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Nissan Motor Co Ltd (JP:7201)
:7201

Nissan Motor Co (7201) AI Stock Analysis

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Nissan Motor Co

(OTC:7201)

Rating:46Neutral
Price Target:
¥345.00
▼(-1.91%Downside)
Nissan's overall score is primarily affected by financial challenges with declining profitability and high leverage. Market trends are bearish, and valuation is stressed by negative earnings, despite a high dividend yield. Earnings call insights confirm significant challenges in sales and profitability, exacerbated by global market conditions.

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

Nissan Motor Co Business Overview & Revenue Model

Company DescriptionNissan Motor Co., Ltd. is a prominent global automobile manufacturer headquartered in Yokohama, Japan. The company is renowned for designing, manufacturing, and selling a wide range of vehicles, including cars, trucks, and commercial vehicles, under brands such as Nissan, Infiniti, and Datsun. Additionally, Nissan is a key player in the electric vehicle market, with its Nissan LEAF model being one of the most popular electric cars worldwide. The company operates across several sectors, including automotive, marine products, and financial services, and maintains a strong presence in markets across the Americas, Europe, Asia, and the Middle East.
How the Company Makes MoneyNissan Motor Co. generates revenue primarily through the sale of vehicles, parts, and accessories. Its key revenue streams include the sale of passenger vehicles and commercial vehicles under brands like Nissan, Infiniti, and Datsun. The company also earns income from its financial services division, which provides vehicle financing and leasing options to customers and dealerships. Additionally, Nissan benefits from its strategic alliances and partnerships, such as its membership in the Renault-Nissan-Mitsubishi Alliance, which allows for cost-sharing and collaborative innovation in areas like electric vehicle technology and autonomous driving. The company's earnings are further bolstered by its investments in electric vehicles and technological advancements, catering to the growing demand for sustainable and connected mobility solutions.

Nissan Motor Co Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q4-2024)
|
% Change Since: 1.53%|
Next Earnings Date:Jul 23, 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 significant financial challenges, particularly in profitability and cash flow generation. The balance sheet shows some stability, but high leverage and declining profitability are concerns. Overall, financial health is moderate, with areas needing attention.
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue12.27T12.63T12.69T10.60T8.42T7.86T
Gross Profit2.05T1.69T2.07T1.71T1.35T1.05T
EBITDA1.16T360.76B1.36T712.35B1.13T406.91B
Net Income432.21B-670.90B426.65B221.90B215.53B-448.70B
Balance Sheet
Total Assets19.02T19.02T19.86T17.60T16.37T16.45T
Cash, Cash Equivalents and Short-Term Investments2.20T2.20T2.13T2.01T1.79T2.03T
Total Debt8.10T8.10T7.81T7.04T7.13T7.60T
Total Liabilities13.58T13.58T13.38T11.98T11.34T12.11T
Stockholders Equity4.96T4.96T5.98T5.13T4.58T3.94T
Cash Flow
Free Cash Flow-528.12B-1.16T-666.88B87.55B-276.70B140.48B
Operating Cash Flow961.24B753.69B960.90B1.22T847.19B1.32T
Investing Cash Flow-815.20B-971.23B-812.66B-447.04B-146.84B-369.12B
Financing Cash Flow-115.15B263.25B-131.55B-670.61B-1.09T-639.69B

Nissan Motor Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price351.70
Price Trends
50DMA
348.57
Positive
100DMA
376.93
Negative
200DMA
393.96
Negative
Market Momentum
MACD
-3.41
Positive
RSI
49.49
Neutral
STOCH
36.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7201, the sentiment is Positive. The current price of 351.7 is below the 20-day moving average (MA) of 354.52, above the 50-day MA of 348.57, and below the 200-day MA of 393.96, indicating a neutral trend. The MACD of -3.41 indicates Positive momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 36.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7201.

Nissan Motor Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥6.85T7.946.54%4.79%6.17%-21.69%
75
Outperform
¥32.97T7.0313.59%4.07%6.52%-1.47%
75
Outperform
$3.43T8.1215.02%2.40%8.39%55.79%
73
Outperform
$1.88T5.6312.64%5.40%-0.37%-10.12%
67
Neutral
$598.38B14.304.11%3.65%-0.05%-73.27%
62
Neutral
$16.72B10.85-7.48%3.11%1.66%-24.52%
46
Neutral
$1.22T12.25-12.13%7.12%-0.41%-274.49%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7201
Nissan Motor Co
351.70
-200.70
-36.33%
JP:7203
Toyota Motor
2,527.00
-651.62
-20.50%
JP:7211
Mitsubishi Motors
410.40
-31.01
-7.03%
JP:7269
Suzuki Motor
1,751.50
-40.83
-2.28%
JP:7267
Honda Motor Co
1,421.00
-262.19
-15.58%
JP:7270
SUBARU
2,577.00
-679.21
-20.86%

Nissan Motor Co Corporate Events

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.

Nissan Announces Board of Directors Nominees
Apr 17, 2025

Nissan Motor Co., Ltd. has announced the nomination of candidates for its Board of Directors, which will be proposed for appointment at the upcoming annual general meeting of stockholders in June. The nominations include re-appointments of several independent outside directors and new appointments for key roles, including the board chair and committee chairs, reflecting Nissan’s strategic focus on governance and leadership continuity.

Nissan Transfers Indian Subsidiary Shares to Renault Group
Mar 31, 2025

Nissan Motor Co., Ltd. has decided to transfer its shares in Renault Nissan Automotive India Private Ltd. to Renault Group B.V. This strategic move involves the sale of 51% of equity shares and 80.6% of preferred shares, amounting to a total of 35.3 billion INR. The transaction is expected to be completed by the end of the first half of 2025, subject to regulatory approvals. This decision reflects Nissan’s ongoing efforts to streamline its operations and potentially strengthen its strategic partnership with Renault, impacting its market positioning and stakeholder interests.

Nissan and Renault Unveil Strategic Projects to Boost Alliance
Mar 31, 2025

Nissan Motor Co. and Renault Group have announced new strategic projects aimed at enhancing their alliance and expanding their market presence. Renault will acquire Nissan’s 51% share in Renault Nissan Automotive India Private Ltd, allowing Renault to strengthen its international business while Nissan continues to focus on the Indian market. The agreement also includes Nissan’s decision to develop a derivative of the Twingo with Renault and amendments to their cross-shareholding flexibility. These moves are intended to support Nissan’s turnaround plan and create value for both companies, with a particular emphasis on the Indian automotive market as a key growth area.

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: Jun 28, 2025