NIPN.F Stock Overview
NEC Corporation operates as a provider of information and communication technology solutions in Japan and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||JP¥38.46|
|52 Week High||JP¥57.50|
|52 Week Low||JP¥37.12|
|1 Month Change||-5.90%|
|3 Month Change||-12.62%|
|1 Year Change||n/a|
|3 Year Change||n/a|
|5 Year Change||1,469.80%|
|Change since IPO||586.79%|
Recent News & Updates
|NIPN.F||US IT||US Market|
Return vs Industry: Insufficient data to determine how NIPN.F performed against the US IT industry.
Return vs Market: Insufficient data to determine how NIPN.F performed against the US Market.
|NIPN.F Average Weekly Movement||n/a|
|IT Industry Average Movement||10.2%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.7%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: Insufficient data to determine NIPN.F's volatility over the past 3 months.
Volatility Over Time: Insufficient data to determine NIPN.F's volatility change over the past year.
About the Company
NEC Corporation operates as a provider of information and communication technology solutions in Japan and internationally. The company operates in five segments: Public Solutions, Public Infrastructure, Enterprise, Network Services, and Global. It provides systems integration services comprising systems implementation and consulting; maintenance and support services; outsourcing and cloud services; and system equipment.
NEC Fundamentals Summary
|NIPN.F fundamental statistics|
Is NIPN.F overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NIPN.F income statement (TTM)|
|Cost of Revenue||JP¥2.13t|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||518.53|
|Net Profit Margin||4.69%|
How did NIPN.F perform over the long term?See historical performance and comparison
2.1%Current Dividend Yield
Is NEC undervalued compared to its fair value and its price relative to the market?
Valuation Score 5/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NIPN.F ($38.46) is trading below our estimate of fair value ($66.45)
Significantly Below Fair Value: NIPN.F is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NIPN.F is good value based on its PE Ratio (10.1x) compared to the US IT industry average (26.3x).
PE vs Market: NIPN.F is good value based on its PE Ratio (10.1x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: NIPN.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NIPN.F is good value based on its PB Ratio (0.9x) compared to the US IT industry average (3.1x).
How is NEC forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NIPN.F's earnings are forecast to decline over the next 3 years (-2% per year).
Earnings vs Market: NIPN.F's earnings are forecast to decline over the next 3 years (-2% per year).
High Growth Earnings: NIPN.F's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NIPN.F's revenue (3.2% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: NIPN.F's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NIPN.F's Return on Equity is forecast to be low in 3 years time (8.8%).
How has NEC performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NIPN.F has high quality earnings.
Growing Profit Margin: NIPN.F's current net profit margins (4.7%) are lower than last year (5%).
Past Earnings Growth Analysis
Earnings Trend: NIPN.F's earnings have grown significantly by 32.7% per year over the past 5 years.
Accelerating Growth: NIPN.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NIPN.F had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the IT industry average (21.9%).
Return on Equity
High ROE: NIPN.F's Return on Equity (8.8%) is considered low.
How is NEC's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: NIPN.F's short term assets (¥1,836.7B) exceed its short term liabilities (¥1,334.0B).
Long Term Liabilities: NIPN.F's short term assets (¥1,836.7B) exceed its long term liabilities (¥641.1B).
Debt to Equity History and Analysis
Debt Level: NIPN.F has more cash than its total debt.
Reducing Debt: NIPN.F's debt to equity ratio has reduced from 57.4% to 24.9% over the past 5 years.
Debt Coverage: NIPN.F's debt is well covered by operating cash flow (33.2%).
Interest Coverage: NIPN.F earns more interest than it pays, so coverage of interest payments is not a concern.
What is NEC current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NIPN.F's dividend (2.11%) is higher than the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: NIPN.F's dividend (2.11%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: NIPN.F's dividend payments have been volatile in the past 10 years.
Growing Dividend: NIPN.F's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (19.3%), NIPN.F's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (39.2%), NIPN.F's dividend payments are well covered by cash flows.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Takayuki Morita (61 yo)
Mr. Takayuki Morita serves as President and Chief Executive Officer at NEC Corporation since April 1, 2021. Mr. Morita served as Chief Financial Officer at NEC Corp. since June 25, 2018 until April 1, 2021...
Experienced Management: NIPN.F's management team is considered experienced (3.3 years average tenure).
Experienced Board: NIPN.F's board of directors are considered experienced (3.9 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
NEC Corporation's employee growth, exchange listings and data sources
- Name: NEC Corporation
- Ticker: NIPN.F
- Exchange: OTCPK
- Founded: 1899
- Industry: IT Consulting and Other Services
- Sector: Software
- Implied Market Cap: JP¥1.422t
- Listing Market Cap: JP¥11.006b
- Shares outstanding: 272.46m
- Website: https://www.nec.com
Number of Employees
- NEC Corporation
- 7-1, Shiba 5-chome
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/15 00:00|
|End of Day Share Price||2022/04/25 00:00|
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.