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Nidec (NJDCY)
OTHER OTC:NJDCY
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Nidec
(OTC:NJDCY)
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Rating:79Outperform
Price Target:―
Nidec Corporation demonstrates strong financial performance with solid revenue growth and profitability. While technical analysis indicates mixed signals, the company's valuation remains reasonable. Positive sentiment from the earnings call emphasizes strategic growth and profitability, although challenges in specific segments and markets should be monitored.
Nidec (NJDCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.90B
Dividend Yield1.03%
Average Volume (3M)3.16K
Price to Earnings (P/E)19.7
Beta (1Y)0.84
Revenue Growth6.59%
EPS Growth32.08%
CountryUS
Employees101,112
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.07
Shares Outstanding4,770,276,000
10 Day Avg. Volume0
30 Day Avg. Volume3,156
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.09
Price to Sales (P/S)0.76
P/FCF Ratio9.23
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.04
Enterprise Value/Ebitda0.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Nidec Business Overview & Revenue Model
Company DescriptionNidec Corporation, a Japanese multinational company, specializes in the design, production, and sale of electric motors and related components. Established in 1973, Nidec operates across various sectors including automotive, home appliances, commercial and industrial equipment, and information technology. The company's core products include small precision motors, home appliance motors, and machinery motors, catering to a global market with a strong emphasis on innovation and quality.
How the Company Makes MoneyNidec Corporation generates revenue primarily through the sale of its diverse range of motor products, including precision small motors and large industrial motors. The company divides its operations into segments such as small precision motors, automotive products, appliance, commercial and industrial products, and others, each contributing to its revenue streams. Nidec has established significant partnerships with major automotive and electronics manufacturers, which enhance its market presence and drive sales. The company's focus on research and development allows it to innovate and deliver high-performance products, further strengthening its competitive edge and revenue generation. Furthermore, Nidec's strategic acquisitions of companies in complementary sectors also contribute to its growth and expansion, allowing it to tap into new markets and customer bases.
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 record-high net sales and operating profit, growing demand in AI servers and water cooling systems, and successful profitability in the Chinese traction business. However, there were significant challenges such as decreases in operating profit before taxes due to currency fluctuations, delivery delays, and sluggish automotive markets in Europe and America. Despite these challenges, the company remains optimistic about future growth and improvements in various segments.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 increased by 5.0% to JPY175.5 billion, both achieving record-high results.
Growing AI Server Demand
The demand for AI servers has been growing rapidly, contributing positively to the company's revenue.
Water Cooling System Business Expansion
The water cooling system business, including GPU and chipsets, is enjoying growing momentum, with expectations to become a JPY500 billion business in the future.
Profit in Chinese Traction Business
The traction business based in China has started generating profit from Q3, with expectations for continuing profits in Q4 and beyond.
Strong Order Intake in Machine Tool Segment
Machine tool segment has seen a 1.5x increase in order intake, with significant growth in China and the United States.
Participation in IOWN
Nidec decided to participate in the IOWN initiative to acquire technology necessary for their five business pillars.
Negative Updates
Decrease in Operating Profit Before Income Taxes
Operating profit before income taxes decreased by 4.7% due to currency exchange rate fluctuations and financial losses amounting to JPY22.5 billion.
Loss Due to Delivery Delays
There was a loss incurred in the latest quarter due to delays in product delivery to customers.
Sluggish Automotive Market in Europe and America
The automotive segment faced a sluggish situation in the European and American markets, leading to restructuring efforts and profit losses.
Seasonal Loss in U.S. Motor Products
The U.S. motor products experienced a seasonal temporary loss in momentum, affecting overall profitability.
Challenges in ACIM and AMEC Business Units
The ACIM and AMEC business units are facing severe situations and restructuring costs, with expectations for future improvements.
Company Guidance
During the call, Nidec Corporation provided detailed guidance on their financial performance and strategic initiatives. The company reported a record high in net sales, up 11.5% to JPY1.946 trillion, and operating profit, up 5.0% to JPY175.5 billion, despite a financial loss of JPY22.5 billion due to currency fluctuations. The demand for AI server products is growing rapidly, while the hard disk motor demand remains high. The automotive segment in China is profitable, though European and American markets lag. The company is focusing on cash flow management, with JPY41.1 billion in operating cash flow. Nidec plans significant structural reforms and business expansions in fiscal year 2025, including broadening their water cooling system business and participating in the IOWN initiative. They aim to enhance their competitive edge and global presence, setting a course for double-digit profitability by FY '25. The company also discussed their intention to acquire Makino Milling Machine, emphasizing the strategic synergies and growth potential from this acquisition.Nidec Financial Statement Overview
Summary
Nidec's financial performance is strong, with robust revenue growth and profitability improvements reflected in stable gross and net profit margins. The balance sheet is solid with a healthy equity base, though there are concerns about potential debt increase. Cash flow trends are improving, indicating better cash management despite some volatility.Income Statement
Nidec demonstrates strong revenue growth with a consistent increase in total revenue from annual period to TTM (Trailing-Twelve-Months). Gross Profit Margin is stable at around 20%, and the Net Profit Margin improved in the TTM period, indicating enhanced profitability. The EBIT and EBITDA margins are healthy, suggesting robust operational efficiency. However, there is a slight decline in net income in the TTM period compared to the previous annual period, which needs monitoring.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity base with a Stockholders' Equity to Total Assets ratio above 50%, indicating financial stability. The Debt-to-Equity ratio is moderate, suggesting balanced leverage. Return on Equity remains strong due to rising net income over the years, except for a slight dip in the TTM period. Overall, the balance sheet is strong but with a potential risk of debt increase which should be monitored.80
Positive
Cash Flow
Nidec showcases a positive Free Cash Flow in the TTM period after a decline in previous years, indicating improved cash generation capabilities. The Operating Cash Flow to Net Income ratio is healthy, highlighting efficient cash conversion. However, fluctuations in Free Cash Flow over the periods suggest potential volatility in cash management. Continued positive cash flow trends will be crucial for maintaining financial health.78
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.35T | 2.24T | 1.92T | 1.62T | 1.53T |
| Gross Profit | 496.57B | 413.32B | 404.37B | 366.42B | 332.12B |
| EBITDA | 356.38B | 209.44B | 280.62B | 258.40B | 127.64B |
| Net Income | 125.39B | 44.96B | 135.76B | 121.94B | 58.46B |
Balance Sheet | |||||
| Total Assets | 3.17T | 2.87T | 2.68T | 2.26T | 2.12T |
| Cash, Cash Equivalents and Short-Term Investments | 217.00B | 186.10B | 201.59B | 222.50B | 206.99B |
| Total Debt | 186.08B | 705.35B | 595.71B | 531.47B | 599.95B |
| Total Liabilities | 1.50T | 1.50T | 1.36T | 1.14T | 1.15T |
| Stockholders Equity | 1.64T | 1.35T | 1.29T | 1.10T | 947.29B |
Cash Flow | |||||
| Free Cash Flow | 193.05B | -10.25B | -20.23B | 119.23B | 24.51B |
| Operating Cash Flow | 321.49B | 143.49B | 94.99B | 219.16B | 168.05B |
| Investing Cash Flow | -153.55B | -167.72B | -116.75B | -115.16B | -318.66B |
| Financing Cash Flow | -181.56B | -16.46B | -60.24B | -121.60B | 135.69B |
Nidec Technical Analysis
Negative
4.31
Price Trends
4.82
Negative
4.79
Negative
4.57
Negative
Market Momentum
-0.13
Positive
37.35
Neutral
6.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJDCY, the sentiment is Negative. The current price of 4.31 is below the 20-day moving average (MA) of 4.49, below the 50-day MA of 4.82, and below the 200-day MA of 4.57, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 37.35 is Neutral, neither overbought nor oversold. The STOCH value of 6.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NJDCY.
Nidec Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $20.90B | 19.68 | 9.86% | 1.03% | 6.59% | 32.08% | |
78 Outperform | $43.05B | 30.06 | 13.84% | 0.65% | 2.28% | 7.94% | |
76 Outperform | $17.99B | 29.98 | 16.59% | 0.89% | -0.25% | -7.32% | |
73 Outperform | $38.63B | 40.31 | 28.01% | 1.53% | -8.23% | -3.29% | |
71 Outperform | $12.15B | 26.04 | 11.70% | 1.74% | 4.73% | -19.15% | |
67 Neutral | $14.04B | 30.04 | 19.30% | 1.27% | 0.75% | -2.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
NJDCY
Nidec
4.31
-0.94
-17.90%
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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.