Analysis Article • Jul 15
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- 7D-1.4%
- 3M-2.6%
- 1Y-6.2%
- YTD-17.9%
Over the last 7 days, the IT industry has dropped 1.4%, driven by NEC declining 2.4%. In contrast, SHIFT has gained 8.6%. Overall the industry is down 6.2% in 12 months. As for the next few years, earnings are expected to grow by 12% per annum.
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 |
|---|---|---|---|---|---|---|
| Mon, 27 Jul 2026 | JP¥24.3t | JP¥15.2t | JP¥1.1t | 15.5x | 21.3x | 1.6x |
| Wed, 24 Jun 2026 | JP¥21.8t | JP¥15.2t | JP¥1.1t | 14.1x | 19.2x | 1.4x |
| Fri, 22 May 2026 | JP¥23.7t | JP¥15.2t | JP¥1.1t | 14.7x | 20.8x | 1.6x |
| Sun, 19 Apr 2026 | JP¥25.4t | JP¥15.1t | JP¥1.2t | 15.1x | 21x | 1.7x |
| Tue, 17 Mar 2026 | JP¥25.9t | JP¥15.9t | JP¥1.3t | 14.9x | 20.3x | 1.6x |
| Thu, 12 Feb 2026 | JP¥28.5t | JP¥15.8t | JP¥1.3t | 16.4x | 22.3x | 1.8x |
| Sat, 10 Jan 2026 | JP¥32.4t | JP¥15.4t | JP¥1.2t | 17.5x | 27x | 2.1x |
| Mon, 08 Dec 2025 | JP¥31.8t | JP¥15.4t | JP¥1.2t | 17.2x | 26.6x | 2.1x |
| Wed, 05 Nov 2025 | JP¥30.9t | JP¥15.5t | JP¥1.2t | 17.5x | 26.2x | 2x |
| Fri, 03 Oct 2025 | JP¥27.9t | JP¥15.3t | JP¥1.0t | 17.6x | 26.7x | 1.8x |
| Sun, 31 Aug 2025 | JP¥34.7t | JP¥19.9t | JP¥1.2t | 17.6x | 29.3x | 1.7x |
| Tue, 29 Jul 2025 | JP¥27.2t | JP¥15.0t | JP¥983.6b | 17.6x | 27.7x | 1.8x |
| Thu, 26 Jun 2025 | JP¥28.0t | JP¥15.0t | JP¥979.0b | 17.1x | 28.6x | 1.9x |
| Sat, 24 May 2025 | JP¥32.6t | JP¥19.6t | JP¥1.1t | 17x | 29.1x | 1.7x |
| Mon, 21 Apr 2025 | JP¥28.2t | JP¥19.5t | JP¥1.2t | 16.4x | 22.8x | 1.4x |
| Wed, 19 Mar 2025 | JP¥29.5t | JP¥20.0t | JP¥1.3t | 17.5x | 23.4x | 1.5x |
| Fri, 14 Feb 2025 | JP¥30.3t | JP¥20.0t | JP¥1.3t | 17.6x | 24.1x | 1.5x |
| Sun, 12 Jan 2025 | JP¥27.8t | JP¥19.8t | JP¥1.1t | 17.5x | 24.7x | 1.4x |
| Tue, 10 Dec 2024 | JP¥28.4t | JP¥19.8t | JP¥1.1t | 18.2x | 25.3x | 1.4x |
| Thu, 07 Nov 2024 | JP¥27.1t | JP¥19.7t | JP¥1.1t | 16.9x | 24.3x | 1.4x |
| Sat, 05 Oct 2024 | JP¥28.0t | JP¥19.7t | JP¥1.1t | 17.6x | 24.9x | 1.4x |
| Mon, 02 Sep 2024 | JP¥26.5t | JP¥19.7t | JP¥1.1t | 17.9x | 23.4x | 1.3x |
| Wed, 31 Jul 2024 | JP¥25.9t | JP¥19.6t | JP¥1.1t | 18.3x | 22.6x | 1.3x |
| Fri, 28 Jun 2024 | JP¥25.6t | JP¥19.5t | JP¥1.1t | 18.1x | 22.7x | 1.3x |
| Sun, 26 May 2024 | JP¥24.2t | JP¥19.5t | JP¥1.1t | 17x | 21.5x | 1.2x |
| Tue, 23 Apr 2024 | JP¥23.9t | JP¥19.2t | JP¥965.5b | 17.9x | 24.7x | 1.2x |
| Thu, 21 Mar 2024 | JP¥25.6t | JP¥19.2t | JP¥964.4b | 19.6x | 26.6x | 1.3x |
| Sat, 17 Feb 2024 | JP¥24.3t | JP¥19.1t | JP¥964.1b | 18.6x | 25.2x | 1.3x |
| Mon, 15 Jan 2024 | JP¥25.0t | JP¥19.6t | JP¥1.0t | 18.6x | 24.1x | 1.3x |
| Wed, 13 Dec 2023 | JP¥23.7t | JP¥19.6t | JP¥1.0t | 18x | 22.9x | 1.2x |
| Fri, 10 Nov 2023 | JP¥23.0t | JP¥19.4t | JP¥1.0t | 18x | 22.6x | 1.2x |
| Sun, 08 Oct 2023 | JP¥22.5t | JP¥18.8t | JP¥1.0t | 18.2x | 22x | 1.2x |
| Tue, 05 Sep 2023 | JP¥23.6t | JP¥18.8t | JP¥1.0t | 19.1x | 23.1x | 1.3x |
| Thu, 03 Aug 2023 | JP¥22.7t | JP¥18.4t | JP¥1.0t | 18.8x | 21.9x | 1.2x |
Price to Earnings Ratio
21.9x
Current Industry PE
- Investors are pessimistic on the Japanese IT 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 21.3x which is lower than its 3-year average PE of 24.2x.
- The industry is trading close to its 3-year average PS ratio of 1.5x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 3.2% per year over the last three years.
- Meanwhile revenues for these companies have declined 6.1% 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 | 2.14% | |
| Tech | 2.16% | |
| IT | -1.38% | |
| Data Processing Services | 1.04% | |
| IT Consulting | -1.35% | |
| Internet Services and Infrastructure | -2.20% | |
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 38.0x.
- Analysts are expecting annual earnings growth of 17.5%, which is lower than the prior year's growth of 22.1% per year.
- 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 18% over the next 5 years.
- However this is lower than its past earnings growth rate of 22% per year.
- 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 | |
|---|---|---|---|---|---|
| 3697 SHIFT | JP¥807.00 | 8.6% +JP¥16.3b | -48.7% | PE31.1x | |
| 2354 YE DIGITAL | JP¥1.60k | 51.1% +JP¥10.0b | 146.5% | PE23.5x | |
| 4722 Future | JP¥2.21k | 2.3% +JP¥4.3b | -0.3% | PE16.2x | |
| 4768 Otsuka | JP¥3.03k | 0.4% +JP¥4.2b | 5.1% | PE17.3x | |
| 4828 Business Engineering | JP¥1.18k | 3.1% +JP¥2.1b | 16.5% | PE14.4x |