider the company’s long-term prospects. Smartkarma continues to serve as a platform for independent analysts like Chadwick to provide in-depth research and insights on companies like Shimano Inc.
A look at Shimano Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
With a strong Resilience score of 5 and a notable Momentum score of 4, Shimano Inc seems well-positioned for long-term success. The company’s focus on manufacturing and selling products for bicycling, snowboarding, fishing, and golf gives it a diversified portfolio. This, coupled with its solid performance in terms of Resilience and Momentum, indicates a promising future ahead.
While Shimano Inc may not score as high on Value and Dividend factors, its Growth score of 3 suggests potential room for expansion and development in the future. Overall, the company’s positive Smart Scores point towards a favourable outlook, suggesting investors may want to keep an eye on Shimano Inc for potential long-term investment opportunities.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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