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Nissan Motor Co Ltd ADR NSANY

Morningstar Rating
$6.12 −0.11 (1.77%)
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Company Report

Nissan Earnings: Results Missed; Fiscal 2024 Guidance Revision Indicates Prolonged Cost Pressure

No-moat-rated Nissan's fiscal first-quarter 2024 (ended June 30, 2024) earnings per share of JPY 7.77 is down 71% year on year, largely missing the JPY 29.80 FactSet consensus. The favorable Japanese yen movement during the period supported mild revenue growth. However, increased sales incentives in the United States to optimize inventory, inflationary cost pressure, and the China joint venture equity loss led to a 73% year-over-year slump in the quarter’s net income.

Price vs Fair Value

NSANY is trading at a 48% premium.
Price
$6.12
Fair Value
$85.60
Uncertainty
High
1-Star Price
$82.67
5-Star Price
$4.75
Economic Moat
Bhmy
Capital Allocation
Zjypkhtn

Bulls Say, Bears Say

Bulls

Through its Renault alliance and ownership in Mitsubishi, Nissan enjoys economies of scale due to cost-sharing arrangements with its partners.

Bears

Nissan participates in a capital-intensive, highly competitive, cyclical industry where swings in volume and volatile input costs can substantially impact profitability.

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News

Trading Information

Previous Close Price
$6.23
Day Range
$6.106.19
52-Week Range
$6.109.65
Bid/Ask
$6.12 / $6.14
Market Cap
$11.18 Bil
Volume/Avg
269,505 / 187,383

Key Statistics

Price/Earnings (Normalized)
3.24
Price/Sales
0.14
Dividend Yield (Trailing)
4.16%
Dividend Yield (Forward)
4.16%
Total Yield
11.66%

Company Profile

While Nissan sold 3.4 million vehicles last fiscal year, total calendar 2023 Renault-Nissan-Mitsubishi alliance sales volume of 6.4 million vehicles makes the group the fourth-largest vehicle seller in the world, behind Toyota at 11.2 million, Volkswagen at 9.2 million, and Hyundai/Kia with 7.3 million vehicles sold. Nissan's financial services subsidiary provides consumers with auto loans and leases but also finances Nissan's sales to its dealerships (known as floor-plan financing). Under a new alliance agreement, Nissan and Renault will have cross-shareholding capped at 15% voting rights for each company. Renault holds the remaining stake in Nissan through a French trust where the voting rights of such shares are “neutralized” for “most decisions” but retain the economic benefit.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Value
Total Number of Employees
150,129

Competitors

Valuation

Metric
NSANY
GM
TM
Price/Earnings (Normalized)
3.244.807.60
Price/Book Value
0.290.711.15
Price/Sales
0.140.310.83
Price/Cash Flow
1.852.594.59
Price/Earnings
NSANY
GM
TM

Financial Strength

Metric
NSANY
GM
TM
Quick Ratio
1.470.911.00
Current Ratio
1.861.181.19
Interest Coverage
7.8713.85101.57
Quick Ratio
NSANY
GM
TM

Profitability

Metric
NSANY
GM
TM
Return on Assets (Normalized)
3.76%4.07%6.15%
Return on Equity (Normalized)
12.51%16.36%16.12%
Return on Invested Capital (Normalized)
5.29%5.89%7.17%
Return on Assets
NSANY
GM
TM
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