Nidec (TSE:6594) Valuation Check as Founder Shigenobu Nagamori Hands Chairmanship to Mitsuya Kishida

Nidec (TSE:6594) just confirmed a major leadership handoff, with founder Shigenobu Nagamori stepping down as Chairman and becoming Chairman Emeritus, while CEO Mitsuya Kishida takes over the board. For investors, this shift spotlights succession, strategic continuity and how the market prices Nidec’s next chapter.

See our latest analysis for Nidec.

The leadership transition lands at a tricky moment for shareholders, with the 30 day share price return of 4.01 percent offering only a modest bounce against a steep 90 day decline of 26.84 percent and a 5 year total shareholder return of negative 67.60 percent. This suggests sentiment has been fading rather than building despite Nidec’s longer term growth ambitions.

If this shift at Nidec has you thinking about where else leadership and growth stories might emerge, it could be worth exploring auto manufacturers as a way to spot the next potential mover.

With profits still growing and the share price sitting well below analyst targets, investors face a pivotal question: is Nidec quietly undervalued after years of underperformance, or is the market already discounting its future growth?

Most Popular Narrative: 37.5% Undervalued

With Nidec closing at ¥1,998 against a narrative fair value of ¥3,195, the current price embeds a deep discount to long term expectations.

Ongoing structural reforms targeting a ¥100 billion reduction in variable costs and ¥50 billion in fixed costs through business consolidation, site rationalization, and exit from low margin segments are expected to materially improve operating margins and net profitability, especially into FY2027, supporting a rerating of the business.

Read the complete narrative.

Want to see what kind of growth, margin lift, and future earnings multiple are baked into that upside story? The full narrative spells out the numbers driving this valuation gap.

Result: Fair Value of ¥3,195 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing accounting investigations and high execution risk related to large-scale restructuring could quickly erode confidence in that upside case.

Find out about the key risks to this Nidec narrative.

Build Your Own Nidec Narrative

If you are not fully aligned with this view, or prefer digging into the data yourself, you can build a fresh narrative in minutes: Do it your way.

A great starting point for your Nidec research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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