Nissan Motor Co., Ltd. (7201.T) fair value

ACCE thesis

Nissan builds the Rogue, Altima and Frontier for North America, the Leaf and Ariya EVs, and the Skyline and GT-R for enthusiasts, and it has a long-standing alliance with Renault and Mitsubishi that shares platforms and powertrains. Its real edge is the Japanese-built e-Power hybrid drivetrain and a dense North American dealer and production footprint, but the brand's pricing power has eroded, and that is the core of the bear case. Revenue grew 9.5% against a 2.6% operating margin and a 14.5% gross margin, and ROE of -7.7% shows the business is still not earning back its capital. The near-term catalyst is the product refresh cycle and the rollout of next-generation e-Power and EV models meant to rebuild margins from the depressed levels of recent years. It is worth a deeper look now because a 942.6B JPY market cap is being paid for a turnaround that has not yet shown up in profitability, so the work is to test whether volume growth is converting into cash and whether the model launches can lift margins above where they sit today.