Nissan: Two More Years Before Growth Mode

Luca Socci
4.76K Followers
(11min)

Summary

  • Nissan has been going through difficult times and S&P downgraded it to junk last year.
  • China continues being a woe for the company, but other markets are recovering.
  • During the earnings call, there was some mixed messages regarding Nissan's strategy and the opportunity of focusing on value instead of volumes.
  • In this article, I update my research on the stock and explain a few concerns I have.
Nissan Rogue SUV display. Nissan is part of the Renault Nissan Alliance.

jetcityimage

This year the stock market is up, but there are a few industries that are not doing well. Curiously, they belong to two opposite industries, whose multiples are quite distant from the other: luxury goods and automotive.

Among automakers, General Motors (

This article was written by

4.76K Followers
I focus on long term growth and dividend growth investing. I follow both the US and the European stock markets, looking for undervalued stock and/or for high quality dividend growing companies that provide me with cash to reinvest. Over time, I have come to realize that profitability is a much safer driver of gains than low valuation. As a result, I give utmost importance to margins, free cash flow stability and growth, and returns on invested capital. I research stocks within my areas of competence and whenever I find a high-quality company, I usually never get bored in researching it more and more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of STLA, GM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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