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Nidec (NJDCY)
OTHER OTC:NJDCY
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Nidec
(OTC:NJDCY)
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Select Model
Rating:63Neutral
Price Target:
$4.00
â–²(21.21% Upside)
Nidec's strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and profitability. However, technical analysis indicates a bearish trend, which weighs down the overall score. The stock's valuation is reasonable, but the lack of earnings call data and corporate events limits additional insights.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.
Market Position
Being a global leader in electric motors provides Nidec with a competitive edge and significant market influence, ensuring sustained demand.
Balance Sheet Health
A strong balance sheet with prudent leverage enhances financial flexibility, enabling strategic investments and growth opportunities.
Negative Factors
Free Cash Flow Generation
Declining free cash flow growth may limit the company's ability to fund new projects or return capital to shareholders, impacting long-term growth.
Gross Profit Margin
A slight decline in gross profit margin could indicate rising costs or pricing pressures, potentially affecting future profitability.
Free Cash Flow Conversion
Low free cash flow conversion suggests inefficiencies in turning earnings into cash, which could constrain financial flexibility and investment capacity.
Nidec (NJDCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.54B
Dividend Yield1.54%
Average Volume (3M)24.75K
Price to Earnings (P/E)19.0
Beta (1Y)0.71
Revenue Growth6.23%
EPS Growth27.64%
CountryUS
Employees101,112
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.06
Shares Outstanding4,770,276,000
10 Day Avg. Volume0
30 Day Avg. Volume24,750
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)1.68
Price to Sales (P/S)1.11
P/FCF Ratio17.62
Enterprise Value/Market Cap183.98
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit8.57
Enterprise Value/Ebitda10.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue primarily through the sale of its electric motors and related products across several key sectors. The company operates through various segments, including the Automotive Motors, Appliance, and Commercial & Industrial Motors, each contributing to its overall revenue. Significant revenue streams include the automotive market, where Nidec supplies motors for electric vehicles, and the consumer electronics sector, which includes components for personal computers and home appliances. Additionally, Nidec has established numerous partnerships with leading manufacturers and OEMs, enhancing its market reach and product integration. The company's focus on innovation and expansion into new markets also plays a crucial role in driving its earnings.
Nidec Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q3-2025)
| Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted record-high net sales and operating profit, growing demand in AI servers and water cooling systems, and successful profitability in the Chinese traction business. However, there were significant challenges such as decreases in operating profit before taxes due to currency fluctuations, delivery delays, and sluggish automotive markets in Europe and America. Despite these challenges, the company remains optimistic about future growth and improvements in various segments.Q3-2025 Updates
Positive Updates
Record High Net Sales and Operating Profit
Net sales increased by 11.5% to JPY1.946 trillion, and operating profit increased by 5.0% to JPY175.5 billion, both achieving record-high results.
Growing AI Server Demand
The demand for AI servers has been growing rapidly, contributing positively to the company's revenue.
Water Cooling System Business Expansion
The water cooling system business, including GPU and chipsets, is enjoying growing momentum, with expectations to become a JPY500 billion business in the future.
Profit in Chinese Traction Business
The traction business based in China has started generating profit from Q3, with expectations for continuing profits in Q4 and beyond.
Strong Order Intake in Machine Tool Segment
Machine tool segment has seen a 1.5x increase in order intake, with significant growth in China and the United States.
Participation in IOWN
Nidec decided to participate in the IOWN initiative to acquire technology necessary for their five business pillars.
Negative Updates
Decrease in Operating Profit Before Income Taxes
Operating profit before income taxes decreased by 4.7% due to currency exchange rate fluctuations and financial losses amounting to JPY22.5 billion.
Loss Due to Delivery Delays
There was a loss incurred in the latest quarter due to delays in product delivery to customers.
Sluggish Automotive Market in Europe and America
The automotive segment faced a sluggish situation in the European and American markets, leading to restructuring efforts and profit losses.
Seasonal Loss in U.S. Motor Products
The U.S. motor products experienced a seasonal temporary loss in momentum, affecting overall profitability.
Challenges in ACIM and AMEC Business Units
The ACIM and AMEC business units are facing severe situations and restructuring costs, with expectations for future improvements.
Company Guidance
During the call, Nidec Corporation provided detailed guidance on their financial performance and strategic initiatives. The company reported a record high in net sales, up 11.5% to JPY1.946 trillion, and operating profit, up 5.0% to JPY175.5 billion, despite a financial loss of JPY22.5 billion due to currency fluctuations. The demand for AI server products is growing rapidly, while the hard disk motor demand remains high. The automotive segment in China is profitable, though European and American markets lag. The company is focusing on cash flow management, with JPY41.1 billion in operating cash flow. Nidec plans significant structural reforms and business expansions in fiscal year 2025, including broadening their water cooling system business and participating in the IOWN initiative. They aim to enhance their competitive edge and global presence, setting a course for double-digit profitability by FY '25. The company also discussed their intention to acquire Makino Milling Machine, emphasizing the strategic synergies and growth potential from this acquisition.Nidec Financial Statement Overview
Summary
Nidec demonstrates strong financial health with consistent revenue growth and profitability. The company maintains a stable balance sheet with prudent leverage and effective equity utilization. While cash flow management is generally sound, there is potential for improvement in free cash flow generation.Income Statement
Nidec's income statement shows a consistent revenue growth trajectory with a 2.32% increase in the latest year. The company maintains a healthy gross profit margin of 20.60%, although slightly lower than previous years. Net profit margin improved to 6.43%, indicating better cost management and profitability. EBIT and EBITDA margins are strong, reflecting efficient operations. Overall, the income statement demonstrates robust growth and profitability.Balance Sheet
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.37, indicating prudent leverage. Return on equity is solid at 9.75%, showcasing effective use of shareholder funds. The equity ratio stands at 51.72%, highlighting a strong equity base relative to total assets. While the company has reduced its debt levels, continued focus on equity growth would enhance financial stability.Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 7.86%, which could impact future investments. The operating cash flow to net income ratio is 1.70, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio of 0.58 indicates room for improvement in converting earnings to free cash flow. Overall, cash flow management is adequate but could benefit from enhanced free cash flow generation.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.96T | 2.61T | 2.35T | 2.23T | 1.92T | 1.62T |
| Gross Profit | 333.62B | 537.00B | 496.57B | 413.32B | 404.37B | 366.42B |
| EBITDA | 285.90B | 378.27B | 356.38B | 209.44B | 280.62B | 241.43B |
| Net Income | 137.91B | 167.69B | 125.39B | 44.96B | 135.76B | 121.94B |
Balance Sheet | ||||||
| Total Assets | 3.49T | 3.33T | 3.17T | 2.87T | 2.68T | 2.26T |
| Cash, Cash Equivalents and Short-Term Investments | 347.40B | 246.24B | 220.77B | 189.91B | 201.59B | 230.08B |
| Total Debt | 255.87B | 636.05B | 600.90B | 705.35B | 595.71B | 531.47B |
| Total Liabilities | 1.71T | 1.58T | 1.50T | 1.50T | 1.36T | 1.14T |
| Stockholders Equity | 1.76T | 1.72T | 1.64T | 1.35T | 1.29T | 1.10T |
Cash Flow | ||||||
| Free Cash Flow | 119.75B | 163.72B | 193.05B | -10.25B | -20.23B | 119.23B |
| Operating Cash Flow | 187.39B | 284.43B | 321.49B | 143.49B | 94.99B | 219.16B |
| Investing Cash Flow | -77.91B | -147.25B | -153.55B | -167.72B | -116.75B | -115.16B |
| Financing Cash Flow | -74.73B | -80.19B | -181.56B | -16.46B | -60.24B | -121.60B |
Nidec Technical Analysis
Negative
3.30
Price Trends
3.29
Positive
3.93
Negative
4.25
Negative
Market Momentum
<0.01
Negative
47.35
Neutral
32.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJDCY, the sentiment is Negative. The current price of 3.3 is above the 20-day moving average (MA) of 3.30, above the 50-day MA of 3.29, and below the 200-day MA of 4.25, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.35 is Neutral, neither overbought nor oversold. The STOCH value of 32.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NJDCY.
Nidec Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.73B | 29.62 | 24.96% | 1.28% | 2.37% | -6.93% | |
75 Outperform | $16.86B | 26.15 | 17.97% | 0.96% | 0.83% | -1.32% | |
71 Outperform | $45.38B | 53.55 | 24.24% | 1.33% | 0.98% | -7.51% | |
69 Neutral | $10.24B | 39.48 | 3.89% | 0.97% | -4.99% | 22.16% | |
69 Neutral | $33.34B | 63.43 | 5.35% | 0.10% | 4.20% | -34.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $15.54B | 19.03 | 6.88% | 1.54% | 6.23% | 27.64% |
* Industrials Sector Average
NJDCY
Nidec
3.30
-1.33
-28.69%
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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.