Nissan Motor Co Ltd ADR (NSANY) Quote - PINX | Morningstar

Skip to Content

Is it the right time to buy or sell?

Find out with Morningstar Premium

Is it the right time to buy or sell?

Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Nissan Starts Fiscal 2021 With Solid Turnaround Progress, Raises Guidance; FVE Raised to JPY 1,500

Senior Equity Analyst Richard Hilgert

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert | Jul 28, 2021

No-moat rated Nissan reported fiscal first-quarter 2021 earnings per share before special items of JPY 9.82, JPY 16.01 better than the FactSet consensus loss per share of JPY 6.19 and JPY 52.63 better than the JPY 42.81 loss per share reported in the heavily COVID-19-impacted year-ago period. While automotive revenue jumped 91% to JPY 1.74 trillion, consolidated volume rose 59% to 695 thousand vehicles. Revenue growth outperformed volume as average automotive revenue per unit improved 20% on favorable mix and pricing with a slight currency tailwind. Automotive operating profit was JPY 6.0 billion versus an operating loss of JPY 199.1 billion a year ago. The swing back into black was on operating leverage from higher volume as well as cost reductions versus the prior year when the pandemic shutdown production. Automotive liquidity remained healthy at JPY 3.7 trillion with JPY 1.7 trillion cash and JPY 2.0 trillion available credit.

Read Full Analysis

Company Profile

Business Description

While Nissan annually sells about 4 million vehicles, total 2020 Renault-Nissan-Mitsubishi alliance sales volume of 7.8 million vehicles makes the alliance the third largest vehicle group in the world, behind Toyota at 9.5 million and Volkswagen at 9.3 million vehicles sold. Nissan's financial services subsidiary provides consumers with auto loans and leases. In addition, the subsidiary also finances Nissan's sales to its dealerships (known as floor-plan financing). Nissan is 43.4% owned by French automaker Renault, while Nissan in turn owns 15% of Renault. The Alliance also has controlling interests in AvtoVAZ (Lada) in Russia and Mitsubishi Motors in Japan.

Contact

1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi
Kanagawa, 220-8686, Japan

nissan-ir@mail.nissan.co.jp

www.nissan-global.com

Sector Consumer Cyclical

Industry Auto Manufacturers

Most Recent Earnings Jun 30, 2021

Fiscal Year End Mar 31, 2020

Stock Type —

Employees 147,553

Related

3 Attractive Electric Vehicle Plays That Aren't Tesla

These firms stand to benefit from increased adoption of electric vehicles--and they're undervalued.

Stock Strategist Industry Reports

What We Expect for the Automotive Industry After COVID-19

A look at the automakers and suppliers that are best positioned to benefit from the industry's recovery.

Richard Hilgert

7 Surprising Stocks to Consider

These large companies lack economic moats and have negative moat trends--but we think they’re attractive nonetheless.

Susan Dziubinski

What Happened to All of the Self-Driving Cars?

Last year was meant to be the dawn of autonomous vehicles, so where are they?

Keith Reid-Cleveland

Stock Analyst Update

Coronavirus Not Yet Hurting U.S. Autos, Bad News Likely

There is little data to gauge the coronavirus impact on the industry, so we are not changing our forecast at this time.

Stock Strategist Industry Reports

Moats, Motors, and Markets in 2020

Our analysts offer their annual global auto overview, forecast, and actionable ideas.

Premium Article

8 Surprising Stocks to Consider

These large companies lack economic moats and have negative moat trends--but we think they’re attractive nonetheless.

Susan Dziubinski

Sustainability Matters

Sustainable Funds Largely Sidestep Nissan Controversy

The arrest of Nissan chairman Carlos Ghosn was a shock, but a poor history of corporate governance kept most ESG-focused funds away.

Stock Analyst Update

After Years of Courtship, Renault and Nissan May Merge

Given the vast amount of already shared purchasing, engineering, and vehicle platforms between the alliance partners, an integration of the firms could be relatively rapid.

Richard Hilgert

Stock Strategist Industry Reports

NAFTA Exit Negative for U.S. Autos

We see no winners if free trade ends.

Advisor Insights

Adding Value and Expressing Values

Domini Impact International Equity has met both needs.

Stock Strategist

General Motors Keeps Proving Doubters Wrong

The automaker's story suggests that more upside remains for the stock.

Investing Specialists

Should Investors Be More Worried About Manufacturing and Earnings Data?

Market participants are instead cheering a rise in oil prices and the fact that earnings season could be a lot worse.

Robert Johnson, CFA

Stock Strategist Industry Reports

China's Weakness Doesn't Faze European Auto Outlook

Morningstar's Rich Hilgert has already factored in lower demand, and his valuations are unchanged.

Richard Hilgert

Stock Strategist

Auto Industry Shifts Gears

Investors who look beyond recalls will see an industry focused on new technologies.

Investing Specialists

U.S. Consumers Remain on Strike

Hopefully, their boost in savings will start to burn a hole in the economy's pocket.

Robert Johnson, CFA

Investing Specialists

Bouncing Up or Bouncing Back?

After some truly horrendous data in December, January, and February, the economy needed its recent show of strength just to get back to the trend line.

Robert Johnson, CFA

Quarter-End Insights

Industrials Stocks: Automakers Look Undervalued

We are concerned about a slow start to U.S. light-vehicle sales this year, but we expect improvement once the cold abates.

Credit Insights

Treasury Bonds Take It on the Chin

Strong job growth sent Treasury rates upward, but corporate credit spreads held steady on a flood of new issues.

Credit Insights

Corporate Credit Spreads Unchanged on Weak Economic Data While Treasury Bonds Gain

Transparency is our policy. Learn how it impacts everything we do.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

How we make money

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your personal data

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

Verify your identity, personalize the content you receive, or create and administer your account.
Provide specific products and services to you, such as portfolio management or data aggregation.
Develop and improve features of our offerings.
Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

How we approach editorial content

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.