Update shared on 18 Apr 2026
Fair value Decreased 13%Analysts have trimmed their price target on Nidec from ¥2,995 to ¥2,596, with the change tied to updated assumptions for fair value, discount rate, revenue growth, profit margin and future P/E.
What's in the News
- Nidec plans to dissolve the Kyoto Development Center on April 1, 2026, with several development and production engineering departments moving directly under the Business Unit, and the Purchasing Department and Sales Administration Department set to be dissolved (company announcement).
- The company is considering a broad reorganization of its R&D structure from April 1, 2026. This includes renaming the Inverter System Development Project to Research Department 5 and integrating the Traction Business Group and Inverter Business Group into a single Traction Business Group (company announcement).
- Within the Automotive Motor & Electronic Control Business Unit, Nidec plans to integrate traction and inverter operations into one Traction Business Group and to establish new Research & Development, Project Management, and Administration functions, along with multiple new R&D departments (company announcement).
- A board meeting scheduled for March 13, 2026 includes an agenda item to establish an Executive Responsibility Investigation Committee (board meeting agenda).
- Nidec resolved not to pay a year end dividend for the fiscal year ending March 2026, compared with a ¥20 per share dividend for the fiscal year ended March 2025, citing ongoing investigations into inappropriate accounting treatment that may have a material impact on prior consolidated financial statements (company announcement).
Valuation Changes
- Fair Value: Trimmed from ¥2,995 to ¥2,596.25, a reduction of about 13% in the assessed value per share.
- Discount Rate: Adjusted from 8.34% to 8.18%, a slight decrease in the rate used to discount future cash flows.
- Revenue Growth: Revised from 3.82% to 3.69%, indicating a modestly lower long term revenue growth assumption in the model.
- Net Profit Margin: Moved from 8.37% to 8.16%, reflecting a small reduction in expected profitability on future sales.
- Future P/E: Updated from 17.69x to 15.82x, indicating a lower valuation multiple applied to projected earnings.
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