Narrative Update • Jul 08
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- 7D-1.4%
- 3M9.8%
- 1Y46.0%
- YTD28.9%
Over the last 7 days, the Chemicals industry has dropped 1.4%, driven by Resonac Holdings declining 8.6%. Meanwhile, Arakawa Chemical Industries actually outperformed within the industry, gaining 8.7% in the last week. This takes the industry's 12 month performance to a gain of 46%. Earnings are forecast to grow by 13% annually.
Industry Valuation and Performance
Has the Japanese Chemicals Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 13 Jul 2026 | JP¥51.5t | JP¥41.8t | JP¥2.2t | 13.5x | 23.7x | 1.2x |
| Wed, 10 Jun 2026 | JP¥48.9t | JP¥41.8t | JP¥2.2t | 13.4x | 22.6x | 1.2x |
| Fri, 08 May 2026 | JP¥47.2t | JP¥42.0t | JP¥2.2t | 13.7x | 21.5x | 1.1x |
| Sun, 05 Apr 2026 | JP¥45.2t | JP¥42.0t | JP¥2.2t | 13.6x | 20.5x | 1.1x |
| Tue, 03 Mar 2026 | JP¥49.4t | JP¥42.0t | JP¥2.2t | 15.6x | 22.4x | 1.2x |
| Thu, 29 Jan 2026 | JP¥41.3t | JP¥41.8t | JP¥2.1t | 13.4x | 19.9x | 1x |
| Sat, 27 Dec 2025 | JP¥40.0t | JP¥41.8t | JP¥2.1t | 12.8x | 19.3x | 1x |
| Mon, 24 Nov 2025 | JP¥37.9t | JP¥41.8t | JP¥2.1t | 12.2x | 18.2x | 0.9x |
| Wed, 22 Oct 2025 | JP¥38.3t | JP¥42.3t | JP¥2.1t | 12.9x | 18.6x | 0.9x |
| Fri, 19 Sep 2025 | JP¥37.9t | JP¥42.3t | JP¥2.1t | 13x | 18.5x | 0.9x |
| Sun, 17 Aug 2025 | JP¥37.1t | JP¥42.4t | JP¥2.0t | 12.5x | 18.2x | 0.9x |
| Tue, 15 Jul 2025 | JP¥35.8t | JP¥42.7t | JP¥2.2t | 11.3x | 16.6x | 0.8x |
| Thu, 12 Jun 2025 | JP¥34.7t | JP¥42.7t | JP¥2.2t | 10.9x | 16.1x | 0.8x |
| Sat, 10 May 2025 | JP¥33.7t | JP¥42.6t | JP¥2.0t | 11x | 16.7x | 0.8x |
| Mon, 07 Apr 2025 | JP¥31.3t | JP¥42.5t | JP¥2.0t | 10x | 15.6x | 0.7x |
| Wed, 05 Mar 2025 | JP¥34.5t | JP¥42.5t | JP¥2.0t | 11.3x | 17.3x | 0.8x |
| Fri, 31 Jan 2025 | JP¥35.7t | JP¥42.1t | JP¥1.9t | 12.3x | 19x | 0.8x |
| Sun, 29 Dec 2024 | JP¥37.2t | JP¥42.1t | JP¥1.9t | 12.1x | 20.1x | 0.9x |
| Tue, 26 Nov 2024 | JP¥37.6t | JP¥42.1t | JP¥1.9t | 12.2x | 20.3x | 0.9x |
| Thu, 24 Oct 2024 | JP¥37.6t | JP¥41.6t | JP¥1.9t | 11.6x | 19.6x | 0.9x |
| Sat, 21 Sep 2024 | JP¥37.9t | JP¥41.6t | JP¥1.9t | 12.2x | 19.8x | 0.9x |
| Mon, 19 Aug 2024 | JP¥38.3t | JP¥41.5t | JP¥1.9t | 12.1x | 20.2x | 0.9x |
| Wed, 17 Jul 2024 | JP¥40.8t | JP¥40.8t | JP¥1.7t | 13.3x | 23.4x | 1x |
| Fri, 14 Jun 2024 | JP¥39.6t | JP¥41.2t | JP¥1.7t | 12.8x | 22.9x | 1x |
| Sun, 12 May 2024 | JP¥39.5t | JP¥41.0t | JP¥1.8t | 14.2x | 21.5x | 1x |
| Tue, 09 Apr 2024 | JP¥40.2t | JP¥41.0t | JP¥1.7t | 14.3x | 23.9x | 1x |
| Thu, 07 Mar 2024 | JP¥41.1t | JP¥41.0t | JP¥1.7t | 14x | 24.4x | 1x |
| Sat, 03 Feb 2024 | JP¥38.7t | JP¥41.2t | JP¥1.6t | 14.1x | 24.4x | 0.9x |
| Mon, 01 Jan 2024 | JP¥37.8t | JP¥41.4t | JP¥1.7t | 14.1x | 22.8x | 0.9x |
| Wed, 29 Nov 2023 | JP¥36.7t | JP¥41.4t | JP¥1.7t | 14x | 22.1x | 0.9x |
| Fri, 27 Oct 2023 | JP¥32.7t | JP¥42.0t | JP¥1.8t | 13.2x | 17.9x | 0.8x |
| Sun, 24 Sep 2023 | JP¥35.0t | JP¥42.0t | JP¥1.8t | 13.6x | 19.2x | 0.8x |
| Tue, 22 Aug 2023 | JP¥33.8t | JP¥42.0t | JP¥1.8t | 13x | 18.5x | 0.8x |
| Thu, 20 Jul 2023 | JP¥34.7t | JP¥42.5t | JP¥2.1t | 13x | 16.6x | 0.8x |
Price to Earnings Ratio
16.6x
Current Industry PE
- Investors are optimistic on the Japanese Chemicals industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 23.7x which is higher than its 3-year average PE of 20.1x.
- The 3-year average PS ratio of 0.93x is lower than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- Both revenue and earnings for companies in the Chemicals industry have remained mostly flat over the last three years.
- This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Industry Trends
Which industries have driven the changes within the Japanese Materials industry?
| JP Market | -0.89% | |
| Materials | -1.82% | |
| Chemicals | -1.36% | |
| Specialty Chemicals | 1.09% | |
| Fertilizers and Agricultural Chemicals | -0.72% | |
| Commodity Chemicals | -2.91% | |
| Industrial Gases | -4.02% | |
| Diversified Chemicals | -4.95% | |
Industry PE
- Investors are most optimistic about the Diversified Chemicals industry which is trading above its 3-year average PE ratio of 32.8x.
- Analysts are expecting annual earnings growth of 22.6%, which is higher than its past year's earnings growth of 11.1% per year.
- Investors are most pessimistic about the Fertilizers and Agricultural Chemicals industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 10.7x.
Forecasted Growth
- Analysts are most optimistic on the Diversified Chemicals industry, expecting annual earnings growth of 23% over the next 5 years.
- This is better than its past earnings growth rate of 11% per year.
- In contrast, the Fertilizers and Agricultural Chemicals industry is expected to see its earnings grow by 7.6% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 4968 Arakawa Chemical Industries | JP¥2.18k | 8.2% +JP¥3.3b | 107.0% | PE19.6x | |
| 6036 KeePer Technical Laboratory | JP¥2.98k | 2.4% +JP¥1.9b | -8.0% | PE9.2x | |
| 5018 MORESCO | JP¥2.13k | 9.7% +JP¥1.7b | 71.6% | PE9.7x | |
| 5122 Okamoto Industries | JP¥5.43k | 0.9% +JP¥854.4m | 11.6% | PE19.1x | |
| 4220 Riken Technos | JP¥1.82k | 0.6% +JP¥523.5m | 62.5% | PE11.4x |