Nissan Motor Co., Ltd. (7201.T) stock analysis

In our weekly check, Nissan Motor Co., Ltd. is graded D (A to F). Of 22 checks on debt, profit, cash flow and trend: 7 pass, warnings: 6, red flags: 9.

About Nissan Motor Co., Ltd.

Nissan Motor Co., Ltd. is a Consumer Cyclical company (Auto - Manufacturers) based in Japan, listed on JPX as 7201.T.

What our checks show for 7201.T

Red flags

• Net debt is 13.7x a year of EBITDA (debt/equity 1.88). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.3 times: a weak year could make the payments hard.
• The net margin fell by 5.9 points over 5 years, to -3.4%: the company keeps less of each sale as profit.
• Weak EPS growth
• The company is losing money: the net margin is -3.4%.
• Free cash flow is negative (-5.5% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 83% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.4%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The gross margin fell by 1.4 points, to 14%: costs are rising faster than prices.
• Analysts expect earnings per share to shrink about 22.9% a year.
• Analysts expect only about 3.1% a year of growth in revenue.
• Revenue grew only 5% a year over the last 3 years.
• The price swings a lot: 39.8% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 2.21x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 4.8 points from today's -3.4%.
• Beta 0.44: the stock usually moves less than the market.
• The share count fell by 9.5% in 2 years: the company buys back its own shares.
• Actively traded: about 39.3 million shares a day.

Next earnings report: 2026-11-11

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Questions

What grade does Nissan Motor Co., Ltd. (7201.T) have?

In our weekly check, Nissan Motor Co., Ltd. is graded D (A to F). Of 22 checks on debt, profit, cash flow and trend: 7 pass, warnings: 6, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 7201.T stock?

This week's biggest flags for Nissan Motor Co., Ltd.: High debt, Weak interest cover, Margins falling. In total 15 of 22 checks show a warning or a red flag.

What does Nissan Motor Co., Ltd. do?

Nissan Motor Co., Ltd. is a Consumer Cyclical company (Auto - Manufacturers) based in Japan, listed on JPX as 7201.T.

When does Nissan Motor Co., Ltd. report earnings next?

The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.

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 2026-10-31

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