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Japanese (NIKKEI) IT Industry Analysis

UpdatedApr 19, 2024
DataAggregated Company Financials
Companies221
  • 7D-2.5%
  • 3M3.7%
  • 1Y22.6%
  • YTD5.0%

Over the last 7 days, the IT industry has dropped 2.5%, driven by a pullback from NEC of 4.7%. Meanwhile, TerraSkyLtd actually outperformed within the industry, gaining 55% in the last week. In the past year, the industry has gained 23%. Earnings are forecast to grow by 14% annually.

Industry Valuation and Performance

Has the Japanese IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 20 Apr 2024JP¥24.2tJP¥19.2tJP¥965.5b18.4x25x1.3x
Mon, 18 Mar 2024JP¥25.0tJP¥19.2tJP¥964.4b19.4x25.9x1.3x
Wed, 14 Feb 2024JP¥24.1tJP¥19.2tJP¥956.8b18.3x25.2x1.3x
Fri, 12 Jan 2024JP¥24.8tJP¥19.6tJP¥1.0t18.4x23.8x1.3x
Sun, 10 Dec 2023JP¥23.4tJP¥19.6tJP¥1.0t18x22.6x1.2x
Tue, 07 Nov 2023JP¥23.1tJP¥19.0tJP¥1.0t18.2x22.6x1.2x
Thu, 05 Oct 2023JP¥22.8tJP¥18.8tJP¥1.0t17.7x22.3x1.2x
Sat, 02 Sep 2023JP¥23.6tJP¥18.8tJP¥1.0t19.3x23.1x1.3x
Mon, 31 Jul 2023JP¥22.5tJP¥18.4tJP¥1.0t19x22x1.2x
Wed, 28 Jun 2023JP¥22.4tJP¥18.2tJP¥1.0t18.9x21.9x1.2x
Fri, 26 May 2023JP¥22.2tJP¥18.2tJP¥1.0t18.2x21.7x1.2x
Sun, 23 Apr 2023JP¥20.6tJP¥17.5tJP¥978.7b17.8x21.1x1.2x
Tue, 21 Mar 2023JP¥19.7tJP¥17.5tJP¥980.3b17.2x20.1x1.1x
Thu, 16 Feb 2023JP¥21.8tJP¥18.3tJP¥1.1t17.4x20.6x1.2x
Sat, 14 Jan 2023JP¥21.4tJP¥17.7tJP¥1.1t16.8x19.5x1.2x
Mon, 12 Dec 2022JP¥22.5tJP¥17.7tJP¥1.1t17.8x20.5x1.3x
Wed, 09 Nov 2022JP¥22.1tJP¥17.6tJP¥1.1t17.5x19.4x1.3x
Fri, 07 Oct 2022JP¥22.2tJP¥17.3tJP¥1.1t17.7x20.1x1.3x
Sun, 04 Sep 2022JP¥22.0tJP¥17.3tJP¥1.1t17.8x20x1.3x
Tue, 02 Aug 2022JP¥23.0tJP¥17.2tJP¥1.1t18.8x21.3x1.3x
Thu, 30 Jun 2022JP¥21.9tJP¥17.1tJP¥1.1t17.7x20x1.3x
Sat, 28 May 2022JP¥22.0tJP¥17.2tJP¥1.1t18x20.1x1.3x
Mon, 25 Apr 2022JP¥22.8tJP¥17.1tJP¥1.1t18.4x21.6x1.3x
Wed, 23 Mar 2022JP¥22.7tJP¥17.1tJP¥1.0t17.7x21.7x1.3x
Fri, 18 Feb 2022JP¥21.3tJP¥17.1tJP¥1.0t17.3x20.4x1.2x
Sun, 16 Jan 2022JP¥23.2tJP¥17.0tJP¥1.0t19.6x22.4x1.4x
Tue, 14 Dec 2021JP¥25.5tJP¥16.9tJP¥1.0t19.9x24.6x1.5x
Thu, 11 Nov 2021JP¥25.7tJP¥16.9tJP¥1.0t21.6x25.2x1.5x
Sat, 09 Oct 2021JP¥24.3tJP¥16.7tJP¥985.4b22.2x24.7x1.5x
Mon, 06 Sep 2021JP¥25.6tJP¥16.7tJP¥982.7b23.2x26.1x1.5x
Wed, 04 Aug 2021JP¥22.8tJP¥16.7tJP¥982.6b22.3x23.2x1.4x
Sat, 08 May 2021JP¥23.1tJP¥16.5tJP¥930.1b26x24.9x1.4x
Price to Earnings Ratio

24.9x


Total Market Cap: JP¥23.1tTotal Earnings: JP¥930.1bTotal Revenue: JP¥16.5tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 22.4x202220232024
Current Industry PE
  • Investors are optimistic on the Japanese IT industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 25.0x which is higher than its 3-year average PE of 22.4x.
  • The industry is trading close to its 3-year average PS ratio of 1.3x.
Past Earnings Growth
  • The earnings for companies in the IT industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 5.3% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

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

JP Market-2.55%
Tech-2.56%
IT-2.46%
Data Processing Services-2.05%
Internet Services and Infrastructure-2.05%
IT Consulting-2.48%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry even though it's trading below its 3-year average PE ratio of 41.8x.
    • Analysts are expecting annual earnings growth of 23.5%, which is higher than its past year's earnings growth of 6.8% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 25.3x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is better than its past earnings growth rate of 6.8% per year.
  • In contrast, the Data Processing Services industry is expected to see its earnings grow by 9.4% 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
3778 SAKURA InternetJP¥6.19k6.2%
+JP¥12.9b
911.4%PE399.7x
3915 TerraSkyLtdJP¥2.02k47.5%
+JP¥8.4b
-24.8%PE86.6x
4761 SAKURA KCSJP¥2.72k28.3%
+JP¥6.7b
232.9%PE29.1x
3648 AGSJP¥1.22k14.4%
+JP¥2.6b
71.2%PE17.9x
4429 RicksoftJP¥1.95k24.5%
+JP¥1.7b
12.1%PE33x
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4429

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3987

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Ecomott

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3697

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SHIFT

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4768

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6702

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35.2%

4761

JP¥2,720.00

SAKURA KCS

7D

28.3%

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232.9%

7068

JP¥578.00

Feedforce Group

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4.1%

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-19.9%

9719

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SCSK

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-5.9%

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