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Australian (ASX) IT Industry Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies27
  • 7D-4.8%
  • 3M-7.6%
  • 1Y8.7%
  • YTD-4.1%

Over the last 7 days, the IT industry has dropped 4.8%, driven by a pullback from Afterpay of 6.3%. Meanwhile, EML Payments actually outperformed within the industry, gaining 24% in the last week. This takes the industry's 12 month performance to a gain of 8.7%.

Industry Valuation and Performance

Has the Australian IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Sun, 28 Nov 2021AU$62.1bAU$9.2b-AU$337,680,553.0034.3x
Tue, 26 Oct 2021AU$65.4bAU$9.1b-AU$326,680,696.0043.3x
Thu, 23 Sep 2021AU$66.0bAU$9.3b-AU$316,569,349.0037.7x
Sat, 21 Aug 2021AU$67.3bAU$9.2b-AU$321,411,623.8438.5x
Sat, 05 Jun 2021AU$55.3bAU$8.8b-AU$242,709,501.0536.6x
Tue, 09 Mar 2021AU$61.1bAU$8.5b-AU$185,831,115.1230.7x
Mon, 30 Nov 2020AU$55.5bAU$8.5b-AU$141,060,272.2326.8x
Thu, 03 Sep 2020AU$55.3bAU$8.4b-AU$2,400,985.9821.3x
Sun, 07 Jun 2020AU$37.2bAU$8.8bAU$219.3m37.1x
Sat, 29 Feb 2020AU$30.8bAU$8.2bAU$364.5m30.7x
Tue, 03 Dec 2019AU$31.1bAU$7.9bAU$642.0m29.5x
Fri, 06 Sep 2019AU$27.9bAU$7.7bAU$822.1m21.4x
Mon, 10 Jun 2019AU$26.5bAU$7.4bAU$791.0m17.4x
Sun, 03 Mar 2019AU$24.6bAU$7.3bAU$775.8m15.4x
Wed, 05 Dec 2018AU$22.6bAU$7.0bAU$663.1m19.6x
PE Ratio

19.6x

Total Market Cap: AU$22.6bTotal Earnings: AU$663.1mTotal Revenue: AU$7.0b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 34.3x which is higher than its 3-year average PE of 27.4x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: Total earnings for the IT industry have declined over the last three years, with the industry now making a loss overall. But revenues have grown 9.4% 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 IT industry?

Data Processing Services-4.22%
Internet Services and Infrastructure-5.42%
IT Consulting-13.94%

Industry PE: Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 47.2x. This is likely because analysts are expecting annual earnings growth of 49%, which is higher than its past year's earnings decline of 32% per year. Meanwhile, investors are most pessimistic about the IT Consulting industry, which is trading close to its 3-year average of 29.4x.

Forecasted Growth: Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 49% over the next 5 years. This is better than its past earnings decline of 32% per year. Meanwhile, the IT Consulting industry is expected to see its earnings grow by 19% per year over the next few years.

Top Stock Gainers and Losers

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

Company7D1YValuation
EML EML Payments24.3%+AU$265.1m1.7%PS7.1x
WCG Webcentral Group-11.2%AU$96.1m14.5%PS3.4x
SOV Sovereign Cloud Holdings33.6%+AU$25.5mn/aPS39.8x
VIG Victor Group Holdingsn/aAU$17.2mn/aPS2x
CV1 CV Check7.4%+AU$4.3m-14.7%PS3.5x
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APX

AU$9.45

Appen

7D

-21.5%

1Y

-69.6%

APT

AU$109.09

Afterpay

7D

-6.3%

1Y

15.2%

SZL

AU$4.16

Sezzle

7D

-14.1%

1Y

-31.4%

CGO

AU$0.67

CPT Global

7D

3.1%

1Y

131.0%

NXT

AU$11.73

NEXTDC

7D

-7.5%

1Y

4.0%

CV1

AU$0.14

CV Check

7D

7.4%

1Y

-14.7%