Analysis Article • Jul 28
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- 7D-8.2%
- 3M-1.7%
- 1Y31.5%
- YTD17.6%
Over the last 7 days, the Chemicals industry has dropped 8.2%, driven by a pullback from Shin-Etsu Chemical of 20%. In contrast, Nippon Paint Holdings has gained 13%. This takes the industry's 12 month performance to a gain of 31%. 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 |
|---|---|---|---|---|---|---|
| Thu, 30 Jul 2026 | JP¥47.0t | JP¥41.9t | JP¥2.2t | 12.9x | 21.6x | 1.1x |
| Sat, 27 Jun 2026 | JP¥51.4t | JP¥41.8t | JP¥2.2t | 13.1x | 23.7x | 1.2x |
| Mon, 25 May 2026 | JP¥50.4t | JP¥41.8t | JP¥2.2t | 12.7x | 23.3x | 1.2x |
| Wed, 22 Apr 2026 | JP¥47.1t | JP¥42.0t | JP¥2.2t | 14.2x | 21.4x | 1.1x |
| Fri, 20 Mar 2026 | JP¥45.2t | JP¥42.0t | JP¥2.2t | 13.9x | 20.5x | 1.1x |
| Sun, 15 Feb 2026 | JP¥46.0t | JP¥42.0t | JP¥2.2t | 14.8x | 21x | 1.1x |
| Tue, 13 Jan 2026 | JP¥41.0t | JP¥41.8t | JP¥2.1t | 13x | 19.7x | 1x |
| Thu, 11 Dec 2025 | JP¥39.6t | JP¥41.8t | JP¥2.1t | 12.5x | 19x | 0.9x |
| Sat, 08 Nov 2025 | JP¥37.6t | JP¥42.1t | JP¥2.1t | 13x | 17.5x | 0.9x |
| Mon, 06 Oct 2025 | JP¥38.2t | JP¥42.3t | JP¥2.1t | 12.6x | 18.6x | 0.9x |
| Wed, 03 Sep 2025 | JP¥37.2t | JP¥42.3t | JP¥2.1t | 12.7x | 18.1x | 0.9x |
| Fri, 01 Aug 2025 | JP¥36.4t | JP¥42.7t | JP¥2.1t | 11.8x | 17.1x | 0.9x |
| Sun, 29 Jun 2025 | JP¥35.2t | JP¥42.7t | JP¥2.2t | 11x | 16.4x | 0.8x |
| Tue, 27 May 2025 | JP¥33.8t | JP¥42.7t | JP¥2.2t | 10.6x | 15.6x | 0.8x |
| Thu, 24 Apr 2025 | JP¥31.3t | JP¥42.5t | JP¥2.0t | 10.4x | 15.6x | 0.7x |
| Sat, 22 Mar 2025 | JP¥35.6t | JP¥42.5t | JP¥2.0t | 11.3x | 17.9x | 0.8x |
| Mon, 17 Feb 2025 | JP¥35.0t | JP¥42.5t | JP¥2.0t | 11.5x | 17.6x | 0.8x |
| Wed, 15 Jan 2025 | JP¥35.6t | JP¥42.0t | JP¥1.9t | 11.9x | 19.3x | 0.8x |
| Fri, 13 Dec 2024 | JP¥37.2t | JP¥42.1t | JP¥1.9t | 12.2x | 20x | 0.9x |
| Sun, 10 Nov 2024 | JP¥38.6t | JP¥41.9t | JP¥1.9t | 12.5x | 20.8x | 0.9x |
| Tue, 08 Oct 2024 | JP¥39.7t | JP¥41.6t | JP¥1.9t | 12.3x | 20.8x | 1x |
| Thu, 05 Sep 2024 | JP¥37.2t | JP¥41.6t | JP¥1.9t | 12.4x | 19.5x | 0.9x |
| Sat, 03 Aug 2024 | JP¥36.3t | JP¥41.1t | JP¥1.8t | 11.7x | 20.2x | 0.9x |
| Mon, 01 Jul 2024 | JP¥39.6t | JP¥40.8t | JP¥1.7t | 13.2x | 22.8x | 1x |
| Wed, 29 May 2024 | JP¥39.2t | JP¥41.2t | JP¥1.7t | 13.1x | 22.6x | 1x |
| Fri, 26 Apr 2024 | JP¥39.7t | JP¥41.0t | JP¥1.7t | 14x | 23.6x | 1x |
| Sun, 24 Mar 2024 | JP¥42.4t | JP¥41.0t | JP¥1.7t | 14.6x | 25.2x | 1x |
| Tue, 20 Feb 2024 | JP¥39.5t | JP¥41.0t | JP¥1.7t | 13.9x | 23.5x | 1x |
| Thu, 18 Jan 2024 | JP¥37.5t | JP¥41.4t | JP¥1.7t | 13.9x | 22.7x | 0.9x |
| Sat, 16 Dec 2023 | JP¥36.4t | JP¥41.4t | JP¥1.7t | 14.2x | 22x | 0.9x |
| Mon, 13 Nov 2023 | JP¥35.5t | JP¥41.3t | JP¥1.7t | 13.4x | 21.4x | 0.9x |
| Wed, 11 Oct 2023 | JP¥33.8t | JP¥42.0t | JP¥1.8t | 13.7x | 18.5x | 0.8x |
| Fri, 08 Sep 2023 | JP¥35.8t | JP¥42.0t | JP¥1.8t | 13.7x | 19.6x | 0.9x |
| Sun, 06 Aug 2023 | JP¥34.4t | JP¥42.1t | JP¥1.9t | 12.9x | 18x | 0.8x |
Price to Earnings Ratio
18x
Current Industry PE
- Investors are relatively neutral on the Japanese Chemicals industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 20.2x.
- The 3-year average PS ratio of 0.93x is lower than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have grown 4.4% 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 industry?
| JP Market | -2.05% | |
| Materials | -6.23% | |
| Chemicals | -8.22% | |
| Industrial Gases | -1.50% | |
| Fertilizers and Agricultural Chemicals | -3.02% | |
| Commodity Chemicals | -3.47% | |
| Diversified Chemicals | -9.84% | |
| Specialty Chemicals | -10.63% | |
Industry PE
- Investors are most optimistic about the Diversified Chemicals industry which is trading above its 3-year average PE ratio of 33.3x.
- Analysts are expecting annual earnings growth of 22.0%, 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 10.8x.
Forecasted Growth
- Analysts are most optimistic on the Diversified Chemicals industry, expecting annual earnings growth of 22% 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 7.4% 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 | |
|---|---|---|---|---|---|
| 4612 Nippon Paint Holdings | JP¥1.24k | 12.7% +JP¥322.4b | -1.3% | PE14.7x | |
| 6988 Nitto Denko | JP¥3.55k | 7.7% +JP¥169.4b | 14.2% | PE17.3x | |
| 4613 Kansai Paint | JP¥2.86k | 7.1% +JP¥33.6b | 33.4% | PE15.9x | |
| 3405 Kuraray | JP¥1.89k | 4.8% +JP¥26.1b | 1.6% | PE174.6x | |
| 4403 NOF | JP¥2.83k | 3.0% +JP¥18.6b | -5.5% | PE15.7x |