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6594

Nidec TSE:6594 Stock Report

Last Price

JP¥8.16k

Market Cap

JP¥4.7t

7D

-2.8%

1Y

-36.4%

Updated

02 Jul, 2022

Data

Company Financials +
6594 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends0/6

6594 Stock Overview

Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally.

Rewards

Trading at 2.3% below our estimate of its fair value

Earnings are forecast to grow 14.74% per year

Risk Analysis

No risks detected for 6594 from our risk checks.

Nidec Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nidec
Historical stock prices
Current Share PriceJP¥8,159.00
52 Week HighJP¥14,000.00
52 Week LowJP¥7,830.00
Beta1.31
1 Month Change-6.51%
3 Month Change-14.72%
1 Year Change-36.36%
3 Year Change10.29%
5 Year Change41.77%
Change since IPO4,843.57%

Recent News & Updates

Shareholder Returns

6594JP ElectricalJP Market
7D-2.8%-1.9%-1.1%
1Y-36.4%-22.6%-7.0%

Return vs Industry: 6594 underperformed the JP Electrical industry which returned -22.6% over the past year.

Return vs Market: 6594 underperformed the JP Market which returned -7% over the past year.

Price Volatility

Is 6594's price volatile compared to industry and market?
6594 volatility
6594 Average Weekly Movement5.0%
Electrical Industry Average Movement4.2%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.4%
10% least volatile stocks in JP Market2.2%

Stable Share Price: 6594 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6594's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1973114,371Shigenobu Nagamorihttps://www.nidec.com

Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment, inspection and measuring equipment, electronic devices, sensors, and other products. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile devices and optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment.

Nidec Fundamentals Summary

How do Nidec's earnings and revenue compare to its market cap?
6594 fundamental statistics
Market CapJP¥4.71t
Earnings (TTM)JP¥137.20b
Revenue (TTM)JP¥1.92t

34.4x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6594 income statement (TTM)
RevenueJP¥1.92t
Cost of RevenueJP¥1.51t
Gross ProfitJP¥403.34b
Other ExpensesJP¥266.14b
EarningsJP¥137.20b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 20, 2022

Earnings per share (EPS)237.42
Gross Margin21.03%
Net Profit Margin7.15%
Debt/Equity Ratio42.1%

How did 6594 perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6594 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6594?

Other financial metrics that can be useful for relative valuation.

6594 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA18.6x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does 6594's PE Ratio compare to its peers?

6594 PE Ratio vs Peers
The above table shows the PE ratio for 6594 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.5x
6504 Fuji Electric
12.9x7.3%JP¥758.5b
6592 Mabuchi Motor
19.5x12.7%JP¥225.4b
5803 Fujikura
5.2x-3.5%JP¥203.7b
6674 GS Yuasa
20.3x24.0%JP¥171.5b
6594 Nidec
34.4x14.7%JP¥4.7t

Price-To-Earnings vs Peers: 6594 is expensive based on its Price-To-Earnings Ratio (34.4x) compared to the peer average (14.5x).


Price to Earnings Ratio vs Industry

How does 6594's PE Ratio compare vs other companies in the JP Electrical Industry?

Price-To-Earnings vs Industry: 6594 is expensive based on its Price-To-Earnings Ratio (34.4x) compared to the JP Electrical industry average (10.6x)


Price to Earnings Ratio vs Fair Ratio

What is 6594's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6594 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.4x
Fair PE Ratio22.9x

Price-To-Earnings vs Fair Ratio: 6594 is expensive based on its Price-To-Earnings Ratio (34.4x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).


Share Price vs Fair Value

What is the Fair Price of 6594 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6594 (¥8159) is trading below our estimate of fair value (¥8349.01)

Significantly Below Fair Value: 6594 is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: 6594 is poor value based on its PEG Ratio (2.3x)


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Future Growth

How is Nidec forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6594's forecast earnings growth (14.7% per year) is above the savings rate (0.04%).

Earnings vs Market: 6594's earnings (14.7% per year) are forecast to grow faster than the JP market (8.9% per year).

High Growth Earnings: 6594's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6594's revenue (8.4% per year) is forecast to grow faster than the JP market (4.5% per year).

High Growth Revenue: 6594's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6594's Return on Equity is forecast to be low in 3 years time (14.1%).


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Past Performance

How has Nidec performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-0.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6594 has high quality earnings.

Growing Profit Margin: 6594's current net profit margins (7.2%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: 6594's earnings have declined by 0.6% per year over the past 5 years.

Accelerating Growth: 6594's earnings growth over the past year (12.3%) exceeds its 5-year average (-0.6% per year).

Earnings vs Industry: 6594 earnings growth over the past year (12.3%) underperformed the Electrical industry 16.7%.


Return on Equity

High ROE: 6594's Return on Equity (10.4%) is considered low.


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Financial Health

How is Nidec's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6594's short term assets (¥1,292.7B) exceed its short term liabilities (¥938.8B).

Long Term Liabilities: 6594's short term assets (¥1,292.7B) exceed its long term liabilities (¥423.0B).


Debt to Equity History and Analysis

Debt Level: 6594's net debt to equity ratio (26.6%) is considered satisfactory.

Reducing Debt: 6594's debt to equity ratio has reduced from 47.3% to 42.1% over the past 5 years.

Debt Coverage: 6594's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: 6594's interest payments on its debt are well covered by EBIT (132x coverage).


Balance Sheet


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Dividend

What is Nidec current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.86%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6594's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.69%).

High Dividend: 6594's dividend (0.86%) is low compared to the top 25% of dividend payers in the JP market (3.74%).


Stability and Growth of Payments

Stable Dividend: 6594 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 6594 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: 6594 is not paying a notable dividend for the JP market.


Cash Payout to Shareholders

Cash Flow Coverage: 6594 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Shigenobu Nagamori (78 yo)

49yrs

Tenure

Mr. Shigenobu Nagamori is Founder of Nidec Corporation in July 1973 and has been its Chairman since July 1973 and serves as its Chief Executive Officer since April 2022. He served as Chief Executive Office...


Leadership Team

Experienced Management: 6594's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: 6594's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

Nidec Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Nidec Corporation
  • Ticker: 6594
  • Exchange: TSE
  • Founded: 1973
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Implied Market Cap: JP¥4.715t
  • Shares outstanding: 577.86m
  • Website: https://www.nidec.com

Number of Employees


Location

  • Nidec Corporation
  • 338 Kuzetonoshiro-cho
  • Minami-ku
  • Kyoto
  • 601-8205
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/02 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.