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Nidec Corporation Sponsored ADR (NJDCY)
:NJDCY
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Nidec
(OTC:NJDCY)
76Outperform
Nidec (NJDCY) vs. S&P 500 (SPY)
Market Cap
$18.57B
Dividend Yield0.97%
Average Volume (3M)2.73K
Price to Earnings (P/E)24.5
Beta (1Y)0.98
Revenue Growth3.30%
EPS Growth31.36%
CountryUS
Employees101,112
SectorIndustrials
Sector Strength66
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.16
Shares Outstanding4,770,276,000
10 Day Avg. Volume0
30 Day Avg. Volume2,731
Financial Highlights & Ratios
PEG Ratio0.78
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, headquartered in Kyoto, Japan, is a global leader in the design and manufacturing of electric motors and related components. The company operates in various sectors including automotive, industrial, home appliances, and robotics, providing high-quality products such as brushless DC motors, cooling fans, and motor drive systems. Nidec is known for its innovation and commitment to energy efficiency, serving a diverse range of industries worldwide.
How the Company Makes MoneyNidec Corporation generates revenue primarily through the sale of its electric motors and motor-related products. The company's key revenue streams include the automotive sector, where it supplies motors for electric vehicles and other automotive applications, and the industrial sector, where it provides components for automation and manufacturing equipment. Additionally, Nidec benefits from the consumer electronics and home appliance markets, supplying small motors for products like cooling fans and household devices. The company's earnings are bolstered by strategic partnerships with major global manufacturers and ongoing investments in research and development, which help maintain its competitive edge in the industry.
Nidec Financial Statement Overview
Summary
Nidec demonstrates strong financial performance with robust revenue and profit growth, efficient operations, and sound cash flow management. The income statement, balance sheet, and cash flow show overall strength, but maintaining debt at manageable levels is crucial for future stability.Income Statement
Nidec shows strong performance with significant revenue growth of 4.65% from the previous year, and a healthy gross profit margin of 21.19%. Net profit margin improved to 5.34% due to higher net income. EBIT and EBITDA margins are also strong, indicating operational efficiency. Overall, the income statement reflects robust growth and profitability.87
Very Positive
Balance Sheet
The company maintains a solid equity base with an equity ratio of 51.73%, indicating financial stability. However, the debt-to-equity ratio is 0.11, suggesting a manageable level of debt. Return on Equity (ROE) stands at 7.64%, showing moderate profitability relative to shareholder equity. While the balance sheet shows strength, potential risks could arise from debt levels if not monitored.75
Positive
Cash Flow
Nidec's cash flow is robust, with a significant free cash flow growth rate of 288.36%. The operating cash flow to net income ratio is 2.56, indicating excellent conversion of earnings into cash. The free cash flow to net income ratio is also healthy at 1.54, showcasing strong cash generation capabilities. Overall, the company demonstrates strong cash flow management.82
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.44T | 2.35T | 2.24T | 1.92T | 1.62T | 1.53T | Gross Profit |
| 504.09B | 497.43B | 413.32B | 404.37B | 366.42B | 332.12B | EBIT |
| 164.27B | 163.11B | 116.50B | 172.75B | 161.60B | 110.58B | EBITDA |
| 300.55B | 356.38B | 209.44B | 280.62B | 258.40B | 127.64B | Net Income Common Stockholders |
| 118.18B | 125.39B | 44.96B | 135.76B | 121.94B | 58.46B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 123.31B | 220.77B | 186.10B | 201.59B | 222.50B | 206.99B | Total Assets |
| 692.79B | 3.17T | 2.87T | 2.68T | 2.26T | 2.12T | Total Debt |
| 118.71B | 186.08B | 705.35B | 595.71B | 531.47B | 599.95B | Net Debt |
| -4.60B | -30.92B | 519.25B | 396.06B | 311.95B | 392.96B | Total Liabilities |
| 291.26B | 1.50T | 1.50T | 1.36T | 1.14T | 1.15T | Stockholders Equity |
| 340.31B | 1.64T | 1.35T | 1.29T | 1.10T | 947.29B |
| Cash Flow | Free Cash Flow | ||||
| 167.12B | 193.05B | -10.25B | -20.23B | 119.23B | 24.51B | Operating Cash Flow |
| 293.92B | 321.49B | 143.49B | 94.99B | 219.16B | 168.05B | Investing Cash Flow |
| -157.74B | -153.55B | -167.72B | -116.75B | -115.16B | -318.66B | Financing Cash Flow |
| -137.98B | -181.56B | -16.46B | -60.24B | -121.60B | 135.69B |
Nidec Technical Analysis
Negative
3.97
Price Trends
4.46
Negative
4.53
Negative
4.88
Negative
Market Momentum
-0.02
Positive
37.52
Neutral
0.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJDCY, the sentiment is Negative. The current price of 3.97 is below the 20-day moving average (MA) of 4.47, below the 50-day MA of 4.46, and below the 200-day MA of 4.88, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.52 is Neutral, neither overbought nor oversold. The STOCH value of 0.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NJDCY.
Nidec Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $18.57B | 24.49 | 6.68% | 0.97% | 3.30% | 31.36% | |
74 Outperform | $102.19B | 27.46 | 20.23% | 1.48% | 7.25% | 18.36% | |
74 Outperform | $134.09B | 23.74 | 33.10% | 2.14% | 5.05% | 2.73% | |
72 Outperform | $57.46B | 24.23 | 9.66% | 2.06% | 10.29% | 22.72% | |
70 Outperform | $201.38B | 31.40 | 27.62% | 0.79% | -32.60% | -28.55% | |
69 Neutral | $27.04B | 29.76 | 26.22% | 2.14% | -11.28% | -23.69% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% |
* Industrials Sector Average
Performance Comparison
NJDCY
Nidec
3.75
-1.25
-25.00%
ETN
Eaton
246.52
-79.78
-24.45%
EMR
Emerson Electric Company
94.57
-17.93
-15.94%
GE
GE Aerospace
166.81
11.82
7.63%
HON
Honeywell International
190.99
-2.07
-1.07%
ROK
Rockwell Automation
227.11
-47.00
-17.15%
Nidec Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -12.56% | Next Earnings Date: Apr 24, 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.