Morningstar Rating

Stock Research and Analysis

by Michael Wu, CAIA

Bulls Say

Nomura stands to benefit from any improvement in a long-dormant Japanese economy.
Many of Nomura's international rivals were weakened or eliminated during the recent crisis, leaving the Japanese bank in a position to capture market share at the margin.
Nomura's past losses could create a valuable tax shield if the company's profitability expands. Read more 

Bears Say

Nomura's profitability leaves a lot to be desired, and the company must dramatically increase revenue or cut costs in order to reap the benefits of its overseas investments.
Increased capital requirements and new regulations will add another headwind as the company attempts to increase profitability to acceptable levels.
Japan's high debt/GDP levels place the country's financial institutions in a vulnerable position. Read more 


We rate Nomura's stewardship of shareholder capital as Poor. The company has gone through several chief executive officers in the past two decades. Koji Nagai is the most recent to head the company, replacing Kenichi Watanabe following an insider trading   Read more 


Nomura Holdings is the largest securities and investment banking firm in Japan. Its primary lines of business include retail investment services, fixed-income and equities   Read more 

3 Banking Takeaways From the Quarter 
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