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Nidec
(6594)
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Rating:42Neutral
Price Target:
¥2,032.00
▼(-21.54% Downside)
Action:Reiterated
Date:10/03/26
The score is weighed down primarily by the sharp 2026 profitability deterioration and higher leverage, alongside bearish technical momentum with the price below all key moving averages. Valuation gets only modest support from the dividend yield, while the negative P/E reflects the underlying loss profile.
Positive Factors
Diversified motor applications
Nidec operates across multiple motor and drive applications, including automotive, appliances, industrial equipment, data centers and automation. This breadth diversifies demand sources and gives the company several durable avenues for product adoption as electrification, efficiency and automation expand.
Negative Factors
Severe profitability deterioration
The 2026 earnings collapse is a major fundamental weakness because sharply lower margins reduce internally generated capital and weaken the company’s ability to absorb operating setbacks. Continued margin pressure could limit reinvestment and make revenue growth less valuable to shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified motor applications
Nidec operates across multiple motor and drive applications, including automotive, appliances, industrial equipment, data centers and automation. This breadth diversifies demand sources and gives the company several durable avenues for product adoption as electrification, efficiency and automation expand.
Read all positive factors
Nidec (6594) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.30T
Dividend Yield2.12%
Average Volume (3M)10.75M
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth3.77%
EPS Growth-443.21%
CountryJP
Employees100,329
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-443.10
Shares Outstanding1,192,569,000
10 Day Avg. Volume23,629,189
30 Day Avg. Volume10,746,686
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.84
Price to Sales (P/S)0.83
P/FCF Ratio21.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)156.17
Revenue Forecast (FY)¥2.69T
Nidec Business Overview & Revenue Model
Company Description
Nidec Corporation, a global enterprise, specializes in the comprehensive development, manufacturing, and distribution of motors, electronic and optical components, and various related solutions. The company's diverse portfolio spans precision micr...
How the Company Makes Money
Nidec primarily makes money by selling motors and motor-adjacent components and systems to original equipment manufacturers (OEMs) and tier suppliers across automotive, appliance, electronics, and industrial markets. A major revenue stream comes f...
Nidec Earnings Call Summary
Earnings Call Date:Oct 01, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
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.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.
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.
Read all updates
Q3-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
42
Neutral
Balance Sheet
28
Negative
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.71T | 2.61T | 2.35T | 2.23T | 1.92T |
| Gross Profit | 526.14B | 536.42B | 497.16B | 403.05B | 403.34B |
| EBITDA | 198.16B | 367.67B | 330.41B | 209.44B | 276.42B |
| Net Income | -564.62B | 164.37B | 124.45B | 36.98B | 136.87B |
Balance Sheet | |||||
| Total Assets | 3.11T | 3.32T | 3.16T | 2.86T | 2.68T |
| Cash, Cash Equivalents and Short-Term Investments | 852.20B | 246.24B | 217.00B | 186.10B | 201.59B |
| Total Debt | 1.11T | 636.05B | 600.90B | 705.35B | 595.71B |
| Total Liabilities | 2.34T | 1.57T | 1.50T | 1.50T | 1.36T |
| Stockholders Equity | 794.16B | 1.72T | 1.63T | 1.35T | 1.29T |
Cash Flow | |||||
| Free Cash Flow | 103.74B | 163.72B | 208.72B | 5.67B | -3.59B |
| Operating Cash Flow | 234.22B | 284.43B | 320.77B | 143.49B | 94.99B |
| Investing Cash Flow | -137.48B | -150.64B | -154.42B | -167.72B | -116.75B |
| Financing Cash Flow | 419.49B | -76.81B | -180.69B | -16.46B | -60.24B |
Nidec Technical Analysis
Negative
2590.00
Price Trends
2573.62
Negative
2623.97
Negative
2443.16
Negative
Market Momentum
-151.50
Positive
31.09
Neutral
33.87
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 2590 is above the 20-day moving average (MA) of 2451.30, above the 50-day MA of 2573.62, and above the 200-day MA of 2443.16, indicating a bearish trend. The MACD of -151.50 indicates Positive momentum. The RSI at 31.09 is Neutral, neither overbought nor oversold. The STOCH value of 33.87 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥715.05B | 17.86 | 5.80% | 2.31% | 7.75% | ― | |
66 Neutral | ¥569.45B | 29.01 | 7.86% | 1.67% | -7.97% | 70.99% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥751.66B | 18.75 | -14.41% | 3.26% | ― | ― | |
56 Neutral | ¥2.00T | 15.92 | 14.35% | 1.72% | 8.87% | 55.83% | |
51 Neutral | ¥598.76B | 201.62 | 3.70% | 0.32% | 11.76% | -21.18% | |
42 Neutral | ¥2.30T | -4.54 | -36.26% | 2.12% | 3.77% | -443.21% |
* Industrials Sector Average
JP:6594
Nidec
2,010.00
-662.00
-24.78%
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Nidec Corporate Events
Nidec Reshapes Top Management Across Core Business Units
Oct 2, 2026
Nidec Corporation has implemented a broad reshuffle of its senior leadership, effective October 1, 2026, spanning the roles of president, chief technology officer, senior vice presidents, and vice presidents across multiple business units. The cha...
Nidec Profit Slumps, Dividends Scrapped Amid Accounting Probe
Oct 1, 2026
Nidec reported a modest 2.4% rise in consolidated net sales to ¥1.99 trillion for the nine months ended December 31, 2025, but saw operating profit drop 28.7% and profit attributable to owners of the parent plunge 69.3%, sharply compressing e...
Nidec Swings to Heavy Loss, Halts Dividends but Targets Profit Recovery in 2027
Oct 1, 2026
Nidec reported consolidated net sales of ¥2.71 trillion for the year ended March 31, 2026, up 3.9% year on year, but booked a steep operating loss of ¥518.98 billion and a net loss attributable to owners of the parent of ¥564.62 bil...
Nidec Faces Auditor Disclaimer After Probe Uncovers Widespread Accounting and Quality Issues
Oct 1, 2026
Nidec Corporation disclosed that its independent auditor, PricewaterhouseCoopers Japan LLC, issued a disclaimer of opinion on the company’s consolidated and non-consolidated financial statements for the fiscal year ended March 31, 2026. The ...
Nidec Revamps Leadership and Restates Accounts in Governance Reform Drive
Oct 1, 2026
Nidec Corporation has overhauled its senior management structure as part of a broader reform drive following the identification of improper accounting practices across various group companies. The board appointed Michio Kaida as President and Chie...
Nidec to Sell Components Subsidiary to Carlyle-Backed Firm for ¥103 Billion
Oct 1, 2026
Nidec Corporation will sell all shares of its subsidiary Nidec Components Corporation to TCG2603 Co., Ltd., an entity indirectly owned by a Carlyle-related investment fund, for 102.98 billion yen. The divestment forms part of Nidec’s five-ye...
Nidec Flags Pervasive Internal Control Failures After Misaccounting Probe
Sep 30, 2026
Nidec Corporation has disclosed that its internal control over financial reporting for the fiscal year ended March 31, 2026 is not effective due to material weaknesses identified across entity-level controls and business processes. The company rep...
Nidec Books Massive Impairments and Investigation Costs in 2026 Results
Sep 30, 2026
Nidec Corporation, a major Japanese manufacturer of motors and precision components, operates across several segments including spindle motors, automotive products, appliance, commercial and industrial motors, machinery, and broader group company ...
Nidec Books ¥330.9 Billion Extraordinary Loss After Accounting Misconduct Probe
Sep 30, 2026
Nidec has disclosed that an independent third-party investigation uncovered widespread accounting misconduct across multiple group locations, including deferral of inventory losses, avoidance of impairment charges and improper capitalization of ex...
Nidec Restates Accounts After Dividends and Buybacks Breach Legal Limits
Sep 30, 2026
Nidec Corporation has disclosed that a review of its financial reporting led to retrospective restatements of prior-year accounts submitted with its latest annual securities filing for the year ended March 31, 2026. The reassessment revealed that ...
Nidec Tightens Governance After Delayed Fiscal 2026 Results
Sep 30, 2026
Nidec has disclosed its financial results for the fiscal year ended March 31, 2026, after a delay that extended beyond 50 days from the year-end, citing the time required to finalize prior consolidated statements and assess the impact of past issu...
Nidec Completes Delayed Annual Securities Filing and Releases Postponed Financials
Sep 30, 2026
Nidec Corporation has completed the delayed submission of its annual securities report for the fiscal year ended March 31, 2026, after previously receiving regulatory approval to extend the filing deadline to September 30, 2026. The company also d...
Nidec Confirms Possible Sale of Components Unit but Says No Deal Yet
Sep 30, 2026
Nidec Corporation has responded to a media report claiming it plans to sell its wholly owned unit, Nidec Components Corporation, to private equity firm The Carlyle Group for more than 100 billion yen. The company confirmed that it is considering a...
Nidec Sets September 30 Date for Delayed Fiscal 2026 Earnings Disclosure
Sep 29, 2026
Nidec Corporation has set September 30, 2026 as the disclosure date for its delayed financial results for the third quarter and full fiscal year ended March 31, 2026. The company had previously postponed these announcements, signaling that investo...
Nidec CEO Resigns Amid Financial Reporting Review as Board Installs New Leadership
Sep 29, 2026
Nidec Corporation has announced the resignation of Representative Director and President Chief Executive Officer Mitsuya Kishida, effective September 29, 2026, following an internal review linked to the preparation and correction of financial resu...
Nidec Overhauls Supply Chain, R&D and Compliance Structure
Sep 28, 2026
Nidec Corporation will restructure its organization effective October 1, 2026, establishing a new Software Technology Development Center and dissolving Research Department 5 within its Product Technology RD Center to sharpen its software and resea...
Nidec Denies Media Report of Decided Leadership Shake-Up and ¥1 Trillion Impairment
Sep 28, 2026
Nidec has responded to a report on the Diamond Online website that claimed the company had decided to dismiss its Representative Director and President and record an impairment of around 1 trillion yen. The company clarified that, while changes in...
Nidec Sets Record Date for Extraordinary Meeting After Accounting Misconduct
Sep 15, 2026
Nidec Corporation, a major Japanese motor and component manufacturer traded under TSE code 6594, supplies precision motors and related technologies to industrial, automotive, and consumer markets worldwide. Its governance and financial reporting a...
Nidec Faces Shareholder Derivative Suit Over Buybacks and Dividends
Sep 10, 2026
Nidec Corporation has disclosed that an individual shareholder has filed a derivative lawsuit in the Kyoto District Court against two former directors, Shigenobu Nagamori and Hiroshi Kobe, alleging illegal treasury share buybacks in 2022–202...
Nidec Discloses Quality Misconduct Probe and Launches Company-Wide Reforms
Sep 4, 2026
Nidec Corporation has disclosed an external investigation report that details widespread quality-related misconduct across multiple group bases, including falsified testing data, rule violations, and use of substandard items, all linked to an over...
Nidec Receives External Probe Report and Pledges Quality Overhaul
Sep 2, 2026
Nidec Corporation, a leading Japanese manufacturer of electric motors and related components, operates globally across automotive, industrial, and electronics markets, with shares listed in Tokyo and traded OTC in the U.S. The company’s prod...
Nidec Faces Shareholder Call for Legal Action Over Accounting Issues
Aug 21, 2026
Nidec Corporation has disclosed that multiple shareholders jointly submitted a formal request on August 20 for the company to initiate legal action against certain current and former directors. The shareholders allege liability related to improper...
Nidec Faces Shareholder Demand for Legal Action Over Accounting Issues
Aug 5, 2026
Nidec Corporation has disclosed that an individual shareholder has formally requested the company to initiate legal action against current and former directors, alleging liability related to improper accounting and other issues. The move underscor...
Nidec Delays First-Quarter Earnings Amid Accounting, Quality and Customs Probes
Aug 5, 2026
Nidec Corporation has delayed the disclosure of its first-quarter results for the fiscal year ending March 31, 2027, beyond the usual 45-day window due to ongoing investigations and corrections to past financial statements. The company is reassess...
Nidec Reports Limited Impact From Ransomware Attack on Taiwanese Subsidiary
Aug 4, 2026
Nidec has issued a second update on the ransomware incident affecting its Taiwanese subsidiary, Nidec Chaun Choung Technology, following an investigation by an external forensic agency. While the probe has found no direct evidence of data exfiltra...
Nidec Faces Shareholder Demand for Legal Action Over Excess Payouts
Jul 21, 2026
Nidec Corporation has disclosed that an individual shareholder has submitted a formal request for the company to file a legal action enforcing liability against several former board members. The demand centers on allegations that interim dividends...
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.