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Japanese (NIKKEI) Software Industry Analysis

UpdatedAug 16, 2025
DataAggregated Company Financials
Companies184
  • 7D-0.7%
  • 3M2.1%
  • 1Y21.9%
  • YTD14.4%

Last week, the Software industry hasn't moved much but Rakus is up 8.1% in that time. As for the the longer term, the industry is up 22% over the past 12 months. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 16 Aug 2025JP¥9.0tJP¥2.4tJP¥231.0b21.8x38.8x3.8x
Mon, 14 Jul 2025JP¥8.8tJP¥2.3tJP¥227.8b20.1x38.6x3.8x
Wed, 11 Jun 2025JP¥9.1tJP¥2.3tJP¥232.4b20.6x39.1x3.9x
Fri, 09 May 2025JP¥8.6tJP¥2.3tJP¥230.6b20.8x37.4x3.8x
Sun, 06 Apr 2025JP¥7.9tJP¥2.2tJP¥226.8b18x34.7x3.5x
Tue, 04 Mar 2025JP¥8.3tJP¥2.2tJP¥225.3b19.8x36.8x3.7x
Thu, 30 Jan 2025JP¥8.8tJP¥2.5tJP¥219.8b21.6x40.1x3.5x
Sat, 28 Dec 2024JP¥8.7tJP¥2.5tJP¥221.7b22.4x39.4x3.5x
Mon, 25 Nov 2024JP¥8.4tJP¥2.5tJP¥222.1b23.5x38x3.4x
Wed, 23 Oct 2024JP¥8.4tJP¥2.4tJP¥205.0b21.8x41x3.5x
Fri, 20 Sep 2024JP¥8.4tJP¥2.4tJP¥202.7b22x41.6x3.5x
Sun, 18 Aug 2024JP¥7.9tJP¥2.4tJP¥199.9b20.9x39.5x3.3x
Tue, 16 Jul 2024JP¥7.9tJP¥2.4tJP¥188.2b22.9x42x3.3x
Thu, 13 Jun 2024JP¥7.4tJP¥2.4tJP¥188.1b22.4x39.2x3.1x
Sat, 11 May 2024JP¥7.7tJP¥2.3tJP¥176.3b22.4x43.5x3.3x
Mon, 08 Apr 2024JP¥7.6tJP¥2.3tJP¥167.7b22.7x45.5x3.3x
Wed, 06 Mar 2024JP¥8.1tJP¥2.3tJP¥163.5b24.3x49.6x3.5x
Fri, 02 Feb 2024JP¥7.9tJP¥2.3tJP¥166.7b23.9x47.5x3.4x
Sun, 31 Dec 2023JP¥7.6tJP¥2.3tJP¥162.4b22.7x46.7x3.3x
Tue, 28 Nov 2023JP¥7.6tJP¥2.3tJP¥163.4b21.8x46.3x3.3x
Thu, 26 Oct 2023JP¥6.6tJP¥2.2tJP¥174.4b22.1x37.8x2.9x
Sat, 23 Sep 2023JP¥6.8tJP¥2.2tJP¥171.0b24.3x39.9x3.1x
Mon, 21 Aug 2023JP¥6.8tJP¥2.2tJP¥171.9b24x39.4x3x
Wed, 19 Jul 2023JP¥7.3tJP¥2.2tJP¥165.3b24.5x44.4x3.4x
Fri, 16 Jun 2023JP¥7.8tJP¥2.2tJP¥167.3b22.8x46.4x3.6x
Sun, 14 May 2023JP¥7.1tJP¥2.1tJP¥171.8b24.1x41.6x3.4x
Tue, 11 Apr 2023JP¥6.7tJP¥2.1tJP¥170.3b22.6x39.3x3.2x
Thu, 09 Mar 2023JP¥6.8tJP¥2.1tJP¥170.7b23.3x39.7x3.2x
Sat, 04 Feb 2023JP¥6.7tJP¥2.0tJP¥180.8b22.5x37.2x3.3x
Mon, 02 Jan 2023JP¥6.2tJP¥2.0tJP¥183.0b22.1x33.7x3x
Wed, 30 Nov 2022JP¥6.6tJP¥2.0tJP¥181.0b23.8x36.7x3.3x
Fri, 28 Oct 2022JP¥6.4tJP¥2.0tJP¥183.4b24.1x34.9x3.2x
Sun, 25 Sep 2022JP¥6.1tJP¥2.0tJP¥187.9b23.3x32.6x3.1x
Tue, 23 Aug 2022JP¥6.6tJP¥2.0tJP¥186.6b23.6x35.4x3.3x
Price to Earnings Ratio

35.4x


Total Market Cap: JP¥6.6tTotal Earnings: JP¥186.6bTotal Revenue: JP¥2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 40.2x202320242025
Current Industry PE
  • Investors are relatively neutral on the Japanese Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 40.2x.
  • The 3-year average PS ratio of 3.4x is lower than the industry's current PS ratio of 3.8x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 7.4% per year over the last three years.
  • Revenues for these companies have grown 6.1% 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 Market2.52%
Tech1.00%
Software-0.67%
Application Software0.57%
Systems Software-2.25%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 57.8x.
    • Analysts are expecting annual earnings growth of 27.3%, which is higher than its past year's earnings growth of 17.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 30.4x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 17% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 11% 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
3923 RakusJP¥2.55k8.1%
+JP¥34.4b		17.7%PE48.5x
4686 JustSystemsJP¥4.43k13.3%
+JP¥33.4b		34.5%PE21.8x
3994 Money ForwardJP¥6.40k2.6%
+JP¥9.0b		30.7%PS8.1x
3692 FFRI SecurityJP¥7.18k18.7%
+JP¥8.9b		300.2%PE63.7x
4323 Japan System TechniquesJP¥2.18k12.8%
+JP¥6.0b		34.4%PE20.8x

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Systena Corporation (TSE:2317) Stock Rockets 26% As Investors Are Less Pessimistic Than Expected

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JP¥1,850.00
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