Analysis Article • Aug 06
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- 7D3.8%
- 3M16.5%
- 1Y-2.4%
- YTD-9.8%
NEC is up 4.8%, leading the way for the IT industry, which has gained 3.8%. Meanwhile, Finatext Holdings actually underperformed within the industry, shrinking 20% in the last week. Despite this gain, the industry's performance has been flat over the past year. Earnings are forecast to grow by 12% annually.
Industry Valuation and Performance
Has the Japanese IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 14 Aug 2026 | JP¥26.8t | JP¥15.5t | JP¥1.2t | 16.3x | 22.5x | 1.7x |
| Sun, 12 Jul 2026 | JP¥24.4t | JP¥15.2t | JP¥1.1t | 15.4x | 21.4x | 1.6x |
| Tue, 09 Jun 2026 | JP¥23.7t | JP¥15.2t | JP¥1.1t | 14.3x | 20.8x | 1.6x |
| Thu, 07 May 2026 | JP¥22.8t | JP¥15.1t | JP¥1.1t | 14.3x | 20x | 1.5x |
| Sat, 04 Apr 2026 | JP¥23.4t | JP¥15.1t | JP¥1.2t | 14.7x | 19.4x | 1.5x |
| Mon, 02 Mar 2026 | JP¥26.6t | JP¥15.9t | JP¥1.3t | 15.9x | 20.8x | 1.7x |
| Wed, 28 Jan 2026 | JP¥31.4t | JP¥15.5t | JP¥1.2t | 17.5x | 26.2x | 2x |
| Fri, 26 Dec 2025 | JP¥31.9t | JP¥15.4t | JP¥1.2t | 17.3x | 26.6x | 2.1x |
| Sun, 23 Nov 2025 | JP¥32.7t | JP¥15.4t | JP¥1.2t | 17.2x | 27.4x | 2.1x |
| Tue, 21 Oct 2025 | JP¥28.6t | JP¥15.3t | JP¥1.0t | 17.2x | 27.4x | 1.9x |
| Thu, 18 Sep 2025 | JP¥35.1t | JP¥19.9t | JP¥1.2t | 17.8x | 29.6x | 1.8x |
| Sat, 16 Aug 2025 | JP¥29.2t | JP¥15.2t | JP¥1.0t | 17.6x | 28x | 1.9x |
| Mon, 14 Jul 2025 | JP¥26.7t | JP¥15.0t | JP¥980.6b | 17.2x | 27.2x | 1.8x |
| Wed, 11 Jun 2025 | JP¥33.4t | JP¥19.6t | JP¥1.1t | 17.4x | 29.8x | 1.7x |
| Fri, 09 May 2025 | JP¥31.2t | JP¥19.5t | JP¥1.1t | 17.5x | 27.9x | 1.6x |
| Sun, 06 Apr 2025 | JP¥26.7t | JP¥19.5t | JP¥1.2t | 15.2x | 21.6x | 1.4x |
| Tue, 04 Mar 2025 | JP¥29.1t | JP¥20.0t | JP¥1.3t | 17.3x | 23.1x | 1.5x |
| Thu, 30 Jan 2025 | JP¥28.6t | JP¥19.8t | JP¥1.1t | 18x | 25.4x | 1.4x |
| Sat, 28 Dec 2024 | JP¥28.6t | JP¥19.8t | JP¥1.1t | 18x | 25.5x | 1.4x |
| Mon, 25 Nov 2024 | JP¥27.4t | JP¥19.8t | JP¥1.1t | 17.6x | 24.4x | 1.4x |
| Wed, 23 Oct 2024 | JP¥27.1t | JP¥19.7t | JP¥1.1t | 17.3x | 24.1x | 1.4x |
| Fri, 20 Sep 2024 | JP¥27.4t | JP¥19.7t | JP¥1.1t | 17.9x | 24.4x | 1.4x |
| Sun, 18 Aug 2024 | JP¥25.3t | JP¥19.7t | JP¥1.1t | 16.8x | 22.4x | 1.3x |
| Tue, 16 Jul 2024 | JP¥25.9t | JP¥19.5t | JP¥1.1t | 18.9x | 23.1x | 1.3x |
| Thu, 13 Jun 2024 | JP¥24.5t | JP¥19.5t | JP¥1.1t | 17x | 21.8x | 1.3x |
| Sat, 11 May 2024 | JP¥24.2t | JP¥19.3t | JP¥1.1t | 18.7x | 21.7x | 1.3x |
| Mon, 08 Apr 2024 | JP¥24.4t | JP¥19.2t | JP¥964.2b | 18.6x | 25.3x | 1.3x |
| Wed, 06 Mar 2024 | JP¥25.5t | JP¥19.2t | JP¥965.2b | 19.3x | 26.5x | 1.3x |
| Fri, 02 Feb 2024 | JP¥24.7t | JP¥19.6t | JP¥989.5b | 18.6x | 25x | 1.3x |
| Sun, 31 Dec 2023 | JP¥24.2t | JP¥19.6t | JP¥1.0t | 18.2x | 23.3x | 1.2x |
| Tue, 28 Nov 2023 | JP¥23.4t | JP¥19.6t | JP¥1.0t | 18.4x | 22.7x | 1.2x |
| Thu, 26 Oct 2023 | JP¥21.5t | JP¥18.9t | JP¥1.0t | 17.4x | 21.1x | 1.1x |
| Sat, 23 Sep 2023 | JP¥23.3t | JP¥18.8t | JP¥1.0t | 18.7x | 22.9x | 1.2x |
| Mon, 21 Aug 2023 | JP¥22.4t | JP¥18.8t | JP¥1.0t | 18.2x | 21.9x | 1.2x |
Price to Earnings Ratio
21.9x
Current Industry PE
- Investors are relatively neutral on the Japanese IT 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 24.2x.
- The 3-year average PS ratio of 1.5x is lower than the industry's current PS ratio of 1.7x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 5.3% per year over the last three years.
- Meanwhile revenues for these companies have declined 6.3% per year.
- This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the Japanese Tech industry?
| JP Market | 2.71% | |
| Tech | 4.69% | |
| IT | 3.80% | |
| IT Consulting | 3.90% | |
| Data Processing Services | 2.62% | |
| Internet Services and Infrastructure | 0.98% | |
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 37.5x.
- Analysts expect its future annual earnings growth (17.0%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the Data Processing Services industry, which is trading close to its 3-year average of 16.9x.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 17% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 12% 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 | |
|---|---|---|---|---|---|
| 6701 NEC | JP¥4.92k | 4.8% +JP¥301.1b | 8.5% | PE21.7x | |
| 6702 Fujitsu | JP¥3.75k | 4.8% +JP¥296.6b | 7.5% | PE20.5x | |
| 4307 Nomura Research Institute | JP¥4.98k | 5.0% +JP¥133.8b | -18.2% | PE150.8x | |
| 4684 OBICLtd | JP¥4.61k | 3.1% +JP¥59.5b | -14.5% | PE25.3x | |
| 8056 BIPROGY | JP¥4.49k | 7.7% +JP¥31.1b | -30.3% | PE14.5x |