Japanese (NIKKEI) Life Sciences Industry Analysis

Industry Valuation and Performance

Has the Japanese Life Sciences 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 19.5x which is lower than its 3-year average PE of 27.1x. It appears they believe that earnings will not grow as fast as they have historically.

Past Earnings Growth: Total earnings for the Life Sciences industry have gone up over the last three years, and the industry is now profitable. However revenues have declined 8.9% per year. This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the Japanese Life Sciences industry?

Industry PE: Investors are most optimistic about the Clinical Research and Equipment industry even though it's trading below its 3-year average PE ratio of 27.1x. However analysts are expecting annual earnings growth of 32%, which is lower than the prior year's growth of 187% per year. So the market might believe that analysts are underestimating future growth.

Forecasted Growth: Analysts are most optimistic on the Clinical Research and Equipment industry, expecting annual earnings growth of 32% over the next 5 years. However this is lower than its past earnings growth rate of 187% per year.

Top Stock Gainers and Losers

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