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Aug 08
Japanese (NIKKEI) Software Industry Analysis
UpdatedAug 13, 2024
DataAggregated Company Financials
Companies181
- 7D14.2%
- 3M-3.2%
- 1Y8.0%
- YTD-1.3%
The Software industry is up 14% in the last week, with Trend Micro up 25%. Meanwhile, Safie actually underperformed within the industry, shrinking 7.9% in the last week. This takes the industry's 12 month performance to a gain of 8.0%. As for the next few years, earnings are expected to grow by 21% per annum.
Industry Valuation and Performance
Has the Japanese Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 14 Aug 2024 | JP¥7.5t | JP¥2.4t | JP¥193.5b | 19.3x | 38.5x | 3.1x |
| Fri, 12 Jul 2024 | JP¥7.7t | JP¥2.4t | JP¥187.1b | 22.5x | 41.2x | 3.2x |
| Sun, 09 Jun 2024 | JP¥7.4t | JP¥2.4t | JP¥188.0b | 22.3x | 39.2x | 3.1x |
| Tue, 07 May 2024 | JP¥7.6t | JP¥2.3t | JP¥170.7b | 22.7x | 44.8x | 3.3x |
| Thu, 04 Apr 2024 | JP¥7.7t | JP¥2.3t | JP¥167.6b | 23.2x | 45.7x | 3.3x |
| Sat, 02 Mar 2024 | JP¥8.2t | JP¥2.3t | JP¥163.6b | 24x | 50x | 3.5x |
| Mon, 29 Jan 2024 | JP¥7.9t | JP¥2.3t | JP¥164.3b | 23.7x | 47.9x | 3.4x |
| Wed, 27 Dec 2023 | JP¥7.6t | JP¥2.3t | JP¥162.3b | 22.4x | 46.5x | 3.3x |
| Fri, 24 Nov 2023 | JP¥7.5t | JP¥2.3t | JP¥163.4b | 22x | 46.2x | 3.3x |
| Sun, 22 Oct 2023 | JP¥6.7t | JP¥2.2t | JP¥174.3b | 23x | 38.2x | 3x |
| Tue, 19 Sep 2023 | JP¥7.0t | JP¥2.2t | JP¥171.0b | 24.5x | 41.2x | 3.2x |
| Thu, 17 Aug 2023 | JP¥6.9t | JP¥2.2t | JP¥171.9b | 24.5x | 40.2x | 3.1x |
| Sat, 15 Jul 2023 | JP¥7.4t | JP¥2.2t | JP¥167.2b | 24.6x | 44x | 3.4x |
| Mon, 12 Jun 2023 | JP¥7.4t | JP¥2.2t | JP¥167.3b | 23.5x | 44.3x | 3.4x |
| Wed, 10 May 2023 | JP¥7.2t | JP¥2.1t | JP¥170.0b | 23x | 42.2x | 3.4x |
| Fri, 07 Apr 2023 | JP¥6.7t | JP¥2.1t | JP¥170.1b | 22.8x | 39.3x | 3.2x |
| Sun, 05 Mar 2023 | JP¥6.6t | JP¥2.1t | JP¥170.7b | 23.1x | 38.9x | 3.2x |
| Tue, 31 Jan 2023 | JP¥6.6t | JP¥2.0t | JP¥180.4b | 23.4x | 36.8x | 3.3x |
| Thu, 29 Dec 2022 | JP¥6.1t | JP¥2.0t | JP¥183.1b | 21.8x | 33.2x | 3x |
| Sat, 26 Nov 2022 | JP¥6.7t | JP¥2.0t | JP¥181.0b | 24.3x | 37.3x | 3.3x |
| Mon, 24 Oct 2022 | JP¥6.2t | JP¥2.0t | JP¥184.3b | 23.9x | 33.8x | 3.1x |
| Wed, 21 Sep 2022 | JP¥6.3t | JP¥2.0t | JP¥188.3b | 22.9x | 33.5x | 3.2x |
| Fri, 19 Aug 2022 | JP¥6.8t | JP¥2.0t | JP¥186.6b | 23.8x | 36.2x | 3.4x |
| Sun, 17 Jul 2022 | JP¥6.1t | JP¥1.9t | JP¥197.8b | 23.1x | 31x | 3.2x |
| Tue, 14 Jun 2022 | JP¥5.8t | JP¥1.9t | JP¥199.0b | 21.7x | 29.2x | 3x |
| Thu, 12 May 2022 | JP¥6.1t | JP¥1.9t | JP¥201.0b | 21.9x | 30.4x | 3.2x |
| Sat, 09 Apr 2022 | JP¥6.7t | JP¥1.9t | JP¥204.0b | 23.3x | 32.8x | 3.5x |
| Mon, 07 Mar 2022 | JP¥6.2t | JP¥1.9t | JP¥203.6b | 19.6x | 30.4x | 3.3x |
| Wed, 02 Feb 2022 | JP¥6.2t | JP¥1.9t | JP¥201.6b | 20.4x | 30.9x | 3.4x |
| Fri, 31 Dec 2021 | JP¥7.5t | JP¥1.9t | JP¥198.5b | 23.1x | 38x | 4.1x |
| Sun, 28 Nov 2021 | JP¥8.3t | JP¥1.9t | JP¥200.7b | 25.5x | 41.4x | 4.5x |
| Tue, 26 Oct 2021 | JP¥8.3t | JP¥1.8t | JP¥185.1b | 26.5x | 44.9x | 4.6x |
| Thu, 23 Sep 2021 | JP¥8.5t | JP¥1.8t | JP¥183.2b | 29.2x | 46.6x | 4.7x |
| Sat, 21 Aug 2021 | JP¥7.6t | JP¥1.9t | JP¥183.4b | 26.7x | 41.6x | 4.1x |
Price to Earnings Ratio
41.6x
Current Industry PE
- Investors are relatively neutral on the Japanese Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 39.2x.
- 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 remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 9.0% 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 Market | 11.02% | |
| Tech | 12.52% | |
| Software | 14.21% | |
| Systems Software | 15.60% | |
| Application Software | 12.88% | |
Industry PE
- Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 60.3x.
- Analysts are expecting annual earnings growth of 31.3%, which is higher than its past year's earnings growth of 17.0% 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 27.3x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings growth rate of 17% per year.
- In contrast, the Systems Software industry is expected to see its earnings grow by 14% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 4704 Trend Micro | JP¥8.24k | 25.2% +JP¥215.5b | 31.2% | PE64x | |
| 9749 Fuji Soft | JP¥8.88k | 28.9% +JP¥125.3b | 91.6% | PE37.7x | |
| 4716 Oracle Corporation Japan | JP¥12.60k | 6.3% +JP¥95.6b | 28.2% | PE29.1x | |
| 3923 Rakus | JP¥1.91k | 7.9% +JP¥25.3b | -17.3% | PE82.7x | |
| 3994 Money Forward | JP¥4.73k | 6.9% +JP¥16.7b | -8.9% | PS7.1x |