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Japanese (NIKKEI) Software Industry Analysis

UpdatedDec 27, 2025
DataAggregated Company Financials
Companies186
  • 7D0.3%
  • 3M-10.9%
  • 1Y-0.1%
  • YTD2.7%

Last week, the Software industry hasn't moved much but Money Forward is up 4.2% in that time. In line with that, the industry has also been flat over the past 12 months. 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
Sat, 27 Dec 2025JP¥8.1tJP¥2.4tJP¥255.6b20.4x31.7x3.3x
Mon, 24 Nov 2025JP¥8.3tJP¥2.4tJP¥252.6b19.1x33x3.4x
Wed, 22 Oct 2025JP¥8.6tJP¥2.4tJP¥236.1b21x36.4x3.6x
Fri, 19 Sep 2025JP¥9.2tJP¥2.4tJP¥234.9b21.6x39.3x3.9x
Sun, 17 Aug 2025JP¥9.0tJP¥2.4tJP¥232.8b21x38.5x3.8x
Tue, 15 Jul 2025JP¥8.8tJP¥2.3tJP¥226.7b20x38.8x3.8x
Thu, 12 Jun 2025JP¥9.1tJP¥2.3tJP¥232.8b20.8x39.3x3.9x
Sat, 10 May 2025JP¥8.7tJP¥2.3tJP¥227.8b20.9x38.4x3.9x
Mon, 07 Apr 2025JP¥7.9tJP¥2.2tJP¥226.8b18x34.7x3.5x
Wed, 05 Mar 2025JP¥8.3tJP¥2.2tJP¥225.3b19.6x36.7x3.7x
Fri, 31 Jan 2025JP¥8.7tJP¥2.5tJP¥219.4b21.4x39.8x3.5x
Sun, 29 Dec 2024JP¥8.7tJP¥2.5tJP¥220.8b22.4x39.5x3.5x
Tue, 26 Nov 2024JP¥8.5tJP¥2.5tJP¥221.4b22.4x38.4x3.4x
Thu, 24 Oct 2024JP¥8.3tJP¥2.4tJP¥205.0b21.6x40.6x3.4x
Sat, 21 Sep 2024JP¥8.5tJP¥2.4tJP¥202.7b22.2x41.7x3.5x
Mon, 19 Aug 2024JP¥7.9tJP¥2.4tJP¥200.6b20.9x39.4x3.3x
Wed, 17 Jul 2024JP¥8.0tJP¥2.4tJP¥189.1b22.8x42.1x3.3x
Fri, 14 Jun 2024JP¥7.4tJP¥2.4tJP¥188.1b22x39.4x3.1x
Sun, 12 May 2024JP¥7.6tJP¥2.3tJP¥176.4b22.4x43.1x3.2x
Tue, 09 Apr 2024JP¥7.7tJP¥2.3tJP¥167.7b22.7x46x3.3x
Thu, 07 Mar 2024JP¥8.1tJP¥2.3tJP¥163.5b25.7x49.6x3.5x
Sat, 03 Feb 2024JP¥7.9tJP¥2.3tJP¥167.0b23.8x47.5x3.4x
Mon, 01 Jan 2024JP¥7.6tJP¥2.3tJP¥162.4b22.7x46.7x3.3x
Wed, 29 Nov 2023JP¥7.6tJP¥2.3tJP¥163.4b22.1x46.3x3.3x
Fri, 27 Oct 2023JP¥6.5tJP¥2.2tJP¥175.4b22.1x37.2x2.9x
Sun, 24 Sep 2023JP¥6.8tJP¥2.2tJP¥171.0b24.3x39.9x3.1x
Tue, 22 Aug 2023JP¥6.8tJP¥2.2tJP¥171.9b24.1x39.4x3x
Thu, 20 Jul 2023JP¥7.4tJP¥2.2tJP¥165.3b24.5x44.8x3.4x
Sat, 17 Jun 2023JP¥8.0tJP¥2.2tJP¥167.0b24.5x48.1x3.7x
Mon, 15 May 2023JP¥7.1tJP¥2.1tJP¥171.0b22.5x41.8x3.3x
Wed, 12 Apr 2023JP¥6.7tJP¥2.1tJP¥170.3b22.4x39.5x3.2x
Fri, 10 Mar 2023JP¥6.8tJP¥2.1tJP¥171.0b23.2x39.7x3.3x
Sun, 05 Feb 2023JP¥6.7tJP¥2.0tJP¥181.6b23.4x37x3.3x
Tue, 03 Jan 2023JP¥6.2tJP¥2.0tJP¥183.0b22.1x33.7x3x
Price to Earnings Ratio

33.7x


Total Market Cap: JP¥6.2tTotal Earnings: JP¥183.0bTotal Revenue: JP¥2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 40.4x20242025
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 6.3% 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 Market1.22%
Tech3.97%
Software0.29%
Application Software1.35%
Systems Software-1.15%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 55.8x.
    • Analysts are expecting annual earnings growth of 25.9%, 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 9.7% 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
3994 Money ForwardJP¥4.60k4.2%
+JP¥10.3b		-5.8%PS5.5x
3993 PKSHA TechnologyJP¥3.46k7.6%
+JP¥7.6b		-9.0%PE40x
4443 SansanJP¥1.78k2.4%
+JP¥5.3b		-23.5%PE205.6x
4478 freee K.KJP¥3.05k2.9%
+JP¥5.1b		-2.7%PE133.2x
4686 JustSystemsJP¥5.13k1.2%
+JP¥3.9b		44.3%PE23.5x

Latest News

4733
JP¥8,533.00
OBIC Business Consultants
7D
-1.7%
1Y
21.0%

Is OBIC Business Consultants Co., Ltd. (TSE:4733) Worth JP¥8.5k Based On Its Intrinsic Value?

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3661
JP¥1,890.00
m-up holdings
7D
4.2%
1Y
14.0%
3993
JP¥3,455.00
PKSHA Technology
7D
7.6%
1Y
-9.0%
3994
JP¥4,603.00
Money Forward
7D
4.2%
1Y
-5.8%
4776
JP¥2,909.00
Cybozu
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1Y
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Cybozu's (TSE:4776) Shareholders Will Receive A Bigger Dividend Than Last Year

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4716
JP¥13,430.00
Oracle Corporation Japan
7D
-1.9%
1Y
-11.7%
4180
JP¥1,109.00
Appier Group
7D
2.8%
1Y
-24.6%
4662
JP¥1,837.00
Focus Systems
7D
-3.5%
1Y
63.0%

Focus Systems (TSE:4662) Is Paying Out A Larger Dividend Than Last Year

Dec 23
Focus Systems (TSE:4662) Is Paying Out A Larger Dividend Than Last Year
4704
JP¥6,766.00
Trend Micro
7D
-2.2%
1Y
-22.2%
3936
JP¥133.00
Globalway
7D
-18.4%
1Y
23.1%

Investors Continue Waiting On Sidelines For Globalway, Inc. (TSE:3936)

Dec 19
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4478
JP¥3,050.00
freee K.K
7D
2.9%
1Y
-2.7%
4443
JP¥1,779.00
Sansan
7D
2.4%
1Y
-23.5%

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Dec 17
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3804
JP¥1,750.00
System D
7D
-8.2%
1Y
20.8%
4686
JP¥5,130.00
JustSystems
7D
1.2%
1Y
44.3%

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

Dec 16
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9928
JP¥1,983.00
Miroku Jyoho Service
7D
4.9%
1Y
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Miroku Jyoho Service (TSE:9928) Is Increasing Its Dividend To ¥60.00

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Miroku Jyoho Service (TSE:9928) Is Increasing Its Dividend To ¥60.00
6572
JP¥305.00
OPEN Group
7D
-4.7%
1Y
58.9%