TSE:6594

Stock Analysis Report

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.


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

6594IndustryMarket
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 Year30.6%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

NamePositionTenureCompensationOwnership
Shigenobu Nagamori
Founder46.75yrsno data11.87% ¥350.8b
Hiroshi Kobe
Vice Chairman & Chief Sales Officer4.83yrsno data0.16% ¥4.8b
Mikio Katayama
Vice Chairman & CTO5.5yrsno data0.00068% ¥20.1m
Takeaki Ishii
Senior VP0.83yrno datano data
Maki Okajima
VP & Chief Information Officer2.17yrsno datano data
Go Watanabe
CAO, Chief Compliance Officer2.25yrsno datano data
Masahiro Nagayasu
General Manager of Investor Relations Department12.08yrsno datano data
Masahiro Hishida
First SVP and GM of Global Business Promotion & Marketing Divisionno datano datano data
Toshihiko Miyabe
Executive VP & Director7.83yrsno data0.0031% ¥90.5m
Kuniyasu Tampo
First SVP and Deputy Executive GM of Small Precision Motor & Solutions Business Unitno datano datano 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

NamePositionTenureCompensationOwnership
Shigenobu Nagamori
Founder46.75yrsno data11.87% ¥350.8b
Hiroshi Kobe
Vice Chairman & Chief Sales Officer4.83yrsno data0.16% ¥4.8b
Mikio Katayama
Vice Chairman & CTO5.5yrsno data0.00068% ¥20.1m
Toshihiko Miyabe
Executive VP & Director7.83yrsno data0.0031% ¥90.5m
Akira Sato
Executive VP7.83yrsno data0.0014% ¥40.2m
Hiroyuki Yoshimoto
Former Exec. GM of Appliance2.83yrsno data0.00034% ¥10.1m
Eisuke Nagatomo
Outside Audit & Supervisory Board member3.83yrsno datano data
Kazuya Murakami
Fulltime Audit & Supervisory Board Member2.83yrsno data0.00034% ¥10.1m
Teiichi Sato
Outside Member of the Board of Directors1.83yrsno datano data
Osamu Shimizu
Outside Member of the Board of Directors1.83yrsno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NNDN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 1990
6594TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYMar 1990
NIBDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1990
NIDEC NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1990
NJDC.YOTCPK (Pink Sheets LLC)ADR EACH REPR 0.25 COM NPV SPONUSUSDSep 2001
NIB1DB (Deutsche Boerse AG)ADR EACH REPR 0.25 COM NPV SPONDEEURSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 17:19
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.