Summary
- Shimano is the world's largest bike component manufacturer, with ~50% market share for all parts and ~70% for the high-end range.
- The business has endured the test of time (+100years) and competition, and the stock has returned 6x over the past ten years.
- Value creation has been exemplary, with revenue and free cash flow per share growing consistently in the past 15 years.
- Reinvestment opportunity in the rapidly growing e-bike market provides strong upside potential.
- Importantly, the current price provides a wide margin of safety even in the worst-case scenario.
For further details see:
Shimano - Bike Component Monopoly At An Attractive Price