Company Overview
Nomura Holdings, Inc. engages in the provision of investment, financing, and related services to individual, institutional, and government clients worldwide, operating through three primary segments including Wealth Management, Investment Management, and Wholesale. The company functions within the Financial Services sector and specifically within the Capital Markets industry, where it facilitates capital formation and asset management for a diverse global clientele. Its scale is defined by a market capitalization of $22.18B, an annual revenue of $2.04T, and an employee count of 27242. These figures indicate a substantial operational footprint, though the revenue figure relative to the market cap suggests a high-leverage capital-intensive business model typical of global investment banking and financial services firms.
Financial Health
The company reports revenue of $2.04T and net income of $360.17B for the trailing twelve months, while EBITDA is not available in the provided data. The significant gap between the reported revenue of $2.04T and the net income of $360.17B reveals a cost structure where operating expenses, including compensation, technology, and regulatory compliance costs, absorb the majority of the top-line revenue before reaching the bottom line. Free cash flow is not available in the current dataset, which limits the immediate assessment of the company's financial flexibility regarding capital allocation and debt repayment capabilities without further disclosure. Gross margin stands at 78.9%, indicating that the company retains a high proportion of revenue after accounting for the direct costs of services provided, such as trading inventory or investment advisory costs. Operating margin is recorded at 24.5%, demonstrating that after covering all operational overheads, the company maintains a healthy margin above the cost of funds and general administrative expenses. Profit margin is 17.6%, reflecting the final percentage of revenue that converts to net earnings available to shareholders. Total cash on hand is $49.47T, while total debt stands at $34.15T, resulting in a debt-to-equity ratio of 895.37. This high debt-to-equity ratio and the substantial debt load relative to cash holdings indicate a highly leveraged balance sheet, characteristic of banking institutions that utilize debt to amplify returns on equity. The current ratio is 1.54, suggesting that the company holds sufficient current assets to cover its short-term liabilities with a 54% buffer, indicating reasonable short-term liquidity despite the long-term leverage. Return on Equity is 9.9%, showing the return generated on the shareholders' invested capital, while Return on Assets is 0.6%, indicating the efficiency of asset utilization relative to the massive asset base supported by the high debt levels.
Valuation Assessment
The trailing P/E ratio is 10.24, while the forward P/E is 13.54, implying that the market expects earnings to decline in the near term as the forward multiple is higher than the trailing multiple. The price-to-book ratio is 0.97, indicating that the market values the company at roughly 97% of its book value, suggesting no significant market premium over the net asset value. The price-to-sales ratio is 0.01, and EV/EBITDA is not available, which makes these alternative valuation metrics difficult to interpret in isolation but highlights the extreme sensitivity of the stock price to changes in revenue or earnings. The 52-week high is $9.58 and the 52-week low is $4.86, providing a trading range that investors can use to gauge recent volatility. Without the specific current share price listed in the facts, the exact percentage below the 52-week high cannot be calculated, but the wide range between $4.86 and $9.58 demonstrates significant price movement over the past year. The beta value is 0.48, indicating that the stock's price volatility is substantially lower than the broader market, suggesting it acts as a lower-volatility component within a diversified portfolio.
Growth & Income
Revenue growth year-over-year is 9.9%, while earnings growth year-over-year is -8.7%, indicating that earnings are growing significantly slower than revenue and are currently contracting. This divergence implies that the company is experiencing margin compression or one-time charges that are impacting profitability despite top-line expansion. For dividend payers, the dividend yield is 5.4% and the payout ratio is 52.0%, suggesting that the company pays out a moderate portion of its earnings to shareholders. Given the negative earnings growth rate of -8.7%, the sustainability of this payout ratio is under scrutiny as earnings may not be growing fast enough to support the current dividend level indefinitely. For non-dividend payers, the company would reinvest earnings into growth, but Nomura currently pays a dividend. The overall growth and income profile presents a scenario of expanding revenue with contracting earnings and a high-yield dividend that requires careful monitoring of earnings stability.