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Nidec
(6594)
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Rating:69Neutral
Price Target:
¥2,626.00
▲(3.02% Upside)
Action:Downgraded
Date: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
Very strong revenue growth
A 71.7% TTM revenue increase reflects durable demand expansion and successful market penetration across end markets. Sustained top-line growth supports scale economies, reinvestment capacity and long-term share gains versus peers over the next several quarters.
Negative Factors
Moderate profitability metrics
Despite strong revenue, net margin and ROE remain moderate, suggesting constrained profit capture. Structural cost pressures, product mix or pricing limits could restrain long-term margin expansion and delay conversion of revenue growth into higher shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong revenue growth
A 71.7% TTM revenue increase reflects durable demand expansion and successful market penetration across end markets. Sustained top-line growth supports scale economies, reinvestment capacity and long-term share gains versus peers over the next several quarters.
Read all positive factors
Nidec (6594) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.97T
Dividend Yield1.54%
Average Volume (3M)8.18M
Price to Earnings (P/E)24.9
Beta (1Y)1.04
Revenue Growth5.35%
EPS Growth26.51%
CountryJP
Employees104,285
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)155.64
Shares Outstanding1,192,569,000
10 Day Avg. Volume5,658,470
30 Day Avg. Volume8,183,250
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)1.67
Price to Sales (P/S)1.10
P/FCF Ratio17.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,200.00Price Target Upside25.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)146.81
Revenue Forecast (FY)¥2.68T
Nidec Business Overview & Revenue Model
Company Description
Nidec Corporation, a global enterprise, specializes in the comprehensive development, manufacturing, and distribution of motors, electronic and optical components, and various related solutions. The company's diverse portfolio spans precision micr...
How the Company Makes Money
Nidec makes money primarily by manufacturing and selling electric motors and motor-based systems to OEM customers across multiple end markets. Its core revenue stream is product sales: (1) Small precision motors used in devices such as hard disk d...
Nidec Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Oct 26, 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 | 385.98B | 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
Positive
2549.00
Price Trends
2666.98
Positive
2514.25
Positive
2361.43
Positive
Market Momentum
7.77
Negative
61.74
Neutral
93.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6594, the sentiment is Positive. The current price of 2549 is below the 20-day moving average (MA) of 2590.05, below the 50-day MA of 2666.98, and above the 200-day MA of 2361.43, indicating a bullish trend. The MACD of 7.77 indicates Negative momentum. The RSI at 61.74 is Neutral, neither overbought nor oversold. The STOCH value of 93.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥2.97T | 24.87 | 6.76% | 0.78% | 5.35% | 26.51% | |
69 Neutral | ¥641.67B | 20.35 | 4.72% | 2.56% | 2.18% | 5504.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥549.99B | 28.02 | 6.59% | 1.65% | -7.97% | 77.19% | |
56 Neutral | ¥2.42T | 21.35 | 13.59% | 1.23% | 8.54% | 23.14% | |
51 Neutral | ¥591.06B | 361.39 | 2.07% | 0.30% | 7.03% | -53.53% | |
45 Neutral | ¥750.54B | 52.69 | -22.79% | 3.14% | 1.98% | -48.28% |
* Industrials Sector Average
JP:6594
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Nidec Corporate Events
Nidec Faces Shareholder Demand for Legal Action Over Excess Payouts
Jul 21, 2026
Nidec Corporation has disclosed that an individual shareholder has submitted a formal request for the company to file a legal action enforcing liability against several former board members. The demand centers on allegations that interim dividends...
Nidec Overhauls Senior Management and Key Divisions Ahead of July
Jun 30, 2026
Nidec Corporation announced a broad set of senior management and departmental personnel changes, effective July 1, 2026, across its global marketing, legal, purchasing, project management and automotive traction motor businesses. Key roles, includ...
Nidec Wins Extension for Filing 53rd Fiscal-Year Securities Report
Jun 30, 2026
Nidec Corporation announced that Japanese authorities have approved its request to extend the deadline for filing its annual securities report for the 53rd fiscal year, covering the period from April 1, 2025 to March 31, 2026. The statutory filing...
Nidec Seeks Extension to File Annual Report Amid Probes Into Financials and Quality Issues
Jun 29, 2026
Nidec has applied to Japan’s Kanto Local Finance Bureau for an extension of the deadline to file its annual securities report for the fiscal year ended March 31, 2026, pushing the statutory due date from June 30 to a potential new deadline o...
Nidec Probes Ransomware Attack on Taiwanese Subsidiary
Jun 24, 2026
Nidec reported that its Taiwanese subsidiary, Nidec Chaun Choung Technology, suffered a ransomware attack on June 22, prompting the company to shut down affected servers and networks to contain the damage. Management has engaged external cybersecu...
Nidec Reshapes Board and Committees to Strengthen Governance at New Nidec
Jun 18, 2026
Nidec has overhauled the governance framework of its newly organized entity, New Nidec, following shareholder approval of all company-proposed director candidates at its 53rd Annual General Meeting. The company aims to enhance the effectiveness of...
Nidec Weighs Extension of Annual Report Deadline Amid Accounting and Quality Probes
Jun 16, 2026
Nidec said it is weighing an application to extend the filing deadline for its annual securities report for the fiscal year ended March 31, 2026, to September 30, 2026, citing the time needed to address widespread improper accounting, potential pr...
Nidec to Overhaul Governance Structure in New Articles of Incorporation
Jun 12, 2026
Nidec has proposed amendments to its Articles of Incorporation to reflect a new management structure, shifting key governance roles away from a founder-centric model. Under the changes, a board president or a director designated by the board will ...
Nidec Reshapes Small Motor Operations With New Divisions and Leadership Shifts
May 28, 2026
Nidec Corporation is a Japan-based manufacturer specializing in motors and related solutions, with a strong presence in small precision and automotive motor markets. The company focuses on platform motor systems and integrated solutions that suppo...
Nidec Delays Financial Reporting Amid Accounting Misconduct, Plans Extraordinary Shareholders’ Meeting
May 13, 2026
Nidec has outlined its approach to the upcoming 53rd Annual General Meeting of Shareholders and a subsequent extraordinary meeting after a third-party probe uncovered widespread accounting misconduct at several group locations. The investigation f...
Nidec Revamps Board Lineup After Accounting Scandal to Bolster Governance
May 13, 2026
Nidec has overhauled its proposed Board of Directors slate ahead of its June 18 annual shareholders’ meeting, naming a single re-nominated director, President and CEO Mitsuya Kishida, alongside a broad lineup of newly nominated executives an...
Nidec Flags Quality Control Lapses and Launches External Probe
May 13, 2026
Nidec has uncovered potential quality issues across multiple group production sites, primarily involving unapproved changes to materials, processes, and designs made without customer confirmation, as well as improper handling of testing data and l...
Nidec Probes Suspected Quality Misconduct After Internal Review
May 12, 2026
Nidec has acknowledged that an internal quality overhaul launched by its Reform Committee in 2025 has uncovered suspected improper conduct involving unapproved changes to materials, processes, and designs in certain products. The company stressed ...
Nidec Hit With TSE Listing Violation Penalty as It Pursues “New Nidec” Overhaul
May 1, 2026
Nidec has disclosed that the Tokyo Stock Exchange has imposed a listing agreement violation penalty on the company, with details on the amount and reasons provided separately by the Japan Exchange Group. While the penalty underscores recent govern...
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.