SHIMANO INC. UNSP.ADR/10

I maintain a Hold rating for Shimano due to positive shareholder initiatives but the unfavorable bike market supply-demand dynamics will impact its outlook. Shimano's plans for higher shareholder returns and enhanced board independence are commendable, warranting a premium valuation for its investor-centric approach. But Shimano's FY25 net profit is forecasted to contract by 13%, driven by oversupply issues in key markets like Europe and China.» Mehr auf seekingalpha.com

Shimano dominates the bicycle components market, and has a significant presence in fishing tackle, but faces declining sales following the pandemic. The company has a strong balance sheet with no debt, but dividends are not as high as might be expected. The stock's valuation metrics offer little assurance of near-term improvement. Nor do company statements.» Mehr auf seekingalpha.com

Shimano's latest quarterly performance exceeded expectations, with revenue reaching $723 million, indicating a recovery in the bicycle components market, particularly in China. The company's net income is rebounding from its Q4 2023 low, although it remains below pandemic-era highs, suggesting early signs of growth reversal. Long-term growth prospects in the bicycle market remain strong, with secular trends supporting Shimano's future.» Mehr auf seekingalpha.com