A strong performer from today's morning trading session is Nomura, whose shares rose 2.3% to $8.08 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.
The Market May Be Undervaluing Nomura's Earnings and Assets:
Nomura Holdings, Inc. engages in the provision of investment, financing, and related services to individual, institutional, and government clients worldwide. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 15.92 and an average price to book (P/B) ratio of 1.78. In contrast, Nomura has a trailing 12 month P/E ratio of 10.6 and a P/B ratio of 1.03.
When we divideNomura's P/E ratio by its expected five-year EPS growth rate, we obtain a PEG ratio of 0.81, which indicates that the market is undervaluing the company's projected growth (a PEG ratio of 1 indicates a fairly valued company). Your analysis of the stock shouldn't end here. Rather, a good PEG ratio should alert you that it may be worthwhile to take a closer look at the stock.
Overview of Financial Statements:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $187,390 | $202,008 | $171,942 | $213,782 | $513,352 | $1,068,662 |
| Interest Income (M) | $32,151 | $9,582 | -$19,000 | $13,517 | $29,826 | $83,603 |
| Operating Margins | 45% | 9% | 18% | 27% | 46% | 44% |
| Depreciation & Amort. (M) | $1,662 | $2,296 | $1,717 | $1,589 | $2,479 | $2,552 |
| Diluted Shares (M) | 3,143 | 3,180 | 3,093 | 3,140 | 3,063,523,353 | 3,066 |
