Japanese (NIKKEI) Renewable Energy Industry Analysis

Industry Valuation and Performance

Has the Japanese Renewable Energy Industry valuation changed over the past few years?

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 18.9x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Renewable Energy industry have declined 15% per year over the last three years, while revenues for these companies have grown 6.3% per year. This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Japanese Renewable Energy industry?

Industry PE: Investors are most optimistic about the Independent Power Producers and Energy Traders industry which is trading above its 3-year average PE ratio of 13.0x. This is likely because analysts are expecting annual earnings growth of 19%, which is higher than its past year's earnings decline of 86% per year. Meanwhile, investors are most pessimistic about the Renewable Energy industry, which is trading below its 3-year average of 21.4x.

Forecasted Growth: Analysts are most optimistic on the Independent Power Producers and Energy Traders industry, expecting annual earnings growth of 19% over the next 5 years. This is better than its past earnings decline of 86% per year. Meanwhile, the Renewable Energy industry is expected to see its earnings grow by 13% per year over the next few years.

Top Stock Gainers and Losers

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