Japanese (NIKKEI) Auto Components Industry Analysis

Industry Valuation and Performance

Has the Japanese Auto Components Industry valuation changed over the past few years?

Current Industry PE: Investors are more pessimistic on the industry, considering it's trading at a PE ratio of 6.8x which is lower than its 3-year average PE of 11.6x. It appears they believe that earnings will not grow as fast as they have historically.

Past Earnings Growth: The earnings for companies in the Auto Components industry have declined 4.7% per year over the last three years, and revenues have also declined 3.5% per year. This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the Japanese Auto Components industry?

Industry PE: Investors are most optimistic about the Auto Parts and Equipment industry even though it's trading below its 3-year average PE ratio of 11.4x. However analysts are expecting annual earnings growth of 15%, which is lower than the prior year's growth of 149% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Tires and Rubber industry, which is trading below its 3-year average of 15.8x.

Forecasted Growth: Analysts are most optimistic on the Auto Parts and Equipment industry, expecting annual earnings growth of 15% over the next 5 years. Meanwhile, the Tires and Rubber industry is expected to see its earnings grow by 5.6% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?