Japanese (NIKKEI) Telecom Sector Analysis
- 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?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sat, 04 Dec 2021 | JP¥64.9t | JP¥42.5t | JP¥6.8t | 19.1x |
| Mon, 01 Nov 2021 | JP¥66.8t | JP¥42.3t | JP¥7.7t | 20.8x |
| Wed, 29 Sep 2021 | JP¥70.1t | JP¥42.1t | JP¥7.6t | 21.4x |
| Fri, 27 Aug 2021 | JP¥64.9t | JP¥42.2t | JP¥7.7t | 21x |
| Sat, 03 Jul 2021 | JP¥68.8t | JP¥42.2t | JP¥7.7t | 23x |
| Tue, 06 Apr 2021 | JP¥72.0t | JP¥41.3t | JP¥7.2t | 26.2x |
| Fri, 08 Jan 2021 | JP¥65.5t | JP¥41.6t | JP¥3.7t | 27.5x |
| Thu, 01 Oct 2020 | JP¥58.5t | JP¥41.1t | JP¥2.6t | 29.1x |
| Sun, 05 Jul 2020 | JP¥56.1t | JP¥41.1t | JP¥1.3t | 23.5x |
| Wed, 08 Apr 2020 | JP¥49.0t | JP¥41.3t | JP¥1.9t | 17x |
| Tue, 31 Dec 2019 | JP¥56.3t | JP¥41.2t | JP¥3.2t | 23.8x |
| Fri, 04 Oct 2019 | JP¥51.9t | JP¥42.0t | JP¥3.9t | 23x |
| Mon, 08 Jul 2019 | JP¥52.1t | JP¥42.5t | JP¥5.0t | 22.1x |
| Sun, 31 Mar 2019 | JP¥51.5t | JP¥43.1t | JP¥4.3t | 21.1x |
| Wed, 02 Jan 2019 | JP¥47.2t | JP¥42.5t | JP¥4.4t | 18.2x |
18.2x
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?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| 7974 Nintendo | 1.6%+JP¥95.0b | -11.0% | PE13.5x | |
| 9766 Konami Holdings | 2.4%+JP¥18.7b | 3.1% | PE17.6x | |
| 2433 Hakuhodo DY Holdings | 2.5%+JP¥16.1b | 12.5% | PE14.7x | |
| 3765 GungHo Online Entertainment | 5.3%+JP¥9.8b | 14.0% | PE8.4x | |
| 2489 Adways | 6.5%+JP¥5.1b | 30.1% | PE23.4x |