Here's Why I Think Data#3 (ASX:DTL) Might Deserve Your Attention Today
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
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?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 28 Nov 2021 | AU$62.1b | AU$9.2b | -AU$337,680,553.00 | 34.3x |
| Tue, 26 Oct 2021 | AU$65.4b | AU$9.1b | -AU$326,680,696.00 | 43.3x |
| Thu, 23 Sep 2021 | AU$66.0b | AU$9.3b | -AU$316,569,349.00 | 37.7x |
| Sat, 21 Aug 2021 | AU$67.3b | AU$9.2b | -AU$321,411,623.84 | 38.5x |
| Sat, 05 Jun 2021 | AU$55.3b | AU$8.8b | -AU$242,709,501.05 | 36.6x |
| Tue, 09 Mar 2021 | AU$61.1b | AU$8.5b | -AU$185,831,115.12 | 30.7x |
| Mon, 30 Nov 2020 | AU$55.5b | AU$8.5b | -AU$141,060,272.23 | 26.8x |
| Thu, 03 Sep 2020 | AU$55.3b | AU$8.4b | -AU$2,400,985.98 | 21.3x |
| Sun, 07 Jun 2020 | AU$37.2b | AU$8.8b | AU$219.3m | 37.1x |
| Sat, 29 Feb 2020 | AU$30.8b | AU$8.2b | AU$364.5m | 30.7x |
| Tue, 03 Dec 2019 | AU$31.1b | AU$7.9b | AU$642.0m | 29.5x |
| Fri, 06 Sep 2019 | AU$27.9b | AU$7.7b | AU$822.1m | 21.4x |
| Mon, 10 Jun 2019 | AU$26.5b | AU$7.4b | AU$791.0m | 17.4x |
| Sun, 03 Mar 2019 | AU$24.6b | AU$7.3b | AU$775.8m | 15.4x |
| Wed, 05 Dec 2018 | AU$22.6b | AU$7.0b | AU$663.1m | 19.6x |
PE Ratio
19.6x
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?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| EML EML Payments | 24.3%+AU$265.1m | 1.7% | PS7.1x | |
| WCG Webcentral Group | -11.2%AU$96.1m | 14.5% | PS3.4x | |
| SOV Sovereign Cloud Holdings | 33.6%+AU$25.5m | n/a | PS39.8x | |
| VIG Victor Group Holdings | n/aAU$17.2m | n/a | PS2x | |
| CV1 CV Check | 7.4%+AU$4.3m | -14.7% | PS3.5x |
