NEC Corporation (NIPNF) Fair Value & Analysis

Technology · US · Market cap $34.2B

A solid business, but screening 21% overvalued on our models.

What matters now

• Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
• Our model range runs from $19.07 (bear) to $31.78 (bull), base $25.42. The closer the price sits to the lower half, the larger the margin of safety.
• Quality 60/100 (solid quality) with high evidence: the data supports the verdict.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range $2.86 – $40.63 · fair‑value band $19.07 – $31.78 · the $32.00 price screens above the $25.42 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

NEC Corporation (NIPNF) currently trades at $32.00, while our model-based Fair Value estimate is $25.42, implying the stock looks roughly 20.6% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, NEC Corporation generated revenue of $3.6T at a net margin of 7.5%. Revenue grew 7.3% year over year. It earns a return on equity of 12.6%. The balance sheet holds a net cash position of $171B. Fundamentals as of Jul 19, 2026

Our scenario range runs from $19.07 (bear case) to $31.78 (bull case); at $32.00, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 40% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at -21%, NIPNF screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Growth DCF ($25.00) versus Dividend Discount ($1.90). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

NEC Corporation provides information technology services and social infrastructure in Japan and internationally. The company offers systems integration services, including system construction and consulting, maintenance support, and outsourcing, and cloud, system equipment, software services.

Full company description

NEC Corporation provides information technology services and social infrastructure in Japan and internationally. The company offers systems integration services, including system construction and consulting, maintenance support, and outsourcing, and cloud, system equipment, software services. It also provides core network equipment, mobile phone base stations, optical transmission systems, and marine systems, as well as software and services for telecommunications carriers. In addition, it offers computers and NEC HPC solutions; EMI suppression support tool, power integrity design support tool, and LSI design tool; Open RAN, value added network solutions, enterprise network, optical solutions, 4G/5G converged core, submarine cable systems, netcraker portfolio, and NEC aspire technology; CONNEXIVE, a group of software products for the implementation of IoT/M2M; EXPRESSCLUSTER X, a BC/DR solutions; NIAS, a solution for file server management; ERP solutions; MasterScope, an integrated administration software suite; Obbligato, a product lifecycle management; SaaS Solutions; and WebOTX, a service execution platform. Further, the company provides artificial intelligence, biometric authentication, cloud, disaster preparedness, display and digital signage, DX design consulting service, network solutions, safety, secure computation and smart city solutions. It serves aerospace, agriculture, aviation, finance, broadcasting, finance, government, healthcare, hospitality, logistics, manufacturing, retail, telecom, and transportation industries. The company was formerly known as Nippon Electric Company, Limited and changed its name to NEC Corporation in April 1983. NEC Corporation was incorporated in 1899 and is headquartered in Tokyo, Japan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

NEC Corporation reported revenue of $3.6T in FY2026 versus $3.0T in FY2022, a compound +4.6%/yr. Reported net income was $272B in FY2026, compounding +17.8%/yr from FY2022.

NIPNF screens 21% overvalued. Compare with International Business Machines Corporation →

Peer Group

Information Technology Services · 480 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Information Technology Services median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.