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Japanese (NIKKEI) Tech Sector Analysis

UpdatedDec 21, 2024
DataAggregated Company Financials
Companies684
  • 7D-1.2%
  • 3M-0.7%
  • 1Y7.7%
  • YTD7.4%

Over the last 7 days, the Tech industry has dropped 1.2%, driven by a pullback from Advantest of 8.2%. Over the past 12 months, the industry was up 7.7%. Looking forward, earnings are forecast to grow by 13% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 22 Dec 2024JP¥125.1tJP¥73.9tJP¥5.1t16.4x24.7x1.7x
Tue, 19 Nov 2024JP¥123.3tJP¥72.5tJP¥5.1t16.5x24.3x1.7x
Thu, 17 Oct 2024JP¥127.2tJP¥71.7tJP¥5.1t16.1x25.2x1.8x
Sat, 14 Sep 2024JP¥122.6tJP¥71.7tJP¥5.1t16.2x24.3x1.7x
Mon, 12 Aug 2024JP¥117.6tJP¥71.7tJP¥5.0t15x23.5x1.6x
Wed, 10 Jul 2024JP¥142.5tJP¥70.7tJP¥4.8t17.5x29.5x2x
Fri, 07 Jun 2024JP¥132.8tJP¥70.5tJP¥4.8t16.4x27.6x1.9x
Sun, 05 May 2024JP¥130.7tJP¥70.2tJP¥4.7t17x27.8x1.9x
Tue, 02 Apr 2024JP¥136.2tJP¥69.9tJP¥4.5t18.2x30x1.9x
Thu, 29 Feb 2024JP¥135.1tJP¥70.3tJP¥4.6t17.9x29.6x1.9x
Sat, 27 Jan 2024JP¥125.7tJP¥71.4tJP¥4.8t17.7x26.4x1.8x
Mon, 25 Dec 2023JP¥117.5tJP¥71.3tJP¥4.8t16.6x24.7x1.6x
Wed, 22 Nov 2023JP¥116.5tJP¥71.1tJP¥4.8t16.8x24.5x1.6x
Fri, 20 Oct 2023JP¥106.2tJP¥70.5tJP¥5.0t16.1x21.2x1.5x
Sun, 17 Sep 2023JP¥111.7tJP¥70.4tJP¥5.0t16.9x22.4x1.6x
Tue, 15 Aug 2023JP¥107.8tJP¥70.2tJP¥5.0t16.4x21.7x1.5x
Thu, 13 Jul 2023JP¥109.5tJP¥69.6tJP¥5.1t16.2x21.3x1.6x
Sat, 10 Jun 2023JP¥110.9tJP¥69.6tJP¥5.1t16.1x21.5x1.6x
Mon, 08 May 2023JP¥99.4tJP¥68.3tJP¥5.3t15.5x18.9x1.5x
Wed, 05 Apr 2023JP¥97.6tJP¥67.7tJP¥5.3t15.3x18.5x1.4x
Fri, 03 Mar 2023JP¥95.6tJP¥68.5tJP¥5.4t15.2x17.8x1.4x
Sun, 29 Jan 2023JP¥95.5tJP¥66.3tJP¥5.4t15x17.7x1.4x
Tue, 27 Dec 2022JP¥88.2tJP¥66.3tJP¥5.4t14.3x16.3x1.3x
Thu, 24 Nov 2022JP¥97.7tJP¥66.2tJP¥5.4t15.1x18.1x1.5x
Sat, 22 Oct 2022JP¥88.5tJP¥63.7tJP¥5.2t14.5x17.1x1.4x
Mon, 19 Sep 2022JP¥90.6tJP¥63.6tJP¥5.2t15.1x17.5x1.4x
Wed, 17 Aug 2022JP¥97.1tJP¥63.7tJP¥5.1t15.4x19x1.5x
Fri, 15 Jul 2022JP¥89.8tJP¥62.1tJP¥5.0t14.7x18x1.4x
Sun, 12 Jun 2022JP¥95.2tJP¥62.1tJP¥5.0t15.4x19x1.5x
Tue, 10 May 2022JP¥92.5tJP¥61.1tJP¥4.7t15.1x19.6x1.5x
Thu, 07 Apr 2022JP¥98.6tJP¥61.0tJP¥4.6t16.1x21.3x1.6x
Sat, 05 Mar 2022JP¥91.6tJP¥60.9tJP¥4.6t15.3x19.8x1.5x
Mon, 31 Jan 2022JP¥93.4tJP¥59.8tJP¥4.4t15.1x21.5x1.6x
Wed, 29 Dec 2021JP¥113.2tJP¥59.5tJP¥4.3t17x26.5x1.9x
Price to Earnings Ratio

26.5x


Total Market Cap: JP¥113.2tTotal Earnings: JP¥4.3tTotal Revenue: JP¥59.5tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Tech Sector Price to Earnings3Y Average 22.2x202220232024
Current Industry PE
  • Investors are optimistic on the Japanese Information Technology industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 24.7x which is higher than its 3-year average PE of 22.2x.
  • The industry is trading close to its 3-year average PS ratio of 1.6x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 5.9% per year over the last three years.
  • Revenues for these companies have grown 7.5% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

JP Market-1.46%
Tech-1.24%
Electronic Equipment and Components-0.45%
Tech Hardware-0.52%
IT-1.39%
Software-1.49%
Communications-1.72%
Semiconductors-2.30%
Industry PE
  • Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 23.9x.
    • Analysts are expecting annual earnings growth of 7.7%, which is higher than its past year's earnings decline of 15.0% per year.
  • Investors are most pessimistic about the Tech Hardware industry, which is trading close to its 3-year average of 16.5x.
Forecasted Growth
  • Analysts are most optimistic on the Software industry, expecting annual earnings growth of 20% over the next 5 years.
  • This is better than its past earnings growth rate of 13% per year.
  • In contrast, the Communications industry is expected to see its earnings grow by 7.7% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
7751 CanonJP¥5.16k2.8%
+JP¥132.2b		40.0%PE16.3x
6146 DiscoJP¥41.54k2.5%
+JP¥111.6b		24.4%PE42.9x
6701 NECJP¥13.47k3.1%
+JP¥109.3b		65.3%PE23.9x
6645 OMRONJP¥5.13k4.8%
+JP¥46.5b		-19.2%PS1.3x
6723 Renesas ElectronicsJP¥2.03k0.8%
+JP¥27.8b		-19.3%PE13.7x
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