- 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.
In This Article...
From an electric alliance to an excess of rental cars.
In its alliance with Renault, the business just accomplished what senior equity analyst Richard Hilgert views as a remarkable success. It also recently made an early bet that also included Mitsubishi on electric vehicles, which could turn out to be profitable.
Seven hundred thousand vehicles later, it has already built substantial manufacturing and warranty servicing competence as its rivals rush to increase electric vehicle production.
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.
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Alert to Volatility for Nissan Motors
The volatility for Nissan Motors ADR is quite low, with skewness of 0.12 and kurtosis of 1.13. To make sure that all market information is accessible and trustworthy, we suggest investors to further research Nissan Motors ADR technical indicators. Investors who understand various market volatility trends typically find it easier to time the market. When volatility indicators are used properly, traders may assess the risk of the otc stock of Nissan Motors in relation to market volatility during both bullish and bearish movements. As investors watch their shares’ value decline, the increased volatility that comes with bear markets can have a negative impact on the otc stock price of Nissan Motors. As a result, investors frequently have to rebalance their portfolios by purchasing new equities as the market declines.
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.
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.
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 followed the Carlos Ghosn scandal in 2018, which resulted in the global chairman of Nissan being detained in Japan for a number of alleged financial offences. 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.
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.
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.
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
Is Nsany a reliable investment?
Nissan Motor Co. is now ranked as a Zacks Rank 3 according to Zacks’ proprietary data, and we anticipate an equal return for the NSANY shares in relation to the market over the coming several months. Nissan Motor Company also has a VGM Score of A. (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style). Metrics of valuation suggest that Nissan Motor Co. might be undervalued. It would be a good choice for value investors, according to its Value Score of A. The stability of NSANY’s finances and its growth prospects show that it has the potential to outperform the market. As of right now, it has an A Growth Score. With a Momentum Score of D, recent price fluctuations and earnings estimate revisions suggest this would not be an excellent company for momentum investors.
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.