Analysts have kept their fair value estimate for Nidec steady at ¥3,195, citing only small tweaks to assumptions such as a slightly higher discount rate and a marginally adjusted future P/E outlook.
What's in the News
- Nidec has announced a series of organizational changes effective January 1, 2026, including new CTO Technology Planning and Intellectual Property departments, a dedicated Urban Air Mobility Project and Inverter System Development Project within the Product Technology R&D Center, and a new Business Strategy and Sales Department within the Automotive Motor & Electronic Control Business unit (company announcement).
- The company has been dropped from the Nikkei 225 Index, removing it from one of Japan's major equity benchmarks (index announcement).
- The Board of Directors met on October 23, 2025 to consider not paying a surplus dividend with September 30, 2025 as the record date (board meeting agenda).
- Nidec revised its consolidated earnings guidance for the six months of the fiscal year ending September 30, 2025 and for the fiscal year ending March 31, 2026 to undetermined figures, citing ongoing investigations by a Third Party Committee into suspected inappropriate accounting practices and potential amendments to past financial statements, and also left the year end dividend forecast undetermined (company guidance update).
- The Board resolved not to pay an interim surplus dividend for the fiscal year ending March 31, 2026. It revised the prior interim dividend forecast of ¥20.00 per share to a determined amount of ¥0.00 per share. The decision was linked to the same ongoing investigations into suspected inappropriate accounting practices (dividend announcement).
Valuation Changes
- Fair Value Estimate remains unchanged at ¥3,195 per share, with no adjustment to the central valuation figure.
- The Discount Rate has moved slightly from 8.15% to about 8.21%, reflecting only a small tweak to the risk assumptions used in the model.
- Revenue Growth remains effectively the same at about 3.89%, indicating no practical change in the long term top line outlook used in the valuation.
- The Net Profit Margin remains effectively unchanged at about 8.45%, with only a minimal numerical adjustment in the model inputs.
- The Future P/E has been adjusted slightly from about 18.54x to about 18.57x, a very small change in the multiple applied to projected earnings.
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