- Based on the stock performance over the previous 40 years, Nissan Motor has typically increased by 6.1% during the following 52 weeks.
- Nissan Motor has increased more over the succeeding 52 weeks in 21 of the 40 years, with a historical accuracy of 52.5%.
- Is the stock of Nissan Motor undervalued?
The Score for NSANY is 35, which indicates higher risk than average and is 30% below its historic median score of 50.
- NSANY’s current price is between the 30th and 40th percentiles of its historical Stock Score range.
In This Article...
Summary
- 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).
Conclusion
Sales of the Nissan LEAF this year have not been all that encouraging, and the stock still appears to be more expensive than in prior years.
Additional information Additional disclaimer: There are no warranties and this article is provided “as is.” The information is solely my opinion and is in no way intended to be taken as professional investment advice. Before making any investment decisions, it is the reader’s obligation to do their research and consult a qualified professional for guidance. Any actions done in reliance on the information in this article are not the responsibility of the author.
The COO of Nissan claims that the company is on track to achieve its post-Ghosn turnaround goals a year early.
- Nissan is moving forward after the scandal-plagued departure of former CEO and now wanted international fugitive Carlos Ghosn by making significant progress on a global restructuring plan.
- The Japanese manufacturer is on track to accomplish the goals outlined in its “Nissan Next” turnaround plan one year earlier than the target date of March 2024.
- Following nearly a decade of leadership by Ghosn, Nissan Next is a combination of cost-cutting, product investment, and culture reform.
On a prototype of its new all-electric Ariya crossover, Nissan has lighted its logo. The vehicle’s grille reflects Nissan’s Z Proto sports car, while an updated Nissan Pathfinder SUV is seen in the distance.
As it moves past Carlos Ghosn’s scandal-plagued departure, Nissan Motor is making considerable strides in a global restructuring plan to downsize operations and return to profitability.
In a video interview from Nissan’s headquarters in Yokohama, Japan, Gupta, who is in charge of the transformation, said: “Despite the headwinds, we have pulled ahead the recovery by one year.” We are far ahead of schedule compared to what we predicted, which enabled us to weather the pandemic’s headwinds in 2020.
Following almost 20 years under Ghosn, who fled Japan to Lebanon in December 2019 while awaiting trial on allegations of financial wrongdoing, Nissan Next is a blend of cost-cutting, product investment, and culture transformation. Nissan CEO Makoto Uchida outlined the recovery plan as a road map to long-term profitability and “competition for the next ten years.”
The company’s operations are being significantly scaled back in order to place more of an emphasis on higher profits than on Ghosn’s goals of sales volume and growth. Nissan still has a ways to go in terms of profitability, but according to Gupta, there are some encouraging indicators.
Nissan’s 2020 fiscal year, which ends in March, saw a loss of 367.7 trillion Japanese yen ($3.4 billion) through the first three quarters. However, it exceeded its initial objective by 100 billion Japanese yen ($921 million) in the third quarter, producing an operating profit of 27.1 billion Japanese yen ($250 million). Additionally, compared to its earlier plan of 300 billion Japanese yen ($2.8 billion), it has reduced fixed costs by 330 billion Japanese yen ($3 billion).
According to Gupta, cutting fixed costs by closing operations, leaving markets like South Korea, and lowering plant shifts internationally allowed the corporation to arrive ahead of schedule. Other goals of the transformation plan include a 20% reduction in the world’s manufacturing capacity, a tripling of operating profit margin to 5%, and a marginal increase in worldwide market share from 5.8% to 6%.
Analysts are cautiously optimistic that Nissan can turn things around based on the early findings. According to FactSet, the price of Nissan shares listed on the Tokyo Stock Exchange has increased by nearly 51% in the past year.
Following the company’s third quarter earnings, Morgan Stanley analyst Kota Mineshima wrote in a letter to investors, “Our impression is generally one of progress.”
Holdings in Nissan Motor Co.
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. This company lacks momentum and would be a poor choice for investors seeking momentum, according to recent price fluctuations and earnings estimate revisions.
Will Nissan’s stock increase?
Stock Price Prediction The consensus price target among the 16 analysts who are providing Nissan Motor Co Ltd. 12-month price estimates is 8.96, with a high estimate of 11.70 and a low estimate of 5.84. From the most recent price of 6.84, the median forecast reflects a +31.02% 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.
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.
Nissan facility to close?
In anticipation of future product launches, Nissan said it will “halt activities at the Decherd powertrain factory.” 400 of its staff will be transferred. Although Infiniti Powertrain was designed to produce up to 250,000 engines annually, at its peak output in 2020, it was only able to operate at 35 percent of capacity.
Nissan shutdown, why?
Following a fall in sales of its locally built Almera automobiles, NISSAN Philippines, Inc. (NPI) will cease its assembly operations in the Philippines in March, according to the Trade department.
Nissan’s decision to cease local manufacturing facilities, according to Trade Secretary Ramon M. Lopez, is evidence that safeguards on imported cars are required.
“The decision to stop producing the Nissan Almera at the Santa Rosa facility in the Philippines was made by Nissan in the Philippines and its vehicle assembly partner, Univation Motor Philippines, Inc. (UMPI), and will take effect in March 2021. Following the termination of the assembly contract between NPI and UMPI, a decision has been reached “The business declared in a statement.
Nissan will continue its marketing and distribution in the nation by importing vehicles from its manufacturing facilities in Thailand and Japan.
“Nissan is still dedicated to its Philippine investments. Through the company’s cutting-edge goods and top-notch services, as well as its statewide dealer expansion, the Philippine automobile sector will continue to expand.”
Nissan said in an email that it will lay off the 133 workers involved in local assembly.
Nissan claimed that it is attempting to streamline business and production processes in Southeast Asia.
After Nissan closed its plant in Indonesia last year, a recent trend may be seen in the shutdown. It also has closure plans for Spanish factories.
The Japanese automaker revealed 20% of its product line and annual production capacity would be slashed last year.
Nissan sold 21,751 units last year, accounting for a 9.72% market share, ranking third among the members of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI).
However, the Department of Trade and Industry (DTI) claimed in a statement on Thursday that sales of the Nissan Almera typically make up 1% of the entire auto market. According to DTI, foreign pickups and sport utility vehicles account for the majority of Nissan sales.
“Nissan has hinted that, due to weaker volume sales and the Almera’s low market share, they already considered closure last year. They’ve essentially stayed longer, “said DTI.
The Honda Cars Philippines, Inc. closure in March of last year, which was attributed to rationalization following a global recession in the automobile industry, was followed by the Nissan shutdown.
The decision by Nissan to stop assembling cars in the nation is sad since it serves as another evidence of how precarious the local auto industry is, according to Mr. Lopez.
Therefore, quick implementation of the provisional safeguard measures is required to preserve the home industry from additional severe harm.
After confirming a connection between a rise in imports and a reduction in local automotive jobs, the DTI imposed safeguard taxes on imported cars.
Business organizations in the automotive industry have questioned the precautionary measures, claiming that they will slow the recovery of a sector that was severely affected by the pandemic.
Data from CAMPI and the Truck Manufacturers Association showed that car sales in the Philippines fell by 39.5% to 223,793 units in 2020 compared to the previous year as a result of demand being reduced by limitations put in place to combat the coronavirus illness 2019 (COVID-19) pandemic.
According to DTI, Nissan will compensate the fired employees, and the Labor Department will assist them in locating manufacturing positions.