TSE:6594

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with proven track record.


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 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.


Market Performance


7 Day Return

-10.1%

6594

0.4%

JP Electrical

1.3%

JP Market


1 Year Return

100.9%

6594

62.1%

JP Electrical

28.5%

JP Market

Return vs Industry: 6594 exceeded the JP Electrical industry which returned 62.1% over the past year.

Return vs Market: 6594 exceeded the JP Market which returned 28.5% over the past year.


Shareholder returns

6594IndustryMarket
7 Day-10.1%0.4%1.3%
30 Day-10.0%-3.5%-0.06%
90 Day-1.6%5.6%7.3%
1 Year102.5%100.9%65.1%62.1%31.7%28.5%
3 Year49.0%45.8%24.9%18.4%18.1%9.9%
5 Year213.7%201.7%117.1%98.2%55.7%38.4%

Long-Term 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?

81.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6594 (¥12535) is trading above our estimate of fair value (¥2008.24)

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 (81.6x) compared to the JP Electrical industry average (13.9x).

PE vs Market: 6594 is poor value based on its PE Ratio (81.6x) compared to the JP market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: 6594 is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: 6594 is overvalued based on its PB Ratio (7.5x) compared to the JP Electrical industry average (0.7x).


Next Steps

Future Growth

How is Nidec forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6594's forecast earnings growth (19.2% per year) is above the savings rate (0%).

Earnings vs Market: 6594's earnings (19.2% per year) are forecast to grow faster than the JP market (17.4% per year).

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

Revenue vs Market: 6594's revenue (9.7% per year) is forecast to grow faster than the JP market (5.7% per year).

High Growth Revenue: 6594's revenue (9.7% 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 (15.8%).


Next Steps

Past Performance

How has Nidec performed over the past 5 years?

-4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6594 has high quality earnings.

Growing Profit Margin: 6594's current net profit margins (5.8%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: 6594's earnings have declined by 4.1% per year over the past 5 years.

Accelerating Growth: 6594's earnings growth over the past year (21.4%) exceeds its 5-year average (-4.1% per year).

Earnings vs Industry: 6594 earnings growth over the past year (21.4%) exceeded the Electrical industry -9.1%.


Return on Equity

High ROE: 6594's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Nidec's financial position?


Financial Position Analysis

Short Term Liabilities: 6594's short term assets (¥931.9B) exceed its short term liabilities (¥651.3B).

Long Term Liabilities: 6594's short term assets (¥931.9B) exceed its long term liabilities (¥459.6B).


Debt to Equity History and Analysis

Debt Level: 6594's debt to equity ratio (52.2%) is considered high.

Reducing Debt: 6594's debt to equity ratio has increased from 38.4% to 52.2% over the past 5 years.

Debt Coverage: 6594's debt is well covered by operating cash flow (34.8%).

Interest Coverage: 6594's interest payments on its debt are well covered by EBIT (52.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.48%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6594's dividend (0.48%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.25%).

High Dividend: 6594's dividend (0.48%) is low compared to the top 25% of dividend payers in the JP market (2.88%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6594's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Shigenobu Nagamori (76 yo)

47.67yrs

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
Founder47.67yrsno data11.9%
¥ 926.9b
Jun Seki
President0.75yrno datano data
Mikio Katayama
Executive VP & CTO6.42yrsno data0.00068%
¥ 53.0m
Maki Okajima
VP & Chief Information Officer3.08yrsno datano data
Go Watanabe
CAO, Chief Compliance Officer & Chief Information Security of Management Officer3.17yrsno datano data
Masahiro Nagayasu
General Manager of Investor Relations Department13yrsno datano data
Toshihiko Miyabe
First Senior Vice President9.92yrsno data0.0031%
¥ 239.1m
Kuniyasu Tampo
Senior VP and Deputy Executive GM of Small Precision Motor & Solutions Business Unitno datano datano data
Akira Sato
First Senior VP & CPO9.17yrsno data0.0014%
¥ 106.7m
Kazuya Hayafune
Senior VP & Executive GM of Automotive Motor and Electronic Control Business Unit8.17yrsno datano data
Hiroyuki Yoshimoto
Executive Vice President0.92yrno data0.00034%
¥ 26.5m
Koseki Toshihiko
First Senior VP & Head of Nidec Center for Industrial Science2.17yrsno datano data

6.4yrs

Average Tenure

61.5yo

Average Age

Experienced Management: 6594's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shigenobu Nagamori
Founder47.67yrsno data11.9%
¥ 926.9b
Jun Seki
President0.75yrno datano data
Hiroshi Kobe
Vice Chairman of the Board5.75yrsno data0.16%
¥ 12.6b
Kazuya Murakami
Member of the Board of Directors0.75yrno data0.00034%
¥ 26.5m
Teiichi Sato
Independent Outside Member of the Board of Directors2.75yrsno datano data
Osamu Shimizu
Independent Outside Member of the Board of Directors2.75yrsno datano data
Hiroyuki Ochiai
Member of the Board of Directors0.75yrno datano data
Takeshi Nakane
Outside Member of the Audit & Supervisory Board1.75yrsno datano data
Aya Yamada
Independent Outside Member of the Board of Directors0.75yrno datano data
Takako Sakai
Independent Outside Member of the Board of Directors0.75yrno datano data

1.3yrs

Average Tenure

67yo

Average Age

Experienced Board: 6594's board of directors are not considered experienced ( 1.3 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 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¥7.787t
  • Shares outstanding: 585.73m
  • Website: https://www.nidec.com

Number of Employees


Location

  • Nidec Corporation
  • 338 Kuzetonoshiro-cho
  • Minami-ku
  • Kyoto
  • 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)SPONSORED ADRUSUSDSep 2001
NIB1DB (Deutsche Boerse AG)SPONSORED ADRDEEURSep 2001

Biography

Nidec Corporation, together with its subsidiaries, designs, develops, produces, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company of...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 08:02
End of Day Share Price2021/03/08 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.