Nidec (NJDCY) AI Stock Analysis

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Nidec

(OTC:NJDCY)

Rating:79Outperform

Price Target:―

Nidec Corporation demonstrates strong financial performance with solid revenue growth and profitability. While technical analysis indicates mixed signals, the company's valuation remains reasonable. Positive sentiment from the earnings call emphasizes strategic growth and profitability, although challenges in specific segments and markets should be monitored.

Nidec (NJDCY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$22.93B

Dividend Yield0.92%

Average Volume (3M)25.91K

Price to Earnings (P/E)21.2

Beta (1Y)0.89

Revenue Growth6.56%

EPS Growth35.14%

CountryUS

Employees101,112

SectorIndustrials

Sector Strength84

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.07

Shares Outstanding4,770,276,000

10 Day Avg. Volume33,204

30 Day Avg. Volume25,909

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.95

Enterprise Value/Revenue<0.01

Enterprise Value/Gross Profit0.04

Enterprise Value/Ebitda0.07

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Nidec Business Overview & Revenue Model

Company DescriptionNidec 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 and precision motors, motor-related products, units and modules, automotive components, mechanical equipment, inspection and measuring equipment, electronic devices, sensors, and other products. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile devices and optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan.

How the Company Makes MoneyNidec Corporation generates revenue primarily through the sale of its diverse range of motor products, including precision small motors and large industrial motors. The company divides its operations into segments such as small precision motors, automotive products, appliance, commercial and industrial products, and others, each contributing to its revenue streams. Nidec has established significant partnerships with major automotive and electronics manufacturers, which enhance its market presence and drive sales. The company's focus on research and development allows it to innovate and deliver high-performance products, further strengthening its competitive edge and revenue generation. Furthermore, Nidec's strategic acquisitions of companies in complementary sectors also contribute to its growth and expansion, allowing it to tap into new markets and customer bases.

Nidec Earnings Call Summary

Earnings Call Date:Jul 24, 2025

(Q1-2025)

% Change Since: -0.61%|

Next Earnings Date:Oct 27, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with some positive developments in operating profit and specific segments like small precision motors and automotive. However, the overall sentiment is weighed down by declines in net sales, profit before income tax, and challenges in the appliance and automation segments. The ongoing investigation related to IRC country origin also poses a potential risk.

Q1-2025 Updates

Positive Updates

Increased Operating Profit

Operating profit increased by 2.3% to JPY61.5 billion compared to the same time last year.

Small Precision Motors Segment Growth

Increased profit due to expanding demand for HDD motors for nearline and AI server applications, converting into a more profitable business portfolio.

Automotive Segment Profitability

Automotive segment secured increased profit, notably in China with traction motor business showing profitability.

Successful Structural Reform Strategy

Plans to reduce variable cost by JPY100 billion and fixed cost by JPY50 billion aligned with focus on five business pillars.

Expansion in Data Center Business

Test operations at MC Digital Realty NRC 12 data center starting next month, with plans to expand business in the US, China, and Japan.

Transformation and Optimization Initiatives

Efforts to unify compressor products under the Nidec brand targeting heat pumps and data center chillers as part of Conversion 2027.

Negative Updates

Net Sales Decline

Net sales decreased by 1.6% to JPY637.9 billion compared to the previous fiscal year.

Profit Before Income Tax Drop

Profit before income tax decreased by 24.5% to JPY59 billion.

Quarterly Profit Decline

Quarterly profit attributable to the owner of the parent decreased by 18.5% to JPY45.5 billion.

Challenges in Appliance, Commercial, and Industrial Segment

Decrease by JPY2 billion due to currency fluctuations, seasonal factors, and structural reform costs.

Automation and Machinery Segment Decline

Decrease in sales and operating profit due to reduced sales and M&A-related costs.

Free Cash Flow Concerns

Free cash flow remained low at plus JPY9.8 billion, with issues in controlling operating capital, including inventory.

IRC Country Origin Investigation

Internal investigation into inaccuracies in the country of origin expression, leading to an extended financial reporting deadline.

Company Guidance

During the Nidec Corporation's call discussing Q1 FY2025 performance, several key metrics were highlighted. Net sales reached JPY637.9 billion, marking a decrease of 1.6% year-over-year, while operating profit increased by 2.3% to JPY61.5 billion. Profit before income tax was JPY59 billion, a significant drop of 24.5%. The quarterly profit attributable to the owner of the parent company was JPY45.5 billion, down by 18.5%. Currency exchange fluctuations impacted sales by JPY35.8 billion and operating profit by JPY2.6 billion. Free cash flow remained low at JPY9.8 billion. The company maintained its financial forecast for the fiscal year and emphasized ongoing structural reforms and business portfolio improvements, targeting a JPY100 billion reduction in variable costs and a JPY50 billion reduction in fixed costs.

Nidec Financial Statement Overview

Summary

Nidec's financial performance is strong, with robust revenue growth and profitability improvements reflected in stable gross and net profit margins. The balance sheet is solid with a healthy equity base, though there are concerns about potential debt increase. Cash flow trends are improving, indicating better cash management despite some volatility.

Income Statement

Very Positive

Nidec demonstrates strong revenue growth with a consistent increase in total revenue from annual period to TTM (Trailing-Twelve-Months). Gross Profit Margin is stable at around 20%, and the Net Profit Margin improved in the TTM period, indicating enhanced profitability. The EBIT and EBITDA margins are healthy, suggesting robust operational efficiency. However, there is a slight decline in net income in the TTM period compared to the previous annual period, which needs monitoring.

Balance Sheet

Positive

The balance sheet reflects a solid equity base with a Stockholders' Equity to Total Assets ratio above 50%, indicating financial stability. The Debt-to-Equity ratio is moderate, suggesting balanced leverage. Return on Equity remains strong due to rising net income over the years, except for a slight dip in the TTM period. Overall, the balance sheet is strong but with a potential risk of debt increase which should be monitored.

Cash Flow

Positive

Nidec showcases a positive Free Cash Flow in the TTM period after a decline in previous years, indicating improved cash generation capabilities. The Operating Cash Flow to Net Income ratio is healthy, highlighting efficient cash conversion. However, fluctuations in Free Cash Flow over the periods suggest potential volatility in cash management. Continued positive cash flow trends will be crucial for maintaining financial health.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.35T	2.24T	1.92T	1.62T	1.53T
Gross Profit	497.43B	413.32B	404.37B	366.42B	332.12B
EBITDA	356.38B	209.44B	280.62B	258.40B	127.64B
Net Income	125.39B	44.96B	135.76B	121.94B	58.46B
Balance Sheet
Total Assets	3.17T	2.87T	2.68T	2.26T	2.12T
Cash, Cash Equivalents and Short-Term Investments	217.00B	186.10B	201.59B	222.50B	206.99B
Total Debt	186.08B	705.35B	595.71B	531.47B	599.95B
Total Liabilities	1.50T	1.50T	1.36T	1.14T	1.15T
Stockholders Equity	1.64T	1.35T	1.29T	1.10T	947.29B
Cash Flow
Free Cash Flow	193.05B	-10.25B	-20.23B	119.23B	24.51B
Operating Cash Flow	321.49B	143.49B	94.99B	219.16B	168.05B
Investing Cash Flow	-153.55B	-167.72B	-116.75B	-115.16B	-318.66B
Financing Cash Flow	-181.56B	-16.46B	-60.24B	-121.60B	135.69B

Nidec Technical Analysis

Technical Analysis Sentiment

Positive

Last Price4.92

Price Trends

50DMA

4.81

Positive

100DMA

4.55

Positive

200DMA

4.57

Positive

Market Momentum

MACD

0.04

Negative

RSI

52.20

Neutral

STOCH

44.08

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJDCY, the sentiment is Positive. The current price of 4.92 is above the 20-day moving average (MA) of 4.83, above the 50-day MA of 4.81, and above the 200-day MA of 4.57, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 44.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NJDCY.

Nidec Peers Comparison

Overall Rating

UnderperformOutperform

Sector (71)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NJDCY	79 Outperform	$22.93B	21.16	9.86%	0.92%	6.56%	35.14%
AME	78 Outperform	$42.71B	29.82	14.64%	0.63%	2.28%	7.94%
GGG	77 Outperform	$14.14B	30.26	19.62%	1.23%	0.75%	-2.74%
PNR	76 Outperform	$17.40B	28.99	17.15%	0.90%	-0.25%	-7.32%
Sector *	71 Outperform	¥268.19B	15.08	8.32%	2.78%	6.19%	11.06%
ROK	71 Outperform	$38.20B	39.86	28.46%	1.48%	-8.23%	-3.29%
IEX	62 Neutral	$12.30B	26.36	12.25%	1.78%	4.73%	-19.15%

* Industrials Sector Average

Performance Comparison

NJDCY

Nidec

4.92

-0.11

-2.19%

AME

Ametek

186.91

26.50

16.52%

GGG

Graco

87.52

7.98

10.03%

IEX

IDEX

169.50

-21.11

-11.07%

PNR

Pentair

109.01

26.72

32.47%

ROK

Rockwell Automation

349.01

91.29

35.42%

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: Apr 26, 2025