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Japanese (NIKKEI) IT Industry Analysis

UpdatedFeb 01, 2025
DataAggregated Company Financials
Companies219
  • 7D6.8%
  • 3M12.9%
  • 1Y25.8%
  • YTD6.4%

In the last week, the IT industry is up 6.8%, with NEC up 20%. Meanwhile, SHIFT actually underperformed within the industry, shrinking 6.4% in the last week. In the last 12 months, the industry was up 26%. As for the next few years, earnings are expected to grow by 11% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 01 Feb 2025JP¥29.6tJP¥19.9tJP¥1.2t18.1x25.4x1.5x
Mon, 30 Dec 2024JP¥28.6tJP¥19.8tJP¥1.1t17.6x25.5x1.4x
Wed, 27 Nov 2024JP¥27.4tJP¥19.8tJP¥1.1t18x24.5x1.4x
Fri, 25 Oct 2024JP¥26.9tJP¥19.7tJP¥1.1t17.1x23.9x1.4x
Sun, 22 Sep 2024JP¥27.5tJP¥19.7tJP¥1.1t17.9x24.5x1.4x
Tue, 20 Aug 2024JP¥25.0tJP¥19.7tJP¥1.1t16.7x22.1x1.3x
Thu, 18 Jul 2024JP¥26.2tJP¥19.5tJP¥1.1t19.2x23.3x1.3x
Sat, 15 Jun 2024JP¥24.4tJP¥19.5tJP¥1.1t17.2x21.8x1.3x
Mon, 13 May 2024JP¥24.0tJP¥19.5tJP¥1.1t18.2x21.3x1.2x
Wed, 10 Apr 2024JP¥24.9tJP¥19.2tJP¥964.2b18.7x25.8x1.3x
Fri, 08 Mar 2024JP¥25.6tJP¥19.2tJP¥965.0b20x26.6x1.3x
Sun, 04 Feb 2024JP¥25.1tJP¥19.7tJP¥1.0t18.6x25x1.3x
Tue, 02 Jan 2024JP¥24.2tJP¥19.6tJP¥1.0t18.2x23.3x1.2x
Thu, 30 Nov 2023JP¥23.5tJP¥19.6tJP¥1.0t18.3x22.7x1.2x
Sat, 28 Oct 2023JP¥22.1tJP¥18.9tJP¥1.0t17.5x21.6x1.2x
Mon, 25 Sep 2023JP¥23.3tJP¥18.8tJP¥1.0t18.7x22.9x1.2x
Wed, 23 Aug 2023JP¥22.6tJP¥18.8tJP¥1.0t18.6x22.1x1.2x
Fri, 21 Jul 2023JP¥22.6tJP¥18.3tJP¥1.0t18.7x22x1.2x
Sun, 18 Jun 2023JP¥23.3tJP¥18.2tJP¥1.0t19.3x22.9x1.3x
Tue, 16 May 2023JP¥21.9tJP¥18.2tJP¥1.0t18x21.3x1.2x
Thu, 13 Apr 2023JP¥20.4tJP¥17.5tJP¥978.6b18x20.8x1.2x
Sat, 11 Mar 2023JP¥21.8tJP¥18.3tJP¥1.1t18.1x20.7x1.2x
Mon, 06 Feb 2023JP¥22.3tJP¥17.9tJP¥1.1t17.6x20.7x1.2x
Wed, 04 Jan 2023JP¥21.4tJP¥17.7tJP¥1.1t16.6x19.5x1.2x
Fri, 02 Dec 2022JP¥23.0tJP¥17.6tJP¥1.1t18.2x20.8x1.3x
Sun, 30 Oct 2022JP¥22.7tJP¥17.5tJP¥1.1t18.2x20.1x1.3x
Tue, 27 Sep 2022JP¥21.0tJP¥17.3tJP¥1.1t17x19.1x1.2x
Thu, 25 Aug 2022JP¥22.6tJP¥17.4tJP¥1.1t18.2x20.3x1.3x
Sat, 23 Jul 2022JP¥23.2tJP¥17.1tJP¥1.1t18.8x21.2x1.4x
Mon, 20 Jun 2022JP¥20.6tJP¥17.1tJP¥1.1t17.2x18.9x1.2x
Wed, 18 May 2022JP¥21.9tJP¥17.2tJP¥1.1t17.5x20x1.3x
Fri, 15 Apr 2022JP¥23.4tJP¥17.1tJP¥1.1t18x22.3x1.4x
Sun, 13 Mar 2022JP¥21.3tJP¥17.1tJP¥1.0t16.9x20.4x1.2x
Tue, 08 Feb 2022JP¥21.8tJP¥17.0tJP¥1.0t18x21.1x1.3x
Price to Earnings Ratio

21.1x


Total Market Cap: JP¥21.8tTotal Earnings: JP¥1.0tTotal Revenue: JP¥17.0tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 22.2x202320242025
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 25.4x which is higher than its 3-year average PE of 22.2x.
  • The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 1.5x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 4.1% per year over the last three years.
  • Revenues for these companies have grown 5.2% 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 Market1.33%
Tech-0.23%
IT6.78%
IT Consulting6.91%
Internet Services and Infrastructure2.44%
Data Processing Services2.32%
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 40.3x.
    • Analysts are expecting annual earnings growth of 28.7%, 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 20.1x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 29% 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¥15.53k20.5%
+JP¥703.7b		59.1%PE22.1x
6702 FujitsuJP¥3.02k8.6%
+JP¥430.4b		35.1%PE21.5x
4307 Nomura Research InstituteJP¥5.29k12.6%
+JP¥342.0b		26.4%PE33.5x
4684 OBICLtdJP¥4.65k3.0%
+JP¥58.9b		2.9%PE32.2x
9719 SCSKJP¥3.45k5.1%
+JP¥52.2b		26.3%PE26.1x
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4307

JP¥5,293.00

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7D

12.6%

1Y

26.4%

3697

JP¥1,292.00

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7D

-6.4%

1Y

-29.7%

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JP¥4,730.00

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7D

-6.3%

1Y

-5.3%

6701

JP¥15,525.00

NEC

7D

20.5%

1Y

59.1%

4373

JP¥2,911.00

Simplex Holdings

7D

21.3%

1Y

11.4%

4812

JP¥6,150.00

Dentsu Soken

7D

11.0%

1Y

8.3%

4684

JP¥4,649.00

OBICLtd

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3.0%

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2.9%

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2375

JP¥331.00

GiG Works

7D

-13.6%

1Y

-47.5%

4169

JP¥439.00

ENECHANGE

7D

-12.7%

1Y

-60.3%

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4499

JP¥3,070.00

Speee

7D

-17.0%

1Y

63.2%

4768

JP¥3,503.00

Otsuka

7D

2.9%

1Y

9.7%

2338

JP¥544.00

Quantum SolutionsLtd

7D

-6.0%

1Y

20.9%

6702

JP¥3,018.00

Fujitsu

7D

8.6%

1Y

35.1%

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9719

JP¥3,449.00

SCSK

7D

5.1%

1Y

26.3%

4687

JP¥1,405.00

TDC SOFT

7D

-3.0%

1Y

26.1%

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5132

JP¥2,532.00

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7D

-11.7%

1Y

31.0%