Nidec Corporation
Nidec Corporation, a multinational manufacturer, specializes in the production of electric motors. The company's primary function is to design and supply motors that are integral to a wide array of industries, such as automotive, industrial applications, and information technology. Nidec is renowned for its innovation in producing energy-efficient and high-performance motors, which are crucial for electric vehicles, hard disk drives, and home appliances. With its headquarters located in Kyoto, Japan, Nidec has a substantial global presence, benefitting from its extensive research and development capabilities and a strategic network of subsidiaries worldwide. Its influence on the market is significant, as it consistently sets benchmarks for technological advancements within the electric motor sector. Nidec's products contribute significantly to the endeavors of industries striving for energy efficiency and automation, making it a pivotal player in the ongoing transition towards sustainable technologies.
$2.65
-$0.05 (-1.85%)
Price from 2 days ago
Operating margin is thin at 9.13%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue up 16497.7% YoY with margins expanding 2.2pp.
Even for strong businesses, today's 12x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
11.6x earnings, 13.8x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
¥2.61T
▲ +16497.7% YoY
Net Income (TTM)
¥160.67B
▲ +18875.7% YoY
Op. Margin
9.13%
▲ +2.2pp YoY
ROIC
13.70%
▲ +9.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
¥135.60B
▲ +10397.9% YoY
Op. Cash Flow (TTM)
¥284.43B
▲ +14683.0% YoY
Net Debt
¥388.52B
Cash & Equiv.
¥247.53B
3Y CAGR: +485.5%
Continue Research
Is Nidec (NJDCY) overvalued?
At a P/E of 11.6 and a price-to-free-cash-flow of 13.8, Nidec (NJDCY) trades below a two-stage DCF intrinsic value of about JPY 456.02 per share, so at JPY 2.65 the stock looks undervalued (17,108.3% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Nidec scores 69/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.3%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Nidec's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about JPY 456.02 per share for NJDCY, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around JPY 342.02. At today's JPY 2.65, that puts the stock about 17,108.3% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Nidec a high-quality business?+
Nidec scores 69 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 9.1% operating margin and a 13.7% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Nidec (NJDCY) pay a dividend, and how much?+
Yes, Nidec pays a regular dividend of about JPY 5.28 per share per year (typically in quarterly installments), a yield of roughly 1.3% at the current price. That is a payout ratio of about 14.8% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For NJDCY's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Nidec a good stock to buy right now?+
That depends on valuation and quality together, not either alone. NJDCY currently trades below its estimated intrinsic value and scores 69/100 on quality (solid). It also yields about 1.3%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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