Some Investors May Be Worried About Macquarie Technology Group's (ASX:MAQ) Returns On Capital
Nov 29
Australian (ASX) Tech Sector Analysis
UpdatedNov 30, 2023
DataAggregated Company Financials
Companies163
- 7D0.7%
- 3M-7.8%
- 1Y14.7%
- YTD23.2%
Over the last 7 days, the Tech industry has remained flat, although notably Xero gained 3.5%. The past year has been better, since the industry has gained 15% in that time. Earnings are forecast to grow by 29% annually.
Sector Valuation and Performance
Has the Australian Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 30 Nov 2023 | AU$82.9b | AU$17.1b | -AU$1,602,355,969.00 | 41.7x | -51.8x | 4.8x |
| Sat, 28 Oct 2023 | AU$78.1b | AU$17.0b | -AU$1,740,423,311.00 | 38.6x | -44.9x | 4.6x |
| Mon, 25 Sep 2023 | AU$84.8b | AU$17.0b | -AU$1,728,914,306.00 | 41.7x | -49x | 5x |
| Wed, 23 Aug 2023 | AU$91.2b | AU$16.7b | -AU$1,604,530,955.00 | 27.6x | -56.8x | 5.5x |
| Fri, 21 Jul 2023 | AU$90.2b | AU$15.9b | -AU$1,501,488,569.00 | 30.7x | -60.1x | 5.7x |
| Sun, 18 Jun 2023 | AU$87.9b | AU$15.9b | -AU$1,528,058,584.00 | 28x | -57.6x | 5.5x |
| Tue, 16 May 2023 | AU$78.9b | AU$15.7b | -AU$1,546,772,915.00 | 29.3x | -51x | 5x |
| Thu, 13 Apr 2023 | AU$76.0b | AU$15.7b | -AU$1,543,554,030.00 | 30.6x | -49.2x | 4.8x |
| Sat, 11 Mar 2023 | AU$91.1b | AU$22.1b | -AU$1,700,582,712.00 | 31.1x | -53.6x | 4.1x |
| Mon, 06 Feb 2023 | AU$92.4b | AU$20.6b | -AU$897,735,225.00 | 45.1x | -103x | 4.5x |
| Wed, 04 Jan 2023 | AU$84.1b | AU$20.7b | -AU$945,689,675.00 | 44.1x | -88.9x | 4.1x |
| Fri, 02 Dec 2022 | AU$90.7b | AU$20.7b | -AU$955,340,760.00 | 49.2x | -95x | 4.4x |
| Sun, 30 Oct 2022 | AU$86.0b | AU$20.6b | -AU$826,707,809.00 | 41.7x | -104x | 4.2x |
| Tue, 27 Sep 2022 | AU$85.0b | AU$20.4b | -AU$783,200,282.00 | 44.8x | -108.5x | 4.2x |
| Thu, 25 Aug 2022 | AU$93.6b | AU$19.6b | -AU$788,195,126.00 | 31.9x | -118.7x | 4.8x |
| Sat, 23 Jul 2022 | AU$92.2b | AU$19.1b | -AU$835,124,211.00 | 23.2x | -110.4x | 4.8x |
| Mon, 20 Jun 2022 | AU$75.9b | AU$19.1b | -AU$828,918,208.00 | 24.3x | -91.5x | 4x |
| Wed, 18 May 2022 | AU$85.7b | AU$19.0b | -AU$756,631,366.00 | 26.8x | -113.3x | 4.5x |
| Fri, 15 Apr 2022 | AU$98.5b | AU$18.6b | -AU$732,006,567.00 | 30x | -134.6x | 5.3x |
| Sun, 13 Mar 2022 | AU$113.3b | AU$19.6b | -AU$888,848,798.00 | 30.2x | -127.5x | 5.8x |
| Tue, 08 Feb 2022 | AU$120.1b | AU$18.3b | -AU$470,889,957.00 | 34x | -255.1x | 6.6x |
| Thu, 06 Jan 2022 | AU$140.7b | AU$18.1b | -AU$462,262,421.00 | 35.8x | -304.3x | 7.8x |
| Sat, 04 Dec 2021 | AU$140.7b | AU$18.1b | -AU$464,085,941.00 | 34.7x | -303.3x | 7.8x |
| Mon, 01 Nov 2021 | AU$149.3b | AU$17.9b | -AU$431,767,037.00 | 39.5x | -345.8x | 8.3x |
| Wed, 29 Sep 2021 | AU$146.6b | AU$18.0b | -AU$423,880,864.00 | 37.4x | -345.8x | 8.1x |
| Fri, 27 Aug 2021 | AU$147.1b | AU$17.8b | -AU$406,112,560.01 | 43x | -362.3x | 8.3x |
| Sat, 03 Jul 2021 | AU$134.0b | AU$17.8b | -AU$411,394,786.71 | 40.9x | -325.8x | 7.5x |
| Tue, 06 Apr 2021 | AU$119.4b | AU$17.2b | -AU$349,560,721.72 | 29.9x | -341.5x | 6.9x |
| Fri, 08 Jan 2021 | AU$130.5b | AU$16.7b | -AU$274,603,480.39 | 34.3x | -475.4x | 7.8x |
Price to Earnings Ratio
-483.6x
Current Industry PE
- Investors are pessimistic on the Australian Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 5.9x is higher than the industry's current PS ratio of 4.8x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have deteriorated over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has caused losses to expand.
Industry Trends
Which industries have driven the changes within the Australian Tech sector?
| AU Market | -0.46% | |
| Tech | 0.71% | |
| Electronic Equipment and Components | 2.35% | |
| Software | 0.96% | |
| Tech Hardware | -0.64% | |
| Semiconductors | -1.17% | |
| IT | -1.19% | |
| Communications | -3.57% | |
Industry PE
- Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 76.8x.
- Analysts are expecting annual earnings growth of 16.2%, which is higher than its past year's earnings decline of 16.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 96% over the next 5 years.
- In contrast, the IT industry is expected to see its earnings grow by 3.4% 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 | |
|---|---|---|---|---|---|
| XRO Xero | AU$103.05 | 3.5% +AU$530.0m | 37.4% | PS10.9x | |
| WTC WiseTech Global | AU$66.80 | 1.0% +AU$214.9m | 15.8% | PE104.1x | |
| IRE Iress | AU$7.03 | 20.0% +AU$214.6m | -27.1% | PS2.1x | |
| CDA Codan | AU$9.09 | 7.8% +AU$119.7m | 124.4% | PE24.3x | |
| MAQ Macquarie Technology Group | AU$69.00 | 7.5% +AU$117.1m | 16.9% | PE94.9x |
