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Nomura Holdings Inc ADR NMR Stock Quote

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NYSE: NMR

Morningstar‘s Stock Analysis NMR

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Japanese Brokers Report Another Weak Quarter on Sluggish Market; Nomura Looks Undervalued

Michael Makdad Senior Equity Analyst

Analyst Note

| Michael Makdad |

We maintain our fair value estimate of JPY 615 for Nomura Holdings, equivalent to 0.58 times book value; and our fair value estimate of JPY 650 for Daiwa Securities, equivalent to 0.67 times book value, after Japan’s securities brokers’ results for the second quarter of their fiscal year ending March 2023. Though we think Daiwa Securities deserves a higher price/book multiple than Nomura—reflecting lower historical earnings volatility and smaller risk than Nomura—we think Nomura is making progress toward reducing its future risk, such as by emphasizing recurring sources of revenue in its retail segment rather than flow-based sources. Recurring sources comprised 47% of Nomura’s retail revenues in the July-September period, up from 45% in the previous quarter and 39% a year earlier. Daiwa Securities, meanwhile, said that asset-based revenue comprised 52% of its retail revenue, up from 50% in the previous quarter and 40% a year earlier, slightly ahead of Nomura. At current P/B multiples of 0.45 times for Nomura and 0.60 times for Daiwa, Nomura looks more undervalued relative to its intrinsic value. Our fair value estimate for Nomura's ADR moves from $5.00 to $4.40 due to the Japanese yen's depreciation.

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Key Statistics NMR

Company Profile NMR

Business Description

Nomura is Japan’s largest broker, about twice the size of rival Daiwa Securities and roughly three times the size of the securities units of the three megabanks. It is also the largest asset-management company in Japan, with a similar size differential compared with its rivals. Despite its topnotch brand name in retail broking and asset management in Japan, Nomura has struggled to compete effectively in the institutional securities business against larger global rivals. In 2008, Nomura bought European and Asian assets of the failed Lehman Brothers, which led to a sharply higher cost base but did not provide commensurate revenue. Nomura has reduced the scale of these businesses but maintains its ambition to compete globally with the top players.

Contact
13-1, Nihonbashi 1-chome, Chuo-Ku
Tokyo, 103-8645, JPN
Industry Capital Markets
Employees 27,131

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FAQs for Nomura Holdings Inc ADR Stock

No. NMR does not currently have a forward dividend yield.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

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NMR’s market cap is 10.72 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

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NMR’s stock style is Large Core.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

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NMR’s price/sales is 1.35.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

NMR’s price/forward earnings is 10.19.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

NMR’s price/book is 0.46.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

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NMR’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare NMR’s historical performance against its industry peers and the overall market.