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Japanese (NIKKEI) Software Industry Analysis

UpdatedDec 16, 2025
DataAggregated Company Financials
Companies184
  • 7D-0.5%
  • 3M-12.1%
  • 1Y1.5%
  • YTD2.3%

In the last week, the Software industry is flat overall, with Rakus standing out by going down 9.2%. In line with that, the industry has also been flat over the past 12 months. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Dec 2025JP¥8.1tJP¥2.4tJP¥253.9b19.7x31.8x3.3x
Thu, 13 Nov 2025JP¥8.5tJP¥2.4tJP¥241.5b22x35.3x3.6x
Sat, 11 Oct 2025JP¥8.6tJP¥2.4tJP¥234.4b21.6x36.7x3.6x
Mon, 08 Sep 2025JP¥8.8tJP¥2.4tJP¥236.0b22.1x37.3x3.7x
Wed, 06 Aug 2025JP¥9.2tJP¥2.3tJP¥223.0b21.5x41.1x3.9x
Fri, 04 Jul 2025JP¥8.8tJP¥2.3tJP¥227.8b20.1x38.8x3.8x
Sun, 01 Jun 2025JP¥8.9tJP¥2.3tJP¥232.1b20.4x38.6x3.8x
Tue, 29 Apr 2025JP¥8.5tJP¥2.3tJP¥228.9b20.7x37x3.8x
Thu, 27 Mar 2025JP¥8.5tJP¥2.2tJP¥223.2b19.8x38.2x3.8x
Sat, 22 Feb 2025JP¥8.5tJP¥2.2tJP¥225.3b20.3x37.8x3.8x
Mon, 20 Jan 2025JP¥8.2tJP¥2.5tJP¥219.3b21.1x37.5x3.3x
Wed, 18 Dec 2024JP¥8.5tJP¥2.4tJP¥212.0b22.1x40.3x3.6x
Fri, 15 Nov 2024JP¥8.5tJP¥2.4tJP¥215.0b22x39.5x3.5x
Sun, 13 Oct 2024JP¥8.7tJP¥2.4tJP¥205.2b22.2x42.3x3.6x
Tue, 10 Sep 2024JP¥8.3tJP¥2.4tJP¥205.4b21.2x40.6x3.4x
Thu, 08 Aug 2024JP¥7.1tJP¥2.4tJP¥192.1b18.4x36.9x3x
Sat, 06 Jul 2024JP¥7.7tJP¥2.4tJP¥187.1b23x41.2x3.2x
Mon, 03 Jun 2024JP¥7.3tJP¥2.4tJP¥187.9b22.4x38.9x3.1x
Wed, 01 May 2024JP¥7.6tJP¥2.3tJP¥170.3b22.7x44.5x3.3x
Fri, 29 Mar 2024JP¥7.9tJP¥2.3tJP¥167.4b23.4x47.3x3.4x
Sun, 25 Feb 2024JP¥7.7tJP¥2.3tJP¥163.6b24.1x47.1x3.3x
Tue, 23 Jan 2024JP¥7.9tJP¥2.3tJP¥163.1b23.4x48.5x3.4x
Thu, 21 Dec 2023JP¥7.6tJP¥2.3tJP¥162.1b22x47x3.3x
Sat, 18 Nov 2023JP¥7.4tJP¥2.3tJP¥163.9b21.2x45.4x3.2x
Mon, 16 Oct 2023JP¥6.9tJP¥2.2tJP¥174.1b22.7x39.5x3.1x
Wed, 13 Sep 2023JP¥7.1tJP¥2.2tJP¥170.6b24.9x41.7x3.2x
Fri, 11 Aug 2023JP¥7.0tJP¥2.2tJP¥166.0b24.5x42.1x3.2x
Sun, 09 Jul 2023JP¥7.3tJP¥2.2tJP¥167.2b24.5x43.4x3.3x
Tue, 06 Jun 2023JP¥7.5tJP¥2.2tJP¥166.6b23.4x45x3.5x
Thu, 04 May 2023JP¥7.0tJP¥2.1tJP¥170.0b22.2x41.3x3.3x
Sat, 01 Apr 2023JP¥6.8tJP¥2.1tJP¥170.1b23.5x40.3x3.2x
Mon, 27 Feb 2023JP¥6.5tJP¥2.1tJP¥170.7b23.1x38.3x3.1x
Wed, 25 Jan 2023JP¥6.6tJP¥2.0tJP¥181.1b23.6x36.3x3.2x
Fri, 23 Dec 2022JP¥6.1tJP¥2.0tJP¥183.6b21.6x33.4x3x
Price to Earnings Ratio

33.4x


Total Market Cap: JP¥6.1tTotal Earnings: JP¥183.6bTotal 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 31.4x 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 11% 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 Market1.27%
Tech-1.39%
Software-0.47%
Systems Software-0.30%
Application Software-0.60%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 56.1x.
    • Analysts are expecting annual earnings growth of 25.7%, which is higher than its past year's earnings growth of 22.6% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 31.1x.
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¥13.62k1.9%
+JP¥32.0b		-5.7%PE29x
3994 Money ForwardJP¥4.18k6.7%
+JP¥14.6b		-16.8%PS5x
4443 SansanJP¥1.69k2.4%
+JP¥5.1b		-31.2%PE195.1x
4674 CrescoJP¥1.72k6.5%
+JP¥4.2b		42.9%PE15.1x
4071 Plus Alpha ConsultingLtdJP¥2.41k3.8%
+JP¥3.8b		26.8%PE31.3x

Latest News

4071
JP¥2,406.00
Plus Alpha ConsultingLtd
7D
3.8%
1Y
26.8%
3692
JP¥6,890.00
FFRI Security
7D
-15.5%
1Y
272.2%
4686
JP¥5,010.00
JustSystems
7D
-2.5%
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¥3,100.00
Smaregi
7D
5.8%
1Y
14.6%
4323
JP¥2,437.00
Japan System Techniques
7D
4.7%
1Y
20.9%
3923
JP¥1,005.00
Rakus
7D
-8.1%
1Y
6.3%

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?
9692
JP¥2,404.00
Computer Engineering & Consulting
7D
4.7%
1Y
23.9%
3994
JP¥4,183.00
Money Forward
7D
6.7%
1Y
-16.8%
4716
JP¥13,615.00
Oracle Corporation Japan
7D
1.9%
1Y
-5.7%

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.
4180
JP¥1,094.00
Appier Group
7D
-8.8%
1Y
-21.9%
4478
JP¥2,916.00
freee K.K
7D
-6.1%
1Y
-13.6%
2326
JP¥6,450.00
Digital Arts
7D
-4.7%
1Y
8.2%
4776
JP¥2,790.00
Cybozu
7D
-7.0%
1Y
30.9%

Cybozu's (TSE:4776) Shareholders Will Receive A Bigger Dividend Than Last Year

Dec 04
Cybozu's (TSE:4776) Shareholders Will Receive A Bigger Dividend Than Last Year
4674
JP¥1,719.00
Cresco
7D
6.5%
1Y
42.9%

Cresco (TSE:4674) Will Pay A Dividend Of ¥29.00

Dec 03
Cresco (TSE:4674) Will Pay A Dividend Of ¥29.00
3993
JP¥3,255.00
PKSHA Technology
7D
-6.5%
1Y
-16.4%

PKSHA Technology Inc.'s (TSE:3993) 25% Cheaper Price Remains In Tune With Earnings

Dec 01
PKSHA Technology Inc.'s (TSE:3993) 25% Cheaper Price Remains In Tune With Earnings
4443
JP¥1,688.00
Sansan
7D
2.4%
1Y
-31.2%

The Price Is Right For Sansan, Inc. (TSE:4443)

Nov 18
The Price Is Right For Sansan, Inc. (TSE:4443)