Analysts have reduced their price target for Nidec from ¥4,100 to ¥3,800. This reflects an updated view that combines a slightly higher assumed discount rate with marginally stronger projections for revenue growth, profit margin, and future P/E.
What's in the News
- A board meeting is scheduled for March 13, 2026 to establish an Executive Responsibility Investigation Committee, following findings of inappropriate accounting treatment that may affect consolidated financial statements (company announcement).
- A board meeting on March 3, 2026 will consider a resolution not to pay a year end dividend from surplus for the fiscal year ending March 2026, with a record date of March 31, 2026 (company announcement).
- A decision has been made not to pay a year end dividend with record date March 31, 2026, compared with a ¥20 per share dividend for the fiscal year ended March 2025, due to an ongoing investigation into accounting treatment and the expected material impact on prior year financial results (company announcement).
- Organizational changes effective January 1, 2026 include new CTO Technology Planning and Intellectual Property departments, new Urban Air Mobility and Inverter System Development projects within the Product Technology R&D Center, and updated roles and naming within automotive related business units (company announcement).
- A Nidec press conference classified as an Analyst/Investor Day event is scheduled for March 2026 (company event).
Valuation Changes
- Fair Value: The price target has been reduced from ¥4,100 to ¥3,800, a cut of about 7%, reflecting updated assumptions across several inputs.
- Discount Rate: The assumed discount rate has risen slightly from 8.27% to 8.49%, implying a modestly higher required return for valuing future cash flows.
- Revenue Growth: The forecast revenue growth rate has edged up from 6.04% to 6.27%, a small increase of around 0.23 percentage points based on ¥ revenue projections.
- Net Profit Margin: The expected net profit margin has been raised from 9.90% to 10.10% (approximately), a move of about 0.20 percentage points.
- Future P/E: The assumed future P/E multiple has been lowered from 19.15x to 17.54x, a reduction of roughly 8%, which weighs on the updated fair value estimate.
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