Reuters, May 12, Tokyo – Following the Japanese automaker’s weaker-than-expected projection for the current fiscal year, Nissan Motor Co (7201. T) shares fell as high as 12.2% on Wednesday, reaching their lowest level in five months.
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On learning that Renault SA is considering selling a portion of its stock in the Japanese automaker, Nissan Motor Co. shares dropped to their lowest level in six weeks.
The greatest intraday decrease since March 11 was seen by Nissan’s shares, which dropped as high as 4.8% in early trading on Monday in Tokyo. Friday after Bloomberg revealed the prospective change in shareholding, Renault shares dropped 1.3% in Paris.
Summary
- On a P/E metric, the stock appears to be more expensive than before, despite the fact that cash growth has been slowing.
- This year’s Nissan LEAF sales have also fallen short of estimates.
- I do not currently see the stock rising.
Investment Thesis: Given that sales of the Nissan LEAF have been declining this year and that the stock still appears to be more costly than in prior years on a P/E basis, I do not currently see any potential for growth in the company.
The previous several years have seen a general declining trend for Nissan Motor (OTCPK:NSANY), although a minor upswing in recovery after the market as a whole began to recover from the COVID-19-related collapse.
In light of a potential mismatch between price and performance, the goal of this research is to analyze if Nissan Motor could see a substantial amount of room for growth.
Investment implications
Nissan’s stock has already decreased by more than 5% since the controversy was made public. Investors searching for a chance to buy on the drop may find it alluringly inexpensive at just 5.1 times earnings. However, Macquarie is not biting. Instead, it downgraded Nissan stock to neutral and took a back seat to watch how everything turned out. This decision may have been the right one.
Think about it: Nissan’s operating profit margin, which is now at 4.3%, has been declining for three years in a row, according to information from S&P Global Market Intelligence. That already falls short of the profit margins of bigger automakers like Volkswagen (6.5%) and General Motors (5.7%). Ford, on the other hand, only makes 3.5%. A separation with Renault (and/or Mitsubishi) would almost likely harm Nissan’s profit margin considerably more due to the possible loss of scale economies.
Although it’s not a given that Ghosn’s problems would cause the alliance to disintegrate, if Renault and/or Mitsubishi eventually decide to do the same and remove Ghosn from their leadership positions, the alliance would lose a crucial tensile strength.
Even while it appears that the worst-case scenario won’t come to pass, it appears like Nissan will have to deal with months of inquiries, accusations, and management turbulence in its senior echelons. These are distractions that the company simply cannot afford. Nissan needs to concentrate on navigating the transition to electric vehicles, ridesharing, and maybe self-driving cars during this moment of change in the automotive sector.
Nissan, on the other hand, has a management disaster that needs to be fixed. That won’t be good news at all for the stockholders.
Nissan Motor Co., Ltd.’s technical outlook is worsening as the stock has been downgraded to a sell candidate. (Revised on September 28, 2022)
On the final trading day (Wednesday, September 28, 2022), the price of Nissan Motor Co., Ltd.’s stock increased by 0.60%, going from $6.80 to $6.84. It has now gained three straight days. It will be interesting to watch whether it is able to gain more over the following several days or whether it decides to take a small pause. The stock’s latest trading day saw 6.15% of its daily range between a low of $6.50 and a high of $6.90. During this time, the price has fluctuated up and down, losing -9.39% during the previous two weeks. The final day saw a -46 thousand share drop in volume, and 186 thousand shares were bought and sold for a total of roughly $1.28 million. You should be aware that divergence is caused by declining volume on higher pricing and may serve as a precursor to developments that could occur over the next several days.
The stock is currently at the lowest part of a broad and declining trend, which typically presents an excellent purchasing opportunity. A breach of the lower trend floor at $6.79 will firstly signal a faster fall pace. Given the short-term trend, the stock is predicted to decline -2.84% during the next three months and, 90% likely, hold a price between $6.60 and $7.73 at that time.
Will Nissan’s stock increase?
The consensus price target among the 18 analysts that are providing Nissan Motor Co Ltd. 12-month price estimates is 9.17, with a high estimate of 11.70 and a low estimate of 6.00. From the most recent price of 7.54, the median projection reflects a +21.66% rise.
Is Nissan a reliable investment?
In the past year, Nissan Motor has received “buy,” “hold,” and “sell” evaluations from 4 Wall Street research analysts. Currently, the stock has two sell ratings and two buy ratings. Wall Street research experts concur that shareholders should “hold” NSANY shares.
In 2022, is Nissan a solid investment?
- Nissan has predicted a $1.8 billion net profit for FY 2022, reversing a six-year trend of diminishing profits and net losses.
- Following turbulent leadership change and tense relations with French subsidiary Renault SA, new vehicle types are looking to gain traction.
- During the shift of the global auto industry from fossil fuels to battery electrics, automaker’s financials are strengthening.
- Looking for a collection of concepts similar to this one? Exclusive access to our model collection is available to Auto/Mobility Investors members. Find out more A>>
By almost all standards, it has been wise to steer clear of Nissan Motor Co. (OTCPK:NSANY) stock for at least the previous three years. The share price of the ADRs began to trade in a constrained range around $20 in 2011, having recovered from a sharp fall during the global financial crisis.
Then came the Carlos Ghosn scandal in 2018, which resulted in the global chairman of Nissan being detained in Japan for a number of alleged financial crimes. He later escaped Japan before his trial with the aid of conspirators who hid him in a box (and managed to skip bail). It should come as no surprise that Ghosn’s unexpected exit prompted a number of concerns about the automaker’s governance as well as its partnership and equal stock ownership with French automaker Renault SA (OTCPK:RNSDF).
How many Nissan shares are there?
Nissan Motor has a stellar past dating back to 2010. The number of shares held by shareholders (including insiders) after conversion of all convertible debt, securities, warrants, and options is known as shares outstanding. Treasury shares of the corporation are not included in this statistic.
- Nissan Motor had 1.957 billion shares outstanding as of the three months ended June 30, 2022, a rise of 0.02% from the previous year.
- The number of Nissan Motor 2022 shares outstanding increased from 2021 by 0.03% to 1.957B.
- Nissan Motor had 1.956 billion shares outstanding as of 2021, a 0% decrease from 2020.
- Nissan Motor had 1.956 billion shares outstanding as of 2020—an increase of 0.03% from 2019.
Nissan Motor Company, Ltd. produces and sells automobiles and auto parts. Nissan’s operations in North America cover styling, engineering, manufacture, sales, client and corporate finance, as well as machinery for the textile and industrial industries. More than 20,000 people work for Nissan in North America, which also supports roughly 75,000 jobs through its 1,500 Nissan and Infinity dealerships spread out across the continent.
Who purchased Nissan?
Nissan Motor Co., Ltd. is a Japanese multinational vehicle manufacturer with its headquarters in Nishi-ku, Yokohama, Japan. Its Japanese name is Ri Chan Zi Dong Che Zhu Shi Hui She and its Hepburn name is Nissan Jidosha kabushiki gaisha. Nissan, Infiniti, and Datsun are the brands under which the firm distributes its cars. Nismo is the name given to its own line of performance tuning goods, which also includes automobiles. The Nissan zaibatsu, today known as Nissan Group, is the organization’s first predecessor.
Since 1999, Nissan has collaborated with Mitsubishi Motors of Japan and Renault of France as a member of the Renault-Nissan-Mitsubishi Alliance (Mitsubishi joined in 2016). Nissan has a 15% non-voting share in Renault as of 2013, while Renault has a voting interest of 43.4% in Nissan. Nissan has owned a 34% controlling interest in Mitsubishi Motors since October 2016.
Nissan ranked after Toyota, General Motors, Volkswagen Group, Hyundai Motor Group, and Ford as the world’s sixth-largest carmaker in 2013. The Renault-Nissan Alliance was the fourth-largest automaker in the world when taken as a whole. [Reference needed] The most popular Japanese brand in China, Russia, and Mexico was Nissan.
Nissan sold more than 320,000 all-electric vehicles globally as of April 2018, making it the top EV manufacturer in the world. The Nissan LEAF, which ranks as the second-best-selling electric car globally, just behind the Tesla Model 3, is the most popular model in the automaker’s entirely electric lineup.
Is Nissan profitable?
Nissan Motor Co. this week declared its return to profitability for the first time since 2019 following two years of significant losses and reductions in manufacturing capacity and the number of models it sells, noting that it is also making steady progress toward its 2030 growth objectives.
Nissan is Toyota owned by?
Toyota: Lexus, Daihatsu, and Toyota. Ford Motor Company: Troller, Lincoln, and Ford. General Motors produces Cadillac, GMC, Chevrolet, and Holden. Alliance between Renault, Nissan, Infiniti, Dacia, Datsun, and Samsung Mitsubishi, Lada, and Renault
Why is Renault stock trading so low?
Why are shares of Renault so cheap? Long-term overcapacity in the European automotive market has been a problem, and COVID has slowed the growth of the market for new vehicles all over the continent. The quick transition to electric vehicles is raising expenses for manufacturers as well. However, Renault has quickly returned to profitability during the past six months and sold 1.4 million vehicles, up nearly 20% from the same period in 2019.
Nissan PE Ratio: What Is It?
From 2010 through 2022, Nissan Motor’s (NSANY) p/e ratio has been both current and historical. The most recent closing price is multiplied by the most recent earnings per share (EPS) figure to determine the price to earnings ratio. The most popular valuation metric is the PE ratio, which offers a straightforward approach to determine whether a stock is fairly valued or not. As of September 28, 2022, Nissan Motor’s PE ratio is 10.30.
For more details on our past pricing, please see the Stock Price Adjustment Guide.
Nissan uses Renault engines, right?
Renault presently receives three parts of the Nissan powertrain. Nissan receives four from Renault. They have created five engines or transmissions together. According to Kazumasa Katoh, senior vice president for powertrain engineering at Renault, it amounts to around 100,000 engines and 600,000 transmissions this year.
Is MG Motors a publicly traded company?
A non-government organization in India is called MG Motor India Private Limited. It is a private corporation that falls under the definition of “company limited by shares.”
Renault has departed Russia?
- In an abandoned Renault factory, Russia is bringing the Moskvich automobile brand back to life.
- The French automaker, which is leaving the country, left behind a factory, which Russia is now operating.
- Following Russia’s invasion of Ukraine, hundreds of businesses have left the country, including Renault.
Following Vladimir Putin’s war on Ukraine, foreign corporations keep leaving Russia in droves.
The French automaker Renault, which finalized a deal on Monday to sell all of its operations in Russia to the city of Moscow and a state-backed organization, is one of the many people leaving the country. According to a blog post by the city’s mayor, Sergei Sobyanin, Russia intends to use the Renault facility in Moscow to resuscitate the Moskvich vehicle brand from the Soviet era.
According to Sobyanin, the facility has a “long and beautiful history,” and with the aid of Kamaz, a Russian producer of heavy-duty vehicles and engines, Russia will bring back the “famous” brand. According to him, Moskvich will initially sell automobiles with conventional combustion engines and then later electric ones.
According to reports, Renault received pennies on the dollar — or, perhaps more accurately, rubles on the euro — when it sold its Russian assets. According to reports in the Financial Times and Reuters, Renault sold its operations for 2 rubles. The company estimated that the purchase will cost it 2.2 billion euros.
Russia is becoming more cut off from international trade, which includes trading in automobiles and auto parts. In order to localize the production of auto parts, Sobyanin promised to cooperate with the Russian government. According to two sources cited by Reuters on Thursday, the new Moskvich vehicles would be built on a Chinese chassis.
Outside of the country, Soviet-era automobiles were known for their subpar construction and dependability problems. Particularly the Yugo, a little car from Yugoslavia that was temporarily available in the US starting in the 1980s, became the punchline of numerous jokes. (What is a Yugo at the top of a hill called? a wonder.)