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Nidec Corporation (JP:6594)
:6594
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Nidec (6594) AI Stock Analysis

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JP

Nidec

(OTC:6594)

Rating:67Neutral
Price Target:
¥2,933.00
▲(6.95%Upside)
Nidec's overall stock score is primarily driven by its strong financial performance, characterized by robust revenue growth and solid cash flow metrics. The technical analysis presents some short-term bearish signals, but the long-term outlook remains positive. The stock's valuation is reasonable, with a fair P/E ratio and a modest dividend yield. The absence of earnings call data and significant corporate events did not impact the score.

Nidec (6594) vs. iShares MSCI Japan ETF (EWJ)

Nidec Business Overview & Revenue Model

Company DescriptionNidec 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 and precision motors, motor-related products, units and modules, automotive components, mechanical equipment, inspection and measuring equipment, electronic devices, sensors, and other products. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile devices and optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan.
How the Company Makes MoneyNidec makes money primarily through the manufacturing and sale of electric motors and related components. The company's revenue streams are diversified across several sectors, including automotive, home appliances, commercial and industrial equipment, and information technology. A significant portion of its earnings comes from providing high-performance motors for electric vehicles, which have seen increasing demand globally. Additionally, Nidec's precision small motors are integral to various consumer electronics, contributing to a steady revenue flow. The company also benefits from strategic partnerships and acquisitions that expand its technological capabilities and market reach, enabling it to tap into emerging markets and industries.

Nidec Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q3-2024)
|
% Change Since: 25.57%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial results and strategic expansions in India and Africa, but also revealed significant challenges in the EV traction motor business and the Chinese market, necessitating restructuring and strategic shifts.
Q3-2024 Updates
Positive Updates
Record High Financial Results
Sales increased by 3.2% to JPY 1,754,688 million, operating profit grew by 36.1% to JPY 169,321 million, and profit attributable to owners increased by 40.2% to JPY 145,908 million.
Dividend Increase
The dividend has been increased by JPY 5 to JPY 40, making the projected aggregate annual distribution JPY 75 per share.
Cash Flow Improvement
Operating profit level has increased, and capital flow has improved, marking one of the highest levels ever.
Non-Traction Motor Automotive Business
Non-traction motor automotive businesses like brake motors and power steering motors are performing well, generating over JPY 10 billion in profit per quarter.
Expansion in India and Africa
Nidec plans to launch businesses in India and Africa, with a fifth factory under construction in India and the first factory being established in Egypt.
MOEN Growth Potential
MOEN shows significant growth potential, with plans for investment and expansion in energy-saving products and large-scale motors.
Negative Updates
Challenges in EV Traction Motor Business
Nidec faces challenges in the EV traction motor business, with a restructuring plan costing JPY 45 billion to address losses and strategic shifts.
Chinese Market Struggles
The company experiences difficulties due to price competition in the Chinese EV market, leading to necessary strategic adjustments.
Material Ratio in Traction Motors
The previous strategy resulted in a 95% material ratio, making profitability challenging; efforts are being made to reduce this to 50% to achieve a 15% profit margin.
Delayed Profitability in Traction Motors
The traction motor business is expected to reach profitability in the second half of the next fiscal year, with continued struggles in the interim.
Management Changes and Strategy Adjustments
Significant management and strategy changes are being implemented due to past failures in the traction motor business, indicating internal challenges.
Company Guidance
During the third-quarter earnings call for fiscal year 2023, Nidec Corporation provided guidance on several key metrics and strategic initiatives. The company reported an annual sales increase of 3.2% to JPY 1,754,688 million, while operating profit grew by 36.1% to JPY 169,321 million, achieving a 9.6% operating profit ratio. Profit attributable to owners of the parent surged by 40.2%, reaching JPY 145,908 million, marking record high results. In light of these strong financials, the dividend was increased by JPY 5 to JPY 40, projecting an aggregate annual distribution of JPY 75 per share. Nidec also outlined its efforts to strengthen its financial capabilities, announcing a restructuring charge of approximately JPY 45 billion for its EV traction motor business. The company emphasized its focus on profitability and detailed plans to consolidate its NPE joint venture by next fiscal year, alongside expanding operations in India and Africa.

Nidec Financial Statement Overview

Summary
Nidec demonstrates a strong financial performance with notable revenue growth of 11.08%, improving profitability, and solid cash flow metrics. The income statement shows a positive growth trajectory with a gross profit margin of 20.59% and a net profit margin of 6.43%. The balance sheet is stable with a debt-to-equity ratio of 0.37 and an equity ratio of 51.70%. Despite a decrease in free cash flow, Nidec maintains strong cash flow metrics.
Income Statement
80
Positive
Nidec's income statement reflects strong revenue growth and improving profitability. The company achieved a revenue growth rate of 11.08% from 2024 to 2025, indicating robust demand. Gross profit margin improved to 20.59% in 2025, enhancing profitability. The net profit margin also increased to 6.43% in 2025, up from 5.34% in 2024, driven by effective cost management and operational efficiency. However, the EBIT margin of 9.21% and EBITDA margin of 10.10% suggest that there is still room for operational improvements. Overall, Nidec's income statement is strong with a positive growth trajectory.
Balance Sheet
75
Positive
Nidec's balance sheet is stable with a healthy equity position. The debt-to-equity ratio of 0.37 in 2025 indicates a manageable level of leverage, and the equity ratio is strong at 51.70%, reflecting a solid financial foundation. Return on equity improved to 9.75%, suggesting effective use of equity to generate profits. However, the company should monitor its growing total liabilities, which increased by approximately 5.24% from 2024 to 2025, to ensure long-term financial stability.
Cash Flow
82
Very Positive
Nidec's cash flow performance is solid, with an operating cash flow to net income ratio of 1.70 in 2025, indicating efficient cash generation from operations. The free cash flow to net income ratio of 0.98 shows that a substantial portion of earnings is being converted into free cash flow. Although free cash flow decreased by 15.18% from 2024 to 2025, the company continues to maintain strong cash flow metrics, supporting its operational and strategic initiatives.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue2.61T2.35T2.24T1.92T1.62T
Gross Profit537.00B497.43B413.20B403.34B366.56B
EBITDA263.37B363.23B209.44B282.08B256.65B
Net Income167.69B125.39B36.98B136.87B121.98B
Balance Sheet
Total Assets3.33T3.17T2.87T2.68T2.26T
Cash, Cash Equivalents and Short-Term Investments246.24B217.00B189.91B204.48B230.08B
Total Debt636.05B600.90B705.35B595.71B531.47B
Total Liabilities1.58T1.50T1.50T1.36T1.14T
Stockholders Equity1.72T1.64T1.35T1.29T1.10T
Cash Flow
Free Cash Flow163.72B193.05B-10.25B-20.23B119.23B
Operating Cash Flow284.43B320.77B143.49B94.99B219.16B
Investing Cash Flow-150.64B-153.55B-164.94B-112.60B-100.57B
Financing Cash Flow-76.81B-181.56B-19.24B-60.24B-136.19B

Nidec Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2742.50
Price Trends
50DMA
2774.68
Negative
100DMA
2620.81
Positive
200DMA
2729.08
Positive
Market Momentum
MACD
-19.19
Positive
RSI
50.92
Neutral
STOCH
76.66
Neutral
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 2742.5 is below the 20-day moving average (MA) of 2742.88, below the 50-day MA of 2774.68, and above the 200-day MA of 2729.08, indicating a neutral trend. The MACD of -19.19 indicates Positive momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 76.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6594.

Nidec Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$3.24T18.799.86%1.46%11.07%34.29%
65
Neutral
$10.94B15.635.18%1.91%3.14%-27.13%
$21.01B22.318.08%1.86%
$9.32B21.0919.46%0.01%
$15.66B20.9925.94%0.91%
$11.30B19.5312.94%2.51%
73
Outperform
¥3.52T24.21
2.62%0.23%12.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6594
Nidec
2,742.50
-616.39
-18.35%
SMECF
SMC (OR)
357.75
-113.97
-24.16%
DAIUF
Daifuku Co
27.77
10.34
59.32%
IHICF
IHI
102.54
67.91
196.10%
KWHIF
Kawasaki Heavy Industries
67.33
29.53
78.12%
JP:6954
Fanuc Corporation
3,809.00
-436.93
-10.29%

Nidec Corporate Events

Nidec Reports No Share Repurchases in June 2025
Jul 1, 2025

Nidec Corporation announced that during the period from June 1 to June 30, 2025, it did not repurchase any of its own shares under the ongoing share repurchase plan. The plan, authorized by the Board of Directors, allows for the repurchase of up to 13 million shares, but no shares were bought back during this period. This indicates a cautious approach in executing the buyback strategy, potentially reflecting market conditions or strategic financial management considerations.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Granted Extension for Securities Report Submission
Jun 27, 2025

Nidec Corporation has received approval for an extension to submit its securities report for the fiscal year ending March 31, 2025. This extension, moving the deadline from June 30 to September 26, 2025, allows the company additional time to complete necessary audits, potentially impacting its financial reporting timeline and stakeholder communications.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Seeks Extension for Fiscal Year Securities Report Amid Internal Investigation
Jun 27, 2025

Nidec Corporation has applied for an extension to submit its 52nd fiscal year securities report due to the need for an additional internal investigation. This investigation is necessary to ensure the accuracy of financial statements following events at its Italian subsidiary, NIDEC FIR INTERNATIONAL S.R.L., which may impact the company’s financial reporting and audit processes.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Seeks Extension for Securities Report Amid Customs Investigation
Jun 26, 2025

Nidec Corporation has announced an application for an extension to submit its securities report due to ongoing investigations into customs issues involving its Italian subsidiary, FIR. The investigation revealed that FIR incorrectly declared the country of origin for oven motors shipped to the U.S., which should have been China, leading to unpaid tariffs. The company is taking corrective actions and has commissioned further external investigations to ensure compliance, impacting its operational transparency and potentially affecting stakeholder trust.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Delays Securities Report Submission Amid Trade Transaction Investigation
Jun 18, 2025

Nidec Corporation has announced a delay in the submission of its 52nd Annual Securities Report due to unresolved issues identified in trade transactions at its subsidiary, NIDEC FIR INTERNATIONAL S.R.L. The company is conducting an internal investigation with a third-party expert to address potentially erroneous declarations of country of origin, which may have led to unpaid import tariffs. This delay impacts the company’s ability to finalize its audited consolidated financial statements, affecting stakeholders’ access to financial information.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Wins Defamation Lawsuit Against Diamond Inc.
Jun 11, 2025

Nidec Corporation and its Founder, Shigenobu Nagamori, successfully won a lawsuit against Diamond Inc. for defamation. The Tokyo District Court ruled that Diamond’s articles about a former Nidec executive were partially false and defamatory, ordering Diamond to pay damages to Nagamori. This ruling reinforces Nidec’s commitment to lawful business practices and could impact its reputation positively among stakeholders.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Announces Zero Shares Repurchased in Initial Phase
Jun 2, 2025

Nidec Corporation announced the status of its share repurchase plan, revealing that no shares were repurchased from May 28 to May 31, 2025, despite authorization to repurchase up to 13 million shares. This announcement indicates a cautious approach in executing the repurchase plan, which may impact investor perceptions and market positioning.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Faces Delay in Consolidated Financial Statement Audit
May 29, 2025

Nidec Corporation announced a delay in receiving the accounting auditor’s report on its consolidated financial statements due to extended audits of its overseas subsidiaries. The company has assured stakeholders that the report is being prepared in time for the upcoming Annual General Meeting of Shareholders, and any necessary corrections will be promptly communicated once the report is finalized.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Corporation Initiates Share Repurchase Plan to Enhance Shareholder Value
May 27, 2025

Nidec Corporation has announced a new share repurchase plan authorized by its Board of Directors, allowing the company to buy back up to 13 million shares. This move is aimed at enhancing shareholder returns and managing the company’s capital structure, reflecting Nidec’s strategic focus on balancing growth investments with shareholder value.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Corporation Declares Annual Dividend Payout
May 27, 2025

Nidec Corporation announced its decision to distribute an annual dividend of 40 yen per share for the fiscal year ending March 31, 2025, maintaining stable shareholder returns. The decision aligns with Nidec’s policy to ensure a total payout ratio of 50%, aiming to enhance shareholder value through business expansion and profitability improvements.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Completes Share Repurchase Plan Without Final Period Purchases
May 26, 2025

Nidec Corporation announced the completion of its share repurchase plan, initially authorized by its Board of Directors in May 2024. Despite the plan allowing for the repurchase of up to 10 million shares, the company did not repurchase any shares during the final period due to stable market prices and the possession of material non-public information, impacting the execution of the plan.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Withdraws Tender Offer for Makino Milling Machine
May 8, 2025

Nidec Corporation has decided to withdraw its tender offer for Makino Milling Machine Co., Ltd., a company listed on the Tokyo Stock Exchange. The decision was made due to potential economic unreasonableness and possible damage to Nidec if the tender offer proceeded, particularly in light of an allotment of share options without contribution. This withdrawal may impact Nidec’s strategic plans to make Makino Milling Machine a wholly owned subsidiary.

Nidec’s Petition Against Makino’s Share Options Dismissed
May 7, 2025

Nidec Corporation announced that the Tokyo District Court dismissed its petition for a provisional injunction against Makino Milling Machine Co., Ltd.’s allotment of share options without contribution, a measure taken as a takeover defense. This decision may impact Nidec’s strategic positioning and influence its future actions regarding its interests in Makino Milling Machine Co., Ltd.

Nidec Reports No Share Repurchases in April 2025
May 7, 2025

Nidec Corporation announced that no shares were repurchased in April 2025 as part of its ongoing share repurchase plan. The plan, which allows for the repurchase of up to 10 million shares, had previously resulted in the repurchase of over 2.9 million shares, indicating a strategic approach to managing shareholder value.

Nidec Corporation Announces Strategic Absorption of Subsidiary’s Inverter Business
Apr 28, 2025

Nidec Corporation has announced a strategic move to absorb the inverter business of its wholly-owned subsidiary, Nidec Mobility Corporation, through an absorption-type company split. This decision, effective May 1, 2025, aims to streamline operations and potentially enhance Nidec’s market positioning in the inverter sector by consolidating assets and liabilities, which include short-term borrowings and non-current assets.

Nidec’s First Major BESS Project in the Baltic Region
Apr 24, 2025

Nidec Corporation has announced its involvement in the largest Battery Energy Storage System (BESS) project in the Baltic region, marking its first venture in this area. The company has secured an order for over 50 units, totaling 100 MW of power and 200 MWh capacity, expected to be delivered by the end of 2025. This project is anticipated to strengthen Nidec’s operational capabilities and market presence in the energy storage sector.

Nidec Reports Strong Financial Growth and Strategic Expansion for FY2025
Apr 24, 2025

Nidec Corporation reported its consolidated financial results for the year ended March 31, 2025, showing a notable increase in net sales and operating profit compared to the previous year. The company implemented a two-for-one stock split and adjusted its dividend payouts accordingly. Despite a decrease in comprehensive income, Nidec’s financial position remains strong with a stable equity ratio and positive cash flows from operating activities. The company also announced the consolidation of Nidec PSA emotors, indicating a strategic expansion in its operations.

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.Date of analysis: Jul 17, 2025