Header cover image

Japanese (NIKKEI) IT Industry Analysis

UpdatedAug 09, 2024
DataAggregated Company Financials
Companies218
  • 7D-7.4%
  • 3M-1.1%
  • 1Y11.4%
  • YTD2.9%

Over the last 7 days, the IT industry has dropped 7.4%, driven by a pullback from NTT DATA Group of 19%. Meanwhile, OBICLtd actually outperformed within the industry, gaining 6.4% in the last week. In the past year, the industry has gained 11%. As for the next few years, earnings are expected to grow by 9.2% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 09 Aug 2024JP¥23.7tJP¥19.7tJP¥1.1t15.9x20.8x1.2x
Sun, 07 Jul 2024JP¥26.0tJP¥19.5tJP¥1.1t18.5x23.1x1.3x
Tue, 04 Jun 2024JP¥24.0tJP¥19.5tJP¥1.1t16.9x21.4x1.2x
Thu, 02 May 2024JP¥24.3tJP¥19.3tJP¥1.1t18.6x21.7x1.3x
Sat, 30 Mar 2024JP¥25.2tJP¥19.2tJP¥964.4b19.6x26.1x1.3x
Mon, 26 Feb 2024JP¥24.3tJP¥19.2tJP¥965.2b18.5x25.2x1.3x
Wed, 24 Jan 2024JP¥25.2tJP¥19.6tJP¥1.0t18.7x24.3x1.3x
Fri, 22 Dec 2023JP¥23.7tJP¥19.6tJP¥1.0t18x22.9x1.2x
Sun, 19 Nov 2023JP¥23.5tJP¥19.6tJP¥1.0t17.9x22.6x1.2x
Tue, 17 Oct 2023JP¥22.3tJP¥18.9tJP¥1.0t17.9x21.8x1.2x
Thu, 14 Sep 2023JP¥23.6tJP¥18.8tJP¥1.0t19.2x23.2x1.3x
Sat, 12 Aug 2023JP¥22.6tJP¥18.8tJP¥1.0t18.7x22.2x1.2x
Mon, 10 Jul 2023JP¥22.3tJP¥18.2tJP¥1.0t18.6x21.8x1.2x
Wed, 07 Jun 2023JP¥22.9tJP¥18.2tJP¥1.0t19.1x22.4x1.3x
Fri, 05 May 2023JP¥21.4tJP¥17.7tJP¥1.0t17.8x21.2x1.2x
Sun, 02 Apr 2023JP¥20.1tJP¥17.5tJP¥978.8b17.8x20.5x1.2x
Tue, 28 Feb 2023JP¥21.3tJP¥18.3tJP¥1.1t17.6x20.3x1.2x
Thu, 26 Jan 2023JP¥22.4tJP¥17.7tJP¥1.1t17.2x20.4x1.3x
Sat, 24 Dec 2022JP¥21.5tJP¥17.7tJP¥1.1t16.6x19.6x1.2x
Mon, 21 Nov 2022JP¥23.1tJP¥17.6tJP¥1.1t18x21x1.3x
Wed, 19 Oct 2022JP¥22.2tJP¥17.3tJP¥1.1t17.7x20.1x1.3x
Fri, 16 Sep 2022JP¥22.2tJP¥17.3tJP¥1.1t17.7x20.1x1.3x
Sun, 14 Aug 2022JP¥23.3tJP¥17.4tJP¥1.1t18.1x21x1.3x
Tue, 12 Jul 2022JP¥22.7tJP¥17.1tJP¥1.1t18x20.7x1.3x
Thu, 09 Jun 2022JP¥22.2tJP¥17.1tJP¥1.1t18.4x20.2x1.3x
Sat, 07 May 2022JP¥23.1tJP¥17.1tJP¥1.1t18.7x21.8x1.4x
Mon, 04 Apr 2022JP¥23.5tJP¥17.1tJP¥1.0t18.5x22.4x1.4x
Wed, 02 Mar 2022JP¥22.5tJP¥17.1tJP¥1.0t17.7x21.4x1.3x
Fri, 28 Jan 2022JP¥21.2tJP¥17.0tJP¥1.0t17.8x20.4x1.3x
Sun, 26 Dec 2021JP¥25.3tJP¥16.9tJP¥1.0t19.8x24.4x1.5x
Tue, 23 Nov 2021JP¥26.7tJP¥16.9tJP¥1.0t21x25.7x1.6x
Thu, 21 Oct 2021JP¥25.7tJP¥16.7tJP¥986.2b22.4x26.1x1.5x
Sat, 18 Sep 2021JP¥26.6tJP¥16.7tJP¥982.4b23.6x27.1x1.6x
Mon, 16 Aug 2021JP¥22.7tJP¥16.7tJP¥982.6b22.1x23.1x1.4x
Price to Earnings Ratio

23.1x


Total Market Cap: JP¥22.7tTotal Earnings: JP¥982.6bTotal Revenue: JP¥16.7tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 22.2x202220232024
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 5.1% per year over the last three years.
  • Revenues for these companies have grown 5.6% 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-8.50%
Tech-9.38%
IT-7.41%
Data Processing Services-6.35%
IT Consulting-7.32%
Internet Services and Infrastructure-10.80%
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 expect its future annual earnings growth (22.3%) to be largely in line with prior year's earnings growth.
  • 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 22% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 9.0% 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
4684 OBICLtdJP¥23.63k6.4%
+JP¥124.5b
0.9%PE34.6x
3836 Avant GroupJP¥1.66k20.3%
+JP¥10.2b
21.0%PE21.2x
7518 Net One SystemsJP¥3.07k3.4%
+JP¥8.1b
12.0%PE15.9x
4768 OtsukaJP¥3.26k0.4%
+JP¥4.9b
8.2%PE25.3x
4373 Simplex HoldingsJP¥2.27k1.6%
+JP¥2.0b
-8.9%PE21.6x
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

7518

JP¥3,067.00

Net One Systems

7D

3.4%

1Y

12.0%

4768

JP¥3,264.00

Otsuka

7D

0.4%

1Y

8.2%

3836

JP¥1,659.00

Avant Group

7D

20.3%

1Y

21.0%

4819

JP¥2,749.00

Digital Garage

7D

0.8%

1Y

-29.1%

3825

JP¥179.00

Remixpoint

7D

4.1%

1Y

-25.1%

6702

JP¥2,362.00

Fujitsu

7D

-9.2%

1Y

30.6%

8056

JP¥4,333.00

BIPROGY

7D

-8.9%

1Y

20.7%

4684

JP¥23,630.00

OBICLtd

7D

6.4%

1Y

0.9%

1973

JP¥2,495.00

NEC Networks & System Integration

7D

-7.1%

1Y

32.4%

4769

JP¥963.00

Ic

7D

7.0%

1Y

11.6%