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Japanese (NIKKEI) Utilities Sector Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies33
  • 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?

DateMarket CapRevenueEarningsPE
Mon, 29 Nov 2021JP¥7.6tJP¥23.7tJP¥522.6b16.5x
Wed, 27 Oct 2021JP¥7.7tJP¥24.4tJP¥691.4b12.9x
Fri, 24 Sep 2021JP¥8.4tJP¥24.4tJP¥689.2b13.4x
Sun, 22 Aug 2021JP¥8.0tJP¥24.4tJP¥689.2b12.7x
Fri, 09 Jul 2021JP¥8.1tJP¥24.4tJP¥689.2b12.9x
Thu, 01 Apr 2021JP¥9.0tJP¥25.5tJP¥782.6b16x
Sun, 03 Jan 2021JP¥8.1tJP¥24.9tJP¥467.6b13.4x
Wed, 07 Oct 2020JP¥7.9tJP¥25.3tJP¥485.3b12.2x
Tue, 30 Jun 2020JP¥8.2tJP¥25.7tJP¥430.1b14.1x
Fri, 03 Apr 2020JP¥8.4tJP¥26.2tJP¥748.4b11.9x
Mon, 06 Jan 2020JP¥8.9tJP¥26.8tJP¥1.4t12.8x
Thu, 10 Oct 2019JP¥8.7tJP¥27.0tJP¥1.4t11.8x
Wed, 03 Jul 2019JP¥8.6tJP¥26.9tJP¥1.2t11.3x
Sat, 06 Apr 2019JP¥10.3tJP¥26.4tJP¥770.5b16.2x
Tue, 08 Jan 2019JP¥9.9tJP¥25.9tJP¥624.8b19x
PE Ratio

17.3x

Total Market Cap: JP¥10.4tTotal Earnings: JP¥703.5bTotal Revenue: JP¥25.4t0%0%0%3 Year10 Year
201920202021

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 Utilities1.89%
Electric Utilities1.28%
Renewable Energy0.35%

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?

Company7D1YValuation
9532 Osaka Gas2.5%+JP¥18.7b-7.6%PE9.6x
9533 Toho Gas4.3%+JP¥14.3b-51.4%PS0.8x
9506 Tohoku Electric Power Company3.2%+JP¥12.0b-10.6%PE52.4x
9531 Tokyo GasLtd0.7%+JP¥5.7b-11.1%PE16.8x
9504 Chugoku Electric Power0.9%+JP¥2.9b-32.4%PS0.3x
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