Japanese (NIKKEI) Utilities Sector Analysis
- 7D1.3%
- 3M-6.0%
- 1Y-7.4%
- YTD-7.2%
Over the last 7 days, the Utilities industry has risen 2.2%, driven by gains in Tokyo GasLtd and Osaka Gas of 2.7% and 3.0%, respectively. Meanwhile, Nippon Gas actually underperformed within the industry, shrinking 5.0% in the last week. However, the industry is down 6.6% over the past year.
Sector Valuation and Performance
Has the Japanese Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Mon, 29 Nov 2021 | JP¥7.6t | JP¥23.7t | JP¥522.6b | 16.5x |
| Wed, 27 Oct 2021 | JP¥7.7t | JP¥24.4t | JP¥691.4b | 12.9x |
| Fri, 24 Sep 2021 | JP¥8.4t | JP¥24.4t | JP¥689.2b | 13.4x |
| Sun, 22 Aug 2021 | JP¥8.0t | JP¥24.4t | JP¥689.2b | 12.7x |
| Fri, 09 Jul 2021 | JP¥8.1t | JP¥24.4t | JP¥689.2b | 12.9x |
| Thu, 01 Apr 2021 | JP¥9.0t | JP¥25.5t | JP¥782.6b | 16x |
| Sun, 03 Jan 2021 | JP¥8.1t | JP¥24.9t | JP¥467.6b | 13.4x |
| Wed, 07 Oct 2020 | JP¥7.9t | JP¥25.3t | JP¥485.3b | 12.2x |
| Tue, 30 Jun 2020 | JP¥8.2t | JP¥25.7t | JP¥430.1b | 14.1x |
| Fri, 03 Apr 2020 | JP¥8.4t | JP¥26.2t | JP¥748.4b | 11.9x |
| Mon, 06 Jan 2020 | JP¥8.9t | JP¥26.8t | JP¥1.4t | 12.8x |
| Thu, 10 Oct 2019 | JP¥8.7t | JP¥27.0t | JP¥1.4t | 11.8x |
| Wed, 03 Jul 2019 | JP¥8.6t | JP¥26.9t | JP¥1.2t | 11.3x |
| Sat, 06 Apr 2019 | JP¥10.3t | JP¥26.4t | JP¥770.5b | 16.2x |
| Tue, 08 Jan 2019 | JP¥9.9t | JP¥25.9t | JP¥624.8b | 19x |
17.3x
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 13.7x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Utilities industry have declined 9.4% per year over the last three years, and revenues have also declined 2.4% per year. This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Japanese Utilities sector?
| Gas Utilities | 1.89% | |
| Electric Utilities | 1.28% | |
| Renewable Energy | 0.35% | |
Industry PE: Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 18.2x. However analysts are expecting annual earnings growth of 8.6%, which is lower than the prior year's growth of 69% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Electric Utilities industry, which is trading close to its 3-year average of 11.0x.
Forecasted Growth: Analysts are most optimistic on the Electric Utilities industry, expecting annual earnings growth of 18% over the next 5 years. This is better than its past earnings decline of 50% per year. Meanwhile, the Renewable Energy industry is expected to see its earnings grow by 8.6% 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 | |
|---|---|---|---|---|
| 9532 Osaka Gas | 2.5%+JP¥18.7b | -7.6% | PE9.6x | |
| 9533 Toho Gas | 4.3%+JP¥14.3b | -51.4% | PS0.8x | |
| 9506 Tohoku Electric Power Company | 3.2%+JP¥12.0b | -10.6% | PE52.4x | |
| 9531 Tokyo GasLtd | 0.7%+JP¥5.7b | -11.1% | PE16.8x | |
| 9504 Chugoku Electric Power | 0.9%+JP¥2.9b | -32.4% | PS0.3x |