Megaport Limited's (ASX:MP1) Intrinsic Value Is Potentially 40% Above Its Share Price
Apr 21
Australian (ASX) IT Industry Analysis
UpdatedMay 02, 2024
DataAggregated Company Financials
Companies15
- 7D-2.1%
- 3M9.5%
- 1Y32.0%
- YTD15.7%
Over the last 7 days, the IT industry has dropped 2.1%, driven by a pullback from Megaport of 7.4%. On the other hand Kinatico is actually up 7.8%. This takes the industry's 12 month performance to a gain of 32%. Looking forward, earnings are forecast to grow by 15% annually.
Industry Valuation and Performance
Has the Australian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 02 May 2024 | AU$14.3b | AU$4.4b | -AU$219,545,728.90 | 35.6x | -65.1x | 3.3x |
| Sat, 30 Mar 2024 | AU$15.5b | AU$4.4b | -AU$219,132,452.40 | 39.2x | -70.5x | 3.5x |
| Mon, 26 Feb 2024 | AU$13.6b | AU$4.4b | -AU$439,956,375.00 | 42.5x | -31x | 3.1x |
| Wed, 24 Jan 2024 | AU$12.6b | AU$4.4b | -AU$456,583,284.00 | 35.9x | -27.6x | 2.8x |
| Fri, 22 Dec 2023 | AU$11.9b | AU$4.4b | -AU$445,553,478.00 | 33.7x | -26.8x | 2.7x |
| Sun, 19 Nov 2023 | AU$11.9b | AU$4.5b | -AU$458,213,207.00 | 31.5x | -25.9x | 2.6x |
| Tue, 17 Oct 2023 | AU$11.8b | AU$4.5b | -AU$472,573,796.00 | 30.2x | -25x | 2.6x |
| Thu, 14 Sep 2023 | AU$11.8b | AU$4.5b | -AU$463,928,285.00 | 29.6x | -25.4x | 2.6x |
| Sat, 12 Aug 2023 | AU$12.2b | AU$4.3b | -AU$461,301,081.00 | 25.2x | -26.4x | 2.9x |
| Mon, 10 Jul 2023 | AU$9.4b | AU$3.9b | -AU$462,880,470.00 | 19.1x | -20.4x | 2.4x |
| Wed, 07 Jun 2023 | AU$9.4b | AU$3.9b | -AU$464,153,798.00 | 18.8x | -20.4x | 2.4x |
| Fri, 05 May 2023 | AU$8.2b | AU$3.9b | -AU$466,409,117.00 | 23.8x | -17.5x | 2.1x |
| Sun, 02 Apr 2023 | AU$7.5b | AU$3.9b | -AU$465,849,276.00 | 23.5x | -16.1x | 1.9x |
| Tue, 28 Feb 2023 | AU$25.0b | AU$10.2b | -AU$331,193,713.00 | 25.6x | -75.4x | 2.4x |
| Thu, 26 Jan 2023 | AU$24.4b | AU$9.3b | -AU$73,765,652.00 | 34.3x | -330.4x | 2.6x |
| Sat, 24 Dec 2022 | AU$25.8b | AU$9.6b | -AU$64,272,005.00 | 32.1x | -401.6x | 2.7x |
| Mon, 21 Nov 2022 | AU$26.6b | AU$9.5b | -AU$72,571,132.00 | 41.2x | -366.6x | 2.8x |
| Wed, 19 Oct 2022 | AU$25.4b | AU$9.6b | AU$44.7m | 37.5x | 568.9x | 2.6x |
| Fri, 16 Sep 2022 | AU$25.6b | AU$9.3b | AU$23.7m | 38.4x | 1080.5x | 2.8x |
| Sun, 14 Aug 2022 | AU$26.6b | AU$9.0b | -AU$268,428,285.00 | 37.4x | -99x | 2.9x |
| Tue, 12 Jul 2022 | AU$26.0b | AU$8.8b | -AU$281,900,057.00 | 26.8x | -92.4x | 3x |
| Thu, 09 Jun 2022 | AU$25.5b | AU$8.6b | -AU$289,326,808.00 | 31.1x | -88.1x | 3x |
| Sat, 07 May 2022 | AU$27.2b | AU$8.7b | -AU$249,637,834.00 | 29.3x | -108.9x | 3.1x |
| Mon, 04 Apr 2022 | AU$50.5b | AU$9.4b | -AU$412,011,741.00 | 42.4x | -122.5x | 5.4x |
| Wed, 02 Mar 2022 | AU$48.4b | AU$9.5b | -AU$400,805,679.00 | 37.9x | -120.8x | 5.1x |
| Fri, 28 Jan 2022 | AU$47.0b | AU$9.2b | -AU$348,887,280.00 | 32.9x | -134.7x | 5.1x |
| Sun, 26 Dec 2021 | AU$55.6b | AU$9.1b | -AU$345,801,059.00 | 35.7x | -160.9x | 6.1x |
| Tue, 23 Nov 2021 | AU$63.6b | AU$9.1b | -AU$344,166,847.00 | 36.1x | -184.7x | 7x |
| Thu, 21 Oct 2021 | AU$66.5b | AU$9.1b | -AU$322,170,009.00 | 43.2x | -206.3x | 7.3x |
| Sat, 18 Sep 2021 | AU$67.2b | AU$9.3b | -AU$318,006,931.00 | 38.7x | -211.2x | 7.2x |
| Mon, 16 Aug 2021 | AU$68.3b | AU$9.2b | -AU$321,411,623.84 | 39.3x | -212.6x | 7.5x |
| Mon, 31 May 2021 | AU$55.3b | AU$8.8b | -AU$242,709,501.05 | 36.6x | -227.8x | 6.3x |
Price to Earnings Ratio
-261x
Current Industry PE
- Investors are pessimistic on the Australian IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 3.3x.
Past Earnings Growth
- The earnings for companies in the IT industry have improved over the last three years.
- Meanwhile revenues for these companies have declined 21% per year.
- This means that less sales are being generated overall, but since the cost of doing business is lower, losses have been shrinking.
Industry Trends
Which industries have driven the changes within the Australian Tech industry?
| AU Market | -1.54% | |
| Tech | -0.75% | |
| IT | -2.07% | |
| IT Consulting | -2.02% | |
| Internet Services and Infrastructure | -2.07% | |
| Data Processing Services | -2.50% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry even though it's trading below its 3-year average PE ratio of 24.3x.
- Analysts are expecting annual earnings growth of 8.9%, which is lower than the prior year's growth of 37.2% per year.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 18% over the next 5 years.
- This is better than its past earnings growth rate of 0.3% per year.
- In contrast, the Data Processing Services industry is expected to see its earnings grow by 8.9% 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 | |
|---|---|---|---|---|---|
| KYP Kinatico | AU$0.097 | 7.8% +AU$3.0m | 21.3% | PE26.7x | |
| FCT FirstWave Cloud Technology | AU$0.021 | 5.0% +AU$1.7m | -59.6% | PS3.1x | |
| ATA Atturra | AU$0.82 | 0.6% +AU$1.6m | -13.2% | PE29.8x | |
| SOV Sovereign Cloud Holdings | AU$0.029 | 3.6% +AU$1.2m | -73.6% | PS4.6x | |
| CGO CPT Global | AU$0.089 | 14.1% +AU$460.9k | -67.0% | PS0.2x |
