"It's different this time" are words that can come back to haunt an investor, but for this cycle at least, Nidec (OTCPK:NJDCY) (6594.TO) really has been different. While Nidec has been hit by the global pandemic, the impact to sales has been less severe than for many companies. On top of that, the company's serial efficiency drives continue to produce positive results, support overall margins and reducing the breakeven point for the emerging EV motor business.
Nidec shares have done well since my last update, rising close to 20% and outperforming the average U.S. industrial stock, not to mention the average Japanese stock. There's really no mystery left to the story here, and the expectations are far from low, but Nidec has shown an ability to exceed expectations on multiple levels, including maintaining better margins in the hard drive business and gathering far more EV traction motors than expected a year ago. While valuation makes it hard to recommend this name with the same vigor, I wouldn't be eager to sell if I owned it, and I would keep an eye open for a pullback if I didn't.
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