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Nissan Motor Co Ltd ADR NSANY

Morningstar Rating
$7.93 +0.04 (0.51%)
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Company Report

Nissan Turnaround Continues Despite Industry Headwinds; Stock Is Still Undervalued

Nissan is part of the Renault-Nissan-Mitsubishi Alliance. The firm is 43.4% owned by Renault, while Nissan owns 15% of Renault. However, under the new alliance agreement reached July 2023, Renault will transfer 28.4% ownership into a French trust which will vote the shares neutrally. Nissan's 15% ownership in Renault will gain voting rights and both Renault's and Nissan's ownership voting rights will be capped at 15% each. Also, Nissan holds a controlling 34% stake in Mitsubishi Motors. Nissan's cross-ownership with Renault had been viewed as a rare success, with few international automotive companies replicating the alliance. However, discontent among leadership between Nissan and Renault became evident with the dismissal of Carlos Ghosn on allegations of misconduct in November 2018. Despite the opportunity for economies of scale in the alliance, Nissan's recent performance had been dismal but is now improving.

Price vs Fair Value

NSANY is trading at a 56% discount.
Price
$8.32
Fair Value
$79.00
Uncertainty
High
1-Star Price
$17.24
5-Star Price
$78.20
Economic Moat
Nhjx
Capital Allocation
Jjxcfprc

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
$7.89
Day Range
$7.88–8.04
52-Week Range
$7.05–9.65
Bid/Ask
$7.92 / $8.06
Market Cap
$15.81 Bil
Volume/Avg
28,536 / 139,124

Key Statistics

Price/Earnings (Normalized)
4.20
Price/Sales
0.18
Dividend Yield (Trailing)
2.60%
Dividend Yield (Forward)
2.60%
Total Yield
8.03%

Company Profile

While Nissan sold 3.3 million vehicles last fiscal year, total calendar 2022 Renault-Nissan-Mitsubishi alliance sales volume of 6.5 million vehicles makes the group the fourth-largest vehicle seller in the world, behind Toyota at 10.3 million, Volkswagen at 8.5 million, and Hyundai/Kia with 6.8 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). Nissan is 43.4% owned by Renault, while Nissan in turn owns 15% of Renault. Nissan also owns a 34% stake in Mitsubishi Motors. Under a new alliance agreement expected to be completed before the end of December 2023, Nissan and Renault will have cross-shareholding capped at 15% voting rights for each company.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Value
Total Number of Employees
147,116

Competitors

Valuation

Metric
NSANY
MBGAF
F
Price/Earnings (Normalized)
4.205.436.54
Price/Book Value
0.400.841.24
Price/Sales
0.180.510.30
Price/Cash Flow
2.113.773.90
Price/Earnings
NSANY
MBGAF
F

Financial Strength

Metric
NSANY
MBGAF
F
Quick Ratio
1.360.901.01
Current Ratio
1.751.261.20
Interest Coverage
7.9129.082.82
Quick Ratio
NSANY
MBGAF
F

Profitability

Metric
NSANY
MBGAF
F
Return on Assets (Normalized)
2.64%5.58%3.08%
Return on Equity (Normalized)
8.81%16.40%18.80%
Return on Invested Capital (Normalized)
3.75%8.36%4.23%
Return on Assets
NSANY
MBGAF
F
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