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NEC

DB:NEC1
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NEC1
DB
¥977B
Market Cap
  1. Home
  2. DE
  3. Tech
Company description

NEC Corporation integrates computing and network technologies in Japan and internationally. The last earnings update was 82 days ago. More info.


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NEC1 Share Price and Events
7 Day Returns
-1.6%
DB:NEC1
0.1%
DE Tech
1.5%
DE Market
1 Year Returns
33.8%
DB:NEC1
-0.1%
DE Tech
-6.2%
DE Market
NEC1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NEC (NEC1) -1.6% -0.6% 5.4% 33.8% 35.8% 39.5%
DE Tech 0.1% 3.2% 13.4% -0.1% 68.2% 106.8%
DE Market 1.5% 6% 8.5% -6.2% 10.7% 15.3%
1 Year Return vs Industry and Market
  • NEC1 outperformed the Tech industry which returned -0.1% over the past year.
  • NEC1 outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
NEC1
Industry
5yr Volatility vs Market
Related Companies

NEC1 Value

 Is NEC undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NEC to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NEC.

DB:NEC1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:NEC1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Tech Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.044 (1 + (1- 30.86%) (54.03%))
1.291
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.291 * 5.96%)
7.92%

Discounted Cash Flow Calculation for DB:NEC1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NEC is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:NEC1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 7.92%)
2019 -805.75 Analyst x4 -746.59
2020 108,700.00 Analyst x4 93,324.85
2021 101,162.75 Analyst x4 80,477.08
2022 101,133.33 Analyst x3 74,546.94
2023 85,800.00 Analyst x2 58,601.22
2024 81,694.71 Est @ -4.78% 51,700.78
2025 79,014.38 Est @ -3.28% 46,333.30
2026 77,253.75 Est @ -2.23% 41,974.98
2027 76,101.62 Est @ -1.49% 38,313.23
2028 75,359.21 Est @ -0.98% 35,154.02
Present value of next 10 years cash flows ¥519,679.80
DB:NEC1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ¥75,359.21 × (1 + 0.23%) ÷ (7.92% – 0.23%)
¥981,492.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥981,492.52 ÷ (1 + 7.92%)10
¥457,852.60
DB:NEC1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥519,679.80 + ¥457,852.60
¥977,532.40
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥977,532.40 / 259.84
¥3762.07
DB:NEC1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:NEC1 represents 0.00786x of TSE:6701
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00786x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (JPY) x Listing Adjustment Factor
= ¥ 3,762.07 x 0.00786
€29.59
Value per share (EUR) From above. €29.59
Current discount Discount to share price of €29.57
= -1 x (€29.57 - €29.59) / €29.59
0.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price NEC is available for.
Intrinsic value
0%
Share price is €29.57 vs Future cash flow value of €29.59
Current Discount Checks
For NEC to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • NEC's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • NEC's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NEC's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NEC's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:NEC1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in JPY ¥138.36
TSE:6701 Share Price ** TSE (2019-04-23) in JPY ¥3760
Europe Tech Industry PE Ratio Median Figure of 22 Publicly-Listed Tech Companies 13.17x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.6x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NEC.

DB:NEC1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSE:6701 Share Price ÷ EPS (both in JPY)

= 3760 ÷ 138.36

27.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NEC is overvalued based on earnings compared to the Europe Tech industry average.
  • NEC is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does NEC's expected growth come at a high price?
Raw Data
DB:NEC1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
22.9%per year
Europe Tech Industry PEG Ratio Median Figure of 12 Publicly-Listed Tech Companies 0.87x
Germany Market PEG Ratio Median Figure of 269 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

DB:NEC1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.17x ÷ 22.9%

1.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NEC is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NEC's assets?
Raw Data
DB:NEC1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in JPY ¥3,297.79
TSE:6701 Share Price * TSE (2019-04-23) in JPY ¥3760
Europe Tech Industry PB Ratio Median Figure of 30 Publicly-Listed Tech Companies 1.3x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.84x
DB:NEC1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:6701 Share Price ÷ Book Value per Share (both in JPY)

= 3760 ÷ 3,297.79

1.14x

* Primary Listing of NEC.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NEC is good value based on assets compared to the Europe Tech industry average.
X
Value checks
We assess NEC's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tech industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tech industry average (and greater than 0)? (1 check)
  5. NEC has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NEC1 Future Performance

 How is NEC expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NEC expected to grow at an attractive rate?
  • NEC's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • NEC's earnings growth is expected to exceed the Germany market average.
  • NEC's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:NEC1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:NEC1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 22.9%
DB:NEC1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 2.1%
Europe Tech Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
Europe Tech Industry Revenue Growth Rate Market Cap Weighted Average 8.2%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:NEC1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:NEC1 Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 3,160,000 160,000 85,000 1
2022-03-31 3,085,000 180,500 91,000 2
2021-03-31 3,032,136 154,535 78,724 7
2020-03-31 2,977,755 144,489 67,252 10
2019-03-31 2,896,696 129,439 41,151 9
DB:NEC1 Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2018-12-31 2,907,818 83,242 35,940
2018-09-30 2,892,860 94,226 36,212
2018-06-30 2,874,953 105,775 32,279
2018-03-31 2,844,447 129,981 45,870
2017-12-31 2,841,848 115,794 47,738
2017-09-30 2,751,984 109,612 33,009
2017-06-30 2,728,788 94,198 55,245
2017-03-31 2,665,035 92,525 27,310
2016-12-31 2,666,554 116,819 65,561
2016-09-30 2,714,111 98,003 81,649
2016-06-30 2,753,293 79,050 58,661
2016-03-31 2,821,181 97,829 68,749

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NEC's earnings are expected to grow significantly at over 20% yearly.
  • NEC's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:NEC1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from NEC Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:NEC1 Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31
2022-03-31 385.04 385.04 385.04 1.00
2021-03-31 294.65 374.95 194.30 8.00
2020-03-31 254.05 332.99 179.60 10.00
2019-03-31 157.02 204.10 107.80 10.00
DB:NEC1 Past Financials Data
Date (Data in JPY Millions) EPS *
2018-12-31 138.36
2018-09-30 139.39
2018-06-30 124.24
2018-03-31 176.54
2017-12-31 183.72
2017-09-30 127.03
2017-06-30 212.59
2017-03-31 105.09
2016-12-31 252.29
2016-09-30 314.19
2016-06-30 225.73
2016-03-31 264.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • NEC is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess NEC's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NEC has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NEC1 Past Performance

  How has NEC performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NEC's growth in the last year to its industry (Tech).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NEC's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • NEC's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • NEC's 1-year earnings growth is negative, it can't be compared to the Europe Tech industry average.
Earnings and Revenue History
NEC's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NEC Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:NEC1 Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,907,818.00 35,940.00 736,182.00
2018-09-30 2,892,860.00 36,212.00 736,493.00
2018-06-30 2,874,953.00 32,279.00 733,143.00
2018-03-31 2,844,447.00 45,870.00 729,855.00
2017-12-31 2,841,848.00 47,738.00 720,064.00
2017-09-30 2,751,984.00 33,009.00 710,706.00
2017-06-30 2,728,788.00 55,245.00 700,562.00
2017-03-31 2,665,035.00 27,310.00 698,413.00
2016-12-31 2,666,554.00 65,561.00 563,454.00 117,965.00
2016-09-30 2,714,111.00 81,649.00 573,576.00 117,965.00
2016-06-30 2,753,293.00 58,661.00 593,611.00 117,965.00
2016-03-31 2,821,181.00 68,749.00 607,111.00 117,965.00
2015-12-31 2,882,589.00 34,881.00 637,734.00 128,742.00
2015-09-30 2,918,825.00 45,065.00 646,039.00 128,742.00
2015-06-30 2,923,407.00 57,386.00 649,921.00 128,742.00
2015-03-31 2,935,517.00 57,302.00 648,816.00 128,742.00
2014-12-31 2,961,623.00 71,591.00 639,014.00 137,662.00
2014-09-30 2,984,834.00 72,347.00 643,401.00 137,662.00
2014-06-30 3,001,669.00 45,118.00 654,553.00 137,662.00
2014-03-31 3,043,114.00 33,742.00 677,755.00 137,662.00
2013-12-31 2,985,284.00 3,890.00 657,993.00 147,036.00
2013-09-30 3,006,904.00 -3,714.00 663,910.00 147,036.00
2013-06-30 3,080,222.00 26,818.00 665,330.00 147,036.00
2013-03-31 3,071,609.00 30,434.00 678,027.00 147,036.00
2012-12-31 3,094,463.00 -1,291.00 661,943.00 156,626.00
2012-09-30 3,041,440.00 -91,287.00 664,338.00 156,626.00
2012-06-30 2,999,254.00 -98,424.00 827,843.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NEC has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NEC used its assets less efficiently than the Europe Tech industry average last year based on Return on Assets.
  • NEC's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NEC's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tech industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NEC has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NEC1 Health

 How is NEC's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NEC's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NEC is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NEC's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NEC's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NEC Company Filings, last reported 3 months ago.

DB:NEC1 Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,035,661.00 527,822.00 268,008.00
2018-09-30 1,059,643.00 578,896.00 370,710.00
2018-06-30 1,043,676.00 524,083.00 369,676.00
2018-03-31 1,054,285.00 516,070.00 346,025.00
2017-12-31 1,042,870.00 522,596.00 318,767.00
2017-09-30 1,025,906.00 536,804.00 372,486.00
2017-06-30 1,006,461.00 539,035.00 414,893.00
2017-03-31 1,016,066.00 461,769.00 239,970.00
2016-12-31 826,460.00 512,665.00 218,699.00
2016-09-30 814,779.00 525,420.00 270,906.00
2016-06-30 778,966.00 467,349.00 230,941.00
2016-03-31 852,493.00 475,353.00 194,141.00
2015-12-31 867,684.00 569,048.00 173,486.00
2015-09-30 861,122.00 525,714.00 190,070.00
2015-06-30 873,618.00 487,244.00 223,121.00
2015-03-31 884,192.00 520,778.00 183,104.00
2014-12-31 782,980.00 631,208.00 182,565.00
2014-09-30 757,863.00 565,512.00 183,270.00
2014-06-30 726,543.00 549,138.00 228,879.00
2014-03-31 767,663.00 575,151.00 208,959.00
2013-12-31 817,058.00 680,837.00 172,410.00
2013-09-30 787,820.00 683,679.00 176,992.00
2013-06-30 784,714.00 659,539.00 289,002.00
2013-03-31 836,147.00 603,451.00 198,961.00
2012-12-31 790,150.00 734,259.00 203,840.00
2012-09-30 766,339.00 675,987.00 206,106.00
2012-06-30 745,744.00 633,577.00 223,832.00
  • NEC's level of debt (51%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (83.2% vs 51% today).
  • Debt is not well covered by operating cash flow (15.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).
X
Financial health checks
We assess NEC's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NEC has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NEC1 Dividends

 What is NEC's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.06%
Current annual income from NEC dividends. Estimated to be 1.95% next year.
If you bought €2,000 of NEC shares you are expected to receive €21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • NEC's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • NEC's dividend is below the markets top 25% of dividend payers in Germany (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:NEC1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Europe Tech Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:NEC1 Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2023-03-31
2022-03-31 110.00 1.00
2021-03-31 77.50 8.00
2020-03-31 66.00 10.00
2019-03-31 42.22 9.00
DB:NEC1 Past Annualized Dividends Data
Date (Data in ¥) Dividend per share (annual) Avg. Yield (%)
2018-06-25 40.000 1.198
2018-04-27 40.000 1.311
2017-06-22 60.000 1.977
2017-04-27 60.000 2.105
2016-04-28 60.000 2.200
2015-04-28 40.000 1.135
2014-06-23 40.000 1.100
2014-04-28 40.000 1.304
2013-05-31 40.000 1.627
2012-08-08 40.000 2.348
2012-04-27 40.000 3.452
2012-01-31 0.000 0.000
2012-01-26 0.000 0.000
2011-11-01 0.000 0.000
2011-10-27 0.000 0.000
2011-08-02 0.000 0.000
2011-07-28 0.000 0.000
2011-03-24 0.000 0.000
2010-06-24 40.000 1.750
2010-06-22 40.000 1.586
2010-05-12 40.000 1.562
2010-01-28 40.000 1.517
2009-11-06 40.000 1.697
2009-10-29 40.000 1.547
2009-07-30 40.000 1.310
2009-06-22 0.000 0.000
2009-05-12 40.000 1.077
2009-04-24 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • No dividend growth in 10 years.
Current Payout to shareholders
What portion of NEC's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess NEC's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NEC afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NEC has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NEC1 Management

 What is the CEO of NEC's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Takashi Niino
AGE 64
TENURE AS CEO 3 years
CEO Bio

Mr. Takashi Niino has been Chief Executive Officer and President of NEC Corporation since April 2, 2016. Mr. Niino served as Senior Executive Vice President and Chief Information Officer of NEC Corporation since April 2012 and as its Chief Strategy Officer since July 2011. He served as Senior Vice President of NEC Corporation. since April 1, 2010. He served as an Associate Senior Vice President of NEC Corporation. since April 2008; Executive General Manager of Financial Solutions Operations Unit since April 2006; Senior General Manager of 3rd Solutions Operations Unit since April 2005 and as its Executive General Manager of 2nd Solutions Sales Operations Unit since April 2004. Mr. Niino has been a Representative Director of NEC Corporation since June 2011. He Joined NEC Corporation April 1977. He Graduated from the Faculty of Engineering of Kyoto University in March 1977.

CEO Compensation
  • Insufficient data for Takashi to compare compensation growth.
  • Insufficient data for Takashi to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the NEC management team in years:

2
Average Tenure
59.5
Average Age
  • The tenure for the NEC management team is about average.
Management Team

Takashi Niino

TITLE
CEO, President & Representative Director
AGE
64
TENURE
3 yrs

Takayuki Morita

TITLE
Senior EVP
AGE
58
TENURE
0.8 yrs

Motoo Nishihara

TITLE
Executive VP & Chief Technology Officer
TENURE
0.3 yrs

Hiroshi Kodama

TITLE
Executive VP
TENURE
0.3 yrs

Shinobu Obata

TITLE
Senior VP & Chief Compliance Officer
TENURE
2 yrs

Makoto Enomoto

TITLE
Senior VP & Chief Marketing Officer

Hajime Matsukura

TITLE
Executive VP
AGE
57
TENURE
1 yrs

Yukio Ito

TITLE
Senior Vice President
TENURE
3 yrs

Katsumi Emura

TITLE
Director
AGE
61
TENURE
3 yrs

Yasushi Teranishi

TITLE
Head of Myanmar Offices
TENURE
5.7 yrs
Board of Directors Tenure

Average tenure and age of the NEC board of directors in years:

2.9
Average Tenure
64
Average Age
  • The average tenure for the NEC board of directors is less than 3 years, this suggests a new board.
Board of Directors

Nobuhiro Endo

TITLE
Chairman of the Board
AGE
65
TENURE
3 yrs

Takashi Niino

TITLE
CEO, President & Representative Director
AGE
64
TENURE
7.8 yrs

Takayuki Morita

TITLE
Senior EVP
AGE
58
TENURE
2.8 yrs

Hajime Matsukura

TITLE
Executive VP
AGE
57
TENURE
1.8 yrs

Katsumi Emura

TITLE
Director
AGE
61
TENURE
2.8 yrs

Norihiko Ishiguro

TITLE
Senior EVP & Member of the Board
AGE
61
TENURE
0.8 yrs

Motoyuki Oka

TITLE
Outside Director
AGE
75
TENURE
5.8 yrs

Takeshi Kunibe

TITLE
Outside Director
AGE
64
TENURE
7.8 yrs

Kunio Noji

TITLE
Outside Director
AGE
72
TENURE
5.8 yrs

Kaoru Seto

TITLE
Director
AGE
71
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess NEC's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NEC has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NEC1 News

Simply Wall St News

NEC1 Company Info

Description

NEC Corporation integrates computing and network technologies in Japan and internationally. The company operates in four segments: Public, Enterprise, Telecom Carrier, and System Platform. It provides systems integration services, such as systems implementation and consulting; maintenance and support services; outsourcing/cloud services; and system equipment. The company also provides network infrastructure products, including core network products, mobile phone base stations, optical transmission systems, routers/switches, and mobile backhaul products, as well as submarine systems comprising submarine cable and ocean observation systems; and telecom operations and management solutions, and other services/solutions for telecom carriers. In addition, it offers hardware products, such as servers, mainframes, supercomputers, storage products, business PCs, tablet devices, POS, ATMs, control equipment, wireless LAN routers, displays, and projectors; and software products, including integrated operation management, application servers, and security and database software. Further, the company provides enterprise network solutions comprising IP telephony systems, WAN/wireless access equipment, and LAN products; face recognition and fingerprint identification solutions, as well as surveillance products; software services for service providers consisting of operation support system/business support system, software-defined networking, and network functions virtualization; and data center infrastructure, maintenance, and support services. It serves governments, governmental agencies, local governments, public institutions, financial institutions, and other organizations, as well as telecom carriers. NEC Corporation has collaboration agreement with Ceragon Networks Ltd. The company was formerly known as Nippon Electric Company, Limited and changed its name to NEC Corporation in April 1983. The company was founded in 1899 and is headquartered in Tokyo, Japan.

Details
Name: NEC Corporation
NEC1
Exchange: DB
Founded: 1899
¥7,789,774,971
259,839,163
Website: http://www.nec.com
Address: NEC Corporation
7-1, Shiba 5-chome,
Minato-ku,
Tokyo,
108-8001,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 6701 Common Stock The Tokyo Stock Exchange JP JPY 06. Jan 1975
DB NEC1 Common Stock Deutsche Boerse AG DE EUR 06. Jan 1975
Number of employees
Current staff
Staff numbers
109,390
NEC employees.
Industry
Technology Hardware, Storage and Peripherals
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 21:31
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/21
Last earnings filing: 2019/01/31
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.