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Japanese (NIKKEI) Software Industry Analysis

UpdatedJan 15, 2026
DataAggregated Company Financials
Companies185
  • 7D0.3%
  • 3M-6.5%
  • 1Y3.1%
  • YTD1.0%

The Software is pretty flat in the last 7 days, but JustSystems has stood out, gaining 5.8%. The past year has been better, since the industry has gained 3.4% in that time. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

Has the Japanese Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 15 Jan 2026JP¥8.0tJP¥2.4tJP¥255.6b19.9x31.2x3.3x
Sat, 13 Dec 2025JP¥8.0tJP¥2.4tJP¥252.8b19x31.5x3.3x
Mon, 10 Nov 2025JP¥8.3tJP¥2.4tJP¥242.0b21.7x34.5x3.5x
Wed, 08 Oct 2025JP¥8.7tJP¥2.4tJP¥234.3b21.3x37.2x3.7x
Fri, 05 Sep 2025JP¥8.8tJP¥2.4tJP¥235.5b22.6x37.3x3.7x
Sun, 03 Aug 2025JP¥9.1tJP¥2.3tJP¥223.0b21.7x40.9x3.9x
Tue, 01 Jul 2025JP¥9.1tJP¥2.3tJP¥233.2b20.4x38.9x3.9x
Thu, 29 May 2025JP¥8.8tJP¥2.3tJP¥231.9b20.3x38x3.8x
Sat, 26 Apr 2025JP¥8.3tJP¥2.2tJP¥228.9b19.5x36.4x3.7x
Mon, 24 Mar 2025JP¥8.2tJP¥2.2tJP¥225.2b19.7x36.3x3.7x
Wed, 19 Feb 2025JP¥9.2tJP¥2.5tJP¥236.4b20.4x38.9x3.6x
Fri, 17 Jan 2025JP¥8.3tJP¥2.5tJP¥219.3b21.2x37.8x3.3x
Sun, 15 Dec 2024JP¥8.6tJP¥2.5tJP¥220.4b22x39.2x3.5x
Tue, 12 Nov 2024JP¥8.6tJP¥2.4tJP¥207.9b21.5x41.5x3.5x
Thu, 10 Oct 2024JP¥8.7tJP¥2.4tJP¥205.4b22x42.1x3.6x
Sat, 07 Sep 2024JP¥8.3tJP¥2.4tJP¥205.5b21.5x40.5x3.4x
Mon, 05 Aug 2024JP¥7.1tJP¥2.4tJP¥191.2b20.1x37x3x
Wed, 03 Jul 2024JP¥7.6tJP¥2.4tJP¥187.1b23x40.8x3.2x
Fri, 31 May 2024JP¥7.3tJP¥2.4tJP¥189.0b21.8x38.7x3.1x
Sun, 28 Apr 2024JP¥7.5tJP¥2.3tJP¥170.3b22.4x44.1x3.2x
Tue, 26 Mar 2024JP¥8.0tJP¥2.3tJP¥167.4b23x47.5x3.4x
Thu, 22 Feb 2024JP¥7.6tJP¥2.3tJP¥163.6b24.3x46.6x3.3x
Sat, 20 Jan 2024JP¥7.8tJP¥2.3tJP¥163.1b22.7x47.7x3.4x
Mon, 18 Dec 2023JP¥7.5tJP¥2.3tJP¥162.1b21.7x46.5x3.3x
Wed, 15 Nov 2023JP¥7.3tJP¥2.3tJP¥160.1b21.1x45.4x3.2x
Fri, 13 Oct 2023JP¥7.1tJP¥2.2tJP¥172.5b23.5x41x3.2x
Sun, 10 Sep 2023JP¥7.1tJP¥2.2tJP¥171.6b25.1x41.4x3.2x
Tue, 08 Aug 2023JP¥7.2tJP¥2.2tJP¥168.4b24.9x42.7x3.3x
Thu, 06 Jul 2023JP¥7.5tJP¥2.2tJP¥167.2b24.4x44.7x3.4x
Sat, 03 Jun 2023JP¥7.4tJP¥2.2tJP¥166.6b23.4x44.1x3.4x
Mon, 01 May 2023JP¥7.0tJP¥2.1tJP¥170.1b21.7x41x3.3x
Wed, 29 Mar 2023JP¥6.8tJP¥2.1tJP¥170.1b23.1x40.1x3.2x
Fri, 24 Feb 2023JP¥6.5tJP¥2.1tJP¥170.7b23.4x38.2x3.1x
Sun, 22 Jan 2023JP¥6.3tJP¥2.0tJP¥181.2b22.7x35x3.1x
Price to Earnings Ratio

35x


Total Market Cap: JP¥6.3tTotal Earnings: JP¥181.2bTotal Revenue: JP¥2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 40.3x202420252026
Current Industry PE
  • Investors are pessimistic on the Japanese Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 31.4x which is lower than its 3-year average PE of 40.3x.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 12% per year over the last three years.
  • Revenues for these companies have grown 6.2% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Japanese Tech industry?

JP Market3.51%
Tech4.77%
Software0.31%
Systems Software0.39%
Application Software0.25%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 55.3x.
    • Analysts are expecting annual earnings growth of 25.9%, which is higher than its past year's earnings growth of 22.5% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 31.3x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 26% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 9.4% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
4686 JustSystemsJP¥5.27k5.8%
+JP¥18.6b		55.0%PE24.2x
3692 FFRI SecurityJP¥9.35k29.7%
+JP¥16.9b		303.9%PE63.7x
4704 Trend MicroJP¥6.60k0.9%
+JP¥8.0b		-22.4%PE24.7x
4733 OBIC Business ConsultantsJP¥8.38k0.8%
+JP¥5.0b		24.3%PE37.4x
9790 Fukui Computer HoldingsIncJP¥3.39k7.1%
+JP¥4.7b		18.6%PE18.5x

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7D
-5.0%
1Y
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4432
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WingArc1st
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3692
JP¥9,350.00
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29.7%
1Y
303.9%

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4704
JP¥6,599.00
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7D
0.9%
1Y
-22.4%
4412
JP¥2,283.00
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16.1%
1Y
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4180
JP¥1,099.00
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7D
-1.7%
1Y
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4716
JP¥12,515.00
Oracle Corporation Japan
7D
-1.1%
1Y
-12.4%

4716: Future Earnings Power Will Support Upside With Refined Margins And P/E Assumptions

Analysts have maintained their fair value estimate for Oracle Corporation Japan at ¥17,420, while refining inputs such as the discount rate, revenue growth, profit margin, and future P/E assumptions to reflect updated views on the business outlook and risk profile. Valuation Changes Fair Value Estimate: Held steady at ¥17,420, with no change to the overall valuation outcome.
3663
JP¥1,571.00
CELSYS
7D
-4.4%
1Y
25.7%
9790
JP¥3,385.00
Fukui Computer HoldingsInc
7D
7.1%
1Y
18.6%
3661
JP¥851.00
m-up holdings
7D
-6.6%
1Y
10.1%

m-up holdings (TSE:3661) Is Paying Out A Larger Dividend Than Last Year

Dec 28
m-up holdings (TSE:3661) Is Paying Out A Larger Dividend Than Last Year
4733
JP¥8,380.00
OBIC Business Consultants
7D
0.8%
1Y
24.3%

Is OBIC Business Consultants Co., Ltd. (TSE:4733) Worth JP¥8.5k Based On Its Intrinsic Value?

Dec 26
Is OBIC Business Consultants Co., Ltd. (TSE:4733) Worth JP¥8.5k Based On Its Intrinsic Value?
4323
JP¥2,408.00
Japan System Techniques
7D
-3.7%
1Y
22.4%
4686
JP¥5,270.00
JustSystems
7D
5.8%
1Y
55.0%

Some Investors May Be Worried About JustSystems' (TSE:4686) Returns On Capital

Dec 16
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3923
JP¥1,024.00
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7D
-1.4%
1Y
17.6%

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3817
JP¥5,590.00
SRA Holdings
7D
3.7%
1Y
34.7%