Now trading at a price of $5.57, Nomura has moved 0.1% so far today.
Over the last year, Nomura logged a -2.5% change, with its stock price reaching a high of $6.99 and a low of $4.66. Over the same period, the stock underperformed the S&P 500 index by -12.2%. AThe company's 50-day average price was $6.11. Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. The Large-Cap Finance company is headquartered in Tokyo, Japan. Nomura has offered a 843.8% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
| 2009 | 2010 | |
|---|---|---|
| Revenue (M) | $14,526 | $16,741 |
| Interest Income (M) | $2,205 | $3,079 |
| Operating Margins | n/a | -3.0% |
| Net Margins | 5% | 2% |
| Net Income (M) | $726 | $346 |
| Depreciation & Amort. (M) | $782 | $469 |
| Diluted Shares (M) | 3,649 | 3,643 |
| Earnings Per Share | $0.23 | $0.09 |
| EPS Growth | n/a | -60.87% |
| Free Cash Flow (M) | -$16,957 | $9,143 |
| CAPEX (M) | $889 | $1,131 |
| Total Debt (M) | $95,594 | $113,632 |
| Net Debt / EBITDA | 0.84 | -1347.75 |
Nomura has weak operating margins with a unknown rate of growth, declining EPS growth, and high levels of debt. On the other hand, the company has growing revenues and increasing reinvestment in the business working in its favor. Furthermore, Nomura has negative cash flows.
a Decline in Expected Earnings Clouds Its Value Outlook but Priced at a Premium:
Nomura has a trailing twelve month P/E ratio of 7.9, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $0.56, the company has a forward P/E ratio of 10.9. According to the 34.5% compound average growth rate of Nomura's historical and projected earnings per share, the company's PEG ratio is 0.23. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 17.9%. On this basis, the company's PEG ratio is 0.44. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing Nomura in terms of its equity because its P/B ratio is 0.0 whereas the sector average is 1.78. The company's shares are currently trading 45.5% below their Graham number.
Nomura Is the Subject of Mixed Market Indicators:
The lone analyst who follows Nomura has a rating of hold and a target price of $7.16, which is -22.2 away from its current price.
Nomura has a very low short interest because 0.0% of the company's shares are sold short. Institutions own 2.4% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Fisher Asset Management, LLC, whose 0% stake in the company is worth $56,686,265.
