NOMURA HOLDINGS INC-SPON ADR (NMR) Stock Fundamental Analysis
NYSE:NMR - New York Stock Exchange, Inc. - US65535H2085 - ADR - Currency: USD
We assign a fundamental rating of 3 out of 10 to NMR. NMR was compared to 235 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
NMR had positive earnings in the past year.
In the past year NMR has reported a negative cash flow from operations.
Each year in the past 5 years NMR has been profitable.
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 68.94% of its industry peers.
The Return On Equity of NMR (9.82%) is comparable to the rest of the industry.
NMR has a Return On Invested Capital of 0.62%. This is in the lower half of the industry: NMR underperforms 71.49% of its industry peers.
NMR had an Average Return On Invested Capital over the past 3 years of 0.41%. This is significantly below the industry average of 7.84%.
The last Return On Invested Capital (0.62%) for NMR is above the 3 year average (0.41%), which is a sign of increasing profitability.
| 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
NMR has a worse Profit Margin (7.19%) than 65.11% of its industry peers.
NMR's Profit Margin has declined in the last couple of years.
The Operating Margin of NMR (9.96%) is worse than 70.21% of its industry peers.
In the last couple of years the Operating Margin of NMR has declined.
With a Gross Margin value of 39.95%, NMR is not doing good in the industry: 65.11% of the companies in the same industry are doing better.
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
NMR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NMR has less shares outstanding
NMR has a better debt/assets ratio than last year.
2.2 Solvency
NMR has an Altman-Z score of -0.25. This is a bad value and indicates that NMR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.25, NMR is doing worse than 79.57% of the companies in the same industry.
NMR has a Debt/Equity ratio of 10.44. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NMR (10.44) is worse than 89.79% 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
A Current Ratio of 0.23 indicates that NMR may have some problems paying its short term obligations.
With a Current ratio value of 0.23, NMR is not doing good in the industry: 88.09% of the companies in the same industry are doing better.
A Quick Ratio of 0.23 indicates that NMR may have some problems paying its short term obligations.
NMR has a Quick ratio of 0.23. This is amonst the worse of the industry: NMR underperforms 88.09% 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.
The Revenue has grown by 13.94% in the past year. This is quite good.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NMR is valuated reasonably with a Price/Earnings ratio of 8.49.
82.13% of the companies in the same industry are more expensive than NMR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NMR to the average of the S&P500 Index (28.04), we can say NMR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.83, the valuation of NMR can be described as reasonable.
NMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. NMR is cheaper than 83.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, NMR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NMR is valued a bit cheaper than 71.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.29 |
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)0.77
EPS Next 2Y-4.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NMR has a Yearly Dividend Yield of 4.61%, which is a nice return.
Compared to an average industry Dividend Yield of 8.04, NMR has a dividend in line with its industry peers.
NMR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
5.2 History
The dividend of NMR is nicely growing with an annual growth rate of 15.59%!
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
6.79
+0.04 (+0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners38.49%
Inst Owner Change-0.15%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.22B
Analysts69.23
Price Target6.96 (2.5%)
Short Float %0.05%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Yearly Dividend0.26
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)-2.83%
PT rev (3m)-7%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-65.23%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.56%
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 | 8.49 | ||
| Fwd PE | 8.83 | ||
| P/S | 0.63 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 22.29 |
EPS(TTM)0.8
EY11.78%
EPS(NY)0.77
Fwd EY11.33%
FCF(TTM)-3.55
FCFYN/A
OCF(TTM)-1.56
OCFYN/A
SpS10.86
BVpS7.96
TBVpS7.96
PEG (NY)N/A
PEG (5Y)0.77
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 Year20164.7%
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