reports
- Richard Hilgert
Nissan Reports Mixed FY17 Results, FY18 Outlook also Mixed; Maintainin...
No-moat-rated Nissan reported fiscal 2017, ended March 31, diluted EPS of JPY 190.96, beating the consensus of JPY 184.41 by JPY 6.55, and JPY 25.02 better than the JPY 165.94 EPS reported last fiscal year. While consolidated revenue increased 2%, operating profit margin contracted 130 basis points to 5.6%. Despite lower margin, the EPS outperformance was driven by U.S. tax reform. The stock currently trades at a 23% discount to our JPY 1,450/ $26 fair value estimates. We think the 4-star rated ...
- Richard Hilgert
Raising Renault FVE to EUR 88 from EUR 79
After rolling our model to the next fiscal year on no-moat-rated Renault, we are raising our fair value estimate to EUR 88 from EUR 79. Most of the increase (EUR 5) was attributable to a 16% jump in the book value of the financial-services business as well as lower debt and an improved unfunded pension status. An additional EUR 2 was attributable to a lower tax rate on French tax reform and another EUR 2 for the time value of money since our last fair value update. With the shares trading at a 7...
- Richard Hilgert
After Nearly 20 Years of Courtship, Renault and Nissan May Tie the Kno...
Media reports circulating on March 29 have purported that no-moat-rated Renault and Nissan are in talks to merge. The two automakers have been alliance partners, with Renault first owning a stake in Nissan, since 1999. Today, Renault owns roughly 43% of Nissan while Nissan holds about a 15% stake in Renault. The two companies had announced earlier this month that the alliance management team was negotiating closer integration to extract additional cost savings from economies of scale. One impedi...
- Richard Hilgert
Nissan Fiscal 2016 Down on Strong Yen but Ahead of Market Expectations...
No-moat rated Nissan reported diluted earnings per share before special items (EPS) of JPY 165.94 for full-year fiscal 2016, beating the consensus of JPY 148.51 by a healthy margin and well ahead of the JPY 124.99 EPS reported in the same period last year. Nissan was adversely impacted by the yen strengthening 12% and 11% versus the euro and the U.S. dollar, respectively. However, global sales volume increased 6% driven primarily by an 8% lift in its largest region, North America, but also a 29%...
- Richard Hilgert
Nissan is the first automaker to offer fully electric vehicles to the ...
We recently lowered our fair value estimate to $24 per share from $26 based on the currency impact. We use the current exchange rate of JPY 116.25 to $1 to convert our fair value estimate from yen to dollars. Our assumptions also include a 3% annualized revenue growth rate over our forecast period and 6% average operating margin owing to recovery in China, Europe, and Japan, as well as reasonably healthy demand in the U.S. With a near zero Japanese risk-free rate of return and Nissan's low cos...
- Richard Hilgert
Nissan is the first automaker to offer fully electric vehicles to the ...
Many automotive stocks declined on the morning of Nov. 9 on fear of a Donald Trump presidency. We think selling for now is due to massive uncertainty on what Trump will do on a variety of policies, and we will not be changing our auto fair value estimates on indiscriminate selling until we have more clarity on policy. Still, despite a Republican House and Senate, many Republican members did not support Trump and may oppose his anti-free trade agenda. We think abolishing NAFTA or the Trans-Pacifi...
- Richard Hilgert
Trump Victory Brings Uncertainty to Auto Sector Around U.S. Trade Agre...
Many automotive stocks declined on the morning of Nov. 9 on fear of a Donald Trump presidency. We think selling for now is due to massive uncertainty on what Trump will do on a variety of policies, and we will not be changing our auto fair value estimates on indiscriminate selling until we have more clarity on policy. Still, despite a Republican House and Senate, many Republican members did not support Trump and may oppose his anti-free trade agenda. We think abolishing NAFTA or the Trans-Pacifi...
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