NEC Corporation (TSE:6701) May Have Run Too Fast Too Soon With Recent 30% Price Plummet
Aug 06
Japanese (NIKKEI) IT Industry Analysis
UpdatedAug 07, 2024
DataAggregated Company Financials
Companies218
- 7D-7.6%
- 3M-1.3%
- 1Y11.2%
- YTD3.8%
Over the last 7 days, the IT industry has dropped 7.6%, driven by a pullback from NTT DATA Group of 17%. Over the past 12 months, the industry was up 11%. Earnings are forecast to grow by 9.0% 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 |
|---|---|---|---|---|---|---|
| Wed, 07 Aug 2024 | JP¥23.9t | JP¥19.6t | JP¥1.1t | 15.5x | 20.8x | 1.2x |
| Fri, 05 Jul 2024 | JP¥26.1t | JP¥19.5t | JP¥1.1t | 18.5x | 23.2x | 1.3x |
| Sun, 02 Jun 2024 | JP¥24.0t | JP¥19.5t | JP¥1.1t | 16.8x | 21.4x | 1.2x |
| Tue, 30 Apr 2024 | JP¥24.2t | JP¥19.2t | JP¥1.1t | 18.4x | 22.2x | 1.3x |
| Thu, 28 Mar 2024 | JP¥25.4t | JP¥19.2t | JP¥964.4b | 19.5x | 26.4x | 1.3x |
| Sat, 24 Feb 2024 | JP¥24.3t | JP¥19.1t | JP¥964.6b | 18.5x | 25.2x | 1.3x |
| Mon, 22 Jan 2024 | JP¥24.7t | JP¥19.6t | JP¥1.0t | 18.8x | 23.8x | 1.3x |
| Wed, 20 Dec 2023 | JP¥23.9t | JP¥19.6t | JP¥1.0t | 18.2x | 23.1x | 1.2x |
| Fri, 17 Nov 2023 | JP¥23.1t | JP¥19.4t | JP¥1.0t | 17.7x | 22.5x | 1.2x |
| Sun, 15 Oct 2023 | JP¥22.3t | JP¥18.9t | JP¥1.0t | 17.9x | 21.8x | 1.2x |
| Tue, 12 Sep 2023 | JP¥23.5t | JP¥18.8t | JP¥1.0t | 19x | 23x | 1.2x |
| Thu, 10 Aug 2023 | JP¥22.6t | JP¥18.8t | JP¥1.0t | 18.8x | 21.9x | 1.2x |
| Sat, 08 Jul 2023 | JP¥22.3t | JP¥18.2t | JP¥1.0t | 18.6x | 21.8x | 1.2x |
| Mon, 05 Jun 2023 | JP¥22.6t | JP¥18.2t | JP¥1.0t | 18.7x | 22.1x | 1.2x |
| Wed, 03 May 2023 | JP¥21.3t | JP¥17.7t | JP¥1.0t | 17.8x | 21.1x | 1.2x |
| Fri, 31 Mar 2023 | JP¥20.1t | JP¥17.5t | JP¥978.6b | 17.9x | 20.6x | 1.2x |
| Sun, 26 Feb 2023 | JP¥21.5t | JP¥18.3t | JP¥1.1t | 17.6x | 20.4x | 1.2x |
| Tue, 24 Jan 2023 | JP¥22.1t | JP¥17.7t | JP¥1.1t | 17x | 20.1x | 1.2x |
| Thu, 22 Dec 2022 | JP¥21.5t | JP¥17.7t | JP¥1.1t | 16.9x | 19.6x | 1.2x |
| Sat, 19 Nov 2022 | JP¥23.1t | JP¥17.6t | JP¥1.1t | 18x | 20.9x | 1.3x |
| Mon, 17 Oct 2022 | JP¥22.0t | JP¥17.3t | JP¥1.1t | 17.4x | 19.9x | 1.3x |
| Wed, 14 Sep 2022 | JP¥22.7t | JP¥17.3t | JP¥1.1t | 18.3x | 20.6x | 1.3x |
| Fri, 12 Aug 2022 | JP¥23.0t | JP¥17.4t | JP¥1.1t | 18.4x | 20.7x | 1.3x |
| Sun, 10 Jul 2022 | JP¥22.6t | JP¥17.1t | JP¥1.1t | 17.7x | 20.6x | 1.3x |
| Tue, 07 Jun 2022 | JP¥22.4t | JP¥17.1t | JP¥1.1t | 18.9x | 20.4x | 1.3x |
| Thu, 05 May 2022 | JP¥23.1t | JP¥17.1t | JP¥1.1t | 18.5x | 21.8x | 1.4x |
| Sat, 02 Apr 2022 | JP¥23.5t | JP¥17.1t | JP¥1.0t | 18.5x | 22.4x | 1.4x |
| Mon, 28 Feb 2022 | JP¥21.6t | JP¥17.1t | JP¥1.0t | 16.8x | 20.6x | 1.3x |
| Wed, 26 Jan 2022 | JP¥22.2t | JP¥17.0t | JP¥1.0t | 18.1x | 21.4x | 1.3x |
| Fri, 24 Dec 2021 | JP¥25.4t | JP¥16.9t | JP¥1.0t | 20.2x | 24.5x | 1.5x |
| Sun, 21 Nov 2021 | JP¥26.5t | JP¥16.9t | JP¥1.0t | 20.8x | 25.6x | 1.6x |
| Tue, 19 Oct 2021 | JP¥25.5t | JP¥16.7t | JP¥986.2b | 21.9x | 25.8x | 1.5x |
| Thu, 16 Sep 2021 | JP¥26.4t | JP¥16.7t | JP¥982.7b | 23.5x | 26.8x | 1.6x |
| Sat, 14 Aug 2021 | JP¥22.9t | JP¥16.7t | JP¥982.6b | 22.5x | 23.3x | 1.4x |
Price to Earnings Ratio
23.3x
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 22.2x.
- 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 5.3% 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 | -11.11% | |
| Tech | -10.18% | |
| IT | -7.59% | |
| IT Consulting | -7.30% | |
| Data Processing Services | -7.57% | |
| Internet Services and Infrastructure | -17.93% | |
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 40.8x.
- Analysts are expecting annual earnings growth of 23.1%, which is higher than its past year's earnings growth of 13.3% per year.
- Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 23.3x.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 23% over the next 5 years.
- This is better than its past earnings growth rate of 13% 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 4684 OBICLtd | JP¥23.08k | 1.2% +JP¥24.6b | 0.04% | PE33.8x | |
| 3836 Avant Group | JP¥1.61k | 17.7% +JP¥8.7b | 18.5% | PE20.6x | |
| 7518 Net One Systems | JP¥3.09k | 2.0% +JP¥4.9b | 13.6% | PE17.9x | |
| 4769 Ic | JP¥940.00 | 4.4% +JP¥295.4m | 7.3% | PE15.1x | |
| 3825 Remixpoint | JP¥177.00 | 0.6% +JP¥120.3m | -22.7% | PE19.9x |
