Why is Nissan Stock so Cheap?

The automaker’s turnaround story is gaining traction – especially on the electric front.

Andrew Willis 9 December, 2022 | 10:03AM
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Andrew Willis: In a Nissan (NSANY) post-Ghosn that doesn’t hurt profitability by pushing sales to rental fleets, we think company shares offer compelling value for long-term investors with the patience to wait for a turnaround story to play out.  

According to senior equity analyst Richard Hilgert, Nissan has reversed previous market capture strategies. By reducing incentives and cutting sales to rental car companies, we think the company should become a leaner organization in the long term.

Nissan’s stock has fallen a lot since the scandal involving its former CEO in 2018 which exposed a rift in the company’s alliance with Renault (RNLSY). But fast forward to today and the two companies along with Mitsubishi (MSBHF) are already in the mass manufacturing phase of battery electric vehicles while most competitors are still in the initial investment phase – so it appears the relationship is still working, if not advancing.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Mitsubishi Corp20.04 USD0.88
Nissan Motor Co Ltd ADR6.82 USD0.44Rating
Renault SA58.20 USD7.68
Renault SA ADR10.29 USD-3.29

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. He previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @Andrew_M_Willis.

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