Analysts have revised their fair value estimate for Nidec to ¥3,422, down from ¥3,522. This change reflects minor adjustments to discount rate and margin assumptions.
What's in the News
- Nidec Motor Corporation is expanding its Mena, Arkansas facility, investing over $19 million to add 61,000 square feet and create 35 new jobs over five years. Completion is expected in Q2 2027 (Key Developments).
- The company has announced organizational and personnel changes effective October 1, 2025. These include the integration of departments and the establishment of new divisions and centers under its automotive and appliances business units (Key Developments).
- Nidec is experiencing delayed earnings announcements due to ongoing investigations related to trade transactions and customs issues at a subsidiary. Financial results for Q1 FY2026 and certain reports have been postponed (Key Developments).
- A Board Meeting held on September 3, 2025, considered the establishment of a third-party committee (Key Developments).
- From July 1, 2025 to September 30, 2025, Nidec completed a buyback tranche. No shares were repurchased and no funds were expended under the program announced in May 2025 (Key Developments).
Valuation Changes
- Fair Value Estimate: Decreased from ¥3,522 to ¥3,422, reflecting a minor downward revision.
- Discount Rate: Increased slightly from 7.75% to 7.90%.
- Revenue Growth Forecast: Increased marginally from 3.70% to 3.71%.
- Net Profit Margin: Increased slightly from 8.59% to 8.62%.
- Future Price-to-Earnings (P/E) Ratio: Decreased from 20.16x to 19.58x.
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