Is The Japanese Yen Depreciating?

Is The Japanese Yen Depreciating?

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The U.S. dollar received some support after a few disappointing economic reports from a weakening Yen. The cause of the Yen’s drop was due to a swing back to a trade deficit for the country, and might be facing further depreciation, according to MarketWatch.

Some analysts said that even after the slight recovery from a decline last month, the Yen’s threat of depreciation can’t be ruled out. The Bank of Japan is expected to continue talks of monetary easing, but speculative investors are positioned for a weak Yen. Those bets could be poised to pay off.

Kapitall quoted Neil Hennessy this week about the position of Japan’s economy, also mentioning that Japan still has the world’s strongest currency. He said the average person in Japan has $75,000 in savings because they’re waiting for deflation to reverse. If the Yen weakens, consumers will spend more.

Business Section: Investing Ideas

With a lower Yen value, consumers will likely pick up spending. Below is a list of Japanese companies that are more profitable than their peers. Do you think they will take advantage of the potential spending?

List sorted by market cap.

Interactive Chart: Use the Compar-O-Matic to compare analyst ratings for the stocks mentioned below:

“1. NTT DOCOMO, Inc. (DCM, Earnings, Analysts, Financials): Provides wireless telecommunications services, packet communications services, and satellite mobile communications services in Japan. Market cap at $72.90B. TTM gross margin at 63.01% vs. industry average at 58.52%. TTM operating margin at 20.13% vs. industry average at 19.03%.TTM pretax margin at 19.67% vs. industry average at 13.39%.

 

“2. Canon Inc. (CAJ, Earnings, Analysts, Financials): Through its subsidiaries, manufactures and sells network digital multifunction devices (MFDs), plain paper copying machines, laser printers, inkjet printers, cameras, and lithography equipments primarily under Canon brand in the Americas, Europe, Asia and Oceania. Market cap at $61.74B. TTM gross margin at 56.17% vs. industry average at 52.41%. TTM operating margin at 10.63% vs. industry average at 9.82%.TTM pretax margin at 10.53% vs. industry average at 9.17%.

 

“3. Nissan Motor Co., Ltd. (NSANY, Earnings, Analysts, Financials): Engages in the manufacture and sale of automotive products, industrial machinery, and marine equipment primarily in Japan, North America, and Europe. Market cap at $41.70B. TTM gross margin at 23.17% vs. industry average at 23.01%. TTM operating margin at 5.73% vs. industry average at 3.63%.TTM pretax margin at 4.77% vs. industry average at 4.59%.

 

“4. Makita Corp. (MKTAY, Earnings, Analysts, Financials): Manufactures and sells a range of electric power tools worldwide. It offers drills that are used to drill metals, woods, and plastics, which include pistol-grip drills, D-handle drills, spade-handle drills, and angle drills, as well as cordless drills and cordless driver drills; grinders comprising portable disc grinders and bench grinders used for smoothing and finishing on metal; sanders that include disc sanders, orbital sanders, and belt sanders for smoothing and finishing on metal, wood, stone, and concrete; and rotary hammers for the construction industry. Market cap at $5.56B. TTM gross margin at 41.73% vs. industry average at 32.14%. TTM operating margin at 16.49% vs. industry average at 13.98%.TTM pretax margin at 15.9% vs. industry average at 11.96%.

 

 

(Written by Danny Guttridge)

 

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