Nidec
Market Cap
JP¥3.0t
Last Updated
2020/04/03 17:19 UTC
Data Sources
Company Financials +
Executive Summary
Nidec Corporation, together with its subsidiaries, designs, develops, produces, and sells motors and other electronic products in Japan, the United States, Singapore, Thailand, Germany, China, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with adequate balance sheet.
Similar Companies
Share Price & News
How has Nidec's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 6594's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-14.7%
6594
-13.2%
JP Electrical
-8.9%
JP Market
1 Year Return
-33.1%
6594
-28.1%
JP Electrical
-17.9%
JP Market
Return vs Industry: 6594 underperformed the JP Electrical industry which returned -27.1% over the past year.
Return vs Market: 6594 underperformed the JP Market which returned -17.1% over the past year.
Shareholder returns
| 6594 | Industry | Market | |
|---|---|---|---|
| 7 Day | -14.7% | -13.2% | -8.9% |
| 30 Day | -22.1% | -16.5% | -12.1% |
| 90 Day | -32.8% | -27.8% | -22.9% |
| 1 Year | -32.5%-33.1% | -26.6%-28.1% | -15.7%-17.9% |
| 3 Year | -1.3%-3.4% | -13.8%-18.7% | -3.7%-10.5% |
| 5 Year | 30.6%25.5% | -1.2%-10.3% | -3.5%-14.0% |
Price Volatility Vs. Market
How volatile is Nidec's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Nidec undervalued compared to its fair value and its price relative to the market?
36.3x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 6594 (¥5039) is trading above our estimate of fair value (¥3046.84)
Significantly Below Fair Value: 6594 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 6594 is poor value based on its PE Ratio (36.3x) compared to the Electrical industry average (9.6x).
PE vs Market: 6594 is poor value based on its PE Ratio (36.3x) compared to the JP market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: 6594 is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: 6594 is overvalued based on its PB Ratio (3x) compared to the JP Electrical industry average (0.6x).
Next Steps
Future Growth
How is Nidec forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
27.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 6594's forecast earnings growth (27.1% per year) is above the savings rate (-0.09%).
Earnings vs Market: 6594's earnings (27.1% per year) are forecast to grow faster than the JP market (9.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 6594's revenue (10.3% per year) is forecast to grow faster than the JP market (3.3% per year).
High Growth Revenue: 6594's revenue (10.3% 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 (15.6%).
Next Steps
Past Performance
How has Nidec performed over the past 5 years?
7.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 6594 has high quality earnings.
Growing Profit Margin: 6594's current net profit margins (5.3%) are lower than last year (9%).
Past Earnings Growth Analysis
Earnings Trend: 6594's earnings have grown by 7% per year over the past 5 years.
Accelerating Growth: 6594's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 6594 had negative earnings growth (-39.7%) over the past year, making it difficult to compare to the Electrical industry average (-4.5%).
Return on Equity
High ROE: 6594's Return on Equity (8.2%) is considered low.
Next Steps
Financial Health
How is Nidec's financial position?
Financial Position Analysis
Short Term Liabilities: 6594's short term assets (¥990.7B) exceed its short term liabilities (¥684.1B).
Long Term Liabilities: 6594's short term assets (¥990.7B) exceed its long term liabilities (¥497.1B).
Debt to Equity History and Analysis
Debt Level: 6594's debt to equity ratio (57.1%) is considered high.
Reducing Debt: 6594's debt to equity ratio has increased from 52.8% to 57.1% over the past 5 years.
Debt Coverage: 6594's debt is well covered by operating cash flow (28.3%).
Interest Coverage: 6594 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 6594 has a high level of physical assets or inventory.
Debt Coverage by Assets: 6594's debt is covered by short term assets (assets are 1.7x debt).
Next Steps
Dividend
What is Nidec's current dividend yield, its reliability and sustainability?
1.19%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 6594's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.77%).
High Dividend: 6594's dividend (1.19%) is low compared to the top 25% of dividend payers in the JP market (4.1%).
Stability and Growth of Payments
Stable Dividend: 6594's dividend payments have been volatile in the past 10 years.
Growing Dividend: 6594's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (39.6%), 6594's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.2yrs
Average management tenure
CEO
Shigenobu Nagamori (75yo)
46.75s
Tenure
Mr. Shigenobu Nagamori Founded Nidec Corporation in July 1973 and has been its Chairman, Chief Executive Officer since July 1973 and served as its President from 1973 until June 20, 2018. Mr. Nagamori has ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 46.75yrs | no data | 11.87% ¥350.8b | |
| Vice Chairman & Chief Sales Officer | 4.83yrs | no data | 0.16% ¥4.8b | |
| Vice Chairman & CTO | 5.5yrs | no data | 0.00068% ¥20.1m | |
| Senior VP | 0.83yr | no data | no data | |
| VP & Chief Information Officer | 2.17yrs | no data | no data | |
| CAO, Chief Compliance Officer | 2.25yrs | no data | no data | |
| General Manager of Investor Relations Department | 12.08yrs | no data | no data | |
| First SVP and GM of Global Business Promotion & Marketing Division | no data | no data | no data | |
| Executive VP & Director | 7.83yrs | no data | 0.0031% ¥90.5m | |
| First SVP and Deputy Executive GM of Small Precision Motor & Solutions Business Unit | no data | no data | no data |
5.2yrs
Average Tenure
62yo
Average Age
Experienced Management: 6594's management team is seasoned and experienced (5.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 46.75yrs | no data | 11.87% ¥350.8b | |
| Vice Chairman & Chief Sales Officer | 4.83yrs | no data | 0.16% ¥4.8b | |
| Vice Chairman & CTO | 5.5yrs | no data | 0.00068% ¥20.1m | |
| Executive VP & Director | 7.83yrs | no data | 0.0031% ¥90.5m | |
| Executive VP | 7.83yrs | no data | 0.0014% ¥40.2m | |
| Former Exec. GM of Appliance | 2.83yrs | no data | 0.00034% ¥10.1m | |
| Outside Audit & Supervisory Board member | 3.83yrs | no data | no data | |
| Fulltime Audit & Supervisory Board Member | 2.83yrs | no data | 0.00034% ¥10.1m | |
| Outside Member of the Board of Directors | 1.83yrs | no data | no data | |
| Outside Member of the Board of Directors | 1.83yrs | no data | no data |
4.3yrs
Average Tenure
65.5yo
Average Age
Experienced Board: 6594's board of directors are considered experienced (4.3 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
Nidec Corporation's company bio, 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
- Market Cap: JP¥2.956t
- Shares outstanding: 586.66m
- Website: https://www.nidec.com
Number of Employees
Location
- Nidec Corporation
- 338 Kuzetonoshiro-cho
- Minami-ku
- Kyoto
- 601-8205
- Japan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NNDN.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Mar 1990 |
| 6594 | TSE (The Tokyo Stock Exchange) | Yes | Common Stock | JP | JPY | Mar 1990 |
| NIB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 1990 |
| NIDEC N | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Mar 1990 |
| NJDC.Y | OTCPK (Pink Sheets LLC) | ADR EACH REPR 0.25 COM NPV SPON | US | USD | Sep 2001 | |
| NIB1 | DB (Deutsche Boerse AG) | ADR EACH REPR 0.25 COM NPV SPON | DE | EUR | Sep 2001 |
Biography
Nidec Corporation, together with its subsidiaries, designs, develops, produces, and sells motors and other electronic products in Japan, the United States, Singapore, Thailand, Germany, China, and internationally. It offers small precision motors, such as brushless, fan, vibration, and brush motors, as well as spindle motors for hard disk drives and motor applications. The company also provides automotive products, which include automotive motors and components. In addition, it offers home appliances, commercial and industrial motors, and related products. Further, the company provides industrial robots, card readers, test systems, press machines, and power transmission drives; and electronic and optical components, such as switches, trimmer potentiometers, lens units, and camera shutters. Nidec Corporation was founded in 1973 and is headquartered in Kyoto, Japan.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 17:19 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.