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Nomura Holdings (NMR)
NYSE:NMR
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Nomura Holdings
(NYSE:NMR)
Rating:61Neutral
Price Target:―
Nomura Holdings (NMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.15B
Dividend Yield6.28%
Average Volume (3M)581.20K
Price to Earnings (P/E)8.6
Beta (1Y)1.29
Revenue Growth8.32%
EPS Growth100.90%
CountryUS
Employees26,850
SectorFinancial
Sector Strength79
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.17
Shares Outstanding3,163,562,500
10 Day Avg. Volume427,714
30 Day Avg. Volume581,199
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)0.74
Price to Sales (P/S)0.00
P/FCF Ratio2.77
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 ConsensusHold
Number of Analyst Covering1
Nomura Holdings Business Overview & Revenue Model
Company DescriptionNomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Investment Management, and Wholesale. The Retail segment offers various financial products and investment services. As of March 31, 2022, this segment operated a network of 119 branches. The Investment Management segment engages in the management of funds, investment trusts, and other investment vehicles; and provision of investment advisory, custodial, and administrative services. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products. It also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exchangeable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. In addition, this segment offers various financial instruments. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was incorporated in 1925 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyNomura Holdings generates revenue through its three main business segments. The Retail segment earns income by providing brokerage services, financial advice, and wealth management solutions to individual investors. The Asset Management segment generates fees by managing client assets across various investment strategies, catering to both institutional and retail investors. The Wholesale segment, which includes Global Markets and Investment Banking, makes money through trading activities, underwriting, and advisory services related to mergers and acquisitions, capital raising, and risk management. In addition to these core activities, Nomura leverages strategic partnerships and joint ventures to expand its global reach and enhance its service offerings, further contributing to its revenue streams.
Nomura Holdings Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q4-2025)
| % Change Since: 8.77%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance for the fiscal year, with record net income and significant growth in key segments like Wealth Management and Investment Management. Despite this, there were notable quarterly declines in revenue and challenges in fixed income revenues, indicating some volatility and uncertainty. However, the strategic focus on dividends, share buybacks, and international profitability suggests a positive outlook.Q4-2025 Updates
Positive Updates
Record-High Net Income
Net income increased to 2.1 times the year-earlier level, achieving a record-high 340.7 billion yen.
Strong Segment Performance
All three main segments performed solidly, with segment income before income taxes growing by 80% to 426.6 billion yen.
Wealth Management Growth
Wealth Management recurring revenue grew by 30%, with a continued net inflow into recurring revenue assets.
Investment Management Revenue Increase
Investment Management saw a 20% increase in business revenue, reflecting an eighth consecutive quarter of net inflows.
International Profitability
Profitability improved sharply in international regions, achieving the highest income before income taxes since 2003.
Dividend and Share Buyback
A total year-end dividend of 34 yen per share was declared, with plans for a share buyback of 100 million shares, or 60 billion yen.
Negative Updates
Quarterly Revenue Decline
Quarter-on-quarter, Group net revenue fell 10% to 452.7 billion, and income before income taxes fell 29% to 97.7 billion.
Fixed Income Revenue Weakness
Fixed Income revenues slowed, with a 24% decline to 105.8 billion yen, partly due to spread widening and decreased client activity.
Challenges in Wealth Management Flow Revenue
Wealth Management flow revenue fell 20% to 52.9 billion, with a decline in primary stock subscriptions and investment trust purchases.
IT Expenditure Increase
IT expenditure increased in the fourth quarter, contributing to higher costs, although not expected to continue at this level.
Company Guidance
In the recent Nomura Holdings conference call discussing the fourth quarter and full-year results for the fiscal year ending March 2025, significant metrics were highlighted. The Group's net revenue for the fiscal year increased by 21% year-on-year, reaching 1,892.5 billion yen, while income before income taxes surged by 72% to 472 billion yen. Net income more than doubled compared to the previous year, hitting a record-high of 340.7 billion yen. Earnings per share stood at 111.03 yen, with a return on equity of 10%. Wealth Management reported a commendable 30% growth in recurring revenue, while Investment Management experienced a 20% increase in business revenue. The Wholesale division saw revenue growth in all business lines and regions. In view of this strong performance, Nomura announced an ordinary dividend of 24 yen per share, supplemented by a 10 yen commemorative dividend, culminating in a total year-end dividend of 34 yen per share. Additionally, a share buyback program of up to 100 million shares was initiated, with an aggregate repurchase price limit of 60 billion yen.Nomura Holdings Financial Statement Overview
Summary
Nomura Holdings shows robust revenue growth and operational efficiency, with a strong EBIT margin. However, high leverage and negative free cash flow pose risks, alongside challenges in cash generation. The company needs to address cost issues reflected in the negative gross profit margin to enhance its financial health.Income Statement
The revenue growth rate from 2023 to 2024 is 35.78%. However, the gross profit margin is negative, indicating significant cost issues. The net profit margin improved but remains low at 10.62% for 2024. The EBIT margin is strong at 50.93%, suggesting good operational efficiency.62
Positive
Balance Sheet
The debt-to-equity ratio is high at 4.21, indicating significant leverage. The equity ratio is low at 6.07%, reflecting a thin equity buffer. The return on equity is moderate at 4.95%, showing adequate profitability relative to equity.55
Neutral
Cash Flow
Free cash flow is negative, reflecting cash outflows exceeding inflows. The operating cash flow to net income ratio is low at 0.80, indicating potential issues in cash generation relative to profit. The free cash flow to net income ratio is negative, signaling potential liquidity concerns.47
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.09T | 1.56T | 1.15T | 1.14T | 1.24T | 1.07T | Gross Profit |
| 77.56B | -1.23T | -181.27B | 748.88B | 853.11B | 238.44B | EBIT |
| 328.53B | 795.54B | 1.30T | 453.19B | 223.39B | 245.89B | EBITDA |
| 882.49B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 211.47B | 165.86B | 92.79B | 143.00B | 153.12B | 217.00B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.11T | 4.24T | 4.52T | 3.64T | 4.16T | 3.87T | Total Assets |
| 49.24T | 55.15T | 47.77T | 43.41T | 42.52T | 44.00T | Total Debt |
| 11.40T | 14.09T | 11.74T | 10.90T | 9.94T | 10.17T | Net Debt |
| 7.29T | 8.93T | 7.22T | 6.84T | 5.78T | 6.30T | Total Liabilities |
| 46.04T | 51.70T | 44.55T | 40.44T | 39.76T | 41.27T | Stockholders Equity |
| 3.14T | 3.35T | 3.15T | 2.91T | 2.69T | 2.65T |
| Cash Flow | Free Cash Flow | ||||
| 466.93B | -13.14B | -1.15T | -1.48T | 545.89B | -222.69B | Operating Cash Flow |
| 591.09B | 132.64B | -974.75B | -1.37T | 665.77B | -15.94B | Investing Cash Flow |
| -1.19T | -887.94B | 38.95B | -45.30B | -139.03B | 216.34B | Financing Cash Flow |
| 793.38B | 1.01T | 1.29T | 1.07T | -269.93B | 332.06B |
Nomura Holdings Technical Analysis
Positive
6.20
Price Trends
5.75
Positive
6.12
Positive
5.88
Positive
Market Momentum
0.12
Negative
61.53
Neutral
91.20
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMR, the sentiment is Positive. The current price of 6.2 is above the 20-day moving average (MA) of 6.06, above the 50-day MA of 5.75, and above the 200-day MA of 5.88, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 91.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NMR.
Nomura Holdings Risk Analysis
Nomura Holdings disclosed 25 risk factors in its most recent earnings report. Nomura Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nomura Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $31.11B | 26.92 | 40.36% | 0.32% | 26.32% | 8.63% | |
77 Outperform | $29.61B | 14.14 | 18.84% | 1.29% | 11.78% | 25.68% | |
71 Outperform | $211.48B | 15.47 | 13.88% | 2.80% | 6.53% | 55.54% | |
67 Neutral | $10.81B | 18.16 | 6.38% | 2.86% | 16.62% | 139.24% | |
66 Neutral | $188.40B | 14.25 | 12.26% | 1.96% | 7.70% | 68.64% | |
64 Neutral | $12.83B | 9.78 | 7.78% | 16985.64% | 12.26% | -7.81% | |
61 Neutral | $18.15B | 8.57 | 9.88% | 6.28% | 8.32% | 100.90% |
* Financial Sector Average
Performance Comparison
NMR
Nomura Holdings
6.20
0.31
5.26%
JEF
Jefferies
52.70
10.49
24.85%
LPLA
LPL Financial
379.22
101.25
36.42%
MS
Morgan Stanley
131.82
39.34
42.54%
RJF
Raymond James Financial
146.88
31.26
27.04%
GS
Goldman Sachs Group
614.87
179.73
41.30%
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.