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Japanese (NIKKEI) Software Industry Analysis

UpdatedJan 19, 2026
DataAggregated Company Financials
Companies185
  • 7D-1.2%
  • 3M-7.9%
  • 1Y3.2%
  • YTD0.4%

Over the last 7 days, the Software industry has dropped 1.2%, driven by Oracle Corporation Japan declining 5.8%. On the other hand FFRI Security is actually up 23%. Over the past 12 months, the industry was up 3.2%. 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, 20 Jan 2026JP¥7.9tJP¥2.5tJP¥265.1b20.4x29.9x3.2x
Thu, 18 Dec 2025JP¥8.0tJP¥2.4tJP¥254.4b19.5x31.3x3.3x
Sat, 15 Nov 2025JP¥8.4tJP¥2.4tJP¥246.3b22x34x3.5x
Mon, 13 Oct 2025JP¥8.6tJP¥2.4tJP¥234.8b21.6x36.7x3.6x
Wed, 10 Sep 2025JP¥8.9tJP¥2.4tJP¥236.0b21.8x37.9x3.8x
Fri, 08 Aug 2025JP¥9.2tJP¥2.3tJP¥223.6b21.6x41x3.9x
Sun, 06 Jul 2025JP¥8.8tJP¥2.3tJP¥227.7b20.1x38.8x3.8x
Tue, 03 Jun 2025JP¥9.0tJP¥2.3tJP¥232.2b20.6x38.6x3.9x
Thu, 01 May 2025JP¥8.6tJP¥2.3tJP¥230.4b20.9x37.1x3.8x
Sat, 29 Mar 2025JP¥8.4tJP¥2.2tJP¥223.2b19.7x37.8x3.8x
Mon, 24 Feb 2025JP¥8.5tJP¥2.2tJP¥225.3b20.3x37.8x3.8x
Wed, 22 Jan 2025JP¥8.3tJP¥2.5tJP¥219.3b21x37.9x3.3x
Fri, 20 Dec 2024JP¥8.6tJP¥2.5tJP¥221.9b21.9x38.7x3.5x
Sun, 17 Nov 2024JP¥8.4tJP¥2.5tJP¥220.9b21.8x38.1x3.4x
Tue, 15 Oct 2024JP¥8.7tJP¥2.4tJP¥205.2b22.2x42.3x3.6x
Thu, 12 Sep 2024JP¥8.3tJP¥2.4tJP¥205.2b20.8x40.3x3.4x
Sat, 10 Aug 2024JP¥7.5tJP¥2.4tJP¥190.9b19.5x39x3.1x
Mon, 08 Jul 2024JP¥7.7tJP¥2.4tJP¥187.1b23x41.2x3.2x
Wed, 05 Jun 2024JP¥7.4tJP¥2.4tJP¥187.9b22.4x39.5x3.1x
Fri, 03 May 2024JP¥7.6tJP¥2.3tJP¥170.7b22.7x44.7x3.3x
Sun, 31 Mar 2024JP¥8.0tJP¥2.3tJP¥167.4b24x47.9x3.5x
Tue, 27 Feb 2024JP¥8.0tJP¥2.3tJP¥163.6b24.7x48.7x3.4x
Thu, 25 Jan 2024JP¥7.9tJP¥2.3tJP¥163.1b23.5x48.6x3.4x
Sat, 23 Dec 2023JP¥7.5tJP¥2.3tJP¥162.3b22.5x46.4x3.3x
Mon, 20 Nov 2023JP¥7.4tJP¥2.3tJP¥163.7b21.6x45.4x3.2x
Wed, 18 Oct 2023JP¥6.9tJP¥2.2tJP¥174.1b22.7x39.5x3.1x
Fri, 15 Sep 2023JP¥7.0tJP¥2.2tJP¥171.0b24.3x40.9x3.1x
Sun, 13 Aug 2023JP¥7.0tJP¥2.2tJP¥167.4b25.8x41.8x3.1x
Tue, 11 Jul 2023JP¥7.2tJP¥2.2tJP¥167.2b24.6x43.3x3.3x
Thu, 08 Jun 2023JP¥7.5tJP¥2.2tJP¥166.6b24x45.3x3.5x
Sat, 06 May 2023JP¥7.0tJP¥2.1tJP¥169.9b22.2x41.3x3.3x
Mon, 03 Apr 2023JP¥6.8tJP¥2.1tJP¥170.1b23.5x40.2x3.2x
Wed, 01 Mar 2023JP¥6.6tJP¥2.1tJP¥170.7b23x38.5x3.1x
Fri, 27 Jan 2023JP¥6.6tJP¥2.0tJP¥180.4b23.5x36.6x3.2x
Price to Earnings Ratio

36.6x


Total Market Cap: JP¥6.6tTotal Earnings: JP¥180.4bTotal Revenue: JP¥2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 40.3x202420252026
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 29.9x which is lower than its 3-year average PE of 40.3x.
  • 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 14% per year over the last three years.
  • Revenues for these companies have grown 6.4% 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 Market3.79%
Tech6.30%
Software-1.16%
Application Software0.26%
Systems Software-3.26%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 55.1x.
    • Analysts are expecting annual earnings growth of 24.8%, which is higher than its past year's earnings growth of 22.4% per year.
  • 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 25% 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 9.4% 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¥9.97k23.2%
+JP¥14.9b		319.8%PE67.9x
3817 SRA HoldingsJP¥5.81k7.8%
+JP¥5.3b		41.7%PE19.1x
5574 ABEJAJP¥3.09k14.3%
+JP¥3.8b		73.2%PE56.1x
3741 Systems Engineering ConsultantsLTDJP¥3.69k11.3%
+JP¥3.8b		65.2%PE26.9x
5027 AnyMind GroupJP¥665.009.2%
+JP¥3.4b		-41.2%PE24.4x

Latest News

3741
JP¥3,685.00
Systems Engineering ConsultantsLTD
7D
11.3%
1Y
65.2%

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
4704
JP¥6,472.00
Trend Micro
7D
-0.7%
1Y
-25.1%
3994
JP¥4,440.00
Money Forward
7D
-4.9%
1Y
5.1%

Results: Money Forward, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Jan 16
Results: Money Forward, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts
5574
JP¥3,085.00
ABEJA
7D
14.3%
1Y
73.2%
4716
JP¥11,855.00
Oracle Corporation Japan
7D
-5.8%
1Y
-16.2%
5246
JP¥761.00
ELEMENTS
7D
13.8%
1Y
16.9%
3692
JP¥9,970.00
FFRI Security
7D
23.2%
1Y
319.8%

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%
2326
JP¥5,800.00
Digital Arts
7D
-5.7%
1Y
2.1%
9790
JP¥3,385.00
Fukui Computer HoldingsInc
7D
4.0%
1Y
20.8%
3661
JP¥843.00
m-up holdings
7D
-8.7%
1Y
12.9%

m-up holdings (TSE:3661) Is Paying Out A Larger Dividend Than Last Year

Dec 28
m-up holdings (TSE:3661) Is Paying Out A Larger Dividend Than Last Year
4733
JP¥8,191.00
OBIC Business Consultants
7D
-3.5%
1Y
19.4%

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

Dec 26
Is OBIC Business Consultants Co., Ltd. (TSE:4733) Worth JP¥8.5k Based On Its Intrinsic Value?
4776
JP¥2,588.00
Cybozu
7D
-5.2%
1Y
-0.8%

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

Dec 24
Cybozu's (TSE:4776) Shareholders Will Receive A Bigger Dividend Than Last Year
5027
JP¥665.00
AnyMind Group
7D
9.2%
1Y
-41.2%
4686
JP¥5,090.00
JustSystems
7D
1.0%
1Y
52.6%

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
3923
JP¥968.00
Rakus
7D
-9.5%
1Y
10.2%

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?
3817
JP¥5,810.00
SRA Holdings
7D
7.8%
1Y
41.7%