Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Japanese (NIKKEI) Software Industry Analysis

UpdatedDec 22, 2025
DataAggregated Company Financials
Companies184
  • 7D1.3%
  • 3M-13.0%
  • 1Y1.7%
  • YTD2.4%

In the last week, the Software industry is up 1.3%, with Oracle Corporation Japan up 0.8%. The industry has been flat over the past 12 months despite the gain this week. 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, 23 Dec 2025JP¥8.1tJP¥2.4tJP¥254.4b19.9x31.7x3.3x
Thu, 20 Nov 2025JP¥8.2tJP¥2.4tJP¥252.3b18.7x32.4x3.4x
Sat, 18 Oct 2025JP¥8.3tJP¥2.4tJP¥236.1b21.1x35.2x3.5x
Mon, 15 Sep 2025JP¥9.1tJP¥2.4tJP¥236.4b21.3x38.7x3.9x
Wed, 13 Aug 2025JP¥9.1tJP¥2.3tJP¥224.9b21.4x40.4x3.9x
Fri, 11 Jul 2025JP¥8.9tJP¥2.3tJP¥227.7b20.1x39x3.8x
Sun, 08 Jun 2025JP¥9.0tJP¥2.3tJP¥232.4b20.7x38.9x3.9x
Tue, 06 May 2025JP¥8.6tJP¥2.3tJP¥230.6b20.7x37.1x3.8x
Thu, 03 Apr 2025JP¥8.2tJP¥2.2tJP¥222.8b19.2x36.6x3.6x
Sat, 01 Mar 2025JP¥8.2tJP¥2.2tJP¥225.3b19.5x36.2x3.7x
Mon, 27 Jan 2025JP¥8.5tJP¥2.5tJP¥219.2b21.3x38.7x3.4x
Wed, 25 Dec 2024JP¥8.6tJP¥2.5tJP¥222.1b22x38.7x3.5x
Fri, 22 Nov 2024JP¥8.4tJP¥2.5tJP¥221.8b23.5x37.7x3.4x
Sun, 20 Oct 2024JP¥8.6tJP¥2.4tJP¥205.0b22x41.8x3.5x
Tue, 17 Sep 2024JP¥8.4tJP¥2.4tJP¥203.1b21.7x41.3x3.5x
Thu, 15 Aug 2024JP¥7.7tJP¥2.4tJP¥195.1b20.1x39.7x3.2x
Sat, 13 Jul 2024JP¥7.9tJP¥2.4tJP¥187.1b22.7x42.3x3.3x
Mon, 10 Jun 2024JP¥7.4tJP¥2.4tJP¥188.0b22.3x39.2x3.1x
Wed, 08 May 2024JP¥7.8tJP¥2.3tJP¥170.7b23x45.8x3.4x
Fri, 05 Apr 2024JP¥7.7tJP¥2.3tJP¥167.6b22.6x45.9x3.3x
Sun, 03 Mar 2024JP¥8.2tJP¥2.3tJP¥163.5b24x50x3.5x
Tue, 30 Jan 2024JP¥7.8tJP¥2.3tJP¥164.3b24.4x47.6x3.4x
Thu, 28 Dec 2023JP¥7.6tJP¥2.3tJP¥162.3b22.6x47x3.3x
Sat, 25 Nov 2023JP¥7.6tJP¥2.3tJP¥163.4b22x46.4x3.3x
Mon, 23 Oct 2023JP¥6.7tJP¥2.2tJP¥174.3b23x38.2x3x
Wed, 20 Sep 2023JP¥7.0tJP¥2.2tJP¥171.0b24.3x40.7x3.1x
Fri, 18 Aug 2023JP¥6.8tJP¥2.2tJP¥171.9b24.4x39.8x3.1x
Sun, 16 Jul 2023JP¥7.4tJP¥2.2tJP¥166.4b24.5x44.2x3.4x
Tue, 13 Jun 2023JP¥7.6tJP¥2.2tJP¥167.3b23.9x45.2x3.5x
Thu, 11 May 2023JP¥7.1tJP¥2.1tJP¥169.8b24x41.9x3.4x
Sat, 08 Apr 2023JP¥6.7tJP¥2.1tJP¥170.2b22.8x39.3x3.2x
Mon, 06 Mar 2023JP¥6.6tJP¥2.1tJP¥170.7b23.1x38.9x3.2x
Wed, 01 Feb 2023JP¥6.6tJP¥2.0tJP¥180.0b23.8x36.7x3.2x
Fri, 30 Dec 2022JP¥6.1tJP¥2.0tJP¥183.1b22.1x33.5x3x
Price to Earnings Ratio

33.5x


Total Market Cap: JP¥6.1tTotal Earnings: JP¥183.1bTotal Revenue: JP¥2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 40.4x202320242025
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 31.7x which is lower than its 3-year average PE of 40.4x.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 12% per year over the last three years.
  • Revenues for these companies have grown 6.2% 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-0.91%
Tech-2.87%
Software1.33%
Systems Software1.59%
Application Software1.15%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 55.9x.
    • Analysts are expecting annual earnings growth of 25.7%, which is higher than its past year's earnings growth of 22.5% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 31.2x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 26% 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 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¥13.72k0.8%
+JP¥14.1b		-6.4%PE29.2x
9790 Fukui Computer HoldingsIncJP¥3.17k5.6%
+JP¥3.5b		3.1%PE17.3x
5027 AnyMind GroupJP¥604.008.8%
+JP¥2.9b		-39.2%PE21.7x
3997 TRADE WORKSJP¥431.0018.4%
+JP¥2.6b		228.8%PE236.9x
4071 Plus Alpha ConsultingLtdJP¥2.39k2.6%
+JP¥2.6b		25.9%PE31.1x

Latest News

3997
JP¥431.00
TRADE WORKS
7D
18.4%
1Y
228.8%
4704
JP¥6,765.00
Trend Micro
7D
-1.7%
1Y
-20.2%
4180
JP¥1,082.00
Appier Group
7D
-6.2%
1Y
-28.5%
4323
JP¥2,555.00
Japan System Techniques
7D
4.1%
1Y
18.3%
5027
JP¥604.00
AnyMind Group
7D
8.8%
1Y
-39.2%
4478
JP¥2,894.00
freee K.K
7D
-3.2%
1Y
-9.6%
4071
JP¥2,393.00
Plus Alpha ConsultingLtd
7D
2.6%
1Y
25.9%
4686
JP¥5,010.00
JustSystems
7D
-3.1%
1Y
40.1%

Some Investors May Be Worried About JustSystems' (TSE:4686) Returns On Capital

Dec 16
Some Investors May Be Worried About JustSystems' (TSE:4686) Returns On Capital
4431
JP¥2,965.00
Smaregi
7D
-7.1%
1Y
13.2%
9790
JP¥3,165.00
Fukui Computer HoldingsInc
7D
5.6%
1Y
3.1%

Fukui Computer HoldingsInc's (TSE:9790) Upcoming Dividend Will Be Larger Than Last Year's

Dec 14
Fukui Computer HoldingsInc's (TSE:9790) Upcoming Dividend Will Be Larger Than Last Year's
3923
JP¥1,035.00
Rakus
7D
0.7%
1Y
8.8%

Is There An Opportunity With Rakus Co., Ltd.'s (TSE:3923) 33% Undervaluation?

Dec 12
Is There An Opportunity With Rakus Co., Ltd.'s (TSE:3923) 33% Undervaluation?
4733
JP¥8,548.00
OBIC Business Consultants
7D
-1.9%
1Y
20.3%

The Return Trends At OBIC Business Consultants (TSE:4733) Look Promising

Dec 11
The Return Trends At OBIC Business Consultants (TSE:4733) Look Promising
4716
JP¥13,715.00
Oracle Corporation Japan
7D
0.8%
1Y
-6.4%

4716: Future Earnings Power Will Support Further Upside Despite Higher Discount Rate

Analysts have modestly raised their price target on Oracle Corporation Japan, citing a slightly higher discount rate and future price-to-earnings assumptions that support a fair value estimate of ¥17,420.00. Valuation Changes Fair Value Estimate is unchanged at approximately ¥17,420.00, indicating no material revision to the intrinsic value assessment.
3854
JP¥2,534.00
I'LL
7D
3.0%
1Y
-7.5%
2326
JP¥6,270.00
Digital Arts
7D
-4.7%
1Y
4.5%
2317
JP¥517.00
Systena
7D
-1.7%
1Y
38.2%