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Nissan Motor Co Ltd (JP:7201)
:7201
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Nissan Motor Co (7201) AI Stock Analysis

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Nissan Motor Co

(OTC:7201)

Rating:45Neutral
Price Target:
¥328.00
▲(6.08%Upside)
Nissan's overall stock score reflects significant financial and operational challenges. The most impactful factor is the company's poor financial performance, exacerbated by negative earnings and cash flow issues. Technical indicators also suggest bearish momentum, further weighing on the stock's attractiveness. Despite some areas of strength, such as North American sales growth and liquidity, these are overshadowed by substantial risks.

Nissan Motor Co (7201) vs. iShares MSCI Japan ETF (EWJ)

Nissan Motor Co Business Overview & Revenue Model

Company DescriptionNissan Motor Co., Ltd. manufactures and sells vehicles and automotive parts worldwide. It sells vehicles under the Nissan, Infiniti, Datsun, Heritage, and Motorsports brands. The company offers vehicle and vehicle parts; engines, manual transmissions, and multiplier/reducer units; automotive parts; axles; specially equipped vehicles; and motorsports engines. It also provides financial services, auto credit and car leasing, card business, insurance agency, and inventory finance, as well as engages in exterior and interior design for automobiles, and operations and consulting related to the analysis and assay of raw materials. In addition, the company engages in the provision of travel, environmental and engineering, production technology center, and facility services; ground and vehicle management, and information and logistics businesses; design, vehicle drawings and experiments, other engineering, electronic devices, and electronic equipment businesses; export and import of auto components and materials; and real estate businesses. Further, it is involved in promotion of motorsports, including race and motorsports event planning, and vehicle remodeling; sale of car parts and accessories for motorsports; and demonstration test and commercialization study for second-life use of lithium-ion batteries for automotive use. Additionally, the company imports and sells Renault vehicles and parts; and manages and plans professional soccer team and soccer schools. The company was founded in 1933 and is headquartered in Yokohama, Japan.
How the Company Makes MoneyNissan Motor Co. generates revenue primarily through the design, manufacturing, and sale of automobiles. The company earns money from selling vehicles under its Nissan, Infiniti, and Datsun brands across global markets. Additionally, Nissan benefits from its electric vehicle segment, particularly from sales of the Nissan LEAF. Beyond vehicle sales, the company generates income from its financial services division, which provides automotive financing solutions. Furthermore, Nissan has strategic alliances and joint ventures, most notably the Renault-Nissan-Mitsubishi Alliance, which enhances its global market presence and operational efficiencies, contributing significantly to its earnings.

Nissan Motor Co Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q4-2024)
|
% Change Since: -10.74%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Negative
The earnings call highlights significant challenges facing Nissan, including a substantial net loss, declining global sales, and the impact of tariffs. Although there are positive aspects such as growth in North America and a strong liquidity position, the lowlights, particularly financial losses and declines in key markets, outweigh the positives.
Q4-2024 Updates
Positive Updates
North American Sales Growth
North American sales rose by 3%, offsetting declines in other regions. This indicates a strong market presence and demand in North America.
Strong Liquidity Position
Nissan reported a total available liquidity of JPY 3.4 trillion in the auto business, which includes JPY 2.2 trillion of cash and cash equivalents.
Focus on New Model Launches and Innovations
Despite challenges, Nissan continues to invest in new products, services, and technologies, with investments in CapEx at JPY 577 billion and R&D spending of JPY 620 billion.
Negative Updates
Significant Net Loss
Nissan reported a net loss of JPY 671 billion for the fiscal year, impacted by impairments of over JPY 460 billion and restructuring costs of nearly JPY 60 billion.
Revenue and Operating Profit Decline
Nissan’s revenue was JPY 12.63 trillion, down 0.4% year-over-year, with operating profit decreasing to nearly JPY 70 billion due to lower volume and increased costs.
Global Retail Sales Decline
Total global retail sales decreased by 2.8% year-over-year, with a 12% decline in China and a 5% decline in the fourth quarter.
Challenges in China
Retail sales in China decreased by 12%, facing intense competition from domestic brands, and are expected to decline further by 18% in fiscal year 2025.
Negative Free Cash Flow
Due to negative auto profit and increased CapEx, free cash flow for the automotive business was a negative JPY 243 billion.
Impact of Tariffs
Nissan estimates a negative gross impact of JPY 450 billion from tariffs, which poses a significant challenge to the fiscal year 2025 outlook.
Company Guidance
In the recent call, Nissan provided detailed guidance for fiscal years 2024 and 2025, highlighting several key financial metrics and strategic initiatives. For fiscal year 2024, Nissan reported a revenue of JPY 12.63 trillion, with a 0.4% year-over-year decline, and an operating profit of nearly JPY 70 billion, significantly impacted by impairment charges of JPY 500 billion and restructuring costs of JPY 60 billion, resulting in a net loss of JPY 671 billion. Global retail sales declined by 2.8%, with significant drops in China. For fiscal year 2025, Nissan anticipates a 2.9% decrease in unit sales, projecting a global production volume of 3 million units. Operating profit is expected to break even, excluding potential tariff impacts. The company aims for a JPY 500 billion cost reduction by fiscal year 2026 through their Re:Nissan recovery plan, targeting both variable and fixed costs. Nissan also plans to streamline its operations, reducing the number of manufacturing plants from 17 to 10 and reallocating resources for greater efficiency. They have a total available liquidity of JPY 3.4 trillion and strategic plans to mitigate a potential JPY 450 billion tariff impact. The company remains committed to investing in new technologies and partnerships to drive future growth and profitability.

Nissan Motor Co Financial Statement Overview

Summary
Nissan faces financial challenges, particularly in profitability and cash flow generation. The balance sheet shows moderate stability but high leverage and declining profitability are concerns. The company needs to address cash flow volatility and improve operational efficiency.
Income Statement
45
Neutral
The income statement reveals a challenging financial performance. The gross profit margin has been under pressure, with a decline in net income over recent years. Revenue growth has been inconsistent, with a notable drop in the latest period. EBIT and EBITDA margins are under strain, reflecting operational challenges. Overall, the company faces headwinds in its profitability metrics.
Balance Sheet
55
Neutral
The balance sheet presents a mixed picture. While the debt-to-equity ratio indicates high leverage, the company maintains a reasonable equity ratio, which suggests some financial stability. However, the return on equity has been negative, largely due to declining net income. The balance sheet strength is moderate, with potential risks due to high debt levels.
Cash Flow
50
Neutral
Cash flow analysis shows fluctuating free cash flow, with recent declines indicating potential liquidity issues. The operating cash flow to net income ratio suggests some ability to generate cash from operations, but the free cash flow to net income ratio highlights concerns about cash availability. Overall, cash flow generation is inconsistent, posing challenges for financial flexibility.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue12.63T12.69T10.60T8.42T7.86T
Gross Profit1.69T2.07T1.71T1.35T1.05T
EBITDA360.76B1.36T712.35B1.13T406.91B
Net Income-670.90B426.65B221.90B215.53B-448.70B
Balance Sheet
Total Assets19.02T19.86T17.60T16.37T16.45T
Cash, Cash Equivalents and Short-Term Investments2.20T2.13T2.01T1.79T2.03T
Total Debt8.10T7.81T7.04T7.13T7.60T
Total Liabilities13.58T13.38T11.98T11.34T12.11T
Stockholders Equity4.96T5.98T5.13T4.58T3.94T
Cash Flow
Free Cash Flow-1.16T-666.88B87.55B-276.70B140.48B
Operating Cash Flow753.69B960.90B1.22T847.19B1.32T
Investing Cash Flow-971.23B-812.66B-447.04B-146.84B-369.12B
Financing Cash Flow263.25B-131.55B-670.61B-1.09T-639.69B

Nissan Motor Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price309.20
Price Trends
50DMA
347.68
Negative
100DMA
363.71
Negative
200DMA
388.52
Negative
Market Momentum
MACD
-11.37
Positive
RSI
36.74
Neutral
STOCH
21.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7201, the sentiment is Negative. The current price of 309.2 is below the 20-day moving average (MA) of 331.86, below the 50-day MA of 347.68, and below the 200-day MA of 388.52, indicating a bearish trend. The MACD of -11.37 indicates Positive momentum. The RSI at 36.74 is Neutral, neither overbought nor oversold. The STOCH value of 21.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7201.

Nissan Motor Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
S$933.34M37.305.70%3.18%6.06%-25.02%
45
Neutral
$1.08T12.25-12.13%8.35%-0.41%-274.49%
GBTYT
¥32.75T7.0113.59%3.95%
$4.00B13.554.11%3.92%
$12.61B5.8212.64%5.04%
$48.78B8.316.54%4.59%
$21.81B8.1515.02%2.48%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7201
Nissan Motor Co
309.20
-231.10
-42.77%
GB:TYT
Toyota Motor
2,520.50
-511.57
-16.87%
MMTOF
Mitsubishi Motors
2.55
-0.34
-11.76%
FUJHF
SUBARU
17.50
-2.01
-10.30%
HNDAF
Honda Motor Co
9.75
-0.47
-4.60%
SZKMF
Suzuki Motor
11.53
-0.52
-4.32%

Nissan Motor Co Corporate Events

Nissan Shifts Production to Kyushu in Strategic Restructuring
Jul 15, 2025

Nissan Motor Co., Ltd. announced a strategic shift in its production strategy by transferring vehicle production from its Oppama Plant to Nissan Motor Kyushu, as part of its Re:Nissan recovery plan. The move, set to be completed by the end of fiscal year 2027, aims to consolidate production facilities and reduce global production capacity to enhance operational efficiency. While the Oppama Plant will cease production, other facilities in the district will remain operational. Nissan is committed to supporting its employees and the local community during this transition, and will explore future uses for the Oppama site.

The most recent analyst rating on (JP:7201) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Announces Issuance of 2031 Convertible Bonds
Jul 9, 2025

Nissan Motor Co., Ltd. announced the issuance of Convertible Bonds due 2031, with a coupon rate of 1.0% per annum and a conversion price of 397.2 yen. This move is part of the company’s strategic financial planning, although the bonds will not be offered in Japan or the United States due to regulatory constraints.

The most recent analyst rating on (JP:7201) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Increases 2031 Convertible Bonds to 200 Billion Yen
Jul 8, 2025

Nissan Motor Co., Ltd. announced an increase in the aggregate principal amount of its Convertible Bonds due 2031 from 150 billion yen to 200 billion yen, based on investor demand. The proceeds, estimated at approximately 199.9 billion yen, will be used to invest in new products and technologies, supporting the company’s transformation towards its ‘Nissan Ambition 2030’ initiative. This change is expected to have minimal impact on the company’s current fiscal year financial results.

The most recent analyst rating on (JP:7201) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Issues 2031 Convertible Bonds to Drive Future Innovations
Jul 7, 2025

Nissan Motor Co., Ltd. has announced the issuance of Convertible Bonds due 2031 to support its strategic recovery plan, ‘Re:Nissan’, and facilitate its transformation towards ‘Nissan Ambition 2030’. The proceeds, estimated at ¥149.9 billion, will be invested in new products and technologies, particularly in electrification and software-defined vehicles, to enhance the company’s market positioning and operational efficiency.

The most recent analyst rating on (JP:7201) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan and Renault Amend Alliance Agreement for Greater Flexibility
Jun 25, 2025

Nissan Motor Co. announced an amendment to its alliance agreement with Renault S.A., its largest shareholder, to increase flexibility in their cross-shareholdings. The amendment reduces the lock-up undertaking from 15% to 10%, allowing both companies to lower their shareholding to a minimum of 10% without obligation. This change ensures Nissan’s operational independence while maintaining board representation for both companies, with no risk of conflict of interest for ordinary shareholders.

The most recent analyst rating on (JP:7201) stock is a Sell with a Yen390.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Adjusts Treasury Stock Disposal Strategy
Jun 25, 2025

Nissan Motor Co. has announced the withdrawal of a previous Shelf Registration Statement for the disposal of treasury stock and the submission of a new one. This decision aligns with the expiration of the scheduled issuance period for the previous statement, ensuring compliance with their RSU plan. The new registration will cover a two-year period, allowing Nissan to manage its treasury stock effectively without generating proceeds, as shares will be allotted as compensation.

The most recent analyst rating on (JP:7201) stock is a Sell with a Yen390.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Board Opposes Shareholder Proposals on Governance Amendments
May 20, 2025

Nissan Motor Co.’s Board of Directors has decided to oppose several shareholder proposals ahead of its 126th Annual General Meeting. The proposals, which include amendments to the Articles of Incorporation regarding the governance of listed subsidiaries and affiliates, were deemed inappropriate by the Board as they could limit the company’s flexibility in policy formulation and adaptation to changing business environments. The Board emphasized the importance of maintaining effective governance systems and respecting the independence of its subsidiaries, while also ensuring transparency and timely disclosure of corporate governance matters.

The most recent analyst rating on (JP:7201) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Proposes Amendments to Articles of Incorporation
May 20, 2025

Nissan Motor Co., Ltd. has proposed amendments to its Articles of Incorporation, which will be discussed at the upcoming Annual General Meeting of Shareholders. The amendments include adding electric power generation and sales to its business objectives and abolishing the position of Vice Board Chair, reflecting a strategic shift towards energy-related ventures.

The most recent analyst rating on (JP:7201) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Reports Significant Impairment Loss Amidst Strategic Reassessment
May 13, 2025

Nissan Motor Co., Ltd. announced a significant impairment loss for the fiscal year ending March 31, 2025, due to a reassessment of its future plans and the financial deterioration of its subsidiaries and affiliates. The company recorded a total impairment loss of 467,053 million JPY in its consolidated financial statement, with additional losses on valuation of shares and provisions for losses on business subsidiaries and affiliates, though these standalone losses will not impact the consolidated financial statement.

The most recent analyst rating on (JP:7201) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Unveils ‘Re:Nissan’ Recovery Plan to Cut Costs and Boost Profitability
May 13, 2025

Nissan Motor Co., Ltd. has announced a comprehensive recovery plan named ‘Re:Nissan’ to address fiscal challenges and rising costs. The plan aims to achieve a total cost savings of 500 billion yen by fiscal year 2026 through aggressive variable and fixed cost reductions, including workforce reduction and manufacturing consolidation. The company is also redefining its market and product strategies to focus on core markets and strengthen partnerships with Renault and Mitsubishi Motors, ensuring a robust recovery and sustainable profitability.

The most recent analyst rating on (JP:7201) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Faces Financial Challenges Amid Global Market Pressures
May 13, 2025

Nissan Motor Co. reported its financial results for fiscal year 2024, revealing a challenging year with a net loss of 670.9 billion yen and a negative free cash flow of 242.8 billion yen in its automotive business. The company faced intensified sales competition, forex fluctuations, and inflationary pressures, impacting its global sales and operating profit. Despite these challenges, Nissan is prioritizing U.S.-built products and optimizing local capacity to mitigate potential tariff impacts. The outlook for fiscal year 2025 remains uncertain, with key financial metrics yet to be determined.

The most recent analyst rating on (JP:7201) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Reports Challenging FY2024 Financial Results Amid Uncertainty
May 13, 2025

Nissan Motor Co. has released its consolidated financial results for FY2024, showing a challenging year with a significant decrease in comprehensive income compared to the previous year. The company faces uncertainty in forecasting its FY2025 operating income and net income due to external factors such as U.S. tariffs, which may impact its financial performance and stakeholder interests.

The most recent analyst rating on (JP:7201) stock is a Hold with a Yen550.00 price target. To see the full list of analyst forecasts on Nissan Motor Co stock, see the JP:7201 Stock Forecast page.

Nissan Foregoes Year-End Dividend Amid Turnaround Efforts
Apr 24, 2025

Nissan Motor Co., Ltd. announced that it will forego the year-end dividend for the fiscal year ending March 2025 due to a significant expected net loss and negative automotive free cash flow, attributed to costs related to its ongoing turnaround plan. The decision reflects the company’s focus on implementing its turnaround strategy, improving business performance, and preserving cash, which may impact shareholder returns and highlight the challenges faced in its financial recovery efforts.

Nissan Revises FY2024 Financial Forecast Amidst Market Challenges
Apr 24, 2025

Nissan Motor Co. has revised its fiscal year 2024 financial forecast, indicating a decrease in operating profit by 29.2% to 85 billion yen due to a challenging competitive environment and declining sales performance. Despite the anticipated net loss and negative automotive free cash flow, Nissan maintains a healthy net cash position of approximately 1.5 trillion yen, reflecting resilience amidst financial uncertainties.

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 08, 2025