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Australian (ASX) Tech Sector Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies170
  • 7D-5.6%
  • 3M-2.1%
  • 1Y17.8%
  • YTD7.2%

Over the last 7 days, the Tech industry has dropped 5.6%, and Afterpay contributed the most with a 6.3% decline. Meanwhile, Novonix actually outperformed within the industry, gaining 9.3% in the last week. This takes the industry's 12 month performance to a gain of 18%.

Sector Valuation and Performance

Has the Australian Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Sun, 28 Nov 2021AU$145.2bAU$18.1b-AU$459,849,555.0034.1x
Tue, 26 Oct 2021AU$150.0bAU$17.9b-AU$431,923,916.0036.7x
Thu, 23 Sep 2021AU$147.1bAU$18.1b-AU$423,858,006.0037.5x
Sat, 21 Aug 2021AU$142.8bAU$17.8b-AU$406,112,560.0143.2x
Sat, 05 Jun 2021AU$120.8bAU$17.2b-AU$353,121,275.6230.8x
Tue, 09 Mar 2021AU$123.4bAU$16.7b-AU$272,825,102.8930.7x
Mon, 30 Nov 2020AU$118.5bAU$16.4b-AU$245,090,450.0735.2x
Thu, 03 Sep 2020AU$110.4bAU$16.0b-AU$127,978,676.7833.7x
Sun, 07 Jun 2020AU$82.0bAU$16.2bAU$29.5m35.1x
Sat, 29 Feb 2020AU$70.5bAU$15.3bAU$93.2m39x
Tue, 03 Dec 2019AU$77.5bAU$14.7bAU$442.6m35.9x
Fri, 06 Sep 2019AU$72.7bAU$14.1bAU$601.9m30.1x
Mon, 10 Jun 2019AU$64.5bAU$13.5bAU$560.2m34.1x
Sun, 03 Mar 2019AU$56.3bAU$13.0bAU$562.9m31.8x
Wed, 05 Dec 2018AU$50.1bAU$12.5bAU$392.6m28.3x
PE Ratio

28.3x

Total Market Cap: AU$50.1bTotal Earnings: AU$392.6mTotal Revenue: AU$12.5b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 33.7x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: Total earnings for the Information Technology industry have declined over the last three years, with the industry now making a loss overall. But revenues have grown 13% 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, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Australian Tech sector?

Tech Hardware4.40%
Electronic Equipment and Components0.98%
IT-4.82%
Software-7.30%
Communications-8.99%
Semiconductors-10.88%

Industry PE: Investors are most optimistic about the Communications industry even though it's trading below its 3-year average PE ratio of 495x. It looks like they are confident that earnings will grow faster in the future than they have historically. Meanwhile, investors are most pessimistic about the Semiconductors industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 2.3x.

Forecasted Growth: Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 55% over the next 5 years. Meanwhile, the Software industry is expected to see its earnings grow by 37% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
NVX Novonix9.3%+AU$439.1m879.8%PS986.1x
EML EML Payments24.3%+AU$265.1m1.7%PS7.1x
BRN BrainChip Holdings14.8%+AU$135.6m79.7%PS865.3x
WCG Webcentral Group-11.2%AU$96.1m14.5%PS3.4x
VR1 Vection Technologies41.0%+AU$83.4m139.1%PS82.6x
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Latest News

APX

AU$9.45

Appen

7D

-21.5%

1Y

-69.6%
Nov 25
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Technology One Limited ( ASX:TNE ) will increase its dividend on the 17th of December to AU$0.10. This will take the...

APT

AU$109.09

Afterpay

7D

-6.3%

1Y

15.2%

ALU

AU$40.84

Altium

7D

-5.4%

1Y

16.7%

XRO

AU$139.30

Xero

7D

-7.7%

1Y

4.1%

NVX

AU$10.68

Novonix

7D

9.3%

1Y

879.8%