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Nissan (NSANY)
OTHER OTC:NSANY
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Nissan
(OTC:NSANY)
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Rating:50Neutral
Price Target:
$5.00
▼(-1.96% Downside)
The score is held down primarily by weak financial performance (losses, declining revenue, cash flow pressure, and leverage). Technicals provide some support with modestly positive momentum and price above key averages, while valuation remains unattractive due to loss-making results and no dividend support. Earnings-call commentary is mixed: liquidity and cost-saving progress help, but operating-loss guidance and cash burn keep overall risk elevated.
Positive Factors
Strong liquidity and refinancing progress
Substantial liquidity and successful refinancing of near‑term maturities provide lasting financial flexibility. This buffer supports ongoing restructuring (Re:Nissan), funds R&D and product launches, and reduces short‑term default risk, enabling execution of medium‑term recovery plans.
Re:Nissan cost‑savings momentum
Concrete cost reductions and a large identified savings pipeline improve structural competitiveness. If sustained, these fixed and variable savings can restore margins, reduce cash burn, and fund strategic investments, materially improving profit resilience over the next 2–3 years.
Product pipeline and strategic partnerships
A multi‑year product rollout and ecosystem partnerships support sustained market relevance. New models and integrations drive addressable market growth, improve mix and potential EV/tech adoption, helping stabilize volumes and revenue trends beyond short‑term cyclical swings.
Negative Factors
Sustained negative profitability and declining revenue
Persistent revenue declines and negative operating profitability indicate structural competitiveness and pricing/mix issues. Continued losses impair retained earnings, limit reinvestment capacity, and hinder recovery unless revenue trends and margin drivers reverse sustainably.
Large negative automotive free cash flow
Material negative FCF erodes cash reserves and forces reliance on liquidity facilities or refinancing. Even with H2 improvement guidance, persistent weak cash conversion constrains capex, EV investment and deleveraging, raising long‑term financial and execution risk.
High leverage and negative return on equity
Elevated leverage combined with negative ROE increases financial fragility and interest burden. This reduces strategic flexibility, raises refinancing risk in adverse markets, and means shareholder capital is not generating returns until profitability and equity levels materially improve.
Nissan (NSANY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.97B
Dividend YieldN/A
Average Volume (3M)3.84K
Price to Earnings (P/E)―
Beta (1Y)0.33
Revenue Growth-2.50%
EPS Growth-751.08%
CountryUS
Employees133,580
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-0.40
Shares Outstanding1,856,999,300
10 Day Avg. Volume0
30 Day Avg. Volume3,837
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.28
Price to Sales (P/S)0.11
P/FCF Ratio-1.19
Enterprise Value/Market Cap969.22
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit5.96
Enterprise Value/Ebitda-270.77
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
Nissan Business Overview & Revenue Model
Company DescriptionNissan Motor Co., Ltd. is a global automotive manufacturer headquartered in Yokohama, Japan. The company operates in various sectors, primarily focusing on the design, production, and sale of automobiles. Nissan's core products include a wide range of vehicles, from compact cars and sedans to SUVs and trucks, as well as electric vehicles (EVs) like the Nissan Leaf. The company is also involved in the development of autonomous driving technologies and mobility services, aiming to enhance transportation solutions worldwide.
How the Company Makes MoneyNissan generates revenue primarily through the sale of vehicles, which includes both new and used cars. The company has a diverse lineup that caters to different market segments, contributing to its sales volume. In addition to vehicle sales, Nissan earns money through financing services offered to customers and dealers, including loans and leases. Another significant revenue stream comes from parts and accessories sales, as well as service offerings through its dealerships. Strategic partnerships, such as its alliance with Renault and Mitsubishi, further enhance Nissan's market reach and shared technologies, which can reduce costs and improve profitability. Additionally, the growth of electric vehicles and the push towards sustainable transport solutions provide Nissan with new avenues for revenue generation in the evolving automotive landscape.
Nissan Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: clear operational progress and tangible cost‑saving momentum under Re:Nissan, improving sales trends in Q2 (notably North America and a China turnaround since June), strong liquidity and a concrete savings roadmap are positives. However, material near‑term financial setbacks remain — a large H1 net loss (JPY 222B), negative automotive free cash flow (JPY 593B in H1), continued tariff and FX headwinds, and a full‑year operating loss guidance of ~JPY 275B — and management withheld a FY net income outlook while assessing further restructuring. The balanced mix of encouraging execution and significant financial challenges results in a neutral overall view.Q2-2025 Updates
Positive Updates
Q2 Acceleration and Regional Strength in North America
Q2 sales excluding China improved to -3.6% YoY vs H1 -7.3% YoY; North America delivered 2.0% growth in H1 and 6.7% growth in Q2, U.S. flat, Mexico +8% with maintained market-share leadership.
China Turnaround and N7 Demand
China, while down 17.6% in H1, has posted year‑on‑year growth since June (first time in 15 months); N7 model strong with ~40,000 units sold in China and management expects China sales to exceed previous outlook by 13% in H2.
Maintained Full‑Year Volume and Clear H2 Recovery Plan
Full year sales forecast unchanged at ~3.25 million units (‑2.9% YoY); production guided around 3.0 million units with expectation of a stronger second half driven by new products, marketing initiatives and operational improvements (third shift at Kyushu).
Solid Liquidity and Debt Management
Total liquidity ~JPY 3.6 trillion (JPY 2.2 trillion cash + JPY 2.3 trillion unused credit lines); net cash close to JPY 1.0 trillion at period end; year‑end automotive debt forecast ~JPY 2.1 trillion and successful refinancing of JPY 700 billion maturities.
Re:Nissan Cost Savings Momentum (Fixed and Variable)
Over JPY 80 billion of fixed cost savings achieved in H1; global target JPY 500 billion savings; variable-cost initiatives progressed to identify potential JPY 200 billion (up from JPY 75B in May and JPY 150B in July) with 4,500 ideas generated and many moving to implementation.
R&D Discipline and Operational Efficiency Gains
R&D spending controlled at JPY 275 billion via project deferrals and shorter development schedules; monozukuri improvements and purchasing efficiencies delivered ~JPY 67 billion benefit; engineering cost per hour reduction progressing (current ~12% vs 20% target).
Product and Partnership Wins
Pipeline of product launches (9 new models through FY2027), strong early demand signals (e.g., ~15,000 preorders in ~6 weeks for a recently launched model), and technology/market partnerships (Boldly, Premier Aid, KQ, WAVE, Huawei integration in Tiana) supporting future competitiveness.
Reduced Near‑Term Operating Loss vs Expectations
First half consolidated operating loss was JPY 28 billion — presented as better than management expectations for H1, helped by one‑time positives (lower warranty and emission expenses) and G&A improvements.
Negative Updates
Significant H1 Volume and Regional Declines
Total unit sales ~1.5 million in H1, down 7.3% YoY; China H1 down 17.6% and Japan H1 down 16.5%, weighing on consolidated performance despite Q2 improvements.
Large Net Loss and Negative Automotive Free Cash Flow
First half net loss was JPY 222 billion (driven by lower equity-method income, impairments and restructuring); automotive free cash flow was negative JPY 593 billion in H1 (Q2 improved to negative JPY 202 billion).
Full‑Year Operating Loss Guidance and Tariff Impact
Full year operating loss forecast ~JPY 275 billion; management states breakeven excluding tariff impact; tariffs estimated to have a ~JPY 150 billion negative impact year‑on‑year.
Foreign Exchange and Other Profit Headwinds
FX headwind ~JPY 65 billion (weaker USD/CAD and other currencies); inflation absorbed ~JPY 50 billion of benefits; other items (sales finance/remarketing) added ~JPY 45 billion of pressure to operating profit variance.
Ongoing Structural Charges and Uncertain P&L Items
Net loss influenced by impairments and restructuring costs; management is still evaluating further Re:Nissan restructuring actions and therefore did not provide a FY net income outlook due to uncertain P&L consequences.
Negative Automotive Operating Loss (Automotive Segment)
Automotive segment operating loss widened (management cited an operating loss of around minus JPY 177 billion in a segment context), reflecting continued weakness in wholesale volumes and tariff effects.
Supply Risks and Commodity/Component Disruptions
Near‑term supply risks remain (aluminum supplier fire in North America; recent chip export restrictions — though some bans appear lifted); management included a JPY 25 billion placeholder for supply risk in guidance reflecting continued uncertainty.
Japan and Europe Softness and Reputational Impact
Japan and Europe experienced showroom traffic and model‑changeover softness; Japan was impacted by negative media coverage earlier in the year which depressed showroom traffic and sales; Europe saw temporary declines from model changeovers and increased competition.
Company Guidance
The guidance reiterated a full‑year retail sales target of about 3.25 million units (−2.9% y/y) with production around 3.0 million units, after H1 retail units of ~1.5 million (−7.3% y/y) and Q2 sales ex‑China down 3.6%; China is now expected to exceed prior outlook by 13% after month‑on‑month gains, North America showed 2% H1 growth and 6.7% in Q2 (U.S. flat, Mexico +8%), and recent momentum supports a stronger H2. Financially, Nissan forecasts full‑year net revenue of ~JPY 11.7 trillion and an operating loss of about JPY 275 billion (breakeven excluding tariff impact), with JPY 25 billion assumed for supply risk and an FX assumption of JPY 146/USD; H1 results included consolidated revenue ~JPY 5.6 trillion, H1 operating loss JPY 28 billion, H1 net loss JPY 222 billion, automotive operating loss −JPY 177 billion, R&D H1 spend JPY 275 billion, automotive free cash flow H1 −JPY 593 billion (Q2 −JPY 202 billion) and end‑period net cash close to JPY 1 trillion. Liquidity is maintained at about JPY 3.6 trillion (JPY 2.2 trillion cash + JPY 2.3 trillion unused credit lines), year‑end automotive debt is forecast at ~JPY 2.1 trillion (after refinancing JPY 700 billion maturities), and Re:Nissan targets JPY 500 billion of savings (variable + fixed) with >JPY 80 billion fixed savings achieved in H1, a pipeline of 4,500 ideas with ~JPY 200 billion potential, targets of >JPY 150 billion fixed savings by year‑end and >JPY 250 billion by FY2026, a JPY 1 trillion net‑cash year‑end target and expected positive automotive free cash flow in H2.Nissan Financial Statement Overview
Summary
Weak fundamentals driven by declining revenue, negative net income, pressured margins (negative EBIT/EBITDA), high leverage (high debt-to-equity), and deteriorating free cash flow with poor cash conversion.Income Statement
Nissan's income statement reveals significant challenges, with declining revenue and negative net income in the TTM period. The gross profit margin has decreased over time, and the company is experiencing negative EBIT and EBITDA margins, indicating operational inefficiencies. Revenue growth has been negative, highlighting a concerning trend in sales performance.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, indicating substantial leverage, which poses financial risk. The return on equity is negative, reflecting poor profitability relative to shareholder equity. However, the equity ratio is stable, suggesting a reasonable proportion of equity financing relative to total assets.50
Neutral
Cash Flow
Cash flow analysis indicates a decline in free cash flow, with negative growth in the TTM period. The operating cash flow to net income ratio is low, and free cash flow to net income is negative, suggesting cash flow challenges. The company needs to improve its cash generation capabilities to support operations and reduce financial risk.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.28T | 12.63T | 12.69T | 10.60T | 8.42T | 7.86T |
| Gross Profit | 1.46T | 1.69T | 2.07T | 1.71T | 1.35T | 1.05T |
| EBITDA | -32.13B | 360.76B | 1.36T | 800.72B | 1.13T | 406.91B |
| Net Income | -913.89B | -670.90B | 426.65B | 221.90B | 215.53B | -448.70B |
Balance Sheet | ||||||
| Total Assets | 19.13T | 19.02T | 19.86T | 17.60T | 16.37T | 16.45T |
| Cash, Cash Equivalents and Short-Term Investments | 2.27T | 2.20T | 2.13T | 2.01T | 1.79T | 2.03T |
| Total Debt | 8.87T | 8.14T | 7.81T | 7.04T | 7.13T | 7.60T |
| Total Liabilities | 13.97T | 13.58T | 13.38T | 11.98T | 11.34T | 12.11T |
| Stockholders Equity | 4.75T | 4.96T | 5.98T | 5.13T | 4.58T | 3.94T |
Cash Flow | ||||||
| Free Cash Flow | -805.52B | -1.16T | -666.88B | 87.55B | -276.70B | 140.48B |
| Operating Cash Flow | 977.36B | 753.69B | 960.90B | 1.22T | 847.19B | 1.32T |
| Investing Cash Flow | -758.49B | -971.23B | -812.66B | -447.04B | -146.84B | -369.12B |
| Financing Cash Flow | 445.16B | 263.25B | -131.55B | -670.61B | -1.09T | -639.69B |
Nissan Technical Analysis
Positive
5.10
Price Trends
4.97
Positive
4.89
Positive
4.77
Positive
Market Momentum
0.06
Positive
48.00
Neutral
8.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSANY, the sentiment is Positive. The current price of 5.1 is below the 20-day moving average (MA) of 5.11, above the 50-day MA of 4.97, and above the 200-day MA of 4.77, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.00 is Neutral, neither overbought nor oversold. The STOCH value of 8.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NSANY.
Nissan Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $303.33B | 9.60 | 12.51% | 2.57% | 7.30% | 12.42% | |
73 Outperform | $1.49T | 300.05 | 7.03% | ― | -1.56% | -59.09% | |
71 Outperform | $54.03B | 11.76 | 10.26% | 5.64% | 3.75% | 33.37% | |
70 Outperform | $74.33B | 16.31 | 4.44% | 0.69% | 2.58% | -46.27% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $42.40B | 10.34 | 5.23% | 4.19% | 0.34% | -25.49% | |
50 Neutral | $8.97B | -1.46 | -16.69% | ― | -2.50% | -751.08% |
* Consumer Cyclical Sector Average
NSANY
Nissan
5.06
-0.41
-7.54%
F
Ford Motor
13.56
3.90
40.37%
GM
General Motors
79.68
25.32
46.58%
HMC
Honda Motor Company
30.42
2.76
9.99%
TSLA
Tesla
449.06
51.91
13.07%
TM
Toyota Motor
226.28
39.78
21.33%
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.