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Nissan Motor Co Ltd ADR NSANY

Morningstar Rating
$7.11 −0.56 (7.36%)
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Company Report

Nissan Earnings: Results As Guided but Fiscal 2024 Outlook Indicated Continuous Cost Pressure

No-moat-rated Nissan reported fiscal fourth-quarter 2023 (ended March 31, 2024) earnings per share of JPY 31.37, in line with the company’s lowered guidance if excluding litigation impact, and up 15% from the JPY 27.28 reported a year ago. Increased volume, pricing, and favorable currency movement during the period supported revenue growth. However, inflationary cost pressure and the China joint venture's equity loss offset consolidated volume gains, leading to a 5% year-over-year decrease in the quarter’s net income.

Price vs Fair Value

NSANY is trading at a 169% premium.
Price
$7.67
Fair Value
$38.40
Uncertainty
High
1-Star Price
$76.24
5-Star Price
$2.68
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Through its Renault alliance and ownership in Mitsubishi, Nissan enjoys economies of scale due to cost-sharing arrangements with its partners.

Bears

Nissan participates in a capital-intensive, highly competitive, cyclical industry where swings in volume and volatile input costs can substantially impact profitability.

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News

Trading Information

Previous Close Price
$7.67
Day Range
$7.007.20
52-Week Range
$6.859.65
Bid/Ask
$7.10 / $7.11
Market Cap
$13.29 Bil
Volume/Avg
229,908 / 142,374

Key Statistics

Price/Earnings (Normalized)
4.06
Price/Sales
0.16
Dividend Yield (Trailing)
2.66%
Dividend Yield (Forward)
2.66%
Total Yield
8.55%

Company Profile

While Nissan sold 3.3 million vehicles last fiscal year, total calendar 2022 Renault-Nissan-Mitsubishi alliance sales volume of 6.5 million vehicles makes the group the fourth-largest vehicle seller in the world, behind Toyota at 10.3 million, Volkswagen at 8.5 million, and Hyundai/Kia with 6.8 million vehicles sold. Nissan's financial services subsidiary provides consumers with auto loans and leases but also finances Nissan's sales to its dealerships (known as floor-plan financing). Nissan is 43.4% owned by Renault, while Nissan in turn owns 15% of Renault. Nissan also owns a 34% stake in Mitsubishi Motors. Under a new alliance agreement expected to be completed before the end of December 2023, Nissan and Renault will have cross-shareholding capped at 15% voting rights for each company.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Value
Total Number of Employees
147,116

Competitors

Valuation

Metric
NSANY
HMC
BMW
Price/Earnings (Normalized)
4.067.995.87
Price/Book Value
0.360.640.72
Price/Sales
0.160.410.38
Price/Cash Flow
1.934.412.75
Price/Earnings
NSANY
HMC
BMW

Financial Strength

Metric
NSANY
HMC
BMW
Quick Ratio
1.361.070.73
Current Ratio
1.751.451.09
Interest Coverage
7.9127.5325.99
Quick Ratio
NSANY
HMC
BMW

Profitability

Metric
NSANY
HMC
BMW
Return on Assets (Normalized)
2.64%3.87%4.87%
Return on Equity (Normalized)
8.81%8.59%13.83%
Return on Invested Capital (Normalized)
3.75%4.54%6.85%
Return on Assets
NSANY
HMC
BMW
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Market Cap
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RACE
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BMWYY
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VWAGY
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HMC
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