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Nidec (NJDCY)
OTHER OTC:NJDCY
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Nidec
(OTC:NJDCY)
79Outperform
Nidec (NJDCY) vs. S&P 500 (SPY)
Market Cap
$20.65B
Dividend Yield0.99%
Average Volume (3M)26.37K
Price to Earnings (P/E)16.4
Beta (1Y)1.00
Revenue Growth5.35%
EPS Growth23.87%
CountryUS
Employees101,112
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.24
Shares Outstanding4,770,276,000
10 Day Avg. Volume0
30 Day Avg. Volume26,367
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)N/A
Price to Sales (P/S)1.78
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Nidec Business Overview & Revenue Model
Company DescriptionNidec Corporation, a Japanese multinational company, specializes in the design, production, and sale of electric motors and related components. Established in 1973, Nidec operates across various sectors including automotive, home appliances, commercial and industrial equipment, and information technology. The company's core products include small precision motors, home appliance motors, and machinery motors, catering to a global market with a strong emphasis on innovation and quality.
How the Company Makes MoneyNidec Corporation generates revenue primarily through the sale of its diverse range of motor products, including precision small motors and large industrial motors. The company divides its operations into segments such as small precision motors, automotive products, appliance, commercial and industrial products, and others, each contributing to its revenue streams. Nidec has established significant partnerships with major automotive and electronics manufacturers, which enhance its market presence and drive sales. The company's focus on research and development allows it to innovate and deliver high-performance products, further strengthening its competitive edge and revenue generation. Furthermore, Nidec's strategic acquisitions of companies in complementary sectors also contribute to its growth and expansion, allowing it to tap into new markets and customer bases.
Nidec Financial Statement Overview
Summary
Nidec's financial performance is strong, with robust revenue growth and profitability improvements reflected in stable gross and net profit margins. The balance sheet is solid with a healthy equity base, though there are concerns about potential debt increase. Cash flow trends are improving, indicating better cash management despite some volatility.Income Statement
Nidec demonstrates strong revenue growth with a consistent increase in total revenue from annual period to TTM (Trailing-Twelve-Months). Gross Profit Margin is stable at around 20%, and the Net Profit Margin improved in the TTM period, indicating enhanced profitability. The EBIT and EBITDA margins are healthy, suggesting robust operational efficiency. However, there is a slight decline in net income in the TTM period compared to the previous annual period, which needs monitoring.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity base with a Stockholders' Equity to Total Assets ratio above 50%, indicating financial stability. The Debt-to-Equity ratio is moderate, suggesting balanced leverage. Return on Equity remains strong due to rising net income over the years, except for a slight dip in the TTM period. Overall, the balance sheet is strong but with a potential risk of debt increase which should be monitored.80
Positive
Cash Flow
Nidec showcases a positive Free Cash Flow in the TTM period after a decline in previous years, indicating improved cash generation capabilities. The Operating Cash Flow to Net Income ratio is healthy, highlighting efficient cash conversion. However, fluctuations in Free Cash Flow over the periods suggest potential volatility in cash management. Continued positive cash flow trends will be crucial for maintaining financial health.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.55T | 2.35T | 2.24T | 1.92T | 1.62T | 1.53T | Gross Profit |
| 511.99B | 497.43B | 413.32B | 404.37B | 366.42B | 332.12B | EBIT |
| 170.28B | 163.11B | 116.50B | 172.75B | 161.60B | 110.58B | EBITDA |
| 308.80B | 356.38B | 209.44B | 280.62B | 258.40B | 127.64B | Net Income Common Stockholders |
| 114.82B | 125.39B | 44.96B | 135.76B | 121.94B | 58.46B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 254.62B | 217.00B | 186.10B | 201.59B | 222.50B | 206.99B | Total Assets |
| 3.44T | 3.17T | 2.87T | 2.68T | 2.26T | 2.12T | Total Debt |
| 664.83B | 186.08B | 705.35B | 595.71B | 531.47B | 599.95B | Net Debt |
| 410.21B | -30.92B | 519.25B | 396.06B | 311.95B | 392.96B | Total Liabilities |
| 1.62T | 1.50T | 1.50T | 1.36T | 1.14T | 1.15T | Stockholders Equity |
| 1.79T | 1.64T | 1.35T | 1.29T | 1.10T | 947.29B |
| Cash Flow | Free Cash Flow | ||||
| 177.68B | 193.05B | -10.25B | -20.23B | 119.23B | 24.51B | Operating Cash Flow |
| 297.22B | 321.49B | 143.49B | 94.99B | 219.16B | 168.05B | Investing Cash Flow |
| -135.67B | -153.55B | -167.72B | -116.75B | -115.16B | -318.66B | Financing Cash Flow |
| -147.33B | -181.56B | -16.46B | -60.24B | -121.60B | 135.69B |
Nidec Technical Analysis
Positive
4.36
Price Trends
4.25
Positive
4.37
Negative
4.73
Negative
Market Momentum
-0.09
Negative
61.42
Neutral
100.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJDCY, the sentiment is Positive. The current price of 4.36 is above the 20-day moving average (MA) of 3.80, above the 50-day MA of 4.25, and below the 200-day MA of 4.73, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 61.42 is Neutral, neither overbought nor oversold. The STOCH value of 100.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NJDCY.
Nidec Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $20.65B | 16.36 | 9.86% | 0.99% | 5.35% | 23.87% | |
77 Outperform | $14.81B | 23.26 | 18.59% | 1.04% | -0.42% | 3.23% | |
73 Outperform | $38.46B | 28.22 | 14.97% | 0.69% | 5.22% | 4.46% | |
73 Outperform | $13.60B | 28.40 | 20.28% | 1.28% | -0.40% | -2.50% | |
72 Outperform | $13.07B | 26.12 | 13.77% | 1.59% | -0.16% | -15.42% | |
67 Neutral | $28.09B | 30.93 | 26.22% | 2.06% | -11.28% | -23.69% | |
63 Neutral | $4.27B | 11.40 | 5.38% | 214.63% | 4.11% | -8.98% |
* Industrials Sector Average
Performance Comparison
NJDCY
Nidec
4.36
-1.32
-23.24%
AME
Ametek
166.69
-9.84
-5.57%
GGG
Graco
81.36
0.40
0.49%
IEX
IDEX
173.00
-47.99
-21.72%
PNR
Pentair
90.00
10.31
12.94%
ROK
Rockwell Automation
248.38
-26.45
-9.62%
Nidec Earnings Call Summary
Earnings Call Date: Apr 24, 2025 | % Change Since: 13.84% | Next Earnings Date: Jul 16, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted record financial performance, dividend increase, and strategic expansions in India and Africa. However, significant challenges remain in the EV traction motor business and the Chinese market due to intense competition and price pressures.Highlights
Record High Financial Performance
Sales increased by 3.2% to JPY 1,754,688 million, and operating profit grew by 36.1% to JPY 169,321 million, marking record high results.
Significant Dividend Increase
Dividend increased by JPY 5 to JPY 40, making the projected aggregate annual distribution JPY 75 per share.
Recovery in Automotive Products
Global sales in Automotive Products are on a recovery track, capturing growing demand and increasing both sales and operating profit.
Expansion in India and Africa
Plans to launch businesses in India and Africa, with four existing factories in India and a new one under construction in Egypt.
Strong Performance in Non-Traction Motors
Non-traction motor businesses are generating more than JPY 10 billion in profit per quarter, highlighting robust performance in areas like brake motors and power steering motors.
Strategic Focus on Large Motors
Plan to concentrate on large motors and related areas, with an emphasis on M&A to acquire necessary technology.
Lowlights
Challenges in EV Traction Motor Business
The EV traction motor business is undergoing restructuring with JPY 45 billion allocated for restructuring, and a shift towards a profit-oriented strategy.
Operating Profit Revision
Operating profit has been revised downward by approximately JPY 180 billion.
Struggles in Chinese Market
The Chinese market is described as a 'red ocean' with significant price competition, leading to challenges in profitability.
Excessive Competition in China
Facing significant price decreases in the Chinese market, leading to a focus on not engaging in unfavorable competition.
Company Guidance
In the third quarter earnings call for Nidec Corporation, the executives provided comprehensive guidance on various financial metrics. The company reported an upward revision in sales by approximately JPY 100 million, while operating profit was revised downward to around JPY 180 billion. They highlighted a significant restructuring plan focused on the EV traction motor business, which will incur a cost of approximately JPY 45 billion. The dividend was increased by JPY 5, resulting in a projected annual distribution of JPY 75 per share. Nidec achieved record high results with annual sales increasing by 3.2% to JPY 1,754,688 million, and operating profit growing by 36.1% to JPY 169,321 million, with an operating profit ratio of 9.6%. Profit attributable to owners of the parent surged by 40.2% to JPY 145,908 million. The company also emphasized a focus on future growth, particularly in the EV traction motor segment and new markets in India and Africa, while maintaining a disciplined approach to improve profitability.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.