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Japanese (NIKKEI) Software Industry Analysis

UpdatedFeb 08, 2026
DataAggregated Company Financials
Companies185
  • 7D-8.4%
  • 3M-21.6%
  • 1Y-19.0%
  • YTD-16.4%

Over the last 7 days, the Software industry has dropped 8.4%, driven by a pullback from Oracle Corporation Japan of 10%. On the other hand FFRI Security is actually up 7.9%. Overall the industry is down 19% in 12 months. Earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 09 Feb 2026JP¥6.6tJP¥2.5tJP¥267.5b18.2x24.6x2.7x
Wed, 07 Jan 2026JP¥8.0tJP¥2.4tJP¥255.6b20.5x31.1x3.3x
Fri, 05 Dec 2025JP¥8.2tJP¥2.4tJP¥252.5b19.5x32.5x3.4x
Sun, 02 Nov 2025JP¥8.5tJP¥2.4tJP¥239.4b20.8x35.5x3.6x
Tue, 30 Sep 2025JP¥8.9tJP¥2.4tJP¥234.3b21.7x38.1x3.8x
Thu, 28 Aug 2025JP¥8.9tJP¥2.4tJP¥232.9b22.1x38.3x3.8x
Sat, 26 Jul 2025JP¥9.0tJP¥2.3tJP¥225.2b21.8x39.9x3.9x
Mon, 23 Jun 2025JP¥9.0tJP¥2.3tJP¥232.7b20.6x38.9x3.9x
Wed, 21 May 2025JP¥8.7tJP¥2.3tJP¥230.7b20.7x37.9x3.8x
Fri, 18 Apr 2025JP¥8.3tJP¥2.2tJP¥228.2b18.9x36.3x3.7x
Sun, 16 Mar 2025JP¥8.1tJP¥2.2tJP¥225.2b19.6x35.8x3.6x
Tue, 11 Feb 2025JP¥8.7tJP¥2.5tJP¥222.2b21.1x39.3x3.5x
Thu, 09 Jan 2025JP¥8.4tJP¥2.5tJP¥219.3b22.1x38.4x3.4x
Sat, 07 Dec 2024JP¥8.5tJP¥2.5tJP¥220.0b21.9x38.8x3.5x
Mon, 04 Nov 2024JP¥8.3tJP¥2.4tJP¥205.6b20.8x40.3x3.4x
Wed, 02 Oct 2024JP¥8.5tJP¥2.4tJP¥205.2b21.9x41.6x3.5x
Fri, 30 Aug 2024JP¥8.3tJP¥2.4tJP¥203.7b21.8x40.9x3.4x
Sun, 28 Jul 2024JP¥7.6tJP¥2.4tJP¥190.2b22.4x40.2x3.2x
Tue, 25 Jun 2024JP¥7.5tJP¥2.4tJP¥187.1b22.1x40.2x3.2x
Thu, 23 May 2024JP¥7.6tJP¥2.4tJP¥189.1b22.2x40.2x3.2x
Sat, 20 Apr 2024JP¥7.5tJP¥2.3tJP¥169.2b22.7x44.1x3.2x
Mon, 18 Mar 2024JP¥7.9tJP¥2.3tJP¥166.4b23.6x47.4x3.4x
Wed, 14 Feb 2024JP¥7.9tJP¥2.3tJP¥166.1b22.8x47.3x3.5x
Fri, 12 Jan 2024JP¥7.7tJP¥2.3tJP¥162.4b22.4x47.5x3.3x
Sun, 10 Dec 2023JP¥7.6tJP¥2.3tJP¥162.7b21.9x46.5x3.3x
Tue, 07 Nov 2023JP¥7.1tJP¥2.3tJP¥175.3b23.1x40.4x3.1x
Thu, 05 Oct 2023JP¥7.0tJP¥2.2tJP¥172.5b23.2x40.5x3.1x
Sat, 02 Sep 2023JP¥7.1tJP¥2.2tJP¥171.9b24.5x41.5x3.2x
Mon, 31 Jul 2023JP¥7.2tJP¥2.2tJP¥168.2b24.7x43x3.3x
Wed, 28 Jun 2023JP¥7.4tJP¥2.2tJP¥167.3b24.4x44.5x3.4x
Fri, 26 May 2023JP¥7.2tJP¥2.2tJP¥165.7b22.6x43.5x3.3x
Sun, 23 Apr 2023JP¥6.9tJP¥2.1tJP¥169.3b21.8x40.6x3.3x
Tue, 21 Mar 2023JP¥6.5tJP¥2.1tJP¥169.6b21.7x38.4x3.1x
Thu, 16 Feb 2023JP¥6.6tJP¥2.1tJP¥181.1b23.5x36.6x3.2x
Price to Earnings Ratio

36.6x


Total Market Cap: JP¥6.6tTotal Earnings: JP¥181.1bTotal Revenue: JP¥2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 40.1x202420252026
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 24.6x which is lower than its 3-year average PE of 40.2x.
  • The 3-year average PS ratio of 3.4x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 14% 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 Market3.36%
Tech-2.82%
Software-8.37%
Systems Software-7.98%
Application Software-8.64%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 54.4x.
    • Analysts expect its future annual earnings growth (24.1%) to be largely in line with prior year's earnings growth.
  • 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 24% 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 9.2% 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
3692 FFRI SecurityJP¥9.98k7.9%
+JP¥5.8b		263.2%PE68x
5574 ABEJAJP¥3.05k12.4%
+JP¥3.3b		-1.8%PE55.5x
4425 KudanJP¥1.74k14.5%
+JP¥2.5b		18.6%PS25.6x
3741 Systems Engineering ConsultantsLTDJP¥3.61k4.6%
+JP¥1.6b		43.8%PE26.3x
3773 Advanced MediaJP¥1.17k8.5%
+JP¥1.4b		14.6%PE11x

Latest News

4686
JP¥4,305.00
JustSystems
7D
-9.9%
1Y
25.9%
5574
JP¥3,050.00
ABEJA
7D
12.4%
1Y
-1.8%
3773
JP¥1,170.00
Advanced Media
7D
8.5%
1Y
14.6%
2317
JP¥435.00
Systena
7D
-14.4%
1Y
27.6%
4716
JP¥9,372.00
Oracle Corporation Japan
7D
-10.4%
1Y
-34.2%

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4847
JP¥965.00
Intelligent Wave
7D
1.5%
1Y
-10.6%
4704
JP¥5,599.00
Trend Micro
7D
-7.5%
1Y
-38.7%

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3994
JP¥3,298.00
Money Forward
7D
-15.5%
1Y
-26.0%

Money Forward, Inc.'s (TSE:3994) Stock Retreats 28% But Revenues Haven't Escaped The Attention Of Investors

Feb 04
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3923
JP¥789.60
Rakus
7D
-10.3%
1Y
-19.9%

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Feb 04
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4443
JP¥1,150.00
Sansan
7D
-23.1%
1Y
-53.8%

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Feb 04
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4733
JP¥5,984.00
OBIC Business Consultants
7D
-12.8%
1Y
-21.0%

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Feb 04
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5027
JP¥677.00
AnyMind Group
7D
0.9%
1Y
-40.5%
3741
JP¥3,610.00
Systems Engineering ConsultantsLTD
7D
4.6%
1Y
43.8%

Systems Engineering Consultants Co.,LTD.'s (TSE:3741) Share Price Not Quite Adding Up

Jan 19
Systems Engineering Consultants Co.,LTD.'s (TSE:3741) Share Price Not Quite Adding Up
4412
JP¥2,400.00
Science Arts
7D
2.0%
1Y
282.2%
3692
JP¥9,980.00
FFRI Security
7D
7.9%
1Y
263.2%

Earnings Tell The Story For FFRI Security, Inc. (TSE:3692) As Its Stock Soars 32%

Jan 13
Earnings Tell The Story For FFRI Security, Inc. (TSE:3692) As Its Stock Soars 32%
4425
JP¥1,742.00
Kudan
7D
14.5%
1Y
18.6%