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Nidec Corp 6594

Morningstar Rating
JPY 7,375.00 −73.00 (0.98%)
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Company Report

Exit From the EV Traction Motor Business in China Drives Nidec’s Margin Expansion

Nidec is a global top supplier of brushless DC motors, which have advantages over other types of motors in energy efficiency, silence, and durability. Owing to their efficiency, the majority of demand for brushless DC motors currently comes from IT applications, and Nidec has established top share in various applications, such as hard disk drive motors, optical disk drive motors, vibration motors for handsets, fan motors, and so on. Furthermore, we expect that Nidec could capture demand from new applications and industries. As approximately half of the electricity generated globally is consumed by motors, the adoption of efficient motors will be necessary to meet environmental standards in many other industries in the near future. We believe that Nidec can leverage its expertise in small precision motors for IT applications and will benefit from increasing demand for brushless DC motors in new business opportunities, such as automobiles, robots, and air conditioners.

Price vs Fair Value

6594 is trading at a 263% premium.
Price
JPY 7,448.00
Fair Value
JPY 1,821.00
Uncertainty
High
1-Star Price
JPY 35,946.00
5-Star Price
JPY 6,959.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Nidec will benefit from increasing demand for efficient motors from various industries and new applications. It is cultivating new business opportunities, such as automobiles, air conditioners, electric generators, robots, and drones.

Bears

Mass production of 3D NAND will accelerate contraction of HDD demand more quickly than market consensus expects and consequently will hurt profitability of HDD motors.

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News

Trading Information

Previous Close Price
JPY 7,448.00
Day Range
JPY 7,350.007,448.00
52-Week Range
JPY 5,345.008,706.00
Bid/Ask
JPY 7,374.00 / JPY 7,376.00
Market Cap
JPY 4.24 Tril
Volume/Avg
1.0 Mil / 3.9 Mil

Key Statistics

Price/Earnings (Normalized)
31.34
Price/Sales
1.82
Dividend Yield (Trailing)
1.01%
Dividend Yield (Forward)
1.07%
Total Yield
1.03%

Company Profile

Nidec is a global leader of brushless DC motors. Brushless DC motors have advantages over other types of motors in power efficiency, silence, and durability. Nidec possesses the number-one market share in a wide variety of products, such as hard disk drive motors, optical disk drive motors, vibration motors on handsets, brushless motors for inverter air conditioners, and brushless motors for electric power steering on automobiles. It continues to benefit from the growing demand for power-efficient motors, driven by strengthening environmental regulations.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Large Growth
Total Number of Employees
118,927

Competitors

Valuation

Metric
6594
6981
KYOCY
Price/Earnings (Normalized)
31.3428.8918.87
Price/Book Value
2.612.470.76
Price/Sales
1.823.851.17
Price/Cash Flow
13.8816.289.58
Price/Earnings
6594
6981
KYOCY

Financial Strength

Metric
6594
6981
KYOCY
Quick Ratio
0.952.641.83
Current Ratio
1.624.393.24
Interest Coverage
8.6218.43
Quick Ratio
6594
6981
KYOCY

Profitability

Metric
6594
6981
KYOCY
Return on Assets (Normalized)
4.41%7.44%2.41%
Return on Equity (Normalized)
8.85%8.90%3.29%
Return on Invested Capital (Normalized)
5.69%9.79%1.81%
Return on Assets
6594
6981
KYOCY
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