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Nissan Motor Co
(7201)
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Rating:46Neutral
Price Target:
¥319.00
▼(-0.99% Downside)
Action:Reiterated
Date:08/04/26
The score is held down primarily by weakened financial performance: current losses, higher leverage, and meaningfully negative free cash flow outweigh modest revenue stability. Technicals are mixed with the stock below key longer-term moving averages, indicating limited momentum. The earnings call provides some offset via improved Q1 results and reaffirmed guidance, but the outlook remains constrained by thin margins and notable regional/one-time risks, while valuation support is limited due to a negative P/E.
Positive Factors
Cost reduction program progress
Material, multi-year cost-out (Re:Nissan) that has already delivered ~JPY 315b and targets JPY 500b reduces structural breakeven, improves operating leverage, and increases resilience to commodity and volume shocks over the medium term.
Negative Factors
Elevated leverage
Near‑doubling of leverage reduces financial flexibility and raises interest and refinancing risk, limiting the company's ability to fund capex/EV investment or absorb earnings shocks without restructuring or asset sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Cost reduction program progress
Material, multi-year cost-out (Re:Nissan) that has already delivered ~JPY 315b and targets JPY 500b reduces structural breakeven, improves operating leverage, and increases resilience to commodity and volume shocks over the medium term.
Read all positive factors
Nissan Motor Co (7201) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.18T
Dividend YieldN/A
Average Volume (3M)27.47M
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-4.95%
EPS Growth20.71%
CountryJP
Employees120,079
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-118.37
Shares Outstanding3,713,998,500
10 Day Avg. Volume28,296,099
30 Day Avg. Volume27,474,239
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.24
Price to Sales (P/S)0.10
P/FCF Ratio-1.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥352.11Price Target Upside9.28% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering9
EPS Forecast (FY)6.74
Revenue Forecast (FY)¥12.66T
Nissan Motor Co Business Overview & Revenue Model
Company Description
Nissan Motor Co., Ltd. is a leading global enterprise engaged in the manufacturing and sale of both vehicles and automotive components. Its impressive portfolio of automobiles is marketed under distinct brands, including Nissan, Infiniti, Datsun, ...
How the Company Makes Money
Nissan primarily makes money by selling vehicles (wholesale to dealers/distributors and, in some markets, direct-to-customer channels), with revenue driven by unit volumes, model/trim mix (including higher-margin SUVs/pickups and premium Infiniti ...
Nissan Motor Co Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented a balanced but cautiously optimistic picture. Key operational and financial improvements — including revenue growth (+9.5%), a large Q1 operating profit improvement (JPY 77.9b, +JPY 157b YoY), strong U.S. and Japan retail momentum, meaningful Re:Nissan cost savings (JPY ~315b to date) and improved free cash flow — support a positive trajectory. However, material headwinds remain: pronounced weakness and mix shift in China, logistics and cost impacts from the Middle East, declines in Europe and sensitivity to raw material inflation and one‑time/FX effects. Management reaffirmed full‑year guidance while lowering volume outlook, signaling confidence rooted in cost actions and product launches but acknowledging ongoing risks.Positive Updates
Revenue Growth Driven by FX and Mix
Consolidated net revenues rose 9.5% year‑on‑year, primarily driven by favorable foreign exchange rates and improved revenue quality through pricing and product mix.
Negative Updates
China Market Weakness and Mixed Volume
China remains a major challenge: total industry volume declined 22% in first half; Nissan's total first half sales fell 15% (April–June Nissan sales declined 15%), and some models (e.g., NX8) saw steep declines; management must accelerate NEV shift and regionalized commercial policies.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth Driven by FX and Mix
Consolidated net revenues rose 9.5% year‑on‑year, primarily driven by favorable foreign exchange rates and improved revenue quality through pricing and product mix.
Read all positive updates
Company Guidance
Nissan reaffirmed FY2026 financial guidance while revising volumes to reflect China and Middle East uncertainty: full-year sales volume is now 3.15 million units with production at 2.8 million, consolidated revenue of JPY 13.0 trillion, operating profit JPY 200 billion (≈1.5% margin) and net income JPY 20 billion; automotive net cash remains around JPY 970 billion with over JPY 2.1 trillion in automotive cash & equivalents. Q1 underpinning metrics included >700,000 units sold, consolidated net revenues +9.5% YoY, operating profit JPY 77.9 billion (up JPY 157 billion YoY), net income JPY 3.8 billion, CapEx ≈JPY 114 billion, R&D JPY 120 billion, automotive net revenue JPY 2.6 trillion, automotive operating loss JPY 8.3 billion and automotive free cash flow JPY 324 billion (≈JPY 67 billion YoY improvement; ≈JPY 100 billion excluding one‑time items). Re:Nissan cost actions have delivered ~JPY 315 billion of running savings (JPY 255 billion in FY‑25 + JPY 60 billion in Q1) toward a JPY 500 billion target this fiscal year; the operating‑profit bridge cited FX +JPY 35 billion, raw materials -JPY 24 billion, tariffs +JPY 18.3 billion, sales performance +JPY 23.7 billion, monozukuri savings +JPY 82 billion and inflation -JPY 14 billion, with one‑time gains contributing net positive impact. Management flagged region specifics (U.S. strength: U.S. sales +9–9.6% with Pathfinder +32%, Frontier +35%, Rogue ~+39%; Japan ~+1–1.3% with Roox +52%, Kicks >11,000 orders, Elgrand >8,000 orders; China retail +7.2% in Q1 but total first‑half sales -15% vs. industry -22%) and cautioned on higher Middle East logistics costs (first‑half impact ~JPY 20 billion / ~18k units) and raw‑material headwinds, while noting potential FX upside if the yen stays near current levels.Nissan Motor Co Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
44
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.27T | 12.01T | 12.63T | 12.69T | 10.60T | 8.42T |
| Gross Profit | 1.72T | 1.49T | 1.62T | 2.00T | 1.65T | 1.30T |
| EBITDA | 507.52B | 301.73B | 361.79B | 1.36T | 1.16T | 1.13T |
| Net Income | -413.58B | -533.10B | -670.90B | 426.65B | 221.90B | 215.53B |
Balance Sheet | ||||||
| Total Assets | 20.09T | 19.81T | 19.02T | 19.86T | 17.60T | 16.37T |
| Cash, Cash Equivalents and Short-Term Investments | 2.22T | 2.26T | 2.20T | 2.13T | 2.01T | 1.79T |
| Total Debt | 9.19T | 8.92T | 4.48T | 5.41T | 4.21T | 4.17T |
| Total Liabilities | 14.76T | 14.57T | 13.58T | 13.38T | 11.98T | 11.34T |
| Stockholders Equity | 4.88T | 4.80T | 4.96T | 5.98T | 5.13T | 4.58T |
Cash Flow | ||||||
| Free Cash Flow | -672.14B | -839.15B | -1.16T | -666.88B | 87.55B | -276.70B |
| Operating Cash Flow | 916.04B | 794.67B | 753.69B | 960.90B | 1.22T | 847.19B |
| Investing Cash Flow | -848.27B | -910.98B | -971.23B | -812.66B | -445.39B | -141.52B |
| Financing Cash Flow | -208.23B | 48.58B | 263.25B | -131.55B | -672.26B | -1.10T |
Nissan Motor Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥4.09T | 9.16 | 13.72% | 2.24% | 8.03% | 5.58% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥1.94T | 21.76 | 3.31% | 4.52% | 2.12% | -72.85% | |
58 Neutral | ¥6.33T | -15.06 | -3.53% | 4.42% | 0.50% | -163.81% | |
56 Neutral | ¥741.04B | 21.16 | 1.95% | 4.72% | -2.01% | -69.29% | |
46 Neutral | ¥1.18T | -2.20 | -11.10% | ― | -4.95% | 20.71% |
* Consumer Cyclical Sector Average
JP:7201
Nissan Motor Co
322.20
-5.60
-1.71%
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Nissan Motor Co Corporate Events
Nissan Returns to Profit in Q1 and Reaffirms FY2026 Earnings Target
Aug 3, 2026
Nissan reported a strong turnaround for the quarter ended June 30, 2026, with global sales rising to 701,000 units and revenue climbing to ¥2.964 trillion, driven by manufacturing and cost efficiencies, favorable foreign exchange and better s...
Nissan swings back to profit as quarterly sales rise and balance sheet strengthens
Aug 3, 2026
Nissan Motor reported consolidated net sales of ¥2.96 trillion for the three months ended June 30, 2026, representing a 9.5% increase year on year, with operating income of ¥77.9 billion and net income attributable to owners of the paren...
Nissan Outlines Renault Stake and Alliance Changes, Stresses Independence
Jun 29, 2026
Nissan has detailed its relationship with Renault S.A., which remains its largest shareholder with 35.87% of voting rights, and clarified how their revised alliance structure affects governance. Under a new alliance agreement effective since Novem...
Nissan strengthens board governance with new chair and committee lineup
Jun 23, 2026
Nissan Motor Co., Ltd. has reshaped its board leadership following its latest Annual General Meeting of Shareholders, confirming 11 directors, including a mix of reappointed and newly appointed outside independent members. The company named vetera...
Nissan Board Rejects Shareholder Bid to Change Vote-Counting Rules
May 20, 2026
Nissan’s board has moved to formally oppose a shareholder proposal ahead of its 127th annual general meeting in June, after an individual shareholder sought to amend the articles of incorporation to clarify how ambiguous voting instructions ...
Nissan Posts Slim 2025 Profit as Re:Nissan Restructuring Gains Traction
May 13, 2026
Nissan reported fiscal 2025 results showing a modest operating profit of 58 billion yen on revenue of 12 trillion yen, with an operating margin of 0.5% amid persistent inflation, tariffs, and uneven demand. Global sales reached 3.15 million vehicl...
Nissan Books Large Impairment Charge on Assets and Troubled Affiliates
May 13, 2026
Nissan Motor Co., Ltd. has recorded significant impairment losses for the fiscal year ended March 31, 2026, after testing its business assets and reducing the book value of impaired fixed assets to their recoverable amounts. The company also recog...
Nissan Swings to Heavy FY2025 Loss but Projects Profit Rebound in FY2026
May 13, 2026
Nissan Motor Co., Ltd. reported a sharp deterioration in earnings for the fiscal year ended March 31, 2026, with consolidated net sales down 4.9% to ¥12.01 trillion and a net loss attributable to owners of the parent of ¥670.9 billion, c...
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.