Header cover image

Japanese (NIKKEI) Software Industry Analysis

UpdatedMar 02, 2024
DataAggregated Company Financials
Companies173
  • 7D6.1%
  • 3M6.9%
  • 1Y21.3%
  • YTD8.9%

Over the last 7 days, the Software industry has risen 4.7%, and Trend Micro contributed the most with a gain of 7.7%. During this same period, the Cybozu underperformed, falling 9.0%. This takes the industry's 12 month performance to a gain of 21%. Looking forward, earnings are forecast to grow by 25% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 02 Mar 2024JP¥8.2tJP¥2.3tJP¥163.6b24x50x3.5x
Mon, 29 Jan 2024JP¥7.9tJP¥2.3tJP¥164.3b23.7x47.9x3.4x
Wed, 27 Dec 2023JP¥7.6tJP¥2.3tJP¥162.3b22.4x46.5x3.3x
Fri, 24 Nov 2023JP¥7.5tJP¥2.3tJP¥163.4b22x46.2x3.3x
Sun, 22 Oct 2023JP¥6.7tJP¥2.2tJP¥174.3b23x38.2x3x
Tue, 19 Sep 2023JP¥7.0tJP¥2.2tJP¥171.0b24.5x41.2x3.2x
Thu, 17 Aug 2023JP¥6.9tJP¥2.2tJP¥171.9b24.5x40.2x3.1x
Sat, 15 Jul 2023JP¥7.4tJP¥2.2tJP¥167.2b24.6x44x3.4x
Mon, 12 Jun 2023JP¥7.4tJP¥2.2tJP¥167.3b23.5x44.3x3.4x
Wed, 10 May 2023JP¥7.2tJP¥2.1tJP¥170.0b23x42.2x3.4x
Fri, 07 Apr 2023JP¥6.7tJP¥2.1tJP¥170.1b22.8x39.3x3.2x
Sun, 05 Mar 2023JP¥6.6tJP¥2.1tJP¥170.7b23.1x38.9x3.2x
Tue, 31 Jan 2023JP¥6.6tJP¥2.0tJP¥180.4b23.4x36.8x3.3x
Thu, 29 Dec 2022JP¥6.1tJP¥2.0tJP¥183.1b21.8x33.2x3x
Sat, 26 Nov 2022JP¥6.7tJP¥2.0tJP¥181.0b24.3x37.3x3.3x
Mon, 24 Oct 2022JP¥6.2tJP¥2.0tJP¥184.3b23.9x33.8x3.1x
Wed, 21 Sep 2022JP¥6.3tJP¥2.0tJP¥188.3b22.9x33.5x3.2x
Fri, 19 Aug 2022JP¥6.8tJP¥2.0tJP¥186.6b23.8x36.2x3.4x
Sun, 17 Jul 2022JP¥6.1tJP¥1.9tJP¥197.8b23.1x31x3.2x
Tue, 14 Jun 2022JP¥5.8tJP¥1.9tJP¥199.0b21.7x29.2x3x
Thu, 12 May 2022JP¥6.1tJP¥1.9tJP¥201.0b21.9x30.4x3.2x
Sat, 09 Apr 2022JP¥6.7tJP¥1.9tJP¥204.0b23.3x32.8x3.5x
Mon, 07 Mar 2022JP¥6.2tJP¥1.9tJP¥203.6b19.6x30.4x3.3x
Wed, 02 Feb 2022JP¥6.2tJP¥1.9tJP¥201.6b20.4x30.9x3.4x
Fri, 31 Dec 2021JP¥7.5tJP¥1.9tJP¥198.5b23.1x38x4.1x
Sun, 28 Nov 2021JP¥8.3tJP¥1.9tJP¥200.7b25.5x41.4x4.5x
Tue, 26 Oct 2021JP¥8.3tJP¥1.8tJP¥185.1b26.5x44.9x4.6x
Thu, 23 Sep 2021JP¥8.5tJP¥1.8tJP¥183.2b29.2x46.6x4.7x
Sat, 21 Aug 2021JP¥7.6tJP¥1.9tJP¥183.4b26.7x41.6x4.1x
Sat, 05 Jun 2021JP¥7.5tJP¥1.8tJP¥179.7b34.7x41.8x4.1x
Tue, 09 Mar 2021JP¥7.5tJP¥1.8tJP¥169.4b35.8x44.1x4.2x
Price to Earnings Ratio

44.1x


Total Market Cap: JP¥7.5tTotal Earnings: JP¥169.4bTotal Revenue: JP¥1.8tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 39.1x202220232024
Current Industry PE
  • Investors are optimistic on the Japanese Software industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 49.3x which is higher than its 3-year average PE of 39.1x.
  • The industry is trading close to its 3-year average PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 9.2% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

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

JP Market1.78%
Tech2.46%
Software6.13%
Application Software8.22%
Systems Software3.62%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 61.8x.
    • Analysts are expecting annual earnings growth of 35.9%, which is higher than its past year's earnings growth of 17.9% 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 26.2x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 36% over the next 5 years.
  • This is better than its past earnings growth rate of 18% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 15% 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
4704 Trend MicroJP¥7.71k7.7%
+JP¥74.8b
19.0%PE97.5x
4478 freee K.KJP¥3.75k44.3%
+JP¥67.0b
13.5%PS9.8x
3994 Money ForwardJP¥6.87k20.7%
+JP¥64.0b
58.3%PS12.3x
3923 RakusJP¥2.45k11.9%
+JP¥47.3b
49.2%PE144.5x
4733 OBIC Business ConsultantsJP¥7.32k9.1%
+JP¥45.9b
54.3%PE42x
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

9343

JP¥2,975.00

ibis

7D

-13.3%

1Y

n/a

3040

JP¥1,314.00

Soliton Systems K.K

7D

-4.6%

1Y

30.1%

3741

JP¥4,910.00

Systems Engineering ConsultantsLTD

7D

-4.5%

1Y

34.0%

2317

JP¥287.00

Systena

7D

-1.7%

1Y

-10.6%

4719

JP¥3,310.00

Alpha Systems

7D

-5.3%

1Y

-21.2%

2326

JP¥4,480.00

Digital Arts

7D

-1.3%

1Y

-14.7%

3994

JP¥6,869.00

Money Forward

7D

20.7%

1Y

58.3%