Japanese (NIKKEI) Industrials Sector Analysis

Sector Valuation and Performance

Has the Japanese Industrials Sector valuation changed over the past few years?

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 12.4x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Industrials industry have declined 2.6% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Japanese Industrials sector?

Industry PE: Investors are most optimistic about the Trade Distributors industry which is trading above its 3-year average PE ratio of 10.0x. However analysts are expecting annual earnings decline of 2.5%, which is lower than the prior year's growth of 27% per year. So the market might believe that analysts are underestimating future growth or they expect the Trade Distributors industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Professional Services industry, which is trading below its 3-year average of 21.2x.

Forecasted Growth: Analysts are most optimistic on the Airlines industry, expecting annual earnings growth of 64% over the next 5 years. Meanwhile, the Marine and Shipping industry is expected to see its earnings decline by 38% per year over the next few years.

Top Stock Gainers and Losers

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