[Stock Analysis] Nidec (TYO: 6594)

Revolutionizing EV motors to outpace Tesla & BYD's Innovations - In fact, they are buying motors from Nidec!

Please note: This article is for informational purposes only and is not intended as investment advice. The mention of specific stocks is not a recommendation to buy or sell any securities.

Why is Nidec Interesting?

• Nidec's Edge in the EV Motor Market

Nidec, a Japanese electric motor manufacturer, currently trading as NJDCY and NNDNF on the OTC markets, is gaining increasing attention in the stock market, especially for its role in the electric vehicle (EV) sector. Despite being the fourth-largest electric motor maker globally, Nidec stands out for several key reasons that make it a compelling stock to watch.

• The Tesla and China Challenge

Nidec is positioning itself as a formidable competitor in the EV motor space, not just against Chinese manufacturers but also against Tesla. The company's confidence in outperforming Tesla in creating cheaper and better key components for EVs is a bold statement, reflecting its ambitious goals and potential market impact. Nidec's leadership believes they can contribute significantly to Tesla’s ambitious target of producing 20 million EVs annually by 2030​​​​.

• Strategic Moves and Innovations

A crucial factor making Nidec interesting is its strategic innovation. The company has developed its "E-Axle" system, integrating motors, gears, and inverters into a single unit, which is particularly appealing in the EV market that seeks efficiency and compact design. This system aligns with the trend toward smaller, more efficient powertrains and places Nidec in a favorable position against its competitors.

Nidec’s revolutionary E-Axle system integrates the motor, gear and inverter into one unit

A typical EV engine separates each component away from the main engine

Moreover, Nidec's ambition to offer a traction motor for less than $1,000 in the next few years, a significant reduction from current standard prices, could disrupt the market. Their focus is not just on the cost but also on the efficiency and quality of the products. With electric motors being a crucial component of EVs, Nidec's advancements could prove pivotal.

Table of Content

1. Valuation & Performance

2. Future Growth

3. Management

4. Financial Health & Dividend

5. KonichiValue Score

Scoring Key:

• +1 (🟢) - Positive

• 0 (🔵) - Neutral

• -1 (🔴) - Negative

1. Valuation & Performance [🔴 -1]

Nidec Corporation (TSE: 6594) presents a mixed picture in terms of financial performance and valuation, especially when compared to its industry peers.