reports
- Michael Makdad
Morningstar | Nomura's Core Domestic Unit NSC Falls to Operating Loss ...
We adjust our fair value estimate for Nomura from JPY 543 to JPY 527 and from USD 5.00 to USD 4.70. We continue to value the firm at 0.70 times book value, based on assumed cost of equity of 8.5% and long-term ROE of around 6%. We have a no-moat rating on Nomura but believe its domestic retail and asset-management businesses are moaty. If Nomura were to pare back its overseas operations more radically and adopt a business model similar to that of smaller rival Daiwa Securities, we might consider...
- Michael Makdad
Morningstar | Nomura's Core Domestic Unit NSC Falls to Operating Loss ...
We adjust our fair value estimate for Nomura from JPY 543 to JPY 527 and from USD 5.00 to USD 4.70. We continue to value the firm at 0.70 times book value, based on assumed cost of equity of 8.5% and long-term ROE of around 6%. We have a no-moat rating on Nomura but believe its domestic retail and asset-management businesses are moaty. If Nomura were to pare back its overseas operations more radically and adopt a business model similar to that of smaller rival Daiwa Securities, we might consider...
- Michael Makdad
Nomura's Core Domestic Unit NSC Falls to Operating Loss for First Time...
We adjust our fair value estimate for Nomura from JPY 543 to JPY 527 and from USD 5.00 to USD 4.70. We continue to value the firm at 0.70 times book value, based on assumed cost of equity of 8.5% and long-term ROE of around 6%. We have a no-moat rating on Nomura but believe its domestic retail and asset-management businesses are moaty. If Nomura were to pare back its overseas operations more radically and adopt a business model similar to that of smaller rival Daiwa Securities, we might consider...
- Michael Makdad
Morningstar | Nomura Changes to Simplify its Global Business are Overd...
We are tweaking our forecasts for Nomura in response to the cost-cutting measures it announced yesterday. We are lowering our pretax profit expectation for the current fiscal year ending March 2020 to JPY 131 billion from 205 billion to reflect one-time costs associated with employee departures and other structural changes, such as reducing the number of main corporate functions from 10 to five and replacing its complicated regional and segment matrix of reporting lines with a simpler global str...
- Michael Makdad
Nomura Changes to Simplify its Global Business are Overdue but Welcome...
We are tweaking our forecasts for Nomura in response to the cost-cutting measures it announced yesterday. We are lowering our pretax profit expectation for the current fiscal year ending March 2020 to JPY 131 billion from 205 billion to reflect one-time costs associated with employee departures and other structural changes, such as reducing the number of main corporate functions from 10 to five and replacing its complicated regional and segment matrix of reporting lines with a simpler global str...
- Michael Makdad
Morningstar | NMR Updated Forecasts and Estimates from 13 Feb 2019
Nomura reported its second consecutive quarterly loss, with red ink at the bottom line of JPY 95.1 billion wiping out more than 3% of the group's book value. This was driven by a JPY 81.4 billion goodwill write-down in the wholesale business, though the report included other items as well, such as a JPY 18.3 billion impairment charge on Nomura's stake in regional bank Mebuki Financial Group. In any case, we are sure that the market is now looking past the specifics of the awful results and towar...
- Michael Makdad
Morningstar | Nomura's Huge Loss Matters Most Because It Could Prompt ...
Nomura reported its second consecutive quarterly loss, with red ink at the bottom line of JPY 95.1 billion wiping out more than 3% of the group's book value. This was driven by a JPY 81.4 billion goodwill write-down in the wholesale business, though the report included other items as well, such as a JPY 18.3 billion impairment charge on Nomura's stake in regional bank Mebuki Financial Group. In any case, we are sure that the market is now looking past the specifics of the awful results and towar...
- Michael Makdad
Morningstar | Nomura's Huge Loss Matters Most Because It Could Prompt ...
Nomura reported its second consecutive quarterly loss, with red ink at the bottom line of JPY 95.1 billion wiping out more than 3% of the group's book value. This was driven by a JPY 81.4 billion goodwill write-down in the wholesale business, though the report included other items as well, such as a JPY 18.3 billion impairment charge on Nomura's stake in regional bank Mebuki Financial Group. In any case, we are sure that the market is now looking past the specifics of the awful results and towar...
- Michael Makdad
Nomura's Huge Loss Matters Most Because It Could Prompt Management to ...
Nomura reported its second consecutive quarterly loss, with red ink at the bottom line of JPY 95.1 billion wiping out more than 3% of the group's book value. This was driven by a JPY 81.4 billion goodwill write-down in the wholesale business, though the report included other items as well, such as a JPY 18.3 billion impairment charge on Nomura's stake in regional bank Mebuki Financial Group. In any case, we are sure that the market is now looking past the specifics of the awful results and towar...
- Michael Makdad
Morningstar | Nomura’s Domestic Cost-Cutting Is Positive and Importa...
CEO Koji Nagai told the institutional investors at Nomura’s Investment Forum the firm will cut costs in its Retail division by 10% over the next three years, closing more branches with overlapping coverage areas in Tokyo and urban areas. Nomura has frequently pared expenses in its Wholesale division overseas, but large-scale reductions in domestic Retail would represent a change, in our view. We view Nomura's financial performance as likely to continue to lag that of smaller peer Daiwa unless...
- Michael Makdad
Nomura’s Domestic Cost-Cutting Is Positive and Important, but Big Ov...
CEO Koji Nagai told the institutional investors at Nomura’s Investment Forum the firm will cut costs in its Retail division by 10% over the next three years, closing more branches with overlapping coverage areas in Tokyo and urban areas. Nomura has frequently pared expenses in its Wholesale division overseas, but large-scale reductions in domestic Retail would represent a change, in our view. We view Nomura's financial performance as likely to continue to lag that of smaller peer Daiwa unless...
- Michael Makdad
Morningstar | Hit by DOJ Settlement and Weak Markets, Nomura Reports F...
Nomura reported an annualized return on equity of minus 1.6% for the July-September quarter, its first quarterly loss in two and a half years. Some of Nomura’s shortfall is attributable to similar factors that depressed the earnings of Nomura’s smaller rival Daiwa two days ago, namely slow performance in the domestic retail business as currency turmoil in emerging markets turned Japanese investors off from overseas bonds as well as a quiescent period for investment banking revenue opportunit...
- Michael Makdad
Morningstar | Hit by DOJ Settlement and Weak Markets, Nomura Reports F...
Nomura reported an annualized return on equity of minus 1.6% for the July-September quarter, its first quarterly loss in two and a half years. Some of Nomura’s shortfall is attributable to similar factors that depressed the earnings of Nomura’s smaller rival Daiwa two days ago, namely slow performance in the domestic retail business as currency turmoil in emerging markets turned Japanese investors off from overseas bonds as well as a quiescent period for investment banking revenue opportunit...
- Michael Makdad
Hit by DOJ Settlement and Weak Markets, Nomura Reports First Quarterly...
Nomura reported an annualized return on equity of minus 1.6% for the July-September quarter, its first quarterly loss in two and a half years. Some of Nomura’s shortfall is attributable to similar factors that depressed the earnings of Nomura’s smaller rival Daiwa two days ago, namely slow performance in the domestic retail business as currency turmoil in emerging markets turned Japanese investors off from overseas bonds as well as a quiescent period for investment banking revenue opportunit...
- Michael Makdad
Lackluster Quarter for Daiwa as Currency Turmoil Turns off Investors F...
Daiwa Securities Group reported lackluster results for the July-September quarter, reflecting reduced sales of overseas bonds to retail investors amid volatile emerging-markets currencies, lower revenue from equity and debt underwriting, and a JPY 2.2 billion loss in private equity due to revaluation of an existing investment. On the positive side, asset-management profits were stable as usual and Daiwa was able to benefit from increased volatility in the Japanese government bond market when the...
- Michael Makdad
Morningstar | We See Daiwa Earning Better Returns Than Nomura Unless N...
We are transferring coverage of Japanese securities firms Nomura (8604 JP) and Daiwa (8601 JP), both of which we rate as having no moats and stable moat trend. Our fair value estimates of JPY 625 and JPY 786 are 12% above Nomura's and 16% above Daiwa's latest share prices, respectively. Under their current strategies, we believe Daiwa likely to achieve a higher average return on equity over the cycle than Nomura, in part because Nomura insists on trying to compete in its global wholesale operat...
- Michael Makdad
Morningstar | We See Daiwa Earning Better Returns Than Nomura Unless N...
We are transferring coverage of Japanese securities firms Nomura (8604 JP) and Daiwa (8601 JP), both of which we rate as having no moats and stable moat trend. Our fair value estimates of JPY 625 and JPY 786 are 12% above Nomura's and 16% above Daiwa's latest share prices, respectively. Under their current strategies, we believe Daiwa likely to achieve a higher average return on equity over the cycle than Nomura, in part because Nomura insists on trying to compete in its global wholesale operat...
- Michael Makdad
We See Daiwa Earning Better Returns Than Nomura Unless Nomura Gives Up...
We are transferring coverage of Japanese securities firms Nomura (8604 JP) and Daiwa (8601 JP), both of which we rate as having no moats and stable moat trend. Our fair value estimates of JPY 625 and JPY 786 are 12% above Nomura's and 16% above Daiwa's latest share prices, respectively. Under their current strategies, we believe Daiwa likely to achieve a higher average return on equity over the cycle than Nomura, in part because Nomura insists on trying to compete in its global wholesale operati...
- Michael Wu
Morningstar | Losses in Wholesale Division Drags on Nomura’s 1Q Resu...
No-moat Nomura Holdings began fiscal 2019 with a subdued first-quarter result. Profits for all three divisions were lower against last quarter and the same period last year with wholesale the most disappointing. Our forecasts and fair value estimate of JPY 760 are unchanged. While our fiscal 2019 forecast may be optimistic given the weak first-quarter result, capital market conditions may be more favorable for the remainder of the year, particularly for the fixed-income market in Japan. Speculat...
- Michael Wu
Morningstar | Losses in Wholesale Division Drags on Nomura’s 1Q Resu...
No-moat Nomura Holdings began fiscal 2019 with a subdued first-quarter result. Profits for all three divisions were lower against last quarter and the same period last year with wholesale the most disappointing. Our forecasts and fair value estimate of JPY 760 are unchanged. While our fiscal 2019 forecast may be optimistic given the weak first-quarter result, capital market conditions may be more favorable for the remainder of the year, particularly for the fixed-income market in Japan. Speculat...
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