NOMURA HOLDINGS INC-SPON ADR (NMR) Stock Fundamental Analysis
NYSE:NMR - New York Stock Exchange, Inc. - US65535H2085 - ADR - Currency: USD
Taking everything into account, NMR scores 3 out of 10 in our fundamental rating. NMR was compared to 237 industry peers in the Capital Markets industry. Both the profitability and financial health of NMR have multiple concerns. NMR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
NMR had positive earnings in the past year.
NMR had a negative operating cash flow in the past year.
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 worse Return On Assets (0.60%) than 69.62% of its industry peers.
With a Return On Equity value of 9.82%, NMR perfoms like the industry average, outperforming 57.81% 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: 71.31% of the companies in the same industry are doing better.
NMR had an Average Return On Invested Capital over the past 3 years of 0.41%. This is significantly below the industry average of 7.85%.
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 64.98% of its industry peers.
NMR's Profit Margin has declined in the last couple of years.
NMR's Operating Margin of 9.96% is on the low side compared to the rest of the industry. NMR is outperformed by 69.62% of its industry peers.
NMR's Operating Margin has declined in the last couple of years.
NMR has a worse Gross Margin (39.95%) than 64.56% 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.
The number of shares outstanding for NMR has been reduced compared to 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.
NMR has a worse Altman-Z score (-0.25) than 77.22% of its industry peers.
A Debt/Equity ratio of 10.44 is on the high side and indicates that NMR has dependencies on debt financing.
With a Debt to Equity ratio value of 10.44, NMR is not doing good in the industry: 89.03% of the companies in the same industry are doing better.
| 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.
NMR has a Current ratio of 0.23. This is amonst the worse of the industry: NMR underperforms 87.34% of its industry peers.
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.
NMR's Quick ratio of 0.23 is on the low side compared to the rest of the industry. NMR is outperformed by 87.34% 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 79.28% 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)79.28%
EPS 3Y34.65%
EPS 5Y10.96%
EPS Q2Q%62.38%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y43.77%
Revenue growth 5Y19.39%
Sales Q2Q%-4.36%
3.2 Future
Based on estimates for the next years, NMR will show a decrease in Earnings Per Share. The EPS will decrease by -4.35% on average per year.
The Revenue is expected to decrease by -7.54% 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-21.33%
Revenue Next 2Y-11.31%
Revenue Next 3Y-7.54%
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
Based on the Price/Earnings ratio of 8.11, the valuation of NMR can be described as reasonable.
Based on the Price/Earnings ratio, NMR is valued cheaply inside the industry as 84.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.93, NMR is valued rather cheaply.
NMR is valuated reasonably with a Price/Forward Earnings ratio of 9.89.
Based on the Price/Forward Earnings ratio, NMR is valued a bit cheaper than 75.53% of the companies in the same industry.
NMR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 9.89 |
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 70.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.62 |
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)0.74
EPS Next 2Y-4.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.06%, NMR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.82, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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.
NMR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.59%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
33.03% of the earnings are spent on dividend by NMR. This is a low number and sustainable payout ratio.
DP33.03%
EPS Next 2Y-4.35%
EPS Next 3YN/A
7.38
+0.12 (+1.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners38.49%
Inst Owner Change0.09%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.65B
Analysts69.23
Price Target7.05 (-4.47%)
Short Float %0.06%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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)-2.55%
PT rev (3m)-4.11%
EPS NQ rev (1m)178.09%
EPS NQ rev (3m)176.05%
EPS NY rev (1m)1.52%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-18.32%
Revenue NY rev (3m)-18.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 9.89 | ||
| P/S | 0.67 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 22.62 |
EPS(TTM)0.91
EY12.33%
EPS(NY)0.75
Fwd EY10.11%
FCF(TTM)-3.6
FCFYN/A
OCF(TTM)-1.58
OCFYN/A
SpS11.02
BVpS8.07
TBVpS8.07
PEG (NY)N/A
PEG (5Y)0.74
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)79.28%
EPS 3Y34.65%
EPS 5Y10.96%
EPS Q2Q%62.38%
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%-4.36%
Revenue Next Year-21.33%
Revenue Next 2Y-11.31%
Revenue Next 3Y-7.54%
Revenue Next 5YN/A
EBIT growth 1Y72.34%
EBIT growth 3Y27.7%
EBIT growth 5Y13.71%
EBIT Next Year20170.3%
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