Nidec Corporation
Nidec Corporation Fundamental Analysis
Nidec Corporation (NNDNF) shows strong financial fundamentals with a PE ratio of 13.88, profit margin of 6.81%, and ROE of 20.23%. The company generates $2625.0B 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 75.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NNDNF's fundamental strength across five key dimensions:
Efficiency Score
WeakNNDNF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNNDNF trades at attractive valuation levels.
Growth Score
ExcellentNNDNF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNNDNF maintains a strong and stable balance sheet.
Profitability Score
ModerateNNDNF maintains healthy but balanced margins.
Key Financial Metrics
Is NNDNF Expensive or Cheap?
P/E Ratio
NNDNF trades at 13.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NNDNF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Nidec Corporation at 208.65 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.30 times EBITDA. This is generally considered low.
How Well Does NNDNF 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 $20.23 in profit for every $100 of shareholder equity.
ROA
Nidec Corporation generates $7.58 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 $256.56B, signaling weaker underlying cash strength.
Free Cash Flow
Nidec Corporation produces free cash flow of $159.13B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $138.82 in free cash annually.
FCF Yield
NNDNF converts 6.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.006
vs 25 benchmark
P/B Ratio
Price to book value ratio
208.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
7.58
vs 25 benchmark
ROCE
Return on capital employed
14.20
vs 25 benchmark
How NNDNF Stacks Against Its Sector Peers
| Metric | NNDNF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.88 | 26.49 | Better (Cheaper) |
| ROE | 20.23% | 1307.00% | Weak |
| Net Margin | 6.81% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.40 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.61 | 10.48 | Neutral |
| ROA | 757.88% | -1549793.00% (disorted) | Strong |
NNDNF outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, 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