Nissan Motor Co (7201) AI Stock Analysis

• Market Cap: ¥1.39T
• Dividend Yield: N/A
• Average Volume (3M): 27.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -3.01%
• EPS Growth: -755.71%
• Country: JP
• Employees: 133,580
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -30.40
• Shares Outstanding: 3,713,998,500
• 10 Day Avg. Volume: 28,296,099
• 30 Day Avg. Volume: 27,474,239
• PEG Ratio: <0.01
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -1.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥291.23
• Price Target Upside: -26.83% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ¥382.00 ▼(-4.02% Downside)

Nissan Motor Co's overall stock score is primarily impacted by its weak financial performance, characterized by significant losses and high leverage. The technical analysis provides some positive signals with the stock trading above key moving averages, but potential overbought conditions are a concern. The valuation is poor due to a negative P/E ratio and lack of dividend yield, further weighing down the score.

Positive Factors

Cost Reduction Initiatives

Nissan's focus on cost reduction through its Re:Nissan plan aims to achieve sustainable savings, enhancing long-term profitability and competitiveness.

Product Innovation

Nissan's commitment to innovation and new product launches positions it to capture market share and drive sustainable growth in key markets.

Strategic Partnerships

Strategic alliances enhance Nissan's competitive advantage by leveraging shared resources and technology, improving production efficiency and market reach.

Negative Factors

High Leverage

Significant leverage poses financial risks, limiting Nissan's financial flexibility and potentially impacting long-term stability and investment capacity.

Declining Revenue

Severe revenue contraction indicates challenges in market demand and sales execution, threatening Nissan's ability to sustain operations and growth.

Negative Cash Flow

Negative cash flow growth highlights cash management challenges, potentially hindering Nissan's ability to invest in growth opportunities and manage debt.

Nissan Motor Co Business Overview & Revenue Model

Company Description

Nissan 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 Money

Nissan generates revenue primarily through the sale of vehicles across different markets worldwide. Its revenue model includes direct sales of cars to consumers, dealerships, and fleet buyers. Key revenue streams also include financing services offered through Nissan's financial services division, which provides loans and leases to customers. Additionally, Nissan earns revenue from parts and accessories sales, as well as through strategic partnerships, such as its alliance with Renault and Mitsubishi, which allows for shared technology, platforms, and production efficiencies. The company's focus on electric vehicles and sustainability initiatives also positions it to benefit from growing consumer demand in these areas, further contributing to its earnings.

Nissan Motor Co Financial Statement Overview

Summary

Nissan Motor Co is experiencing financial difficulties, characterized by declining revenues, negative profitability, and high leverage. The company's ability to generate cash flow is constrained, posing risks to financial stability. While there are some areas of stability, such as the equity ratio, the overall financial health is concerning, requiring strategic interventions to improve performance.

Income Statement

Nissan Motor Co's income statement shows a challenging period with declining revenue and negative profitability metrics. The TTM data reveals a negative net profit margin of -6.61% and a gross profit margin of 11.81%. Revenue has decreased by 2.31% compared to the previous period, indicating a contraction in sales. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and financial strain.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 1.76, suggesting significant leverage and potential financial risk. The return on equity is negative at -15.36%, highlighting challenges in generating returns for shareholders. However, the equity ratio stands at 25.52%, providing some stability in asset financing.

Cash Flow

Cash flow analysis reveals negative free cash flow growth of -18.66% in the TTM period, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is 0.11, suggesting limited cash generation relative to net losses. The free cash flow to net income ratio is negative, further emphasizing cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.23T	12.63T	12.69T	10.60T	8.42T	7.86T
Gross Profit	1.45T	1.69T	2.07T	1.71T	1.35T	1.05T
EBITDA	167.08B	360.76B	1.36T	1.16T	1.13T	406.91B
Net Income	-912.04B	-670.90B	426.65B	221.90B	215.53B	-448.70B
Balance Sheet
Total Assets	19.13T	19.02T	19.86T	17.60T	16.37T	16.45T
Cash, Cash Equivalents and Short-Term Investments	2.27T	2.20T	2.13T	2.01T	1.79T	2.03T
Total Debt	8.87T	8.14T	7.81T	7.04T	7.13T	7.60T
Total Liabilities	13.97T	13.58T	13.38T	11.98T	11.34T	12.11T
Stockholders Equity	4.75T	4.96T	5.98T	5.13T	4.58T	3.94T
Cash Flow
Free Cash Flow	-797.36B	-1.16T	-666.88B	87.55B	-276.70B	140.48B
Operating Cash Flow	973.76B	753.69B	960.90B	1.22T	847.19B	1.32T
Investing Cash Flow	-1.03T	-971.23B	-812.66B	-447.04B	-146.84B	-369.12B
Financing Cash Flow	804.54B	263.25B	-131.55B	-670.61B	-1.09T	-639.69B

Nissan Motor Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 398.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 398 is above the 20-day moving average (MA) of 385.11, above the 50-day MA of 371.36, and above the 200-day MA of 359.15, indicating a bullish trend. The MACD of 9.62 indicates Negative momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 62.14 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7203	80 Outperform	¥44.63T	9.66	12.89%	2.77%	6.44%	11.88%
7270	76 Outperform	$2.53T	9.51	9.73%	3.59%	1.04%	-31.52%
7269	72 Outperform	¥4.57T	11.50	12.95%	1.84%	2.99%	9.99%
7211	64 Neutral	¥546.77B	-81.01	-0.65%	3.33%	-0.87%	-105.50%
7267	63 Neutral	¥6.36T	10.40	5.23%	4.43%	-0.43%	-26.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7201	49 Neutral	¥1.39T	-1.52	-16.69%	―	-3.01%	-755.71%

Nissan Motor Co Corporate Events

Nissan Forgoes FY2025 Interim Dividend Amid Business Challenges

Nissan Motor Co., Ltd. announced that its Board of Directors has decided to forgo the interim dividend for the fiscal year 2025, citing recent business results as the reason for this decision. This move may impact stakeholders’ expectations and reflects the company’s current financial strategy amidst its operational challenges.

Nissan Projects Stronger Second Half Amid Recovery Efforts

Nissan reported a first-half operating loss of 27.7 billion yen for fiscal 2025 but anticipates a stronger second half due to robust demand for new products. The company is implementing a cost-savings program targeting 500 billion yen in savings by fiscal year 2026. Despite challenges, Nissan maintains a strong liquidity position and forecasts a breakeven operating profit for the full year, excluding tariff impacts. The Re:Nissan recovery plan is progressing, with significant cost reductions achieved, positioning the company for improved financial performance.

Nissan Establishes Trust for Headquarters, Anticipates Significant Gains

Nissan Motor Co., Ltd. has announced a strategic move to establish a trust for its fixed assets, transferring beneficiary rights and entering a lease agreement for its Global Headquarters in Yokohama, Japan. This transaction, part of the ‘Re:Nissan’ initiative, aims to optimize assets and generate extraordinary income, with a net gain of JPY 73,905 million expected by the fiscal year ending March 31, 2026. The funds will be used to modernize and transform facilities, maintaining Nissan’s operational efficiency while continuing to use the building as its headquarters.

Nissan Revises 2025 Financial Forecast Amid Cost Adjustments

Nissan Motor Co., Ltd. has revised its financial forecast for fiscal year 2025, reflecting an improved operating loss for the first half of the year due to lower costs related to emission regulations and deferred project costs. Despite this, the company anticipates a significant operating loss for the full fiscal year, influenced by tariff impacts, and is currently assessing restructuring items under its recovery plan, with further updates expected in November.