Nidec Corporation (JP:6594)
:6594
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Nidec
(6594)
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Rating:69Neutral
Price Target:
¥2,626.00
▲(15.78% 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
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
¥2.99T
Dividend Yield0.97%
Average Volume (3M)8.18M
Price to Earnings (P/E)18.6
Beta (1Y)0.88
Revenue Growth5.08%
EPS Growth25.55%
CountryJP
Employees101,112
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 Ratio0.52
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 Upside41.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)158.43
Revenue Forecast (FY)¥2.71T
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 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:Jul 28, 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
Positive
2268.00
Price Trends
2261.28
Positive
2181.48
Positive
2417.16
Negative
Market Momentum
8.64
Negative
54.10
Neutral
66.86
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 2268 is above the 20-day moving average (MA) of 2167.60, above the 50-day MA of 2261.28, and below the 200-day MA of 2417.16, indicating a neutral trend. The MACD of 8.64 indicates Negative momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 66.86 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥654.82B | 20.53 | 5.25% | 2.13% | -7.11% | 68.57% | |
69 Neutral | ¥2.99T | 18.60 | 10.09% | 0.97% | 5.08% | 25.55% | |
67 Neutral | ¥599.72B | 197.68 | 5.94% | 0.56% | 5.96% | ― | |
64 Neutral | ¥2.74T | 9.91 | 14.59% | 1.40% | 12.62% | 32.31% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥652.70B | 21.78 | 4.83% | 2.95% | 2.18% | 5504.89% | |
59 Neutral | ¥726.68B | -1.51 | 1.88% | 6.16% | 1.98% | -48.28% |
* Industrials Sector Average
JP:6594
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Nidec Corporate Events
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...
Nidec Streamlines Governance With Organizational and Leadership Reshuffle
Apr 27, 2026
Nidec Corporation has announced a series of organizational and personnel changes effective May 1, 2026, including the dissolution of its Special Investigation Support Office. The reshuffle consolidates compliance, human resources, internal audit, ...
Nidec Delays FY2025 Results as Probe Triggers Multi-Year Restatements
Apr 27, 2026
Nidec Corporation has postponed the disclosure of its financial results for the fiscal year ended March 31, 2026, citing ongoing work to correct past financial statements and to complete the latest year’s accounts. The delay stems from issue...
Nidec Revises Internal Control Plan to Address Tokyo Stock Exchange Special Alert
Apr 27, 2026
Nidec Corporation has revised and resubmitted its internal management improvement plan to the Tokyo Stock Exchange as it works to exit a special-alert designation on its stock. The updated plan incorporates findings from a third-party committee in...
Nidec Finalizes Improper Accounting Probe, Warns of Heavy Profit Corrections and Governance Overhaul
Apr 17, 2026
Nidec has received the final supplemental report from an independent Third-Party Committee investigating improper accounting within the group and has published an updated summary of the findings. In parallel, the company has advanced internal prob...
Nidec Reshapes Automotive and R&D Structure with Major April 2026 Reorganization
Mar 31, 2026
Nidec Corporation announced a broad reorganization effective April 1, 2026, aimed at streamlining its RD and automotive-related operations, including renaming the Inverter System Development Project as Research Department 5 and dissolving the Kyot...
Nidec Faces Shareholder Demand for Legal Action Over Alleged Improper Accounting
Mar 30, 2026
Nidec disclosed that it has received a formal request from an individual shareholder demanding the company file a lawsuit seeking liability and other remedies against current and former directors over alleged improper accounting and related issues...
Nidec Overhauls Director Nomination Process to Strengthen Governance
Mar 26, 2026
Nidec Corporation is a leading Japanese manufacturer of electric motors and motion control solutions serving global IT, automotive, industrial, and consumer markets. Listed on the Tokyo Stock Exchange, the company has been enhancing its governance...
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...
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.