Nidec Corporation (6594.T) stock analysis

In our weekly check, Nidec Corporation is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 9 pass, warnings: 6, red flags: 8.

About Nidec Corporation

Nidec Corporation is an Industrials company (Industrial - Machinery) based in Japan, listed on JPX as 6594.T.

What our checks show for 6594.T

Red flags

• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• The net margin fell by 28 points over 5 years, to -20.8%: the company keeps less of each sale as profit.
• Weak EPS growth
• The company is losing money: the net margin is -20.8%.
• Nidec Corporation pays a dividend while losing money: it is funded from reserves or debt.
• The price swings a lot: 59.7% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 77% from a peak. Would you have held through that?
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.

Warning signs

• Net debt is 1.3x a year of EBITDA (debt/equity 1.4). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 1.6 points, to 19.4%: costs are rising faster than prices.
• Analysts expect earnings per share to shrink about 30.2% a year.
• Analysts expect only about 3.9% a year of growth in revenue.
• Free cash flow is only 3.8% of revenue.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 0.41x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 27.2 points from today's -20.8%.
• A large company: market value $12.46 billion.
• Actively traded: about 8.7 million shares a day.
• Pay in shares is only 0% of free cash flow.

Similar companies

6383.T · 6361.T · 7013.T · CUMMINSIND.NS · 6273.T · ATCO-A.ST

Questions

What grade does Nidec Corporation (6594.T) have?

In our weekly check, Nidec Corporation is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 9 pass, warnings: 6, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 6594.T stock?

This week's biggest flags for Nidec Corporation: Weak interest cover, Margins falling, Weak EPS growth. In total 14 of 23 checks show a warning or a red flag.

What does Nidec Corporation do?

Nidec Corporation is an Industrials company (Industrial - Machinery) based in Japan, listed on JPX as 6594.T.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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