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Nomura Holdings Inc Adr (NMR)
:NMR
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Nomura Holdings
(NYSE:NMR)
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Rating:61Neutral
Price Target:―
Nomura Holdings demonstrates strong growth and operational efficiency with a robust revenue increase and high EBIT margin. However, financial risks from high leverage and negative cash flow, coupled with technical indicators showing potential bearish trends, balance the positive valuation metrics and strategic initiatives from the earnings call. The stock's low P/E ratio and healthy dividend yield make it attractive for value investors, but caution is advised due to financial and market volatility.
Nomura Holdings (NMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.13B
Dividend Yield5.65%
Average Volume (3M)576.91K
Price to Earnings (P/E)8.8
Beta (1Y)1.34
Revenue Growth-1.61%
EPS Growth37.04%
CountryUS
Employees26,850
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.21
Shares Outstanding3,163,562,500
10 Day Avg. Volume569,728
30 Day Avg. Volume576,908
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.79
Price to Sales (P/S)0.60
P/FCF Ratio-3.14
Enterprise Value/Market Cap10.33
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.12
Enterprise Value/Ebitda0.41
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Nomura Holdings Business Overview & Revenue Model
Company DescriptionNomura Holdings, Inc. is a leading global financial services group headquartered in Tokyo, Japan. Founded in 1925, the company operates through three primary business segments: Retail, Asset Management, and Wholesale. Nomura provides a wide range of services including investment banking, brokerage, wealth management, and financial advisory. It serves a diverse clientele that includes individuals, institutions, corporations, and governments worldwide, offering solutions tailored to meet their financial needs and objectives.
How the Company Makes MoneyNomura Holdings generates revenue through its three main business segments. The Retail segment earns income by providing brokerage services, financial advice, and wealth management solutions to individual investors. The Asset Management segment generates fees by managing client assets across various investment strategies, catering to both institutional and retail investors. The Wholesale segment, which includes Global Markets and Investment Banking, makes money through trading activities, underwriting, and advisory services related to mergers and acquisitions, capital raising, and risk management. In addition to these core activities, Nomura leverages strategic partnerships and joint ventures to expand its global reach and enhance its service offerings, further contributing to its revenue streams.
Nomura Holdings Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in key areas such as Wealth and Investment Management and record highs in equities revenue. However, these were offset by declines in overall net revenue and income, as well as challenges such as the impact of phishing scams and increased expenses. While there were significant achievements, the presence of notable challenges suggests a balanced overall sentiment.Q2-2026 Updates
Positive Updates
Strong Performance in Wealth and Investment Management
Wealth Management net revenue increased 10% to JPY 116.5 billion, and income before income taxes grew 17% to JPY 45.5 billion. Investment Management net revenue came to JPY 60.8 billion, up 20%, with income before income taxes amounting to JPY 30.7 billion, up 43%.
Record Highs in Equities Revenue
Equities revenue rose 16% to a new high of JPY 113.8 billion, driven by higher client activity in Japan and AEJ, and strong performance in derivative and Americas businesses.
Consistent Profitability in International Regions
Income before income taxes in the 3 international regions rose 63% to JPY 44.9 billion, marking the ninth consecutive quarter of profitability.
Improved Return on Equity
Return on equity was 10.6%, reaching the quantitative target for 2030 of 8% to 10% or more for the sixth consecutive quarter.
Negative Updates
Decrease in Group-wide Net Revenue and Income
Group-wide net revenue was JPY 515.5 billion, down 2% from last quarter. Income before income taxes fell 15% to JPY 136.6 billion, while net income was JPY 92.1 billion, down 12%.
Impact of Phishing Scams
The financial impact of phishing scams on profit was JPY 4.8 billion, despite measures to limit damages.
Expense Increase
Group-wide expenses increased by 4% to JPY 378.8 billion, with compensation and benefits rising 5% due to increased performance-linked bonus provisions.
Company Guidance
In the second quarter of the fiscal year ending March 2026, Nomura Holdings reported a group-wide net revenue of JPY 515.5 billion, a 2% decrease from the previous quarter, but excluding gains from real estate sales, net revenue was up 10%. Income before income taxes fell 15% to JPY 136.6 billion, while net income declined 12% to JPY 92.1 billion. Earnings per share were recorded at JPY 30.49, and return on equity reached 10.6%, achieving the company's quantitative target of 8% to 10% for the sixth consecutive quarter. The three international regions saw a 63% increase in income before income taxes to JPY 44.9 billion, marking a ninth consecutive profitable quarter. In Wealth Management, net revenue increased by 10% to JPY 116.5 billion, with a 17% rise in income before income taxes to JPY 45.5 billion. Investment Management saw a 20% rise in net revenue to JPY 60.8 billion and a 43% increase in income before income taxes to JPY 30.7 billion, driven by a tenth consecutive quarter of net inflows. The Wholesale division reported a 7% rise in net revenue to JPY 279.2 billion, with income before income taxes climbing 27% to JPY 53.1 billion. Total group revenue for the first half of the fiscal year increased by 11%, with a cost coverage ratio of 71%, and a dividend of JPY 27 per share was declared, translating to a dividend payout ratio of 40.3%.Nomura Holdings Financial Statement Overview
Summary
Nomura Holdings shows robust revenue growth and operational efficiency, with a strong EBIT margin. However, high leverage and negative free cash flow pose risks, alongside challenges in cash generation. The company needs to address cost issues reflected in the negative gross profit margin to enhance its financial health.Income Statement
The revenue growth rate from 2023 to 2024 is 35.78%. However, the gross profit margin is negative, indicating significant cost issues. The net profit margin improved but remains low at 10.62% for 2024. The EBIT margin is strong at 50.93%, suggesting good operational efficiency.62
Positive
Balance Sheet
The debt-to-equity ratio is high at 4.21, indicating significant leverage. The equity ratio is low at 6.07%, reflecting a thin equity buffer. The return on equity is moderate at 4.95%, showing adequate profitability relative to equity.55
Neutral
Cash Flow
Free cash flow is negative, reflecting cash outflows exceeding inflows. The operating cash flow to net income ratio is low at 0.80, indicating potential issues in cash generation relative to profit. The free cash flow to net income ratio is negative, signaling potential liquidity concerns.47
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.49T | 4.51T | 3.97T | 2.30T | 1.37T | 1.41T |
| Gross Profit | 1.77T | 1.66T | -1.23T | 1.14T | 1.36T | 1.20T |
| EBITDA | 529.32B | 533.62B | 0.00 | 210.90B | 286.15B | 294.52B |
| Net Income | 376.36B | 340.74B | 165.86B | 92.79B | 143.00B | 153.12B |
Balance Sheet | ||||||
| Total Assets | 58.10T | 56.80T | 55.15T | 47.77T | 43.41T | 42.52T |
| Cash, Cash Equivalents and Short-Term Investments | 6.05T | 5.51T | 4.79T | 4.52T | 3.64T | 4.16T |
| Total Debt | 30.97T | 31.35T | 14.09T | 26.15T | 10.90T | 9.94T |
| Total Liabilities | 54.51T | 53.22T | 51.70T | 44.55T | 40.44T | 39.76T |
| Stockholders Equity | 3.48T | 3.47T | 3.35T | 3.15T | 2.91T | 2.69T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -868.58B | -13.14B | -1.15T | -1.48T | 545.89B |
| Operating Cash Flow | 0.00 | -678.61B | 132.64B | -974.75B | -1.37T | 665.77B |
| Investing Cash Flow | 0.00 | -848.65B | -887.94B | -233.22B | -593.18B | -139.03B |
| Financing Cash Flow | 0.00 | 1.68T | 1.01T | 1.28T | 1.11T | -269.93B |
Nomura Holdings Technical Analysis
Positive
7.12
Price Trends
7.23
Negative
6.92
Positive
6.52
Positive
Market Momentum
-0.04
Negative
47.91
Neutral
58.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMR, the sentiment is Positive. The current price of 7.12 is above the 20-day moving average (MA) of 7.05, below the 50-day MA of 7.23, and above the 200-day MA of 6.52, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NMR.
Nomura Holdings Risk Analysis
Nomura Holdings disclosed 25 risk factors in its most recent earnings report. Nomura Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nomura Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $31.64B | 15.40 | 17.72% | 1.27% | 6.55% | 5.90% | |
| ― | $263.81B | 16.83 | 15.15% | 2.33% | 7.20% | 48.18% | |
| ― | $239.20B | 15.91 | 13.60% | 1.65% | -0.82% | 44.49% | |
| ― | $171.57B | 22.16 | 17.04% | 1.12% | 5.90% | 66.60% | |
| ― | $30.19B | 25.81 | 29.46% | 0.35% | 29.23% | 13.45% | |
| ― | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
| ― | $21.13B | 8.76 | 10.65% | 5.65% | -1.61% | 37.04% |
* Financial Sector Average
NMR
Nomura Holdings
7.12
1.87
35.62%
LPLA
LPL Financial
377.31
97.49
34.84%
MS
Morgan Stanley
164.26
50.59
44.51%
RJF
Raymond James Financial
158.67
16.24
11.40%
SCHW
Charles Schwab
94.52
24.48
34.95%
GS
Goldman Sachs Group
789.37
280.41
55.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.