Narrative Update • Jun 27
Have your own idea? Try our Stock Screener
- 7D9.0%
- 3M7.8%
- 1Y-23.9%
- YTD-14.0%
Over the last 7 days, the Software industry has risen 9.0%, driven by gains in Trend Micro and Oracle Corporation Japan of 12% and 8.1%, respectively. Meanwhile, Datasection actually underperformed within the industry, shrinking 24% in the last week. In the past year, the industry is down 24%. Earnings are forecast to grow by 14% annually.
Industry Valuation and Performance
Has the Japanese Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 05 Jul 2026 | JP¥7.0t | JP¥2.7t | JP¥303.6b | 17.3x | 22.9x | 2.6x |
| Tue, 02 Jun 2026 | JP¥6.8t | JP¥2.6t | JP¥299.4b | 17x | 22.7x | 2.6x |
| Thu, 30 Apr 2026 | JP¥6.5t | JP¥2.6t | JP¥285.2b | 16.7x | 22.9x | 2.6x |
| Sat, 28 Mar 2026 | JP¥6.2t | JP¥2.5t | JP¥278.0b | 17.1x | 22.5x | 2.5x |
| Mon, 23 Feb 2026 | JP¥6.4t | JP¥2.5t | JP¥270.3b | 17.5x | 23.8x | 2.5x |
| Wed, 21 Jan 2026 | JP¥7.7t | JP¥2.4t | JP¥265.0b | 19.8x | 29.2x | 3.2x |
| Fri, 19 Dec 2025 | JP¥8.0t | JP¥2.4t | JP¥254.4b | 19.7x | 31.5x | 3.3x |
| Sun, 16 Nov 2025 | JP¥8.4t | JP¥2.4t | JP¥250.0b | 19.8x | 33.5x | 3.5x |
| Tue, 14 Oct 2025 | JP¥8.6t | JP¥2.4t | JP¥234.8b | 21.6x | 36.7x | 3.6x |
| Thu, 11 Sep 2025 | JP¥9.1t | JP¥2.4t | JP¥236.0b | 21.9x | 38.6x | 3.9x |
| Sat, 09 Aug 2025 | JP¥9.0t | JP¥2.3t | JP¥221.7b | 21.1x | 40.7x | 3.9x |
| Mon, 07 Jul 2025 | JP¥8.8t | JP¥2.3t | JP¥227.7b | 20.1x | 38.8x | 3.8x |
| Wed, 04 Jun 2025 | JP¥9.0t | JP¥2.3t | JP¥232.3b | 20.6x | 38.9x | 3.9x |
| Fri, 02 May 2025 | JP¥8.5t | JP¥2.3t | JP¥230.6b | 20.7x | 37x | 3.8x |
| Sun, 30 Mar 2025 | JP¥8.4t | JP¥2.2t | JP¥223.2b | 19.7x | 37.8x | 3.8x |
| Tue, 25 Feb 2025 | JP¥8.5t | JP¥2.2t | JP¥225.3b | 20.3x | 37.8x | 3.8x |
| Thu, 23 Jan 2025 | JP¥8.4t | JP¥2.5t | JP¥219.3b | 20.8x | 38.2x | 3.4x |
| Sat, 21 Dec 2024 | JP¥8.6t | JP¥2.5t | JP¥221.9b | 22.1x | 38.5x | 3.4x |
| Mon, 18 Nov 2024 | JP¥8.4t | JP¥2.5t | JP¥220.9b | 21.8x | 38.1x | 3.4x |
| Wed, 16 Oct 2024 | JP¥8.8t | JP¥2.4t | JP¥205.2b | 22.3x | 42.7x | 3.6x |
| Fri, 13 Sep 2024 | JP¥8.5t | JP¥2.4t | JP¥205.2b | 21.8x | 41.2x | 3.5x |
| Sun, 11 Aug 2024 | JP¥7.5t | JP¥2.4t | JP¥193.2b | 19.5x | 38.6x | 3.1x |
| Tue, 09 Jul 2024 | JP¥7.7t | JP¥2.4t | JP¥187.1b | 22.4x | 41.2x | 3.2x |
| Thu, 06 Jun 2024 | JP¥7.4t | JP¥2.4t | JP¥187.9b | 22.2x | 39.1x | 3.1x |
| Sat, 04 May 2024 | JP¥7.6t | JP¥2.3t | JP¥170.7b | 22.7x | 44.8x | 3.3x |
| Mon, 01 Apr 2024 | JP¥8.0t | JP¥2.3t | JP¥167.6b | 24x | 47.9x | 3.5x |
| Wed, 28 Feb 2024 | JP¥8.1t | JP¥2.3t | JP¥163.6b | 24.8x | 49.4x | 3.5x |
| Fri, 26 Jan 2024 | JP¥8.0t | JP¥2.3t | JP¥163.1b | 23.9x | 48.8x | 3.4x |
| Sun, 24 Dec 2023 | JP¥7.5t | JP¥2.3t | JP¥162.3b | 22.5x | 46.5x | 3.3x |
| Tue, 21 Nov 2023 | JP¥7.5t | JP¥2.3t | JP¥163.7b | 22.1x | 45.9x | 3.3x |
| Thu, 19 Oct 2023 | JP¥6.8t | JP¥2.2t | JP¥174.1b | 23.3x | 38.9x | 3x |
| Sat, 16 Sep 2023 | JP¥7.0t | JP¥2.2t | JP¥171.0b | 24.3x | 40.9x | 3.1x |
| Mon, 14 Aug 2023 | JP¥7.0t | JP¥2.2t | JP¥167.3b | 25.2x | 41.8x | 3.1x |
| Wed, 12 Jul 2023 | JP¥7.3t | JP¥2.2t | JP¥167.2b | 24.5x | 43.7x | 3.4x |
Price to Earnings Ratio
43.7x
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 22.9x which is lower than its 3-year average PE of 37.7x.
- The 3-year average PS ratio of 3.3x is higher than the industry's current PS ratio of 2.6x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 22% per year over the last three years.
- Revenues for these companies have grown 7.1% 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 | 2.11% | |
| Tech | -0.019% | |
| Software | 8.98% | |
| Systems Software | 9.26% | |
| Application Software | 8.81% | |
Industry PE
- Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 47.9x.
- Analysts are expecting annual earnings growth of 18.6%, which is higher than its past year's earnings growth of 15.6% per year.
- Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 30.4x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 19% 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 8.9% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 4704 Trend Micro | JP¥6.27k | 12.1% +JP¥87.9b | -35.2% | PE21.7x | |
| 4716 Oracle Corporation Japan | JP¥8.75k | 8.1% +JP¥84.2b | -48.3% | PE17.6x | |
| 3923 Rakus | JP¥1.03k | 15.8% +JP¥49.5b | -6.9% | PE27.3x | |
| 4733 OBIC Business Consultants | JP¥6.45k | 10.7% +JP¥47.0b | -23.3% | PE26.8x | |
| 4443 Sansan | JP¥1.72k | 24.1% +JP¥42.2b | -16.3% | PE76.6x |