Update shared on 15 Dec 2025
Fair value Decreased 1.84%Analysts have trimmed their price target on Nidec slightly, lowering it by ¥60 to ¥3,195 as they factor in a modestly higher long term revenue growth outlook, alongside slightly softer margin and valuation assumptions.
What's in the News
- Nidec Corporation has been dropped from the Nikkei 225 Index, removing the stock from one of Japan's key equity benchmarks (index review announcement).
- The company has withdrawn its earnings guidance for the six months ending September 30, 2025, and for the fiscal year ending March 31, 2026, citing ongoing investigations into suspected inappropriate accounting practices, and has left both financial and dividend forecasts undetermined (company guidance revision).
- Nidec's Board of Directors has decided not to pay an interim dividend for the fiscal year ending March 31, 2026, revising the previously forecast JPY 20.00 per share payout to JPY 0.00 per share, pending the outcome of investigations and any required restatements (board resolution).
- The company has completed its latest share buyback program without repurchasing any shares, reporting zero shares and zero yen in buybacks under the tranche announced on May 27, 2025 (buyback update).
- Nidec is investing more than $19 million to expand its Mena, Arkansas, motor manufacturing facility by 61,000 square feet. The company aims to add 35 jobs over five years and increase capacity for large scale motors and testing (business expansion announcement).
Valuation Changes
- Fair Value: Reduced slightly from ¥3,255 to ¥3,195, reflecting more cautious margin and valuation assumptions despite a marginally stronger growth outlook.
- Discount Rate: Lowered slightly from 8.22 percent to 8.14 percent, indicating a modestly reduced perceived risk or cost of capital in the updated model.
- Revenue Growth: Raised slightly from 3.85 percent to 3.89 percent, incorporating a marginally more optimistic long term growth trajectory.
- Net Profit Margin: Trimmed slightly from 8.51 percent to 8.45 percent, signaling a small downward revision to expected profitability levels.
- Future P/E: Eased slightly from 18.81 times to 18.54 times, implying a modestly lower valuation multiple applied to forward earnings.
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