If you want to gain exposure to the Japanese stock market, without the hassle of opening a foreign brokerage account; then you can always invest in Japanese ADRs listed in the US. Although there are more than 300 Japanese ADRs (American Depository Receipts) available on the US OTC markets, there are just 12 listed on the New York Stock Exchange (NYSE).
Here is a list of the Top Japanese Stocks on the NYSE.
Canon Inc. (CAJ:NYSE)
Canon is probably one of the most famous camera and lens producers in the world. It provides digital imaging technologies and solutions to both the consumers and professionals. The company also produces copiers, fax machines, camcorders, semiconductors, medical equipment, and a variety of other products.
As of 3QFY20, Canon recorded revenue of JPY 759 bn and Profit after Tax of JPY 19.2 bn beating consensus forecasts. The company’s largest segment is the imaging system segment, followed by the Medical system segment, Office segment, and Industrial and other segment.
Canon’s ADR, which is listed on the NYSE, is currently trading at $ 21.57 with a market cap of $ 28.77 bn.
Honda Motors (HMC:NYSE)
Honda Motors is one of the largest and most popular automakers in the world. The company manufactures cars, motorbikes, other automobiles, generators, and other machinery. The company has a global distribution and production network with plants in Japan, Europe, US, Canada, India, Brazil, and a few other countries. It also has a sales financing business for second hand cars.
There has been a lot of interest in the company as demand for automobiles picks up post-COVID19COVID19, especially in the US. During the period of 3QFY20, the company recorded sales of JPY 14,931 bn. The company’s motorbike business is also very profitable with good margins and demand is expected to increase in the ASEAN and South American countries.
Honda Motor’s ADR is currently trading on the NYSE at $ 27.8 with a market cap of $ 49.77 bn.
Sony Corporation (SNE:NYSE)
Another Japanese giant that has ADRs listed on the NYSE is Sony. Sony Corporation has diversified business interests but mainly produces video game consoles, audio, electronics, communications, cameras, games, and other technology products. The company is seeing investor interest due to the well-received launch of the PS5 console, with the company expected to sell 9 million consoles in FY21.
Apart from the PS5, Sony’s other segments particularly video games, music, cameras and image sensors are also expected to pick up.
In FY20 Sony recorded sales of JPY 8,250 bn with Net Income of JPY 582 bn. Its largest business segments are Game ; Network Services, Electronics Products ; Solutions (TVs, Audio and Video, Still and Video Cameras and Mobiles), Pictures, Imaging ; Sensing Solutions, Music, Financials, and Others. During FY20 the company sold nearly 13.6mn PS4 consoles, 9.3mn TVs, 2.8mn Digital Cameras, and 3.2mn smartphones.
Sony Corp’s ADR is trading at $102.7 with a market cap of $130 bn.
Kyocera Corporation (KYO:NYSE)
Kyocera Corporation operates a wide range of business globally but primarily manufactures electronic equipment. The company manufactures telecom and phone equipment, optical, and image senor equipment, ceramic products including those for mobile phones, chips, LCDs, semiconductors among others. Kyocera also own a 13% in Japanese telecom company KDDI Japan.
In the first half of FY2020, the company recorded sales of JPY 697 bn. Kyocera’s largest business segment is Components Business (Industrial ; Automotive Components Group, Semiconductor Components Group, Electronic Devices Group), followed by Equipment ; Systems Business (Communications Group, Document Solutions Group, Life ; Environment Group) and others.
Kyocera’s ADR is currently trading at $ 66.5 with a market of $ 25 bn.
Mitsubishi UFJ Financial Group Inc (MUFG:NYSE)
The Mitsubishi UFJ Financial Group is a Japan based financial group that was formed after the merger of Mitsubishi Tokyo Financial Group and UFJ Holdings. The holding company owns a range subsidiaries that offer services such as commercial banking, trade finance, investment banking etc. Despite a fall in consumer-related business during COVID19, the group’s investment banking services have held up.
Mitsubishi UFJ Financial Group Inc is one of the Japanese Financial companies that investors are looking as financial services resume and og back to normal post COVID.
Mitsubishi UFJ Financial Group Inc’s ADR is currently trading at $ 4.765 with a market cap of $ 60.9bn.
ORIX Corp (IX:NYSE)
ORIX Corporation is a global financial services provider that is based out of Japan. The company offers banking, consumer finance, leasing, and insurance services among others. It is also present in the renewable energy and professional sports business.
ORIX corporation’s segments include Corporate Financial Services, Maintenance Lease, Real Estate, Investment, and Operation, Green Energy, Insurance, Banking, Credit, Transportation Equipment, ORIX USA, and ORIX Europe. On September 11 2020 ORIX announced that it will invest $980 in an Indian renewable energy operator.
ORIX’s ADR is currently priced at $ 87 with a market cap of $ 22.8 bn.
Takeda Pharmaceutical Co Ltd (TAK:NYSE)
Takeda Pharmaceutical is a Japanese pharmaceutical giant that develops and produces drugs and treatments. Takeda focuses on five business areas: gastroenterology, rare diseases (rare metabolic diseases, rare hematologic diseases, hereditary angioedema), plasma-derived therapies (plasma-derived treatments for autoimmune diseases), oncology, and neuroscience. Takeda’s R;D is focused on four therapeutic areas (oncology, gastroenterology, rare diseases, and neuroscience), and the company has also begun to invest in plasma-derived therapies and vaccines.
In 2019 Takeda acquired another pharmaceutical company Shire that increased the company’s sales to JPY 3.3 trn in 2019. Gastroenterology and oncology are Takeda’s areas of strength, while rare diseases and plasma-derived therapies are Shire’s, and both have been involved in neuroscience.
On the NYSE, Takeda’s ADR trades at $ 17.6 with a market cap of $ 55.6 bn.
Other Japanese ADRs listed on the NYSE are:
Mizuho Financial Group Inc (MFG:NYSE) which has a price of $ 2.72 and a market cap of $ 37.8 bn.
Nomura Holdings Inc (NMR:NYSE) which has a price of $ 5.54 and a market cap of $ 18.1 bn.
Sumitomo Mitsui Financial Group Inc (SMFG:NYSE) which has a price of $ 6.55 and a market cap of $ 45 bn.
Toyota Motor Corp (TM:NYSE) which has a price of $ 149 and a market cap of $ 243 bn.