Narrative Update • Jul 15
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- 7D-4.7%
- 3M7.2%
- 1Y-1.7%
- YTD8.3%
Over the last 7 days, the IT industry has dropped 4.7%, driven by Megaport declining 4.8%. In contrast, NEXTDC has gained 7.6%. Over the last year, the industry has been flat overall. As for the next few years, earnings are expected to grow by 19% per annum.
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 |
|---|---|---|---|---|---|---|
| Tue, 21 Jul 2026 | AU$18.3b | AU$3.0b | -AU$124,596,921.80 | 42.6x | -146.8x | 6x |
| Thu, 18 Jun 2026 | AU$19.6b | AU$3.0b | -AU$124,372,196.40 | 34.3x | -157.4x | 6.5x |
| Sat, 16 May 2026 | AU$16.3b | AU$3.0b | -AU$124,563,505.60 | 45.3x | -130.5x | 5.3x |
| Mon, 13 Apr 2026 | AU$13.3b | AU$3.0b | -AU$124,993,102.02 | 46.7x | -106.1x | 4.4x |
| Wed, 11 Mar 2026 | AU$13.6b | AU$3.0b | -AU$124,792,594.60 | 48.1x | -109x | 4.5x |
| Fri, 06 Feb 2026 | AU$14.9b | AU$2.9b | -AU$98,321,279.50 | 42.3x | -151.5x | 5.2x |
| Sun, 04 Jan 2026 | AU$14.6b | AU$2.9b | -AU$99,655,457.50 | 43.5x | -146.4x | 5.1x |
| Tue, 02 Dec 2025 | AU$15.6b | AU$2.9b | -AU$100,610,906.90 | 42.1x | -155x | 5.4x |
| Thu, 30 Oct 2025 | AU$17.2b | AU$2.9b | -AU$100,397,868.80 | 42.7x | -171.2x | 5.9x |
| Sat, 27 Sep 2025 | AU$18.1b | AU$2.9b | -AU$83,196,795.70 | 40.1x | -217.7x | 6.2x |
| Mon, 25 Aug 2025 | AU$15.7b | AU$2.8b | -AU$98,800,273.70 | 33.3x | -158.7x | 5.6x |
| Wed, 23 Jul 2025 | AU$15.7b | AU$2.8b | -AU$87,823,061.20 | 34.6x | -179.2x | 5.6x |
| Fri, 20 Jun 2025 | AU$15.0b | AU$2.8b | -AU$90,075,163.80 | 39x | -166.3x | 5.4x |
| Sun, 18 May 2025 | AU$14.9b | AU$2.8b | -AU$90,357,290.70 | 41.9x | -164.8x | 5.3x |
| Tue, 15 Apr 2025 | AU$12.4b | AU$2.8b | -AU$90,793,486.90 | 34.9x | -136.6x | 4.4x |
| Thu, 13 Mar 2025 | AU$13.8b | AU$2.8b | -AU$90,945,555.30 | 39x | -152.1x | 4.9x |
| Sat, 08 Feb 2025 | AU$16.3b | AU$2.8b | -AU$200,190,217.70 | 80.2x | -81.2x | 5.9x |
| Mon, 06 Jan 2025 | AU$15.6b | AU$2.6b | -AU$191,188,318.40 | 73.2x | -81.8x | 5.9x |
| Wed, 04 Dec 2024 | AU$16.6b | AU$2.6b | -AU$184,924,646.70 | 71.8x | -89.8x | 6.4x |
| Fri, 01 Nov 2024 | AU$16.2b | AU$2.6b | -AU$183,175,999.80 | 68.3x | -88.6x | 6.2x |
| Sun, 29 Sep 2024 | AU$16.5b | AU$2.6b | -AU$167,235,483.10 | 64.3x | -98.9x | 6.4x |
| Tue, 27 Aug 2024 | AU$16.7b | AU$2.6b | -AU$209,583,742.40 | 51.5x | -79.7x | 6.4x |
| Thu, 25 Jul 2024 | AU$16.3b | AU$4.4b | -AU$216,877,143.50 | 40.7x | -75.2x | 3.7x |
| Sat, 22 Jun 2024 | AU$15.1b | AU$4.4b | -AU$215,412,963.90 | 33.3x | -70.3x | 3.5x |
| Mon, 20 May 2024 | AU$15.5b | AU$4.4b | -AU$214,267,597.60 | 32.9x | -72.3x | 3.5x |
| Wed, 17 Apr 2024 | AU$14.3b | AU$4.4b | -AU$222,237,930.10 | 40.6x | -64.2x | 3.2x |
| Fri, 15 Mar 2024 | AU$15.5b | AU$4.4b | -AU$216,180,477.40 | 37.6x | -71.5x | 3.5x |
| Sun, 11 Feb 2024 | AU$13.3b | AU$4.3b | -AU$460,359,777.00 | 41.1x | -28.9x | 3.1x |
| Tue, 09 Jan 2024 | AU$11.8b | AU$4.4b | -AU$450,030,924.00 | 34x | -26.1x | 2.7x |
| Thu, 07 Dec 2023 | AU$12.1b | AU$4.4b | -AU$456,828,997.00 | 33.4x | -26.5x | 2.7x |
| Sat, 04 Nov 2023 | AU$11.5b | AU$4.5b | -AU$462,745,256.00 | 30.2x | -24.8x | 2.5x |
| Mon, 02 Oct 2023 | AU$11.7b | AU$4.5b | -AU$463,627,968.00 | 29.6x | -25.2x | 2.6x |
| Wed, 30 Aug 2023 | AU$12.1b | AU$4.5b | -AU$494,247,029.00 | 22.6x | -24.5x | 2.7x |
| Fri, 28 Jul 2023 | AU$10.4b | AU$3.9b | -AU$456,375,658.00 | 18.6x | -22.8x | 2.7x |
Price to Earnings Ratio
-22.8x
Current Industry PE
- Investors are optimistic on the Australian IT industry, and appear confident in long term growth rates.
- The 3-year average PS ratio of 4.7x is lower than the industry's current PS ratio of 6.0x.
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 8.2% 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 | -0.28% | |
| Tech | -3.44% | |
| IT | -4.69% | |
| Data Processing Services | 0.83% | |
| IT Consulting | -1.14% | |
| Internet Services and Infrastructure | -5.12% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 44.6x.
- Analysts are expecting annual earnings growth of 22.8%, which is higher than its past year's earnings growth of 12.2% per year.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 23% over the next 5 years.
- This is better than its past earnings growth rate of 12% per year.
- In contrast, the Data Processing Services industry is expected to see its earnings grow by 11% 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 | |
|---|---|---|---|---|---|
| NXT NEXTDC | AU$14.06 | 7.6% +AU$752.0m | -1.1% | PS23.6x | |
| DTL Data#3 | AU$9.78 | 2.3% +AU$34.1m | 27.2% | PE30.9x | |
| APX Appen | AU$0.92 | 2.8% +AU$6.7m | -20.1% | PS0.7x | |
| AD1 AdNeo | AU$0.029 | 16.0% +AU$1.5m | -46.3% | PS1.5x | |
| CYB AUCyber | AU$0.042 | 5.0% +AU$417.5k | -51.7% | PS0.4x |
