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Japanese (NIKKEI) IT Industry Analysis

UpdatedDec 21, 2024
DataAggregated Company Financials
Companies218
  • 7D-1.4%
  • 3M2.7%
  • 1Y26.6%
  • YTD23.1%

Over the last 7 days, the IT industry has dropped 1.4%, driven by pullbacks in OBICLtd and NTT DATA Group of 4.8% and 2.4%, respectively. Over the past 12 months, the industry was up 27%. Earnings are forecast to grow by 12% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 22 Dec 2024JP¥28.1tJP¥19.8tJP¥1.1t18x25.1x1.4x
Tue, 19 Nov 2024JP¥27.5tJP¥19.8tJP¥1.1t17.6x24.6x1.4x
Thu, 17 Oct 2024JP¥27.8tJP¥19.7tJP¥1.1t17.5x24.8x1.4x
Sat, 14 Sep 2024JP¥26.9tJP¥19.7tJP¥1.1t17.4x23.9x1.4x
Mon, 12 Aug 2024JP¥24.0tJP¥19.7tJP¥1.1t16x21x1.2x
Wed, 10 Jul 2024JP¥25.9tJP¥19.5tJP¥1.1t18.8x23x1.3x
Fri, 07 Jun 2024JP¥24.1tJP¥19.5tJP¥1.1t16.8x21.5x1.2x
Sun, 05 May 2024JP¥24.3tJP¥19.3tJP¥1.1t18.6x21.7x1.3x
Tue, 02 Apr 2024JP¥24.8tJP¥19.2tJP¥964.2b19x25.8x1.3x
Thu, 29 Feb 2024JP¥24.9tJP¥19.2tJP¥965.2b18.8x25.8x1.3x
Sat, 27 Jan 2024JP¥24.7tJP¥19.6tJP¥1.0t18.9x23.7x1.3x
Mon, 25 Dec 2023JP¥23.8tJP¥19.6tJP¥1.0t17.9x22.9x1.2x
Wed, 22 Nov 2023JP¥23.6tJP¥19.6tJP¥1.0t18.3x22.9x1.2x
Fri, 20 Oct 2023JP¥22.0tJP¥18.9tJP¥1.0t17.8x21.5x1.2x
Sun, 17 Sep 2023JP¥24.0tJP¥18.8tJP¥1.0t18.9x23.5x1.3x
Tue, 15 Aug 2023JP¥22.5tJP¥18.8tJP¥1.0t18.9x22x1.2x
Thu, 13 Jul 2023JP¥22.2tJP¥18.2tJP¥1.0t18.4x21.7x1.2x
Sat, 10 Jun 2023JP¥22.7tJP¥18.2tJP¥1.0t18.9x22.2x1.2x
Mon, 08 May 2023JP¥21.4tJP¥17.7tJP¥1.0t17.8x21.2x1.2x
Wed, 05 Apr 2023JP¥20.4tJP¥17.5tJP¥978.8b18.1x20.8x1.2x
Fri, 03 Mar 2023JP¥21.6tJP¥18.3tJP¥1.1t17.6x20.5x1.2x
Sun, 29 Jan 2023JP¥22.5tJP¥17.7tJP¥1.1t17.2x20.4x1.3x
Tue, 27 Dec 2022JP¥21.5tJP¥17.7tJP¥1.1t16.6x19.6x1.2x
Thu, 24 Nov 2022JP¥23.1tJP¥17.6tJP¥1.1t18x20.9x1.3x
Sat, 22 Oct 2022JP¥22.1tJP¥17.3tJP¥1.1t17.6x20.1x1.3x
Mon, 19 Sep 2022JP¥21.8tJP¥17.3tJP¥1.1t17.6x19.7x1.3x
Wed, 17 Aug 2022JP¥23.3tJP¥17.4tJP¥1.1t18.2x21x1.3x
Fri, 15 Jul 2022JP¥22.1tJP¥17.1tJP¥1.1t17.9x20.2x1.3x
Sun, 12 Jun 2022JP¥22.2tJP¥17.1tJP¥1.1t18.4x20.3x1.3x
Tue, 10 May 2022JP¥22.7tJP¥17.1tJP¥1.1t18.4x21.4x1.3x
Thu, 07 Apr 2022JP¥23.8tJP¥17.1tJP¥1.0t18.9x22.6x1.4x
Sat, 05 Mar 2022JP¥21.4tJP¥17.1tJP¥1.0t17x20.4x1.2x
Mon, 31 Jan 2022JP¥21.0tJP¥17.0tJP¥1.0t17.4x20.1x1.2x
Wed, 29 Dec 2021JP¥25.5tJP¥16.9tJP¥1.0t19.2x24.5x1.5x
Price to Earnings Ratio

24.5x


Total Market Cap: JP¥25.5tTotal Earnings: JP¥1.0tTotal Revenue: JP¥16.9tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 22.1x202220232024
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 25.1x which is higher than its 3-year average PE of 22.1x.
  • The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 1.4x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 2.6% per year over the last three years.
  • Revenues for these companies have grown 5.4% 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 industry?

JP Market-1.46%
Tech-1.24%
IT-1.39%
IT Consulting-1.27%
Data Processing Services-2.39%
Internet Services and Infrastructure-5.37%
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 40.1x.
    • Analysts are expecting annual earnings growth of 27.7%, which is higher than its past year's earnings growth of 21.6% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 20.8x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is better than its past earnings growth rate of 22% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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
6701 NECJP¥13.47k3.1%
+JP¥109.3b		65.3%PE23.9x
4819 Digital GarageJP¥3.82k1.9%
+JP¥3.2b		0.1%PS6.3x
4413 baudroieincJP¥4.82k4.0%
+JP¥3.0b		40.4%PE52.2x
3636 Mitsubishi Research InstituteJP¥4.66k2.8%
+JP¥2.0b		0.5%PE14.6x
4783 NCDJP¥2.73k9.0%
+JP¥1.8b		138.8%PE12.8x
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Latest News

3778

JP¥4,255.00

SAKURA Internet

7D

-7.5%

1Y

111.3%

1973

JP¥3,310.00

NEC Networks & System Integration

7D

0.3%

1Y

44.1%

9613

JP¥2,966.50

NTT DATA Group

7D

-2.4%

1Y

54.1%

3844

JP¥2,300.00

Comture

7D

2.4%

1Y

29.7%

4768

JP¥3,602.00

Otsuka

7D

-2.9%

1Y

21.6%

3697

JP¥17,075.00

SHIFT

7D

-6.0%

1Y

-51.0%

4783

JP¥2,725.00

NCD

7D

9.0%

1Y

138.8%

6702

JP¥2,809.50

Fujitsu

7D

-1.2%

1Y

34.5%

4307

JP¥4,647.00

Nomura Research Institute

7D

-0.5%

1Y

14.5%

These 4 Measures Indicate That Nomura Research Institute (TSE:4307) Is Using Debt Reasonably Well

Dec 11
These 4 Measures Indicate That Nomura Research Institute (TSE:4307) Is Using Debt Reasonably Well

3626

JP¥3,801.00

TIS

7D

-4.1%

1Y

24.7%

A Look At The Fair Value Of TIS Inc. (TSE:3626)

Dec 06
A Look At The Fair Value Of TIS Inc. (TSE:3626)

4413

JP¥4,815.00

baudroieinc

7D

4.0%

1Y

40.4%

6701

JP¥13,470.00

NEC

7D

3.1%

1Y

65.3%

4819

JP¥3,820.00

Digital Garage

7D

1.9%

1Y

0.1%

Digital Garage, Inc. (TSE:4819) Stocks Shoot Up 27% But Its P/S Still Looks Reasonable

Nov 26
Digital Garage, Inc. (TSE:4819) Stocks Shoot Up 27% But Its P/S Still Looks Reasonable

4684

JP¥4,700.00

OBICLtd

7D

-4.8%

1Y

-0.9%

6199

JP¥1,380.00

SERAKU

7D

8.2%

1Y

11.7%

3636

JP¥4,655.00

Mitsubishi Research Institute

7D

2.8%

1Y

0.5%