We've been asking ourselves recently if the market has placed a fair valuation on Nomura. Let's dive into some of the fundamental values of this large-cap Finance company to determine if there might be an opportunity here for value-minded investors.
Nomura's P/B and P/E Ratios Are Higher Than Average:
Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 14.34. In contrast, Nomura has a trailing 12 month P/E ratio of 18.2 based on its earnings per share of $0.22.
Nomura has moved 9.1% over the last year compared to 20.4% for the S&P 500 -- a difference of -11.0%. Nomura has a 52 week high of $4.23 and a 52 week low of $3.0.
The Company Has a Highly Leveraged Balance Sheet and a Declining EPS Growth Trend:
| 2020-03-31 | 2021-03-31 | 2022-03-31 | 2023-03-31 | |
|---|---|---|---|---|
| Revenue (MM) | $1,072,799 | $1,243,866 | $1,143,717 | $1,150,541 |
| Interest Income (MM) | $129,819 | $141,103 | $54,113 | -$36,459 |
| Net Margins | 20.23% | 12.31% | 12.5% | 8.06% |
| Net Income (MM) | $216,998 | $153,116 | $142,996 | $92,786 |
| Depreciation & Amort. (MM) | -$63,583 | -$63,846 | -$59,524 | -$61,424 |
| Earnings Per Share | $66.2 | $48.63 | $45.23 | $0.22 |
| EPS Growth | n/a | -26.54% | -6.99% | -99.51% |
| Diluted Shares (MM) | 3,277 | 3,147 | 3,159 | 3,005 |
| Free Cash Flow (MM) | -$222,688 | $545,895 | -$1,480,041 | -$1,145,915 |
| Capital Expenditures (MM) | -$206,745 | -$119,875 | -$111,331 | -$171,165 |
| Long Term Debt (MM) | $8,493,376 | $8,367,527 | $9,654,597 | $10,733,529 |
| Net Debt / EBITDA | 13.9 | 13.01 | 19.72 | 29.06 |
Nomura has declining EPS growth, negative and highly variable cash flows, and a highly leveraged balance sheet. Nomura has stable revenues and decreasing reinvestment in the business and average net margins with a negative growth trend.
