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Japanese (NIKKEI) Telecom Sector Analysis

UpdatedDec 02, 2021
DataAggregated Company Financials
Companies257
  • 7D-4.0%
  • 3M-4.3%
  • 1Y2.2%
  • YTD-3.0%

Over the last 7 days, the Telecom industry has dropped 4.5%, driven by a pullback from SoftBank Group of 12%. As for the longer term, the industry's performance has been flat for the past year.

Sector Valuation and Performance

Has the Japanese Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Sat, 04 Dec 2021JP¥64.9tJP¥42.5tJP¥6.8t19.1x
Mon, 01 Nov 2021JP¥66.8tJP¥42.3tJP¥7.7t20.8x
Wed, 29 Sep 2021JP¥70.1tJP¥42.1tJP¥7.6t21.4x
Fri, 27 Aug 2021JP¥64.9tJP¥42.2tJP¥7.7t21x
Sat, 03 Jul 2021JP¥68.8tJP¥42.2tJP¥7.7t23x
Tue, 06 Apr 2021JP¥72.0tJP¥41.3tJP¥7.2t26.2x
Fri, 08 Jan 2021JP¥65.5tJP¥41.6tJP¥3.7t27.5x
Thu, 01 Oct 2020JP¥58.5tJP¥41.1tJP¥2.6t29.1x
Sun, 05 Jul 2020JP¥56.1tJP¥41.1tJP¥1.3t23.5x
Wed, 08 Apr 2020JP¥49.0tJP¥41.3tJP¥1.9t17x
Tue, 31 Dec 2019JP¥56.3tJP¥41.2tJP¥3.2t23.8x
Fri, 04 Oct 2019JP¥51.9tJP¥42.0tJP¥3.9t23x
Mon, 08 Jul 2019JP¥52.1tJP¥42.5tJP¥5.0t22.1x
Sun, 31 Mar 2019JP¥51.5tJP¥43.1tJP¥4.3t21.1x
Wed, 02 Jan 2019JP¥47.2tJP¥42.5tJP¥4.4t18.2x
PE Ratio

18.2x

Total Market Cap: JP¥47.2tTotal Earnings: JP¥4.4tTotal Revenue: JP¥42.5t0%0%0%3 Year10 Year
20202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 23.2x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Communication Services industry have grown 17% per year over the last three years, and revenues for these companies have grown 3.3% 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 Telecom sector?

Entertainment-1.53%
Interactive Media and Services-2.21%
Telecom Services and Carriers-2.34%
Media-2.38%
Wireless Telecom-7.05%

Industry PE: Investors are most optimistic about the Interactive Media and Services industry even though it's trading below its 3-year average PE ratio of 35.4x. However analysts are expecting annual earnings growth of 19%, which is lower than the prior year's growth of 32% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Wireless Telecom industry, which is trading close to its 3-year average of 13.1x.

Forecasted Growth: Analysts are most optimistic on the Interactive Media and Services industry, expecting annual earnings growth of 19% over the next 5 years. However this is lower than its past earnings growth rate of 32% per year. Meanwhile, the Telecom Services and Carriers industry is expected to see its earnings grow by 2.3% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
7974 Nintendo1.6%+JP¥95.0b-11.0%PE13.5x
9766 Konami Holdings2.4%+JP¥18.7b3.1%PE17.6x
2433 Hakuhodo DY Holdings2.5%+JP¥16.1b12.5%PE14.7x
3765 GungHo Online Entertainment5.3%+JP¥9.8b14.0%PE8.4x
2489 Adways6.5%+JP¥5.1b30.1%PE23.4x
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Latest News

3765

JP¥3,005.00

GungHo Online Entertainment

7D

5.3%

1Y

14.0%

9602

JP¥5,030.00

Toho

7D

-6.2%

1Y

19.1%

3659

JP¥2,253.00

NEXON

7D

-5.2%

1Y

-24.9%

9433

JP¥3,294.00

KDDI

7D

-3.7%

1Y

10.1%