Did Nidec's (TSE:6594) Dividend and Guidance Suspension Amid Accounting Probe Just Shift Its Investment Narrative?

• In October 2025, Nidec Corporation announced it would not pay an interim dividend and suspended its earnings guidance, citing ongoing internal and third-party investigations into suspected inappropriate accounting practices, with no shares repurchased during the latest buyback tranche.
• This suspension of dividends and withdrawal of financial forecasts reflects heightened uncertainty over Nidec's internal financial controls and the potential need for revisions to past financial statements.
• We will now explore how the suspension of dividends and earnings guidance amid accounting investigations shapes Nidec's investment narrative.

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Nidec Investment Narrative Recap

To be a shareholder in Nidec today, you need confidence in the company's ability to capitalize on global demand for advanced motors amid AI and electrification trends, while also trusting that management will maintain strong internal controls. The recent suspension of dividends and withdrawal of earnings guidance, triggered by ongoing accounting investigations, brings the company's internal controls and financial reporting practices to the forefront, making near-term clarity on financial health the single most important catalyst, and the biggest risk, right now.

Of all recent announcements, Nidec’s decision on October 23 not to pay its interim dividend stands out, as it directly reflects the unresolved status of the accounting investigations. The cancellation of the planned JPY 20.00 per share interim dividend not only affects income expectations for shareholders but also highlights how uncertainty surrounding Nidec's financial integrity continues to overshadow operational catalysts like cost reductions and EV growth initiatives.

In contrast, as the investigations remain unresolved, investors should be aware of possible revisions to past financial statements and the risk of ...

Read the full narrative on Nidec (it's free!)

Nidec's narrative projects ¥2,893.2 billion revenue and ¥247.5 billion earnings by 2028. This requires 3.7% yearly revenue growth and a ¥90.1 billion earnings increase from ¥157.4 billion currently.

Uncover how Nidec's forecasts yield a ¥3422 fair value, a 33% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community's three fair value estimates for Nidec range from ¥3,100 to ¥3,667 per share. With near-term financial transparency in doubt amid ongoing accounting reviews, you will find wide-ranging views on how this may impact the company’s margin resilience and future performance.

Explore 3 other fair value estimates on Nidec - why the stock might be worth as much as 43% more than the current price!

Build Your Own Nidec Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Nidec research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Nidec research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nidec's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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