First Time Loading...

NEC Corp
TSE:6701

Watchlist Manager
NEC Corp Logo
NEC Corp
TSE:6701
Watchlist
Price: 10 090 JPY 1.87% Market Closed
Updated: Mar 1, 2024

Intrinsic Value

NEC Corp. engages in the provision of systems, components, services, and integrated solutions for computing and communications applications. [ Read More ]

The intrinsic value of one NEC Corp stock under the Base Case scenario is 12 624.69 JPY. Compared to the current market price of 10 090 JPY, NEC Corp is Undervalued by 20%.

Key Points:
Intrinsic Value
Base Case
12 624.69 JPY
Undervaluation 20%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
NEC Corp

Backtest NEC Corp Intrinsic Value
Dive into the past to invest in the future

Run backtest to discover the historical profit from buying and selling NEC Corp stocks based on their intrinsic value.

Analyze the historical link between intrinsic value and market price to make more informed investment decisions.

Run Backtest
Settings
Valuation Methods
Buy/Sell Thresholds
Buy When:
%
Sell When:
%
B
S
Run Backtest
How does it work?

Fundamental Analysis

Robust Growth in IT and Social Infrastructure
2024-Q1 Earnings Call

Robust Growth in IT and Social Infrastructure

In Q1 FY ending March 2024, the company reported a 7.1% increase in revenue to JPY 706.5 billion and a substantial increase in non-GAAP operating profit by JPY 13.8 billion year-on-year. IT Services and Social Infrastructure segments were the primary growth drivers, with their operating profits rising by JPY 7.1 billion and JPY 3.1 billion, respectively. The growth was supported by strong demand in domestic IT services, particularly from the government and enterprise sectors, with bookings in IT services up by 3% year-on-year. The full year forecast remains unchanged with expected revenue growth in IT Services of 2.6% and in Social Infrastructure of 2.1%. The company is notably taking the lead in the generative AI market for the Japanese language and forming strategic partnerships, like with BlackRock, to enhance service offerings and competitiveness.

Financials

Balance Sheet Decomposition
NEC Corp

Current Assets 2T
Cash & Short-Term Investments 401.3B
Receivables 1.1T
Other Current Assets 551.7B
Non-Current Assets 2.1T
Long-Term Investments 288.4B
PP&E 595.1B
Intangibles 778.8B
Other Non-Current Assets 407.2B
Current Liabilities 1.4T
Accounts Payable 467.1B
Accrued Liabilities 199.9B
Other Current Liabilities 727.2B
Non-Current Liabilities 998.1B
Long-Term Debt 418.9B
Other Non-Current Liabilities 579.2B
Efficiency
Fundamental Scores

Profitability Score
Profitability Due Diligence

NEC Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Years Revenue Growth
Positive Revenue Growth Forecast
50/100
Profitability
Score

NEC Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

Solvency Score
Solvency Due Diligence

NEC Corp's solvency score is 68/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
Low D/E
Long-Term Solvency
Short-Term Solvency
68/100
Solvency
Score

NEC Corp's solvency score is 68/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

Price Targets Summary
NEC Corp

Wall Street analysts forecast NEC Corp stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for NEC Corp is 10 678.62 JPY with a low forecast of 8 080 JPY and a high forecast of 13 335 JPY.

Lowest
Price Target
8 080 JPY
20% Downside
Average
Price Target
10 678.62 JPY
6% Upside
Highest
Price Target
13 335 JPY
32% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

Price
NEC Corp

1M 1M
+5%
6M 6M
+30%
1Y 1Y
+111%
3Y 3Y
+74%
5Y 5Y
+189%
10Y 10Y
+266%
Annual Price Range
10 090
52w Low
4 768.0196
52w High
10 245
Price Metrics
Average Annual Return 7.94%
Standard Deviation of Annual Returns 18.38%
Max Drawdown -36%
Shares Statistics
Market Capitalization 2.7T JPY
Shares Outstanding 266 457 431
Percentage of Shares Shorted
N/A

Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

NEC Corp Logo
NEC Corp

Country

Japan

Industry

Technology

Market Cap

2.7T JPY

Dividend Yield

1.21%

Description

NEC Corp. engages in the provision of systems, components, services, and integrated solutions for computing and communications applications. The company is headquartered in Minato-Ku, Tokyo-To and currently employs 114,714 full-time employees. The firm operates in five business segments. The Public segment is engaged in the provision of system integration, support, outsourcing and cloud services, as well as system equipment for public and medical institutions, governments and medias. The Enterprises segment is engaged in the provision of system integration, support, outsourcing and cloud services for manufacturing, distribution, service and financial industries. The Network Services segment is engaged in the provision of network infrastructures, system integration and management services. The System Platform segment is engaged in the provision of hardware, software and corporate network products. The Global segment is engaged in the provision of safety products, network infrastructures and power storage systems. The firm is also engaged in the data center infrastructures and lighting equipment business.

Contact

TOKYO-TO
Minato-ku
NEC Headquarters Bldg., 5-7-1, Shiba
+81334541111.0
https://jpn.nec.com/

IPO

1949-05-16

Employees

114 714

Officers

President, CEO & Representative Director
Mr. Takayuki Morita
Corporate EVP, CFO & Director
Mr. Osamu Fujikawa
Corporate Senior EVP & Co-COO
Mr. Kazuhiro Sakai
Corporate EVP, CTO & President of Global Innovation Business Unit
Mr. Motoo Nishihara
Corporate EVP, CIO, CISO and MD of Corporate IT & Digital Division
Hiroshi Kodama
Corporate SVP, Chief Legal & Compliance Officer and MD of Legal & Compliance Division
Yuko Yamamoto
Show More
Corporate SVP and MD of Marketing & Alliance Promotion Division
Mayuko Tatewaki
Corporate EVP, Chief Human Resources Officer and MD of People & Culture Division
Daisuke Horikawa
Corporate EVP & President of Cross-Industry Business Unit
Yutaka Ukegawa
Show Less

See Also

Discover More
What is the Intrinsic Value of one NEC Corp stock?

The intrinsic value of one NEC Corp stock under the Base Case scenario is 12 624.69 JPY.

Is NEC Corp stock undervalued or overvalued?

Compared to the current market price of 10 090 JPY, NEC Corp is Undervalued by 20%.