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Nidec Corporation (JP:6594)
:6594
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Nidec (6594) AI Stock Analysis

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JP:6594

Nidec

(OTC:6594)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
¥2,589.00
▼(-1.80% Downside)
Nidec's overall stock score is driven by strong financial performance and strategic initiatives highlighted in the earnings call. However, technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. The mixed sentiment from the earnings call further tempers the score.

Nidec (6594) vs. iShares MSCI Japan ETF (EWJ)

Nidec Business Overview & Revenue Model

Company DescriptionNidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment, inspection and measuring equipment, electronic devices, sensors, and other products. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile devices and optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan.
How the Company Makes MoneyNidec makes money primarily through the manufacturing and sale of electric motors and related components. The company's revenue streams are diversified across several sectors, including automotive, home appliances, commercial and industrial equipment, and information technology. A significant portion of its earnings comes from providing high-performance motors for electric vehicles, which have seen increasing demand globally. Additionally, Nidec's precision small motors are integral to various consumer electronics, contributing to a steady revenue flow. The company also benefits from strategic partnerships and acquisitions that expand its technological capabilities and market reach, enabling it to tap into emerging markets and industries.

Nidec Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q3-2025)
|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in net sales, AI server demand, and order intake for machine tools. However, challenges such as declining operating profit before income taxes, automotive sector issues, and inventory management problems balanced the positive aspects.
Q3-2025 Updates
Positive Updates
Record High Net Sales and Operating Profit
Net sales increased by 11.5% to JPY1.946 trillion and operating profit rose by 5.0% to JPY175.5 billion, both hitting record high levels.
Strong Performance in AI Server and Data Center Markets
Demand for hard disk motors remained high, and the AI server market showed rapid growth, contributing positively to overall performance.
Successful Order Intake in Machine Tools
Order intake for machine tools increased by 1.5 times, indicating strong future sales potential.
Profitability in Traction Business
The traction business in China turned profitable in Q3, with expectations for continued profitability in Q4 and FY 2025.
Negative Updates
Decline in Operating Profit Before Income Taxes
Operating profit before income taxes decreased by 4.7% and profit attributable to owners fell by 6.7% due to currency depreciation and exchange rate fluctuations.
Challenges in Automotive Sector
Sluggish performance in European and American automotive markets, with ongoing restructuring efforts impacting profitability.
Inventory Management Issues
Despite efforts to reduce inventory, levels remained suboptimal, affecting cash flow and operating profit.
Losses in Certain Segments
Sluggish situation in the machinery segment and seasonal losses in U.S. motor products impacted overall profitability.
Company Guidance
During the call, Nidec Corporation provided detailed guidance on several financial metrics and business developments for the third quarter of fiscal year 2024. The company reported a record high in net sales, which increased by 11.5% to JPY1.946 trillion, and achieved a record operating profit of JPY175.5 billion, marking a 5.0% rise. However, operating profit before income taxes and profit attributable to owners dropped by 4.7% and 6.7%, respectively, due to temporary depreciation effects and currency exchange rate fluctuations, resulting in a financial loss of JPY22.5 billion. The company highlighted robust demand for hard disk motors and growing demand for AI servers, while noting sluggish performance in European and American automotive sectors. Efforts to enhance cash flow management yielded an operating cash flow of JPY41.1 billion. Nidec also discussed strategic initiatives, including structural reforms in the automotive business and plans for future growth in fiscal year 2025. The guidance emphasized the importance of expanding the company's component business and strengthening its water cooling system business, with an eye on achieving a high CAGR of 20% to 30% for certain sectors.

Nidec Financial Statement Overview

Summary
Nidec demonstrates strong financial performance with robust revenue growth, improving profitability, and solid cash flow metrics. The company has a stable balance sheet with manageable leverage and strong equity. Opportunities exist for operational improvements and careful monitoring of liabilities.
Income Statement
80
Positive
Nidec's income statement reflects strong revenue growth and improving profitability. The company achieved a revenue growth rate of 11.08% from 2024 to 2025, indicating robust demand. Gross profit margin improved to 20.59% in 2025, enhancing profitability. The net profit margin also increased to 6.43% in 2025, up from 5.34% in 2024, driven by effective cost management and operational efficiency. However, the EBIT margin of 9.21% and EBITDA margin of 10.10% suggest that there is still room for operational improvements. Overall, Nidec's income statement is strong with a positive growth trajectory.
Balance Sheet
75
Positive
Nidec's balance sheet is stable with a healthy equity position. The debt-to-equity ratio of 0.37 in 2025 indicates a manageable level of leverage, and the equity ratio is strong at 51.70%, reflecting a solid financial foundation. Return on equity improved to 9.75%, suggesting effective use of equity to generate profits. However, the company should monitor its growing total liabilities, which increased by approximately 5.24% from 2024 to 2025, to ensure long-term financial stability.
Cash Flow
82
Very Positive
Nidec's cash flow performance is solid, with an operating cash flow to net income ratio of 1.70 in 2025, indicating efficient cash generation from operations. The free cash flow to net income ratio of 0.98 shows that a substantial portion of earnings is being converted into free cash flow. Although free cash flow decreased by 15.18% from 2024 to 2025, the company continues to maintain strong cash flow metrics, supporting its operational and strategic initiatives.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.61T2.61T2.35T2.24T1.92T1.62T
Gross Profit537.00B537.00B497.43B413.20B403.34B366.56B
EBITDA309.05B263.37B363.23B209.44B282.08B256.65B
Net Income167.98B167.69B125.39B36.98B136.87B121.98B
Balance Sheet
Total Assets3.33T3.33T3.17T2.87T2.68T2.26T
Cash, Cash Equivalents and Short-Term Investments246.24B246.24B217.00B189.91B204.48B230.08B
Total Debt636.05B636.05B600.90B705.35B595.71B531.47B
Total Liabilities1.58T1.58T1.50T1.50T1.36T1.14T
Stockholders Equity1.72T1.72T1.64T1.35T1.29T1.10T
Cash Flow
Free Cash Flow163.72B163.72B193.05B-10.25B-20.23B119.23B
Operating Cash Flow284.43B284.43B320.77B143.49B94.99B219.16B
Investing Cash Flow-147.41B-150.64B-153.55B-164.94B-112.60B-100.57B
Financing Cash Flow-80.04B-76.81B-181.56B-19.24B-60.24B-136.19B

Nidec Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2636.50
Price Trends
50DMA
2856.46
Negative
100DMA
2811.13
Negative
200DMA
2713.86
Negative
Market Momentum
MACD
-74.93
Negative
RSI
41.87
Neutral
STOCH
59.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6594, the sentiment is Negative. The current price of 2636.5 is below the 20-day moving average (MA) of 2741.80, below the 50-day MA of 2856.46, and below the 200-day MA of 2713.86, indicating a bearish trend. The MACD of -74.93 indicates Negative momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 59.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6594.

Nidec Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
1.79T21.3619.12%1.35%
76
Outperform
2.82T19.858.11%2.22%1.13%-17.99%
76
Outperform
3.98T25.638.56%2.19%1.24%20.57%
67
Neutral
2.65T25.2523.40%0.69%17.79%
66
Neutral
1.63T21.2410.45%1.44%15.11%142.87%
64
Neutral
$3.12T19.269.86%1.50%6.82%34.60%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6594
Nidec
2,636.50
-346.97
-11.63%
SMECF
SMC (OR)
301.00
-142.76
-32.17%
DAIUF
Daifuku Co
31.60
12.54
65.79%
IHICF
IHI
117.27
65.61
127.00%
KWHIF
Kawasaki Heavy Industries
64.44
24.04
59.50%
JP:6954
Fanuc Corporation
4,305.00
162.19
3.91%

Nidec Corporate Events

Nidec Reports No Shares Repurchased in July 2025
Aug 1, 2025

Nidec Corporation announced the status of its ongoing share repurchase plan, revealing that no shares were repurchased during the period from July 1 to July 31, 2025. The plan, authorized by the Board of Directors, allows for the repurchase of up to 13 million shares or 1.13% of total shares, with a total repurchasable amount of 35 billion yen until May 27, 2026, but no shares have been repurchased so far.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen3600.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Reports Mixed Financial Results Amid Strategic Expansion
Jul 24, 2025

Nidec Corporation reported a slight decline in net sales and a modest increase in operating profit for the first quarter of fiscal year 2025. The company has introduced a new product featuring scroll compressor technology from its acquisition of Xecom, enhancing its product lineup and market positioning in the air conditioning and heat pump sectors. However, profits before income taxes and earnings per share saw significant declines. The financial results are preliminary and may be subject to revisions due to ongoing investigations regarding trade and tariff issues at its subsidiaries.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Announces Preliminary Q1 2025 Financial Results Amid Ongoing Investigations
Jul 24, 2025

Nidec Corporation has released preliminary financial results for the first quarter of fiscal year 2025, reporting net sales of 637,899 million yen and an operating profit of 61,450 million yen. The company is currently conducting additional investigations into trade transaction and tariff issues, which may lead to revisions in these preliminary figures. The announcement highlights a slight decline in net sales and a significant drop in profit before income taxes compared to the same period last year, reflecting ongoing challenges and uncertainties in their operations.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Delays Financial Results Disclosure Amid Ongoing Investigations
Jul 24, 2025

Nidec Corporation announced a delay in the disclosure of its financial results for the first quarter of the fiscal year ending March 31, 2026, due to ongoing investigations related to trade transactions and customs issues involving a subsidiary. This delay in financial reporting may impact stakeholders’ confidence, as the company works to resolve these issues and finalize its financial statements.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Reports No Share Repurchases in June 2025
Jul 1, 2025

Nidec Corporation announced that during the period from June 1 to June 30, 2025, it did not repurchase any of its own shares under the ongoing share repurchase plan. The plan, authorized by the Board of Directors, allows for the repurchase of up to 13 million shares, but no shares were bought back during this period. This indicates a cautious approach in executing the buyback strategy, potentially reflecting market conditions or strategic financial management considerations.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Granted Extension for Securities Report Submission
Jun 27, 2025

Nidec Corporation has received approval for an extension to submit its securities report for the fiscal year ending March 31, 2025. This extension, moving the deadline from June 30 to September 26, 2025, allows the company additional time to complete necessary audits, potentially impacting its financial reporting timeline and stakeholder communications.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Seeks Extension for Fiscal Year Securities Report Amid Internal Investigation
Jun 27, 2025

Nidec Corporation has applied for an extension to submit its 52nd fiscal year securities report due to the need for an additional internal investigation. This investigation is necessary to ensure the accuracy of financial statements following events at its Italian subsidiary, NIDEC FIR INTERNATIONAL S.R.L., which may impact the company’s financial reporting and audit processes.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Seeks Extension for Securities Report Amid Customs Investigation
Jun 26, 2025

Nidec Corporation has announced an application for an extension to submit its securities report due to ongoing investigations into customs issues involving its Italian subsidiary, FIR. The investigation revealed that FIR incorrectly declared the country of origin for oven motors shipped to the U.S., which should have been China, leading to unpaid tariffs. The company is taking corrective actions and has commissioned further external investigations to ensure compliance, impacting its operational transparency and potentially affecting stakeholder trust.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Delays Securities Report Submission Amid Trade Transaction Investigation
Jun 18, 2025

Nidec Corporation has announced a delay in the submission of its 52nd Annual Securities Report due to unresolved issues identified in trade transactions at its subsidiary, NIDEC FIR INTERNATIONAL S.R.L. The company is conducting an internal investigation with a third-party expert to address potentially erroneous declarations of country of origin, which may have led to unpaid import tariffs. This delay impacts the company’s ability to finalize its audited consolidated financial statements, affecting stakeholders’ access to financial information.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Wins Defamation Lawsuit Against Diamond Inc.
Jun 11, 2025

Nidec Corporation and its Founder, Shigenobu Nagamori, successfully won a lawsuit against Diamond Inc. for defamation. The Tokyo District Court ruled that Diamond’s articles about a former Nidec executive were partially false and defamatory, ordering Diamond to pay damages to Nagamori. This ruling reinforces Nidec’s commitment to lawful business practices and could impact its reputation positively among stakeholders.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Announces Zero Shares Repurchased in Initial Phase
Jun 2, 2025

Nidec Corporation announced the status of its share repurchase plan, revealing that no shares were repurchased from May 28 to May 31, 2025, despite authorization to repurchase up to 13 million shares. This announcement indicates a cautious approach in executing the repurchase plan, which may impact investor perceptions and market positioning.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Faces Delay in Consolidated Financial Statement Audit
May 29, 2025

Nidec Corporation announced a delay in receiving the accounting auditor’s report on its consolidated financial statements due to extended audits of its overseas subsidiaries. The company has assured stakeholders that the report is being prepared in time for the upcoming Annual General Meeting of Shareholders, and any necessary corrections will be promptly communicated once the report is finalized.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Corporation Initiates Share Repurchase Plan to Enhance Shareholder Value
May 27, 2025

Nidec Corporation has announced a new share repurchase plan authorized by its Board of Directors, allowing the company to buy back up to 13 million shares. This move is aimed at enhancing shareholder returns and managing the company’s capital structure, reflecting Nidec’s strategic focus on balancing growth investments with shareholder value.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Corporation Declares Annual Dividend Payout
May 27, 2025

Nidec Corporation announced its decision to distribute an annual dividend of 40 yen per share for the fiscal year ending March 31, 2025, maintaining stable shareholder returns. The decision aligns with Nidec’s policy to ensure a total payout ratio of 50%, aiming to enhance shareholder value through business expansion and profitability improvements.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Completes Share Repurchase Plan Without Final Period Purchases
May 26, 2025

Nidec Corporation announced the completion of its share repurchase plan, initially authorized by its Board of Directors in May 2024. Despite the plan allowing for the repurchase of up to 10 million shares, the company did not repurchase any shares during the final period due to stable market prices and the possession of material non-public information, impacting the execution of the plan.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

Nidec Withdraws Tender Offer for Makino Milling Machine
May 8, 2025

Nidec Corporation has decided to withdraw its tender offer for Makino Milling Machine Co., Ltd., a company listed on the Tokyo Stock Exchange. The decision was made due to potential economic unreasonableness and possible damage to Nidec if the tender offer proceeded, particularly in light of an allotment of share options without contribution. This withdrawal may impact Nidec’s strategic plans to make Makino Milling Machine a wholly owned subsidiary.

Nidec’s Petition Against Makino’s Share Options Dismissed
May 7, 2025

Nidec Corporation announced that the Tokyo District Court dismissed its petition for a provisional injunction against Makino Milling Machine Co., Ltd.’s allotment of share options without contribution, a measure taken as a takeover defense. This decision may impact Nidec’s strategic positioning and influence its future actions regarding its interests in Makino Milling Machine Co., Ltd.

Nidec Reports No Share Repurchases in April 2025
May 7, 2025

Nidec Corporation announced that no shares were repurchased in April 2025 as part of its ongoing share repurchase plan. The plan, which allows for the repurchase of up to 10 million shares, had previously resulted in the repurchase of over 2.9 million shares, indicating a strategic approach to managing shareholder value.

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.Date of analysis: Sep 05, 2025