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Nomura Holdings (NMR)
NYSE: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
$21.81B
Dividend Yield5.23%
Average Volume (3M)437.98K
Price to Earnings (P/E)9.1
Beta (1Y)1.30
Revenue Growth4.19%
EPS Growth80.88%
CountryUS
Employees26,850
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.24
Shares Outstanding3,163,562,500
10 Day Avg. Volume413,222
30 Day Avg. Volume437,981
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap10.01
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.13
Enterprise Value/Ebitda0.17
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
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:Jul 29, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant growth in revenue and assets under management, alongside challenges including phishing scam losses and a decline in investment banking revenue. While the company's strategic divisions showed strong performance, external factors like phishing scams and market volatility posed challenges.Q1-2026 Updates
Positive Updates
Strong Revenue and Income Growth
Group net revenue increased by 16% to JPY523.3 billion, and income before income taxes grew by 64% to JPY160.3 billion. Net income increased by 45% from the previous quarter, reaching JPY104.6 billion.
Record High Assets Under Management
Assets under management hit a record high of JPY94.3 trillion, driven by market recovery and net inflows.
Investment Management and Wealth Management Growth
Investment management net revenue increased by 18% to JPY50.6 billion, with income before income taxes rising by 39% to JPY21.5 billion. Wealth management net revenue increased by 6% to JPY105.8 billion.
Wholesale and Global Markets Performance
Wholesale net revenue rose by 1% to JPY261.1 billion, with income before income taxes increasing by 12%. Global markets revenues increased by 8%.
Banking Division Growth
Net revenue in the newly established banking division was JPY12.8 billion, a rise of 12%, and income before income taxes was JPY3.6 billion, an increase of 19%.
Negative Updates
Phishing Scam Losses
The company incurred JPY6.6 billion in losses due to illegal trades in client accounts resulting from phishing scams.
Investment Banking Revenue Decline
Investment banking net revenue fell by 27% from the previous quarter, although it was still the highest level for Q1 since FY2016/17.
ETF Outflows
ETF outflows amounted to approximately JPY670 billion, attributed to selling by certain investors.
EMEA Performance Challenges
EMEA region experienced losses due to weak performance in the laser digital asset business and increased personnel costs.
Decline in Common Equity Tier 1 Ratio
The Common Equity Tier 1 ratio decreased to 13.2% from 14.5% at the end of March, partly due to increased risk assets and the acquisition of the US asset management business of Macquarie Group.
Company Guidance
In the Q1 fiscal year 2026 earnings call, Moriuchi, the CFO, reported a strong performance across all divisions, despite a challenging geopolitical environment. Group net revenue increased by 16% to JPY523.3 billion, while income before income taxes surged 64% to JPY160.3 billion. Net income rose by 45% to JPY104.6 billion. The wealth management division saw a 6% increase in net revenue to JPY105.8 billion, with income before income taxes up 8% to JPY38.8 billion. Total sales by product grew 24% to JPY6.7 trillion, driven by a significant increase in bond sales. Investment management net revenue climbed 18% to JPY50.6 billion, with a 39% rise in income before income taxes to JPY21.5 billion. Assets under management reached a record JPY94.3 trillion. The newly formed banking division posted a 12% increase in net revenue to JPY12.8 billion. Group-wide expenses increased by 2% to JPY363 billion, with compensation and benefits rising by 8%. The Common Equity Tier 1 ratio stood at 13.2%, within the target range of 11% to 14%, despite a decrease from the previous quarter due to increased risk assets and acquisition activities.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 | 4.55T | 4.51T | 1.56T | 2.30T | 1.36T | 1.41T |
| Gross Profit | 1.70T | 1.66T | -1.23T | 1.34T | 1.36T | 1.20T |
| EBITDA | 1.25T | 533.62B | 0.00 | 210.90B | 286.15B | 294.52B |
| Net Income | 340.74B | 340.74B | 165.86B | 92.79B | 143.00B | 153.12B |
Balance Sheet | ||||||
| Total Assets | 56.80T | 56.80T | 55.15T | 47.77T | 43.41T | 42.52T |
| Cash, Cash Equivalents and Short-Term Investments | 5.51T | 5.51T | 4.24T | 4.52T | 3.64T | 4.16T |
| Total Debt | 31.35T | 31.35T | 14.09T | 26.15T | 10.90T | 9.94T |
| Total Liabilities | 53.22T | 53.22T | 51.70T | 44.55T | 40.44T | 39.76T |
| Stockholders Equity | 3.47T | 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 | 38.95B | -45.30B | -139.03B |
| Financing Cash Flow | 0.00 | 1.68T | 1.01T | 1.28T | 1.11T | -269.93B |
Nomura Holdings Technical Analysis
Positive
7.47
Price Trends
7.09
Positive
6.60
Positive
6.35
Positive
Market Momentum
0.12
Positive
58.16
Neutral
37.69
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 7.47 is above the 20-day moving average (MA) of 7.38, above the 50-day MA of 7.09, and above the 200-day MA of 6.35, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 37.69 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | 256.55B | 18.21 | 12.81% | 2.35% | 6.36% | 45.50% | |
76 Outperform | 243.86B | 17.75 | 12.54% | 1.61% | 3.53% | 45.85% | |
75 Outperform | 34.96B | 17.21 | 17.40% | 1.11% | 9.42% | 14.86% | |
68 Neutral | 14.37B | 26.40 | 7.32% | 2.27% | 1.00% | 46.98% | |
65 Neutral | 26.96B | 23.05 | 22.03% | 0.35% | 29.23% | 13.45% | |
61 Neutral | $21.81B | 9.11 | 11.06% | 5.23% | 4.19% | 80.88% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
NMR
Nomura Holdings
7.47
2.11
39.37%
LPLA
LPL Financial
340.48
110.94
48.33%
MS
Morgan Stanley
160.76
61.39
61.78%
RJF
Raymond James Financial
175.81
52.42
42.48%
SCHW
Charles Schwab
93.91
30.68
48.52%
GS
Goldman Sachs Group
806.32
325.00
67.52%
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.