With the peak for quarterly results disclosure having finished last week, we continue our cycle of results reviews by analyzing results by Peer Group.
The Japan Analytics Results Score is a measure of earnings results and earnings momentum which covers the last eight quarters for revenue and operating income.
The score has a maximum of 30 and minimum of -30. The Results Scores are then aggregated for each Peer Group weighted by market capitalization.
All listed companies have been allocated by Japan Analytics to 30 Sectors and 328 Peer Groups or ‘sub-sectors’, based on the largest current business segments. Peer Group classifications acknowledge local equity market conventions and analytical practices. Currently Peer Groups range in size from 1 (Tobacco) to 51 (Internet Software & Services).
Before looking at the most recent quarter’s Results Scores, we will summarize the last 15 years and look at the top and bottom Peer Groups in terms of average score, absolute deviation, and correlation.
For details of the constituents of each Peer Group, please download our App here.
The average Peer Group Result Score since 2003 has been 2.1 , the mean absolute deviation was 2.3 and 14% of the 180 months had negative scores.
PEER GROUP RESULTS SCORES AVERAGE 2003-2017 ▲
The top Peer Groups ranked by Results Score have a heavy concentration in the Retail (4), Internet (5) and Consumer Services (2) Sectors. Only one manufacturing Sector, Motors (Nidec), made the top thirteen.
PEER GROUP RESULTS SCORES AVERAGE 2003-2017 ▼
The bottom of the list is more diversified but contains three from the Non-Bank Finance Sectors and two from Wholesale. Integrated Circuits is the worst manufacturing Peer Group.
PEER GROUP RESULTS SCORES MEAN ABSOLUTE DEVIATION 2003-2017 ▲
The Peer Groups with the largest deviations from mean include five from the Machinery Sector, four from Non-Bank Finance and two from Technology Hardware.
PEER GROUP RESULTS SCORES MEAN ABSOLUTE DEVIATION 2003-2017 ▼
The lowest mean absolute deviations have a strong consumer bias.
PEER GROUP RESULTS SCORES CORRELATION 2003-2017 ▲
These Peer Groups are the closest to the market average in terms of Results Scores.
PEER GROUP RESULTS SCORES CORRELATION 2003-2017 ▼
Among uncorrelated Peer Groups four are also in the top 10% in terms of average and also have seen strong market cap gains.
The Peer Groups with factor overlaps are as follows:-
High Average + Low Deviation + Low Correlation
Medical Labs & Testing Services
Low Average + Low Deviation + High Correlation
Apparel & Footwear
High Average + Low Deviation
Internet Software & Services
Retail – Drugstores
Restaurants – Diversified
Internet Marketing & Advertising
High Average + Low Correlation
Retail – Apparel & Footwear
Retail – Pharmacies
Internet Content – Consumer
Wedding & Dating Services
Parking & Automobile Services
Retail – Home Furnishing
Medical & Veterinary Services
CRM & Support Services
High Average + High Deviation
Power & Hand Tools
High Average + High Correlation
Air-Conditioning & Heating Equipment
Low Average + High Deviation
Carbon & Graphite Products
Online Securities Brokerage
Low Average + Low Deviation
Wholesale – Fresh & Frozen Fish
Low Average + Low Correlation
Ordnance & Explosives