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Japanese (NIKKEI) Software Industry Analysis

UpdatedApr 14, 2025
DataAggregated Company Financials
Companies182
  • 7D3.7%
  • 3M3.9%
  • 1Y10.7%
  • YTD3.8%

Over the last 7 days, the Software industry has risen 3.7%, driven by gains from Oracle Corporation Japan of 7.9%. In the last 12 months, the industry was up 11%. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 15 Apr 2025JP¥8.1tJP¥2.2tJP¥227.9b18.7x35.7x3.6x
Thu, 13 Mar 2025JP¥8.1tJP¥2.2tJP¥225.4b19.4x35.8x3.6x
Sat, 08 Feb 2025JP¥8.7tJP¥2.5tJP¥219.7b21.1x39.6x3.5x
Mon, 06 Jan 2025JP¥8.7tJP¥2.5tJP¥220.8b22.6x39.4x3.5x
Wed, 04 Dec 2024JP¥8.6tJP¥2.5tJP¥220.0b22.2x39.1x3.5x
Fri, 01 Nov 2024JP¥8.4tJP¥2.4tJP¥205.5b21x40.8x3.5x
Sun, 29 Sep 2024JP¥8.7tJP¥2.4tJP¥205.4b22.7x42.4x3.6x
Tue, 27 Aug 2024JP¥8.4tJP¥2.4tJP¥203.8b22.1x41x3.4x
Thu, 25 Jul 2024JP¥7.8tJP¥2.4tJP¥189.0b22.1x41.4x3.3x
Sat, 22 Jun 2024JP¥7.4tJP¥2.4tJP¥187.1b22.2x39.8x3.1x
Mon, 20 May 2024JP¥7.6tJP¥2.4tJP¥188.6b21.9x40.4x3.2x
Wed, 17 Apr 2024JP¥7.6tJP¥2.3tJP¥169.2b22.5x45x3.3x
Fri, 15 Mar 2024JP¥7.9tJP¥2.3tJP¥164.0b24.1x48.3x3.4x
Sun, 11 Feb 2024JP¥7.7tJP¥2.3tJP¥165.8b23x46.7x3.4x
Tue, 09 Jan 2024JP¥7.4tJP¥2.3tJP¥162.4b21.9x45.8x3.2x
Thu, 07 Dec 2023JP¥7.8tJP¥2.3tJP¥162.6b22.7x48.1x3.4x
Sat, 04 Nov 2023JP¥6.9tJP¥2.3tJP¥175.6b22.5x39.1x3x
Mon, 02 Oct 2023JP¥7.1tJP¥2.2tJP¥172.5b24.4x40.9x3.2x
Wed, 30 Aug 2023JP¥7.1tJP¥2.2tJP¥171.9b24.3x41.4x3.2x
Fri, 28 Jul 2023JP¥7.3tJP¥2.2tJP¥167.9b24.6x43.4x3.3x
Sun, 25 Jun 2023JP¥7.8tJP¥2.2tJP¥167.3b24.4x46.4x3.6x
Tue, 23 May 2023JP¥7.2tJP¥2.2tJP¥166.0b24.2x43.5x3.3x
Thu, 20 Apr 2023JP¥7.1tJP¥2.1tJP¥169.3b21.8x41.7x3.3x
Sat, 18 Mar 2023JP¥6.7tJP¥2.1tJP¥169.6b22.3x39.8x3.2x
Mon, 13 Feb 2023JP¥6.7tJP¥2.1tJP¥180.4b24.2x37.3x3.3x
Wed, 11 Jan 2023JP¥6.1tJP¥2.0tJP¥183.0b22x33.5x3x
Fri, 09 Dec 2022JP¥6.3tJP¥2.0tJP¥182.2b22.4x34.7x3.1x
Sun, 06 Nov 2022JP¥6.2tJP¥2.0tJP¥182.3b23.4x33.8x3.1x
Tue, 04 Oct 2022JP¥6.0tJP¥2.0tJP¥188.4b23.2x32.1x3.1x
Thu, 01 Sep 2022JP¥6.5tJP¥2.0tJP¥186.6b24x35x3.3x
Sat, 30 Jul 2022JP¥6.4tJP¥1.9tJP¥198.3b24.7x32.3x3.3x
Mon, 27 Jun 2022JP¥5.9tJP¥2.0tJP¥200.4b22.8x29.3x3x
Wed, 25 May 2022JP¥6.1tJP¥1.9tJP¥199.4b22.6x30.4x3.1x
Fri, 22 Apr 2022JP¥6.4tJP¥1.9tJP¥201.7b22.5x31.6x3.3x
Price to Earnings Ratio

31.6x


Total Market Cap: JP¥6.4tTotal Earnings: JP¥201.7bTotal Revenue: JP¥1.9tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 39.4x202320242025
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 35.7x which is lower than its 3-year average PE of 39.4x.
  • The 3-year average PS ratio of 3.3x is lower than the industry's current PS ratio of 3.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 4.2% per year over the last three years.
  • Revenues for these companies have grown 5.6% 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 Market-0.30%
Tech0.27%
Software3.73%
Application Software5.12%
Systems Software2.30%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 57.8x.
    • Analysts are expecting annual earnings growth of 27.7%, which is higher than its past year's earnings growth of 11.0% per year.
  • Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 29.1x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is better than its past earnings growth rate of 11% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 10% 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
4716 Oracle Corporation JapanJP¥16.27k7.9%
+JP¥152.0b
43.5%PE34.6x
4704 Trend MicroJP¥9.66k6.1%
+JP¥73.1b
20.1%PE36.9x
3923 RakusJP¥2.06k18.1%
+JP¥57.2b
25.9%PE51.2x
4733 OBIC Business ConsultantsJP¥7.45k7.2%
+JP¥37.8b
5.9%PE35.2x
4443 SansanJP¥1.92k16.5%
+JP¥34.5b
36.4%PE112.7x
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4496

JP¥742.00

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-0.7%

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-9.4%

3923

JP¥2,062.00

Rakus

7D

18.1%

1Y

25.9%

4478

JP¥3,580.00

freee K.K

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19.3%

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29.3%

4704

JP¥9,657.00

Trend Micro

7D

6.1%

1Y

20.1%

4776

JP¥2,918.00

Cybozu

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26.8%

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3800

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UNIRITA

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3994

JP¥4,029.00

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14.9%

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5126

JP¥1,843.00

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9749

JP¥9,808.00

Fuji Soft

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-0.7%

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62.1%

4716

JP¥16,270.00

Oracle Corporation Japan

7D

7.9%

1Y

43.5%

3710

JP¥591.00

JorudanLtd

7D

-1.0%

1Y

-6.8%