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Nidec (NJDCY)
OTHER OTC:NJDCY
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Nidec
(OTC:NJDCY)
Rating:79Outperform
Price Target:―
Nidec (NJDCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.50B
Dividend Yield0.21%
Average Volume (3M)11.55K
Price to Earnings (P/E)20.7
Beta (1Y)0.90
Revenue Growth5.35%
EPS Growth23.87%
CountryUS
Employees101,112
SectorIndustrials
Sector Strength94
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.07
Shares Outstanding4,770,276,000
10 Day Avg. Volume0
30 Day Avg. Volume11,550
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)1.78
Price to Sales (P/S)0.00
P/FCF Ratio18.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
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: 0.81%|
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
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.85
Very Positive
Balance Sheet
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.80
Positive
Cash Flow
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.78
Positive
| 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
Positive
4.99
Price Trends
4.78
Positive
4.51
Positive
4.58
Positive
Market Momentum
<0.01
Negative
65.74
Neutral
97.26
Negative
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 4.99 is above the 20-day moving average (MA) of 4.68, above the 50-day MA of 4.78, and above the 200-day MA of 4.58, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.74 is Neutral, neither overbought nor oversold. The STOCH value of 97.26 is Negative, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $23.50B | 20.68 | 9.86% | 0.21% | 5.35% | 23.87% | |
76 Outperform | $13.87B | 29.21 | 12.73% | 1.52% | 1.66% | -17.18% | |
76 Outperform | $16.86B | 28.30 | 17.15% | 0.95% | -0.25% | -7.32% | |
75 Outperform | $41.49B | 29.69 | 14.96% | 0.66% | 2.98% | 7.29% | |
71 Outperform | ¥269.20B | 13.84 | 8.47% | 2.89% | 6.33% | 13.01% | |
69 Neutral | $40.24B | 45.07 | 25.86% | 1.45% | -11.19% | -22.50% | |
68 Neutral | $14.57B | 30.76 | 19.62% | 1.27% | 0.75% | -2.74% |
* Industrials Sector Average
Performance Comparison
NJDCY
Nidec
4.99
-0.48
-8.78%
AME
Ametek
179.72
8.59
5.02%
GGG
Graco
84.84
1.50
1.80%
IEX
IDEX
183.66
-19.92
-9.78%
PNR
Pentair
102.85
15.25
17.41%
ROK
Rockwell Automation
357.01
84.95
31.22%
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.