Nidec Corporation
Nidec Corporation Fundamental Analysis
Nidec Corporation (NJDCY) shows moderate financial fundamentals with a PE ratio of 12.84, profit margin of 6.81%, and ROE of 10.20%. The company generates $2627.4B in annual revenue with strong year-over-year growth of 11.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NJDCY's fundamental strength across five key dimensions:
Efficiency Score
WeakNJDCY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNJDCY trades at attractive valuation levels.
Growth Score
ExcellentNJDCY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNJDCY maintains a strong and stable balance sheet.
Profitability Score
WeakNJDCY struggles to sustain strong margins.
Key Financial Metrics
Is NJDCY Expensive or Cheap?
P/E Ratio
NJDCY trades at 12.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NJDCY's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Nidec Corporation at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.17 times EBITDA. This is generally considered low.
How Well Does NJDCY Make Money?
Net Profit Margin
For every $100 in sales, Nidec Corporation keeps $6.81 as profit after all expenses.
Operating Margin
Core operations generate 8.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.20 in profit for every $100 of shareholder equity.
ROA
Nidec Corporation generates $5.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nidec Corporation generates limited operating cash flow of $257.76B, signaling weaker underlying cash strength.
Free Cash Flow
Nidec Corporation produces free cash flow of $159.86B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $34.86 in free cash annually.
FCF Yield
NJDCY converts 6.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.006
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NJDCY Stacks Against Its Sector Peers
| Metric | NJDCY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.84 | 26.49 | Better (Cheaper) |
| ROE | 10.20% | 1307.00% | Weak |
| Net Margin | 6.81% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.15 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.61 | 10.48 | Neutral |
| ROA | 5.13% | -1549793.00% (disorted) | Weak |
NJDCY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nidec Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.12%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
131.55%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
36.63%
Industry Style: Cyclical, Value, Infrastructure
High Growth