Critical Analysis: Shimano (SMNNY) versus The Competition

Risk and Volatility

Shimano has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Shimano’s competitors have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Shimano shares are owned by institutional investors. Comparatively, 54.2% of shares of all “LEISURE&REC PRD” companies are owned by institutional investors. 22.5% of shares of all “LEISURE&REC PRD” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Shimano pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Shimano pays out 26.7% of its earnings in the form of a dividend. As a group, “LEISURE&REC PRD” companies pay a dividend yield of 2.1% and pay out 64.8% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Shimano and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Shimano	$2.98 billion	$503.78 million	30.49
Shimano Competitors	$1.54 billion	-$20.22 million	-2.20

Shimano has higher revenue and earnings than its competitors. Shimano is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Shimano and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimano	13.34%	7.23%	6.64%
Shimano Competitors	-41.61%	-78.91%	-10.65%

Summary

Shimano beats its competitors on 7 of the 11 factors compared.

Shimano Company Profile

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.