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Japanese (NIKKEI) Tech Sector Analysis

UpdatedNov 27, 2022
DataAggregated Company Financials
Companies688
  • 7D1.9%
  • 3M4.6%
  • 1Y-9.9%
  • YTD-12.9%

In the last week, the Tech industry is up 1.9%, with Tokyo Electron leading the way, up 3.2%. In contrast, the industry has lost 9.9% in the last 12 months. Earnings are forecast to grow by 9.1% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 27 Nov 2022JP¥99.1tJP¥66.2tJP¥5.4t15.4x18.3x1.5x
Tue, 25 Oct 2022JP¥88.5tJP¥63.7tJP¥5.2t14.5x17.1x1.4x
Thu, 22 Sep 2022JP¥89.9tJP¥63.6tJP¥5.2t14.8x17.4x1.4x
Sat, 20 Aug 2022JP¥97.7tJP¥63.7tJP¥5.1t15.4x19.1x1.5x
Mon, 18 Jul 2022JP¥89.9tJP¥62.1tJP¥5.0t14.9x18.1x1.4x
Wed, 15 Jun 2022JP¥91.3tJP¥62.1tJP¥5.0t14.9x18.2x1.5x
Fri, 13 May 2022JP¥93.4tJP¥61.6tJP¥4.8t15x19.4x1.5x
Sun, 10 Apr 2022JP¥96.3tJP¥61.0tJP¥4.6t15.8x20.8x1.6x
Tue, 08 Mar 2022JP¥88.1tJP¥60.9tJP¥4.6t14.6x19x1.4x
Thu, 03 Feb 2022JP¥99.1tJP¥60.1tJP¥4.4t15.8x22.5x1.6x
Sat, 01 Jan 2022JP¥112.3tJP¥59.5tJP¥4.3t17.5x26.3x1.9x
Mon, 29 Nov 2021JP¥109.7tJP¥59.4tJP¥4.3t17.3x25.7x1.8x
Wed, 27 Oct 2021JP¥105.9tJP¥58.0tJP¥3.8t19.1x28x1.8x
Fri, 24 Sep 2021JP¥109.8tJP¥58.0tJP¥3.8t19.9x29.2x1.9x
Sun, 22 Aug 2021JP¥96.4tJP¥58.1tJP¥3.8t18.7x25.6x1.7x
Fri, 09 Jul 2021JP¥99.0tJP¥58.1tJP¥3.8t20.4x26.3x1.7x
Thu, 01 Apr 2021JP¥94.3tJP¥55.6tJP¥3.1t22.8x30x1.7x
Sun, 03 Jan 2021JP¥91.0tJP¥54.5tJP¥2.6t24.3x34.3x1.7x
Wed, 07 Oct 2020JP¥78.4tJP¥54.4tJP¥2.4t25.7x32.9x1.4x
Tue, 30 Jun 2020JP¥73.0tJP¥55.4tJP¥2.5t22.3x29x1.3x
Fri, 03 Apr 2020JP¥59.9tJP¥56.6tJP¥2.5t16.1x23.6x1.1x
Mon, 06 Jan 2020JP¥72.9tJP¥56.1tJP¥2.9t21.6x25.4x1.3x
Price to Earnings Ratio

24.8x


Total Market Cap: JP¥70.8tTotal Earnings: JP¥2.9tTotal Revenue: JP¥56.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Tech Sector Price to Earnings3Y Average 26x202020212022
Current Industry PE
  • Investors are pessimistic on the Japanese Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 18.3x which is lower than its 3-year average PE of 26.0x.
  • The industry is trading close to its 3-year average PS ratio of 1.5x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 24% per year over the last three years.
  • Revenues for these companies have grown 5.6% 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 Market2.37%
Tech1.93%
Semiconductors3.50%
Communications2.95%
Software1.89%
Electronic Equipment and Components1.73%
IT1.31%
Tech Hardware0.80%
Industry PE
  • Investors are most optimistic about the Software industry, which is trading close to its 3-year average PE ratio of 39.5x.
    • Analysts are expecting annual earnings growth of 28.9%, which is higher than its past year's earnings growth of 11.4% per year.
  • Investors are most pessimistic about the Communications industry, which is trading below its 3-year average of 27.1x.
Forecasted Growth
  • Analysts are most optimistic on the Software industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is better than its past earnings growth rate of 11% per year.
  • In contrast, the Tech Hardware industry is expected to see its earnings grow by 5.4% 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
8035 Tokyo ElectronJP¥46.02k3.2%
+JP¥223.1b		-24.4%PE14.2x
6861 KeyenceJP¥59.73k1.5%
+JP¥208.6b		-15.8%PE42.3x
6920 LasertecJP¥26.64k6.9%
+JP¥154.2b		-8.2%PE80x
6857 AdvantestJP¥9.31k3.6%
+JP¥59.2b		-5.1%PE14x
6971 KyoceraJP¥7.08k2.4%
+JP¥58.5b		1.5%PE16.8x
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