💎 Does NMR belong to value stocks or growth stocks?

**Nomura Holdings (NMR) exhibits characteristics of both value and growth stocks**, making it a suitable candidate for a balanced investment approach: 1. **Valuation Metrics**: - NMR's Price-to-Earnings (P/E) ratio is 10.15, which suggests that the stock may be undervalued compared to earnings. This is a characteristic often associated with value stocks. - The Price-to-Sales (P/S) ratio of 1.56 indicates a reasonable valuation based on sales. This is more in line with growth stocks that are not overly expensive relative to their revenue. - With a Price-to-Book (P/B) ratio of 0.88, NMR's stock is trading below its book value. This is a common feature of value stocks, which are often seen as attractive because they are trading at a discount to their intrinsic value. |Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|code|market_code| |---|---|---|---|---|---|---|---| |NMR.N|Nomura Holdings|20240212|20.436595||0.7060177016648289|NMR|169| |NMR.N|Nomura Holdings|20240213|20.211605||0.698245029719895|NMR|169| |NMR.N|Nomura Holdings|20240214|20.399097||0.7048642519225963|NMR|169| |NMR.N|Nomura Holdings|20240215|20.436595||0.7061599582680422|NMR|169| |NMR.N|Nomura Holdings|20240216|20.736582||0.7165256090316098|NMR|169| |NMR.N|Nomura Holdings|20240220|20.849077||0.7204127280679476|NMR|169| |NMR.N|Nomura Holdings|20240221|20.886576||0.7217084344133936|NMR|169| |NMR.N|Nomura Holdings|20240222|21.299057||0.735961204213299|NMR|169| |NMR.N|Nomura Holdings|20240223|21.336556||0.737256910558745|NMR|169| |NMR.N|Nomura Holdings|20240226|21.224061||0.7333697915224071|NMR|169| 2. **Dividend Yield**: - NMR does not have a dividend yield listed, which is a feature of some growth stocks that prioritize reinvestment in the business rather than returning capital to shareholders through dividends. 3. **Profitability and Growth**: - NMR's Return on Equity (ROE) is 7.77%, which is a modest figure and could be indicative of the company's potential for growth as it improves operational efficiency. - The company's net income has experienced a compound annual growth rate (CAGR) of -12.94% over the past five years, indicating a decline. However, the most recent quarter's net income doubled from the previous year, reaching ¥101.4 billion, surpassing analyst expectations. - NMR's revenue has also seen a CAGR of -3.63% over the past five years, but it recently increased by 25% from the previous quarter, reaching JP¥502.0 billion. |Ticker|Name|Date|ROA|ROE(Average)|code|market_code| |---|---|---|---|---|---|---| |NMR.N|Nomura Holdings|2024 Q4||5.1045|NMR|169| |NMR.N|Nomura Holdings|2025 Q1||2.0237|NMR|169| |NMR.N|Nomura Holdings|2025 Q2||5.0316|NMR|169| |NMR.N|Nomura Holdings|2025 Q3||7.7677|NMR|169| 4. **Market Sentiment and Analyst Ratings**: - Institutional investors have shown interest in NMR, with JPMorgan Chase & Co. increasing its stake by 225.7%, which could be a sign of confidence in the company's growth potential. - Analysts have upgraded NMR from a "hold" to a "buy" rating, indicating a positive outlook on the stock. 5. **Strategic Positioning**: - NMR has made strides in cost reduction and benefited from strong trading and investment banking business, which are positive signs for growth. - The company's investment banking revenue rose by 14%, reaching its highest level since at least 2016, showing a strong competitive position in its sector. In conclusion, NMR's mix of value (low P/E ratio, P/B ratio below 1, and lack of dividend yield) and growth (recent revenue and net income increases, positive analyst ratings, and strategic cost reduction) characteristics make it a stock that could appeal to investors looking for a balanced investment opportunity.