Should You Be Adding Objective (ASX:OCL) To Your Watchlist Today?
Nov 27
Australian (ASX) Tech Sector Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies180
- 7D-0.7%
- 3M-1.4%
- 1Y-24.4%
- YTD-27.5%
Over the last 7 days, the Tech industry has remained flat, although notably WiseTech Global declined by 6.1%. Unfortunately though, the industry is down 24% over the past 12 months. Earnings are forecast to grow by 31% 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 |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | AU$88.9b | AU$20.7b | -AU$968,332,740.00 | 50.1x | -91.8x | 4.3x |
| Wed, 26 Oct 2022 | AU$86.9b | AU$20.7b | -AU$826,654,701.00 | 41.6x | -105.2x | 4.2x |
| Fri, 23 Sep 2022 | AU$88.3b | AU$20.3b | -AU$783,706,460.00 | 45.9x | -112.7x | 4.3x |
| Sun, 21 Aug 2022 | AU$92.7b | AU$19.4b | -AU$787,397,352.00 | 30.9x | -117.7x | 4.8x |
| Tue, 19 Jul 2022 | AU$86.1b | AU$19.2b | -AU$836,729,309.00 | 23.7x | -102.9x | 4.5x |
| Thu, 16 Jun 2022 | AU$76.7b | AU$19.1b | -AU$828,560,332.00 | 25.1x | -92.6x | 4x |
| Sat, 14 May 2022 | AU$85.1b | AU$19.0b | -AU$736,920,275.00 | 26.6x | -115.5x | 4.5x |
| Mon, 11 Apr 2022 | AU$99.7b | AU$18.6b | -AU$730,695,805.00 | 29.6x | -136.5x | 5.4x |
| Wed, 09 Mar 2022 | AU$111.6b | AU$19.6b | -AU$888,624,816.00 | 29.2x | -125.6x | 5.7x |
| Fri, 04 Feb 2022 | AU$118.7b | AU$18.3b | -AU$465,755,579.00 | 34.4x | -254.8x | 6.5x |
| Sun, 02 Jan 2022 | AU$140.7b | AU$17.9b | -AU$471,693,196.00 | 34.1x | -298.2x | 7.9x |
| Tue, 30 Nov 2021 | AU$146.4b | AU$18.1b | -AU$460,065,459.00 | 34.3x | -318.3x | 8.1x |
| Thu, 28 Oct 2021 | AU$151.8b | AU$17.9b | -AU$431,870,847.00 | 39.7x | -351.6x | 8.5x |
| Sat, 25 Sep 2021 | AU$151.1b | AU$18.0b | -AU$424,205,390.00 | 37.9x | -356.3x | 8.4x |
| Mon, 23 Aug 2021 | AU$145.3b | AU$17.8b | -AU$406,112,560.01 | 43.2x | -357.7x | 8.2x |
| Sat, 10 Jul 2021 | AU$134.0b | AU$17.8b | -AU$411,394,786.71 | 40.9x | -325.8x | 7.5x |
| Fri, 02 Apr 2021 | AU$119.4b | AU$17.2b | -AU$349,560,721.72 | 29.9x | -341.5x | 6.9x |
| Mon, 04 Jan 2021 | AU$130.5b | AU$16.7b | -AU$274,603,480.39 | 34.3x | -475.4x | 7.8x |
| Thu, 08 Oct 2020 | AU$104.7b | AU$16.4b | -AU$244,105,108.97 | 31.3x | -429x | 6.4x |
| Wed, 01 Jul 2020 | AU$86.5b | AU$16.0b | -AU$120,065,803.58 | 28.4x | -720.3x | 5.4x |
| Sat, 04 Apr 2020 | AU$57.2b | AU$16.2b | AU$37.7m | 26.2x | 1515.2x | 3.5x |
| Tue, 07 Jan 2020 | AU$77.0b | AU$15.3b | AU$97.3m | 44.9x | 791.2x | 5x |
Price to Earnings Ratio
175.1x
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 6.2x is higher than the industry's current PS ratio of 4.3x.
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.
- Meanwhile revenues have grown 12% 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?
| AU Market | 1.17% | |
| Tech | -0.73% | |
| Communications | 2.83% | |
| IT | 2.76% | |
| Electronic Equipment and Components | -1.22% | |
| Software | -2.25% | |
| Semiconductors | -3.34% | |
| Tech Hardware | -5.44% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 89% over the next 5 years.
- In contrast, the IT industry is expected to see its earnings grow by 26% 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 | |
|---|---|---|---|---|---|
| CPU Computershare | AU$27.67 | 2.1% +AU$350.2m | 41.4% | PE49.5x | |
| TNE Technology One | AU$13.51 | 8.0% +AU$339.6m | 16.9% | PE56.4x | |
| BRN BrainChip Holdings | AU$0.73 | 14.0% +AU$155.4m | 18.5% | PS151.6x | |
| NXT NEXTDC | AU$9.75 | 2.8% +AU$123.5m | -16.9% | PE488.2x | |
| MP1 Megaport | AU$6.64 | 10.7% +AU$101.2m | -68.2% | PS9.6x |
