[Stock Analysis] Nissan Motor (7201, NSANY): From Ghosn's EV Pioneer to Market Laughing-Stock - Revival Ahead?

After years of setbacks and being overshadowed, can Nissan reignite its early EV spark and provide an upside for its dirt-cheap stock?

Disclaimer: The details presented in this stock analysis are reflective of my opinions. They are not to be interpreted as personalized investment advice and may be subject to change.

• Ticker: JP: 7201, US: NSANY

• Price at publication: JPY 572

Summary

• Historical Drama: Nissan's rollercoaster journey, intensified by the Carlos Ghosn saga.

• Valuation vs. Peers: How does Nissan's financial standing compare with industry leaders like Toyota, Honda, and others?

• Market Opportunities: The United Auto Workers strikes and potential gains in the US juxtaposed with significant challenges in China.

• EV Ambitions: Can Nissan's shift to electric vehicles overcome past setbacks and future competition?

• Financial Concerns: Debt dilemmas, credit downgrades, and recent legal costs: warning signs for investors.

• KonichiValue Verdict: An all-encompassing evaluation delivers a decisive score. What's the reason behind it?

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Table of Content

1. Company Overview

2. Valuation & Peer Comparison

3. Growth & Competitive Edge

4. Financial Health Check

5. KonichiValue Score

6. Conclusion & Future Outlook

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1. Company Overview

From its inception in 1933, Nissan Motor Co., Ltd. (originally Datsun) carved a niche for itself in the automotive world. Rapid innovation and a commitment to engineering set it on a trajectory to become one of the industry's giants. Yet, like many giants, it was not immune to setbacks. As debts soared and global market share contracted, the future looked increasingly uncertain.

Then, Carlos Ghosn stepped into the frame. With a clear vision and a determination unmatched, he revived Nissan's fortunes, pulling it back from the brink. His leadership was a beacon of hope, and for a time, Nissan's revival was the talk of the town. But the pendulum of fate swings both ways. Ghosn's later financial misconduct allegations and his audacious escape from Japan, worthy of a Hollywood movie, added layers of complexity to Nissan's story.

Say what you want about Carlos Ghosn, but he did save Nissan from an almost certain demise.

The post-Ghosn era tested Nissan's resilience. Battling tarnished brand perception and an evolving automotive market, the company had to find its footing once again. The rise of electric vehicles (EVs) was a clear sign of where the industry was headed, and even though Nissan was a maverick in the space under Ghosn’s leadership, the company was now far behind.

Today, with its valuation at a seemingly low point, the world is watching Nissan closely. The company is making deliberate moves toward the EV sector, leveraging its deep-rooted experience. There's a new narrative being written, and it's about transformation and adaptation.

For investors on the lookout, this is a pivotal moment. Is Nissan on the brink of yet another resurgence?