Returns On Capital Signal Tricky Times Ahead For NEXTDC (ASX:NXT)
Jul 08
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Australian (ASX) Tech Sector Analysis
UpdatedJul 08, 2025
DataAggregated Company Financials
Companies112
- 7D0.2%
- 3M32.8%
- 1Y21.8%
- YTD1.1%
Over the last 7 days, the Tech industry has remained flat, although notably WiseTech Global gained 4.6%. The past year has been better, since the industry has gained 22% in that time. Earnings are forecast to grow by 22% 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 |
|---|---|---|---|---|---|---|
| Tue, 08 Jul 2025 | AU$124.7b | AU$14.0b | AU$373.4m | 39.3x | 333.9x | 8.9x |
| Thu, 05 Jun 2025 | AU$122.3b | AU$14.1b | AU$375.0m | 39.6x | 326x | 8.7x |
| Sat, 03 May 2025 | AU$107.6b | AU$13.8b | AU$316.5m | 43.7x | 339.9x | 7.8x |
| Mon, 31 Mar 2025 | AU$98.5b | AU$13.9b | AU$247.1m | 34.9x | 398.4x | 7.1x |
| Wed, 26 Feb 2025 | AU$112.2b | AU$13.7b | AU$107.9m | 48.9x | 1040.3x | 8.2x |
| Fri, 24 Jan 2025 | AU$121.1b | AU$13.5b | AU$69.6m | 58.2x | 1739.7x | 9x |
| Sun, 22 Dec 2024 | AU$118.5b | AU$13.5b | AU$43.8m | 59.4x | 2704.1x | 8.7x |
| Tue, 19 Nov 2024 | AU$124.2b | AU$13.5b | AU$51.2m | 63.8x | 2427.2x | 9.2x |
| Thu, 17 Oct 2024 | AU$118.3b | AU$13.2b | AU$2.4m | 65.8x | 48902.7x | 9x |
| Sat, 14 Sep 2024 | AU$112.9b | AU$13.2b | -AU$230,175.62 | 63.9x | -490683.6x | 8.5x |
| Mon, 12 Aug 2024 | AU$95.0b | AU$14.9b | -AU$448,258,125.65 | 46.4x | -211.9x | 6.4x |
| Wed, 10 Jul 2024 | AU$106.8b | AU$15.3b | -AU$330,153,609.42 | 47.2x | -323.5x | 7x |
| Fri, 07 Jun 2024 | AU$105.2b | AU$15.4b | -AU$320,652,528.51 | 53.9x | -328.1x | 6.8x |
| Sun, 05 May 2024 | AU$101.6b | AU$15.2b | -AU$575,616,551.45 | 54.4x | -176.5x | 6.7x |
| Tue, 02 Apr 2024 | AU$104.5b | AU$15.3b | -AU$662,361,283.11 | 53.1x | -157.7x | 6.8x |
| Thu, 29 Feb 2024 | AU$101.3b | AU$16.2b | -AU$771,975,765.68 | 48.2x | -131.2x | 6.2x |
| Sat, 27 Jan 2024 | AU$89.0b | AU$17.1b | -AU$1,603,763,273.00 | 41.3x | -55.5x | 5.2x |
| Mon, 25 Dec 2023 | AU$87.8b | AU$17.1b | -AU$1,586,004,031.00 | 41.1x | -55.4x | 5.1x |
| Wed, 22 Nov 2023 | AU$83.1b | AU$17.1b | -AU$1,615,141,721.00 | 41.2x | -51.5x | 4.9x |
| Fri, 20 Oct 2023 | AU$81.5b | AU$17.0b | -AU$1,744,291,708.00 | 41.2x | -46.7x | 4.8x |
| Sun, 17 Sep 2023 | AU$88.4b | AU$17.0b | -AU$1,729,018,049.00 | 41.5x | -51.1x | 5.2x |
| Tue, 15 Aug 2023 | AU$92.1b | AU$16.3b | -AU$1,524,550,949.00 | 34.3x | -60.4x | 5.6x |
| Thu, 13 Jul 2023 | AU$85.2b | AU$15.9b | -AU$1,516,305,569.00 | 30.6x | -56.2x | 5.3x |
| Sat, 10 Jun 2023 | AU$84.2b | AU$15.9b | -AU$1,541,116,950.00 | 26.6x | -54.7x | 5.3x |
| Mon, 08 May 2023 | AU$76.8b | AU$15.7b | -AU$1,540,654,150.00 | 30.3x | -49.9x | 4.9x |
| Wed, 05 Apr 2023 | AU$76.0b | AU$15.7b | -AU$1,533,357,201.00 | 30.5x | -49.6x | 4.8x |
| Fri, 03 Mar 2023 | AU$89.5b | AU$21.9b | -AU$1,523,263,058.00 | 32.5x | -58.7x | 4.1x |
| Sun, 29 Jan 2023 | AU$89.0b | AU$20.5b | -AU$937,552,171.00 | 45.8x | -94.9x | 4.3x |
| Tue, 27 Dec 2022 | AU$85.1b | AU$20.8b | -AU$945,308,245.00 | 44.2x | -90.1x | 4.1x |
| Thu, 24 Nov 2022 | AU$87.7b | AU$20.8b | -AU$970,822,176.00 | 46.2x | -90.3x | 4.2x |
| Sat, 22 Oct 2022 | AU$84.9b | AU$20.7b | -AU$826,346,351.00 | 42x | -102.7x | 4.1x |
| Mon, 19 Sep 2022 | AU$89.8b | AU$20.3b | -AU$784,804,785.00 | 46.2x | -114.5x | 4.4x |
| Wed, 17 Aug 2022 | AU$94.5b | AU$19.3b | -AU$819,418,682.00 | 26.4x | -115.3x | 4.9x |
| Fri, 15 Jul 2022 | AU$85.8b | AU$19.2b | -AU$837,244,096.00 | 23.8x | -102.5x | 4.5x |
Price to Earnings Ratio
-102.5x
Current Industry PE
- Investors are optimistic on the Australian Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 334x which is higher than its 3-year average PE of -400x.
- The 3-year average PS ratio of 6.2x is lower than the industry's current PS ratio of 8.9x.
Past Earnings Growth
- Total earnings for the Information Technology industry have gone up over the last three years and the industry is now profitable.
- Revenues have declined 9.9% per year.
- This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the Australian Tech sector?
| AU Market | 0.59% | |
| Tech | 0.18% | |
| Semiconductors | 15.21% | |
| Communications | 10.39% | |
| Tech Hardware | 5.94% | |
| Software | 0.96% | |
| Electronic Equipment and Components | -3.21% | |
| IT | -3.95% | |
Industry PE
- Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 79.1x.
- Analysts are expecting annual earnings growth of 18.7%, which is higher than its past year's earnings decline of 4.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Software industry, expecting annual earnings growth of 25% over the next 5 years.
- This is better than its past earnings growth rate of 5.6% per year.
- In contrast, the IT industry is expected to see its earnings grow by 2.1% 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 | |
|---|---|---|---|---|---|
| WTC WiseTech Global | AU$112.92 | 4.6% +AU$1.6b | 14.2% | PE127.7x | |
| FCL FINEOS Corporation Holdings | AU$2.67 | 19.2% +AU$145.6m | 59.4% | PS3.8x | |
| TNE Technology One | AU$41.09 | 1.0% +AU$134.2m | 123.0% | PE101.1x | |
| CAT Catapult Group International | AU$6.09 | 5.2% +AU$80.0m | 248.0% | PS9.1x | |
| RUL RPMGlobal Holdings | AU$3.18 | 8.5% +AU$55.2m | 29.3% | PE107.2x |
