Header cover image

Japanese (NIKKEI) Materials Sector Analysis

UpdatedDec 01, 2021
DataAggregated Company Financials
Companies305
  • 7D-6.1%
  • 3M-7.3%
  • 1Y1.0%
  • YTD0.1%

Over the last 7 days, the Materials industry has dropped 6.1%, driven by a pullback from Shin-Etsu Chemical of 3.7%. As for the longer term, the industry's performance has been flat for the past year.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Thu, 02 Dec 2021JP¥42.7tJP¥66.7tJP¥3.9t7.9x
Sat, 30 Oct 2021JP¥45.6tJP¥64.0tJP¥3.0t11.3x
Mon, 27 Sep 2021JP¥47.4tJP¥63.4tJP¥2.8t12.4x
Wed, 25 Aug 2021JP¥44.3tJP¥63.5tJP¥2.8t11.6x
Thu, 01 Jul 2021JP¥44.5tJP¥63.5tJP¥2.8t11.2x
Sun, 04 Apr 2021JP¥45.7tJP¥60.2tJP¥1.8t13.8x
Wed, 06 Jan 2021JP¥41.1tJP¥59.4tJP¥838.2b14.3x
Sat, 10 Oct 2020JP¥35.3tJP¥59.7tJP¥187.3b14.4x
Fri, 03 Jul 2020JP¥33.3tJP¥61.6tJP¥665.1b13x
Mon, 06 Apr 2020JP¥29.2tJP¥64.2tJP¥1.2t11x
Thu, 09 Jan 2020JP¥37.7tJP¥65.2tJP¥1.9t13.4x
Wed, 02 Oct 2019JP¥35.0tJP¥66.5tJP¥2.5t11.5x
Sat, 06 Jul 2019JP¥35.4tJP¥66.9tJP¥2.8t11.5x
Tue, 09 Apr 2019JP¥36.0tJP¥67.0tJP¥3.2t11.3x
Mon, 31 Dec 2018JP¥34.8tJP¥66.6tJP¥3.2t10.5x
PE Ratio

11.6x

Total Market Cap: JP¥39.3tTotal Earnings: JP¥3.5tTotal Revenue: JP¥65.6t0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are more pessimistic on the industry, considering it's trading at a PE ratio of 7.9x which is lower than its 3-year average PE of 12.3x. It appears they believe that earnings will not grow as fast as they have historically.

Past Earnings Growth: The earnings for companies in the Materials industry have grown 4.1% per year over the last three years, while revenues have remained mostly flat. This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

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

Basic Materials-4.14%
Metals and Mining-5.98%
Chemicals-6.11%
Paper and Forestry Products-6.32%
Packaging-7.04%

Industry PE: Investors are most optimistic about the Metals and Mining industry which is trading above its 3-year average PE ratio of 10.4x. However analysts are expecting annual earnings decline of 1.1%, which is lower than the prior year's growth of 76% per year. So the market might believe that analysts are underestimating future growth or they expect the Metals and Mining industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Basic Materials industry, which is trading below its 3-year average of 8.9x.

Forecasted Growth: Analysts are most optimistic on the Chemicals industry, expecting annual earnings growth of 9.5% over the next 5 years. However this is lower than its past earnings growth rate of 56% per year. Meanwhile, the Metals and Mining industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

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

Company7D1YValuation
5232 Sumitomo Osaka Cement3.5%+JP¥4.3b7.2%PE9.7x
3941 Rengo1.4%+JP¥2.7b1.0%PE5.8x
4080 Tanaka Chemical3.5%+JP¥2.2b124.8%n/a
6490 Nippon Pillar Packing2.4%+JP¥1.8b99.0%PE13x
4112 Hodogaya Chemical3.2%+JP¥1.2b5.5%PE10.9x
Simply Wall St
Simply Wall Street Pty Ltd
17-21 Bellevue Street, Surry Hills, Sydney
Download on the App StoreGet it on Google Play
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

5232

JP¥3,445.00

Sumitomo Osaka Cement

7D

3.5%

1Y

7.2%