About NOMURA HOLDINGS INC
Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Asset Management, and Wholesale. The Retail segment offers various financial products and investment services. As of March 31, 2021, this segment operated a network of 123 branches. The Asset Management segment engages in the development and management of investment trusts; and provision of investment advisory services. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-making of fixed income and equity-related products.
It also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exchangeable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged buyouts, and risk solutions. In addition, this segment offers various financial instruments. The company was formerly known as The Nomura Securities Co., Ltd. and changed its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was incorporated in 1925 and is headquartered in Tokyo, Japan.
NMR operates in the Finance, Insurance, And Real Estate | Trading | approximately 26,600 employees | led by CEO Kentaro Okuda.
$18.3 billion 8.0x P/E 0.8x P/B 9.9% ROE 14.9% rev. growth
NOMURA HOLDINGS INC earns a Buy rating from our quantitative model with a composite score of 73/100, ranking #44 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 92/100, which places NMR in the top 8 percent of all stocks on this measure. momentum at 87/100 provides secondary support. Investors should note that stability scores a below-average 38/100, which tempers the overall profile.
Within the Finance, Insurance, And Real Estate sector, NMR ranks 3rd out of 50 peers, placing it in the 94th percentile. At $18.3 billion, the company is a well-established large cap.
Quality Analysis
NOMURA HOLDINGS INC's quality score of 81/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 9.9% exceeds the sector median of 9.0%. Gross margins of 84.5% reflect strong pricing power and competitive moats. Operating margins of 70.0% sit above the 32.0% sector average.
Net margins of 7.3% show the company is profitable, though not with exceptional efficiency.
Valuation Assessment
A value score of 92/100 puts NMR in the top 8 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 8.0x, a price-to-book of 0.8x, a price-to-sales of 0.6x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
NOMURA HOLDINGS INC's momentum score of 87/100 places it among the strongest trending stocks in the market. The stock has been outperforming roughly 87 percent of all other companies over the relevant measurement window. The academic literature, starting with Jegadeesh and Titman's seminal 1993 research, demonstrates that stocks with this kind of relative strength tend to continue outperforming for three to twelve months.
Revenue growth of 14.9% provides a moderate fundamental underpinning. A beta of 1.17 means NOMURA HOLDINGS INC moves roughly in line with the broader market.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Leverage risk. A debt-to-equity ratio of 8.94 indicates significant leverage. In a rising rate environment or economic downturn, high debt loads can amplify losses and strain cash flow. Investors should monitor the company's ability to service its obligations.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support NOMURA HOLDINGS INC's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
NOMURA HOLDINGS INC earns a Buy rating with a composite score of 73/100 and 4 out of 5 stars, ranking #44 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position NMR above the majority of the market.
Explore the full NMR analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
