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Japanese (NIKKEI) IT Industry Analysis

UpdatedJun 14, 2024
DataAggregated Company Financials
Companies219
  • 7D0.7%
  • 3M-2.5%
  • 1Y11.1%
  • YTD5.6%

The IT is pretty flat in the last 7 days, but NEC has stood out, gaining 4.6%. As for the the longer term, the industry is up 11% over the past 12 months. Looking forward, earnings are forecast to grow by 9.1% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 15 Jun 2024JP¥24.3tJP¥19.5tJP¥1.1t16.9x21.6x1.2x
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
Thu, 06 Jan 2022JP¥25.0tJP¥16.9tJP¥1.0t20.6x24.1x1.5x
Sat, 04 Dec 2021JP¥25.1tJP¥16.9tJP¥1.0t19.6x24.2x1.5x
Mon, 01 Nov 2021JP¥25.3tJP¥16.8tJP¥993.6b22.3x25.4x1.5x
Wed, 29 Sep 2021JP¥25.1tJP¥16.7tJP¥985.6b22.7x25.5x1.5x
Fri, 27 Aug 2021JP¥23.9tJP¥16.7tJP¥982.9b23.4x24.3x1.4x
Sat, 03 Jul 2021JP¥23.8tJP¥16.7tJP¥983.1b24.1x24.2x1.4x
Price to Earnings Ratio

24.2x


Total Market Cap: JP¥23.8tTotal Earnings: JP¥983.1bTotal Revenue: JP¥16.7tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 22.3x202220232024
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 22.3x.
  • 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 grown 4.5% 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 Market-0.80%
Tech1.36%
IT0.68%
IT Consulting0.72%
Internet Services and Infrastructure-0.32%
Data Processing Services-1.34%
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 41.2x.
    • Analysts are expecting annual earnings growth of 24.8%, which is higher than its past year's earnings growth of 5.0% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 24.1x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 5.0% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.8% 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¥12.66k4.6%
+JP¥149.2b
82.4%PE22.6x
4307 Nomura Research InstituteJP¥4.23k1.7%
+JP¥41.4b
8.5%PE30.5x
4684 OBICLtdJP¥20.45k1.2%
+JP¥22.0b
-14.9%PE31x
4768 OtsukaJP¥2.90k1.4%
+JP¥14.8b
0.7%PE23.1x
9719 SCSKJP¥3.10k1.3%
+JP¥12.8b
33.1%PE24x
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