Snowflake Score | |
---|---|
Valuation | 5/6 |
Future Growth | 0/6 |
Past Performance | 2/6 |
Financial Health | 6/6 |
Dividends | 4/6 |
NEC1 Stock Overview
NEC Corporation operates as a provider of information and communication technology solutions in Japan and internationally.
NEC Competitors
Price History & Performance
Historical stock prices | |
---|---|
Current Share Price | JP¥39.60 |
52 Week High | JP¥49.34 |
52 Week Low | JP¥34.33 |
Beta | 0.55 |
1 Month Change | 4.21% |
3 Month Change | 3.45% |
1 Year Change | -16.82% |
3 Year Change | 28.70% |
5 Year Change | 78.22% |
Change since IPO | 97.02% |
Recent News & Updates
Shareholder Returns
NEC1 | DE IT | DE Market | |
---|---|---|---|
7D | 3.1% | -8.5% | -3.7% |
1Y | -16.8% | -6.2% | -14.1% |
Return vs Industry: NEC1 underperformed the German IT industry which returned -6.2% over the past year.
Return vs Market: NEC1 underperformed the German Market which returned -14.1% over the past year.
Price Volatility
NEC1 volatility | |
---|---|
NEC1 Average Weekly Movement | 4.6% |
IT Industry Average Movement | 6.5% |
Market Average Movement | 6.3% |
10% most volatile stocks in DE Market | 10.4% |
10% least volatile stocks in DE Market | 3.5% |
Stable Share Price: NEC1 is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: NEC1's weekly volatility (5%) has been stable over the past year.
About the Company
Founded | Employees | CEO | Website |
---|---|---|---|
1899 | 114,714 | Takayuki Morita | https://www.nec.com |
NEC Corporation operates as a provider of information and communication technology solutions in Japan and internationally. The company operates in five segments: Public Solutions, Public Infrastructure, Enterprise, Network Services, and Global. It provides systems integration services comprising systems implementation and consulting; maintenance and support services; outsourcing and cloud services; and system equipment.
NEC Fundamentals Summary
NEC1 fundamental statistics | |
---|---|
Market Cap | JP¥1.48t |
Earnings (TTM) | JP¥141.28b |
Revenue (TTM) | JP¥3.01t |
10.5x
P/E Ratio0.5x
P/S RatioIs NEC1 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
NEC1 income statement (TTM) | |
---|---|
Revenue | JP¥3.01t |
Cost of Revenue | JP¥2.13t |
Gross Profit | JP¥886.41b |
Other Expenses | JP¥745.14b |
Earnings | JP¥141.28b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
Earnings per share (EPS) | 518.53 |
Gross Margin | 29.41% |
Net Profit Margin | 4.69% |
Debt/Equity Ratio | 24.9% |
How did NEC1 perform over the long term?
See historical performance and comparisonDividends
2.0%
Current Dividend Yield19%
Payout RatioValuation
Is NEC undervalued compared to its fair value and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
42.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NEC1 (€39.6) is trading below our estimate of fair value (€69.39)
Significantly Below Fair Value: NEC1 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NEC1 is good value based on its PE Ratio (10.5x) compared to the German IT industry average (24.6x).
PE vs Market: NEC1 is good value based on its PE Ratio (10.5x) compared to the German market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: NEC1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NEC1 is good value based on its PB Ratio (1x) compared to the DE IT industry average (3x).
Future Growth
How is NEC forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-2.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NEC1's earnings are forecast to decline over the next 3 years (-2.2% per year).
Earnings vs Market: NEC1's earnings are forecast to decline over the next 3 years (-2.2% per year).
High Growth Earnings: NEC1's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NEC1's revenue (3.3% per year) is forecast to grow slower than the German market (5.4% per year).
High Growth Revenue: NEC1's revenue (3.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NEC1's Return on Equity is forecast to be low in 3 years time (9.3%).
Past Performance
How has NEC performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
32.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEC1 has high quality earnings.
Growing Profit Margin: NEC1's current net profit margins (4.7%) are lower than last year (5%).
Past Earnings Growth Analysis
Earnings Trend: NEC1's earnings have grown significantly by 32.7% per year over the past 5 years.
Accelerating Growth: NEC1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NEC1 had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the IT industry average (62.6%).
Return on Equity
High ROE: NEC1's Return on Equity (8.8%) is considered low.
Financial Health
How is NEC's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: NEC1's short term assets (¥1,836.7B) exceed its short term liabilities (¥1,334.0B).
Long Term Liabilities: NEC1's short term assets (¥1,836.7B) exceed its long term liabilities (¥641.1B).
Debt to Equity History and Analysis
Debt Level: NEC1 has more cash than its total debt.
Reducing Debt: NEC1's debt to equity ratio has reduced from 57.4% to 24.9% over the past 5 years.
Debt Coverage: NEC1's debt is well covered by operating cash flow (33.2%).
Interest Coverage: NEC1 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is NEC current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.03%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NEC1's dividend (2.03%) is higher than the bottom 25% of dividend payers in the German market (1.35%).
High Dividend: NEC1's dividend (2.03%) is low compared to the top 25% of dividend payers in the German market (4.22%).
Stability and Growth of Payments
Stable Dividend: NEC1's dividend payments have been volatile in the past 10 years.
Growing Dividend: NEC1's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (19.3%), NEC1's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (39.2%), NEC1's dividend payments are well covered by cash flows.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Takayuki Morita (61 yo)
1.08yrs
Tenure
Mr. Takayuki Morita serves as President and Chief Executive Officer at NEC Corporation since April 1, 2021. Mr. Morita served as Chief Financial Officer at NEC Corp. since June 25, 2018 until April 1, 2021...
Leadership Team
Experienced Management: NEC1's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: NEC1's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
NEC Corporation's employee growth, exchange listings and data sources
Key Information
- Name: NEC Corporation
- Ticker: NEC1
- Exchange: DB
- Founded: 1899
- Industry: IT Consulting and Other Services
- Sector: Software
- Implied Market Cap: JP¥1.477t
- Listing Market Cap: JP¥10.766b
- Shares outstanding: 272.46m
- Website: https://www.nec.com
Number of Employees
Location
- NEC Corporation
- 7-1, Shiba 5-chome
- Minato-ku
- Tokyo
- 108-8001
- Japan
Listings
Company Analysis and Financial Data Status
Data | Last Updated (UTC time) |
---|---|
Company Analysis | 2022/05/09 00:00 |
End of Day Share Price | 2022/05/09 00:00 |
Earnings | 2022/03/31 |
Annual Earnings | 2022/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.