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Australian (ASX) IT Industry Analysis
UpdatedNov 27, 2022
DataAggregated Company Financials
Companies26
- 7D2.8%
- 3M5.9%
- 1Y-9.2%
- YTD-11.6%
In the last week, the IT industry is up 2.8%, with Computershare up 2.1%. During this same period, the Sezzle underperformed, falling 6.7%. In contrast, the industry has lost 9.2% in the last 12 months. Looking forward, earnings are forecast to grow by 26% annually.
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 |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | AU$27.3b | AU$9.5b | -AU$74,687,745.00 | 34.7x | -366x | 2.9x |
| Wed, 26 Oct 2022 | AU$24.7b | AU$9.6b | AU$43.5m | 37.3x | 567.6x | 2.6x |
| Fri, 23 Sep 2022 | AU$25.3b | AU$9.4b | AU$28.1m | 38.7x | 898.9x | 2.7x |
| Sun, 21 Aug 2022 | AU$26.9b | AU$9.1b | -AU$126,673,015.00 | 34.9x | -212.1x | 3x |
| Tue, 19 Jul 2022 | AU$26.9b | AU$8.9b | -AU$280,710,666.00 | 29.1x | -95.7x | 3x |
| Thu, 16 Jun 2022 | AU$25.0b | AU$8.8b | -AU$283,205,926.00 | 25.7x | -88.4x | 2.8x |
| Sat, 14 May 2022 | AU$26.2b | AU$8.8b | -AU$244,121,773.00 | 28.9x | -107.5x | 3x |
| Mon, 11 Apr 2022 | AU$30.3b | AU$8.6b | -AU$254,726,994.00 | 42.5x | -118.9x | 3.5x |
| Wed, 09 Mar 2022 | AU$46.6b | AU$9.5b | -AU$409,500,404.00 | 36.4x | -113.8x | 4.9x |
| Fri, 04 Feb 2022 | AU$48.0b | AU$9.2b | -AU$347,892,060.00 | 33x | -137.8x | 5.2x |
| Sun, 02 Jan 2022 | AU$54.9b | AU$9.1b | -AU$346,807,642.00 | 35.7x | -158.4x | 6.1x |
| Tue, 30 Nov 2021 | AU$62.1b | AU$9.2b | -AU$337,680,553.00 | 34.4x | -184x | 6.7x |
| Thu, 28 Oct 2021 | AU$67.2b | AU$9.1b | -AU$326,820,753.00 | 45.2x | -205.7x | 7.4x |
| Sat, 25 Sep 2021 | AU$69.1b | AU$9.2b | -AU$318,249,467.00 | 41.7x | -217x | 7.5x |
| Mon, 23 Aug 2021 | AU$68.7b | AU$9.2b | -AU$321,411,623.84 | 40x | -213.7x | 7.5x |
| Sat, 10 Jul 2021 | AU$64.5b | AU$9.2b | -AU$321,411,623.84 | 41.3x | -200.7x | 7x |
| Fri, 02 Apr 2021 | AU$55.8b | AU$8.8b | -AU$242,709,501.05 | 32.1x | -229.8x | 6.3x |
| Mon, 04 Jan 2021 | AU$62.5b | AU$8.5b | -AU$185,831,115.12 | 33.7x | -336.5x | 7.4x |
| Thu, 08 Oct 2020 | AU$50.6b | AU$8.5b | -AU$140,147,694.23 | 22.9x | -360.9x | 5.9x |
| Wed, 01 Jul 2020 | AU$41.7b | AU$8.4b | AU$5.4m | 17.8x | 7787.3x | 5x |
| Sat, 04 Apr 2020 | AU$21.9b | AU$8.8b | AU$219.3m | 23.9x | 99.9x | 2.5x |
| Tue, 07 Jan 2020 | AU$31.6b | AU$8.2b | AU$364.5m | 27.6x | 86.8x | 3.9x |
Price to Earnings Ratio
48.4x
Current Industry PE
- Investors are pessimistic on the Australian IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 5.2x is higher than the industry's current PS ratio of 2.9x.
Past Earnings Growth
- Total earnings for the IT industry have declined over the last three years, with the industry now making a loss overall.
- Meanwhile revenues have grown 6.1% 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 industry?
| AU Market | 1.17% | |
| Tech | -0.73% | |
| IT | 2.76% | |
| Internet Services and Infrastructure | 4.14% | |
| Data Processing Services | 2.45% | |
| IT Consulting | 1.83% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 23.0%, which is higher than its past year's earnings growth of 20.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 37% over the next 5 years.
- In contrast, the Data Processing Services industry is expected to see its earnings grow by 23% 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 | |
| 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 | |
| EML EML Payments | AU$0.65 | 32.7% +AU$59.8m | -82.1% | PS1x | |
| LNK Link Administration Holdings | AU$3.56 | 3.2% +AU$56.2m | -27.9% | PS1.5x |