Nidec Corporation (JP:6594)
:6594
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Nidec
(6594)
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Rating:69Neutral
Price Target:
¥2,535.00
▲(17.69% Upside)
Action:DowngradedDate:01/14/26
The score is primarily supported by strong financial performance (rapid revenue growth, robust cash flow, and low leverage). Technicals are neutral-to-soft due to the stock remaining below key long-term moving averages, while valuation is fair with a moderate P/E but a low dividend yield.
Positive Factors
Revenue Growth
Sustained TTM revenue growth of ~71.7% signals structural demand and successful market expansion across multiple end markets (electronics, appliances, automotive, industrial). That scale supports investment in capacity, R&D and strengthens bargaining power with suppliers and customers over months to years.
Negative Factors
Profitability
Despite strong top-line growth, net margin and ROE remain moderate, limiting shareholder value capture from revenue gains. Persistently mid-single-digit profitability could constrain retained earnings available for reinvestment and returns, making long-term performance sensitive to margin improvement initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained TTM revenue growth of ~71.7% signals structural demand and successful market expansion across multiple end markets (electronics, appliances, automotive, industrial). That scale supports investment in capacity, R&D and strengthens bargaining power with suppliers and customers over months to years.
Read all positive factors
Nidec (6594) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$2.49T
Dividend Yield0.97%
Average Volume (3M)8.18M
Price to Earnings (P/E)18.6
Beta (1Y)0.93
Revenue Growth5.35%
EPS Growth26.51%
CountryJP
Employees101,112
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)36.06
Shares Outstanding1,192,569,000
10 Day Avg. Volume5,658,470
30 Day Avg. Volume8,183,250
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.67
Price to Sales (P/S)1.10
P/FCF Ratio17.49
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue1.10
Enterprise Value/Gross Profit6.12
Enterprise Value/Ebitda8.21
Forecast
1Y Price Target
$3,213.77Price Target Upside49.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)109.49
Revenue Forecast (FY)$2.63T
Nidec Business Overview & Revenue Model
Company Description
Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size ...
How the Company Makes Money
Nidec makes money primarily by manufacturing and selling electric motors and motor-based systems to OEMs and industrial customers across multiple end markets. Key revenue streams include (1) high-volume motors and components supplied for electroni...
Nidec Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in net sales, AI server demand, and order intake for machine tools. However, challenges such as declining operating profit before income taxes, automotive sector issues, and inventory management problems balanced the positive aspects.Positive Updates
Record High Net Sales and Operating Profit
Net sales increased by 11.5% to JPY1.946 trillion and operating profit rose by 5.0% to JPY175.5 billion, both hitting record high levels.
Negative Updates
Decline in Operating Profit Before Income Taxes
Operating profit before income taxes decreased by 4.7% and profit attributable to owners fell by 6.7% due to currency depreciation and exchange rate fluctuations.
Read all updates
Q3-2025 Updates
Positive
Negative
Record High Net Sales and Operating Profit
Net sales increased by 11.5% to JPY1.946 trillion and operating profit rose by 5.0% to JPY175.5 billion, both hitting record high levels.
Read all positive updates
Company Guidance
During the call, Nidec Corporation provided detailed guidance on several financial metrics and business developments for the third quarter of fiscal year 2024. The company reported a record high in net sales, which increased by 11.5% to JPY1.946 trillion, and achieved a record operating profit of JPY175.5 billion, marking a 5.0% rise. However, operating profit before income taxes and profit attributable to owners dropped by 4.7% and 6.7%, respectively, due to temporary depreciation effects and currency exchange rate fluctuations, resulting in a financial loss of JPY22.5 billion. The company highlighted robust demand for hard disk motors and growing demand for AI servers, while noting sluggish performance in European and American automotive sectors. Efforts to enhance cash flow management yielded an operating cash flow of JPY41.1 billion. Nidec also discussed strategic initiatives, including structural reforms in the automotive business and plans for future growth in fiscal year 2025. The guidance emphasized the importance of expanding the company's component business and strengthening its water cooling system business, with an eye on achieving a high CAGR of 20% to 30% for certain sectors.Nidec Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.62T | 2.61T | 2.35T | 2.23T | 1.92T | 1.62T |
| Gross Profit | 469.03B | 536.42B | 497.16B | 403.05B | 403.34B | 366.56B |
| EBITDA | 349.61B | 342.66B | 312.36B | 209.44B | 276.41B | 244.31B |
| Net Income | 174.88B | 164.37B | 124.45B | 36.98B | 136.87B | 121.98B |
Balance Sheet | ||||||
| Total Assets | 3.49T | 3.32T | 3.16T | 2.86T | 2.68T | 2.26T |
| Cash, Cash Equivalents and Short-Term Investments | 344.45B | 246.24B | 217.00B | 186.10B | 201.59B | 222.50B |
| Total Debt | 712.03B | 636.05B | 600.90B | 705.35B | 595.71B | 531.47B |
| Total Liabilities | 1.71T | 1.57T | 1.50T | 1.50T | 1.36T | 1.14T |
| Stockholders Equity | 1.76T | 1.72T | 1.63T | 1.35T | 1.29T | 1.10T |
Cash Flow | ||||||
| Free Cash Flow | 173.79B | 163.72B | 208.72B | 5.67B | -3.59B | 130.25B |
| Operating Cash Flow | 298.96B | 284.43B | 320.77B | 143.49B | 94.99B | 219.16B |
| Investing Cash Flow | -145.53B | -150.64B | -154.42B | -167.72B | -116.75B | -115.16B |
| Financing Cash Flow | -33.54B | -76.81B | -180.69B | -16.46B | -60.24B | -121.60B |
Nidec Technical Analysis
Negative
2154.00
Price Trends
2294.66
Negative
2171.99
Negative
2460.32
Negative
Market Momentum
-32.83
Positive
40.75
Neutral
8.62
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6594, the sentiment is Negative. The current price of 2154 is below the 20-day moving average (MA) of 2292.60, below the 50-day MA of 2294.66, and below the 200-day MA of 2460.32, indicating a bearish trend. The MACD of -32.83 indicates Positive momentum. The RSI at 40.75 is Neutral, neither overbought nor oversold. The STOCH value of 8.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6594.
Nidec Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $475.50B | 26.32 | 5.25% | 2.13% | -2.23% | 130.96% | |
69 Neutral | $2.49T | 18.60 | 10.09% | 0.97% | 5.35% | 26.51% | |
64 Neutral | ¥2.57T | 9.91 | 14.59% | 1.40% | 14.12% | 54.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $368.21B | 197.68 | 5.94% | 0.56% | 6.22% | ― | |
55 Neutral | ¥514.96B | -6.48 | 1.88% | 6.16% | 1.98% | -48.28% | |
54 Neutral | ¥601.98B | 11.29 | 4.83% | 2.95% | -2.67% | -85.21% |
* Industrials Sector Average
JP:6594
Nidec
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Nidec Corporate Events
Nidec Forms Independent Panel to Probe Executive Liability Over Improper Accounting
Mar 13, 2026
Nidec has established an Executive Responsibility Investigation Committee to examine whether current and former directors, auditors, and executive officers bear legal liability for instances of improper accounting within the group. The committee i...
Nidec Flags ¥139.7 Billion Hit and Possible Impairments as Probe Widens
Mar 3, 2026
Nidec has disclosed a summary of a Third-Party Committee’s investigation report into trade and customs issues involving NIDEC FIR INTERNATIONAL S.R.L. and related matters, following completion of confidentiality reviews. The company is also ...
Nidec Scraps Year-End Dividend Amid Accounting Probe Fallout
Mar 3, 2026
Nidec Corporation has announced that its board of directors resolved not to pay a year-end dividend for the fiscal year ending March 2026, setting the dividend per share at zero yen for shareholders on record as of March 31, 2026. This marks a sha...
Nidec Receives Interim Report on Accounting Probe, Vows Governance Reforms
Feb 27, 2026
Nidec has disclosed that an independent Third-Party Committee, set up after indications of potential improper accounting involving management at the parent and group companies, has issued an interim investigation report and is now prepared to prop...
Nidec Founder Nagamori Fully Steps Down Amid Accounting Probe and Leadership Transition
Feb 26, 2026
Nidec’s founder Shigenobu Nagamori has resigned from his role as Chairman Emeritus, fully severing his formal ties with the company after previously stepping down as representative director and from all management duties in December. His dep...
Nidec Creates Culture Transformation Lab and Realigns Governance Roles
Jan 28, 2026
Nidec Corporation is establishing a new Culture Transformation Lab as part of an organizational restructuring effective February 1, 2026, underscoring its focus on cultural and organizational reform alongside its core motor and industrial business...
Nidec Launches Culture Transformation Lab to Drive Group-Wide Organizational Reform
Jan 28, 2026
Nidec Corporation has announced the creation of a Culture Transformation Lab, effective February 1, 2026, as part of a broader corporate reform initiative aimed at addressing group-wide cultural issues and strengthening trust and transparency with...
Nidec Delays Q3 FY2026 Results Amid Ongoing Accounting Probe
Jan 28, 2026
Nidec has announced that the disclosure of its financial results for the third quarter of the fiscal year ending March 31, 2026, will be delayed beyond the standard 45-day window following quarter-end, citing ongoing investigations into suspected ...
Nidec Submits Governance Improvement Plan After TSE Special Alert Designation
Jan 28, 2026
Nidec Corporation has submitted an improvement plan and status report to the Tokyo Stock Exchange after its shares were designated as a Security on Special Alert in October 2025 due to deficiencies in its internal management system. The plan, deve...
Nidec Reshapes R&D and Automotive Units With New Technology, IP and Mobility Focus
Dec 26, 2025
Nidec Corporation will overhaul parts of its RD and automotive-related organizations from January 1, 2026, creating dedicated CTO Technology Planning and Intellectual Property departments and formalizing new Urban Air Mobility and Inverter System ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.