NOMURA HOLDINGS INC-SPON ADR (NMR) Stock Fundamental Analysis
NYSE:NMR - New York Stock Exchange, Inc. - US65535H2085 - ADR - Currency: USD
NMR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. Both the profitability and financial health of NMR have multiple concerns. NMR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NMR was profitable.
NMR had a negative operating cash flow in the past year.
NMR had positive earnings in each of the past 5 years.
In multiple years NMR reported negative operating cash flow during the last 5 years.
1.2 Ratios
NMR has a Return On Assets of 0.60%. This is in the lower half of the industry: NMR underperforms 69.53% of its industry peers.
Looking at the Return On Equity, with a value of 9.82%, NMR is in line with its industry, outperforming 57.94% of the companies in the same industry.
With a Return On Invested Capital value of 0.62%, NMR is not doing good in the industry: 72.53% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for NMR is significantly below the industry average of 7.84%.
The 3 year average ROIC (0.41%) for NMR is below the current ROIC(0.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 9.82% | ||
| ROIC | 0.62% |
ROA(3y)0.36%
ROA(5y)0.36%
ROE(3y)5.9%
ROE(5y)5.66%
ROIC(3y)0.41%
ROIC(5y)0.41%
1.3 Margins
Looking at the Profit Margin, with a value of 7.19%, NMR is doing worse than 65.67% of the companies in the same industry.
NMR's Profit Margin has declined in the last couple of years.
NMR has a worse Operating Margin (9.96%) than 71.24% of its industry peers.
NMR's Operating Margin has declined in the last couple of years.
NMR's Gross Margin of 39.95% is on the low side compared to the rest of the industry. NMR is outperformed by 65.67% of its industry peers.
In the last couple of years the Gross Margin of NMR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.96% | ||
| PM (TTM) | 7.19% | ||
| GM | 39.95% |
OM growth 3Y-11.17%
OM growth 5Y-4.76%
PM growth 3Y-7.1%
PM growth 5Y-8.33%
GM growth 3Y-22.42%
GM growth 5Y-9.54%
2. Health
2.1 Basic Checks
The number of shares outstanding for NMR has been reduced compared to 1 year ago.
NMR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NMR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.25, we must say that NMR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.25, NMR is not doing good in the industry: 80.26% of the companies in the same industry are doing better.
A Debt/Equity ratio of 10.44 is on the high side and indicates that NMR has dependencies on debt financing.
NMR has a Debt to Equity ratio of 10.44. This is amonst the worse of the industry: NMR underperforms 90.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NMR has a Current Ratio of 0.23. This is a bad value and indicates that NMR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.23, NMR is not doing good in the industry: 88.41% of the companies in the same industry are doing better.
NMR has a Quick Ratio of 0.23. This is a bad value and indicates that NMR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NMR (0.23) is worse than 88.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 96.52% over the past year.
The Earnings Per Share has been growing by 10.96% on average over the past years. This is quite good.
Looking at the last year, NMR shows a quite strong growth in Revenue. The Revenue has grown by 13.94% in the last year.
NMR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.39% yearly.
EPS 1Y (TTM)96.52%
EPS 3Y34.65%
EPS 5Y10.96%
EPS Q2Q%13.06%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y43.77%
Revenue growth 5Y19.39%
Sales Q2Q%6.19%
3.2 Future
NMR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.35% yearly.
The Revenue is expected to decrease by -8.82% on average over the next years.
EPS Next Y-4.32%
EPS Next 2Y-4.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.69%
Revenue Next 2Y-1.64%
Revenue Next 3Y-8.82%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NMR is valuated cheaply with a Price/Earnings ratio of 7.75.
85.41% of the companies in the same industry are more expensive than NMR, based on the Price/Earnings ratio.
NMR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of NMR.
NMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. NMR is cheaper than 86.70% of the companies in the same industry.
NMR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NMR indicates a somewhat cheap valuation: NMR is cheaper than 70.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.87 |
4.3 Compensation for Growth
NMR's earnings are expected to decrease with -4.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.71
EPS Next 2Y-4.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NMR has a Yearly Dividend Yield of 5.07%, which is a nice return.
Compared to an average industry Dividend Yield of 8.10, NMR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, NMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
5.2 History
On average, the dividend of NMR grows each year by 15.59%, which is quite nice.
NMR has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of NMR decreased in the last 3 years.
Dividend Growth(5Y)15.59%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
NMR pays out 33.03% of its income as dividend. This is a sustainable payout ratio.
DP33.03%
EPS Next 2Y-4.35%
EPS Next 3YN/A
6.28
-0.23 (-3.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners38.49%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.70B
Analysts69.23
Price Target7.24 (15.29%)
Short Float %0.03%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
Yearly Dividend0.27
Dividend Growth(5Y)15.59%
DP33.03%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.99%
Min EPS beat(2)-10.21%
Max EPS beat(2)58.19%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.6%
PT rev (3m)-3.33%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-65.97%
EPS NY rev (1m)0.01%
EPS NY rev (3m)4.74%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 8.11 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 21.87 |
EPS(TTM)0.81
EY12.9%
EPS(NY)0.77
Fwd EY12.33%
FCF(TTM)-3.57
FCFYN/A
OCF(TTM)-1.57
OCFYN/A
SpS10.93
BVpS8.01
TBVpS8.01
PEG (NY)N/A
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 9.82% | ||
| ROCE | 1.58% | ||
| ROIC | 0.62% | ||
| ROICexc | 0.68% | ||
| ROICexgc | 0.69% | ||
| OM | 9.96% | ||
| PM (TTM) | 7.19% | ||
| GM | 39.95% | ||
| FCFM | N/A |
ROA(3y)0.36%
ROA(5y)0.36%
ROE(3y)5.9%
ROE(5y)5.66%
ROIC(3y)0.41%
ROIC(5y)0.41%
ROICexc(3y)0.45%
ROICexc(5y)0.45%
ROICexgc(3y)0.46%
ROICexgc(5y)0.46%
ROCE(3y)1.07%
ROCE(5y)1.07%
ROICexcg growth 3Y16.49%
ROICexcg growth 5Y7.83%
ROICexc growth 3Y15.92%
ROICexc growth 5Y7.53%
OM growth 3Y-11.17%
OM growth 5Y-4.76%
PM growth 3Y-7.1%
PM growth 5Y-8.33%
GM growth 3Y-22.42%
GM growth 5Y-9.54%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 67.92 | ||
| Cap/Depr | 1410.99% | ||
| Cap/Sales | 18.37% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | -0.25 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)988.49%
Cap/Depr(5y)668.06%
Cap/Sales(3y)14.69%
Cap/Sales(5y)11.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)96.52%
EPS 3Y34.65%
EPS 5Y10.96%
EPS Q2Q%13.06%
EPS Next Y-4.32%
EPS Next 2Y-4.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.94%
Revenue growth 3Y43.77%
Revenue growth 5Y19.39%
Sales Q2Q%6.19%
Revenue Next Year-3.69%
Revenue Next 2Y-1.64%
Revenue Next 3Y-8.82%
Revenue Next 5YN/A
EBIT growth 1Y72.34%
EBIT growth 3Y27.7%
EBIT growth 5Y13.71%
EBIT Next Year20035%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-122.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-883.38%
OCF growth 3YN/A
OCF growth 5YN/A