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

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JP:6594

Nidec

(6594)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
¥2,246.00
▲(11.13% Upside)
Nidec's overall stock score is primarily influenced by its strong financial performance and fair valuation. However, bearish technical indicators and mixed earnings call results weigh down the score. The company shows potential for growth, but current market conditions and operational challenges present risks.

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 generates revenue primarily through the sale of its electric motors and related components across various sectors. The company has several key revenue streams, including small precision motors used in consumer electronics, larger motors utilized in automotive and industrial applications, and systems for energy management. Nidec also benefits from strategic partnerships and acquisitions that enhance its technological capabilities and market reach. The company’s focus on innovation and efficiency, particularly in the context of the electrification of vehicles and the push for sustainable energy solutions, further drives its earnings potential.

Nidec Earnings Call Summary

Earnings Call Date:Oct 27, 2025
(Q3-2025)
|
Next Earnings Date:Jan 22, 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.
Q3-2025 Updates
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.
Strong Performance in AI Server and Data Center Markets
Demand for hard disk motors remained high, and the AI server market showed rapid growth, contributing positively to overall performance.
Successful Order Intake in Machine Tools
Order intake for machine tools increased by 1.5 times, indicating strong future sales potential.
Profitability in Traction Business
The traction business in China turned profitable in Q3, with expectations for continued profitability in Q4 and FY 2025.
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.
Challenges in Automotive Sector
Sluggish performance in European and American automotive markets, with ongoing restructuring efforts impacting profitability.
Inventory Management Issues
Despite efforts to reduce inventory, levels remained suboptimal, affecting cash flow and operating profit.
Losses in Certain Segments
Sluggish situation in the machinery segment and seasonal losses in U.S. motor products impacted overall profitability.
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
Nidec demonstrates strong financial performance with robust revenue growth, improving profitability, and solid cash flow metrics. The balance sheet is stable with manageable leverage and strong equity. However, there is room for operational improvements and careful monitoring of liabilities.
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.60T2.61T2.35T2.23T1.92T1.62T
Gross Profit467.52B537.00B497.43B413.20B403.34B366.56B
EBITDA309.82B263.37B294.39B247.01B282.08B256.65B
Net Income157.45B167.69B125.39B36.98B136.87B121.98B
Balance Sheet
Total Assets0.003.33T3.17T2.87T2.68T2.26T
Cash, Cash Equivalents and Short-Term Investments246.24B246.24B217.00B186.10B204.48B223.41B
Total Debt0.00636.05B600.90B705.35B595.71B531.47B
Total Liabilities-1.75T1.58T1.50T1.50T1.36T1.14T
Stockholders Equity1.75T1.72T1.64T1.35T1.29T1.10T
Cash Flow
Free Cash Flow139.97B163.72B193.05B-10.25B-20.23B119.23B
Operating Cash Flow230.20B284.43B320.77B143.49B94.99B219.16B
Investing Cash Flow-111.70B-150.64B-153.55B-164.94B-112.60B-100.57B
Financing Cash Flow-70.52B-76.81B-181.56B-19.24B-64.39B-136.19B

Nidec Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2021.00
Price Trends
50DMA
2568.50
Negative
100DMA
2701.48
Negative
200DMA
2642.40
Negative
Market Momentum
MACD
-177.74
Positive
RSI
33.00
Neutral
STOCH
30.58
Neutral
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 2021 is below the 20-day moving average (MA) of 2335.83, below the 50-day MA of 2568.50, and below the 200-day MA of 2642.40, indicating a bearish trend. The MACD of -177.74 indicates Positive momentum. The RSI at 33.00 is Neutral, neither overbought nor oversold. The STOCH value of 30.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6594.

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
$1.88T22.3221.24%1.29%
76
Outperform
¥4.77T30.582.00%4.10%14.54%
72
Outperform
$3.50T25.087.46%1.87%1.13%-17.99%
70
Outperform
$3.40T31.5326.54%0.63%-1.66%19.02%
67
Neutral
$2.32T14.681.98%6.85%31.48%
64
Neutral
$1.91T24.8911.02%1.36%15.11%142.87%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6594
Nidec
2,021.00
-845.28
-29.49%
JP:6273
SMC (OR)
53,390.00
-12,132.11
-18.52%
JP:6383
Daifuku Co
4,960.00
1,720.06
53.09%
JP:7013
IHI
3,065.00
1,767.87
136.29%
JP:7012
Kawasaki Heavy Industries
11,425.00
4,863.55
74.12%
JP:6954
Fanuc Corporation
5,060.00
923.86
22.34%

Nidec Corporate Events

Nidec Halts Share Repurchase Amid Accounting Investigations
Oct 23, 2025

Nidec Corporation announced the discontinuation of its share repurchase program, initially resolved in May 2025, due to ongoing investigations into suspected inappropriate accounting practices. The company has not repurchased any shares since the start of the program, as it refrained from doing so while holding material non-public information and amidst confirmed events subject to investigation.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen2791.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Revises Dividend and Financial Forecast Amid Market Adjustments
Oct 23, 2025

Nidec Corporation announced that it will not pay an interim dividend for the fiscal year ending March 31, 2026, and has revised its year-end dividend forecast. The company also updated its consolidated financial performance forecast, reflecting adjustments in its financial strategy amidst market conditions. This decision may impact shareholder returns and indicates a strategic shift in managing financial resources.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen2791.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Reports No Share Repurchases in Recent Period
Oct 1, 2025

Nidec Corporation announced that no shares were repurchased during the specified period of its ongoing share repurchase plan, which was authorized by the Board of Directors. This update indicates that despite having the authorization to repurchase up to 13 million shares, the company has not executed any buybacks, potentially impacting its market strategy and shareholder value.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3700.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Announces Strategic Organizational and Personnel Changes
Sep 29, 2025

Nidec Corporation announced significant organizational and personnel changes effective October 1, 2025, aimed at enhancing its operational efficiency and strategic alignment. These changes include the integration of corporate departments and the establishment of new divisions within its Automotive Motor & Electronic Control Organic Business Unit, reflecting Nidec’s commitment to strengthening its market position and improving stakeholder engagement.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Corporation Corrects Financial Statements for FY2025
Sep 26, 2025

Nidec Corporation announced corrections to its financial statements for the year ended March 31, 2025, due to unpaid tariffs and suspected improper accounting in its subsidiaries. These corrections resulted in minor changes to net sales and more significant decreases in operating profit and profit before income taxes, impacting stakeholders and reflecting the company’s commitment to transparency and accuracy.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3300.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Completes Securities Report Submission for FY 2025
Sep 26, 2025

Nidec Corporation has announced the completion of its securities report submission for the fiscal year ended March 31, 2025, after receiving an extension. This submission marks a significant step in maintaining transparency and compliance, reassuring stakeholders of the company’s commitment to regulatory obligations.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3300.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Faces Audit Challenges Amid Accounting Investigations
Sep 26, 2025

Nidec Corporation has announced that it received a disclaimer of opinion on its consolidated financial statements and internal control audit report for the fiscal year ended March 31, 2025. The disclaimer arises from ongoing investigations into suspected inappropriate accounting practices, which could significantly impact the company’s financial statements. The investigations are being conducted by a Third-Party Committee and internal teams, and their findings may have material implications for Nidec’s financial reporting and stakeholder trust.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3300.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Corporation Reports Material Weakness in Financial Controls
Sep 26, 2025

Nidec Corporation has identified a material weakness in its internal control over financial reporting, specifically related to trade transactions at its subsidiary, NIDEC FIR INTERNATIONAL S.R.L. in Italy. This weakness has led to erroneous declarations of country of origin for certain motors, resulting in unpaid tariffs and delayed financial reporting. The company is implementing corrective measures to strengthen compliance and internal controls, which could have significant implications for its financial statements and stakeholder trust.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3300.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Submits Fiscal Reports Amid Ongoing Investigations
Sep 26, 2025

Nidec Corporation announced the submission of its securities and internal control reports for the fiscal year ending March 31, 2025, following an extension due to ongoing investigations. These investigations, which include issues related to trade transactions, customs, and potential improper accounting, have led to a disclaimer of opinion in the audit report due to insufficient evidence. The company is taking steps to address these issues, including establishing a third-party committee and implementing measures to prevent recurrence. The impact of these investigations on the financial statements is still being assessed.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3300.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Announces Financial Corrections and Major Baltic BESS Project
Sep 26, 2025

Nidec Corporation announced corrections to its fiscal 2024 financial statements, initially disclosed in April 2025, due to ongoing investigations. The company highlighted its significant Battery Energy Storage System project in the Baltic region, which involves delivering over 50 units by the end of 2025, marking its first major venture in the area. This project is expected to enhance Nidec’s market positioning in the energy storage sector.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3300.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Establishes Independent Committee to Probe Accounting Irregularities
Sep 3, 2025

Nidec Corporation has announced the establishment of a third-party committee to investigate suspected improper accounting practices within the company and its subsidiaries. This decision follows internal investigations that revealed potential irregularities in financial reporting, prompting the need for an independent review to ensure transparency and accountability. The committee, composed of legal and accounting experts, will conduct a thorough examination to uncover any misconduct and recommend preventive measures. This move underscores Nidec’s commitment to maintaining corporate integrity and addressing shareholder concerns.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3342.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Reports No Share Repurchases in August 2025
Sep 1, 2025

Nidec Corporation announced that no shares were repurchased under its share repurchase plan during August 2025. The plan, authorized in May 2025, allows for the repurchase of up to 13 million shares, but as of the end of August, no shares have been bought back, indicating a pause or reconsideration in their buyback strategy.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3342.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Reports No Shares Repurchased in July 2025
Aug 1, 2025

Nidec Corporation announced the status of its ongoing share repurchase plan, revealing that no shares were repurchased during the period from July 1 to July 31, 2025. The plan, authorized by the Board of Directors, allows for the repurchase of up to 13 million shares or 1.13% of total shares, with a total repurchasable amount of 35 billion yen until May 27, 2026, but no shares have been repurchased so far.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3600.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

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: Oct 29, 2025