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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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 28 Nov 2022AU$27.3bAU$9.5b-AU$74,687,745.0034.7x-366x2.9x
Wed, 26 Oct 2022AU$24.7bAU$9.6bAU$43.5m37.3x567.6x2.6x
Fri, 23 Sep 2022AU$25.3bAU$9.4bAU$28.1m38.7x898.9x2.7x
Sun, 21 Aug 2022AU$26.9bAU$9.1b-AU$126,673,015.0034.9x-212.1x3x
Tue, 19 Jul 2022AU$26.9bAU$8.9b-AU$280,710,666.0029.1x-95.7x3x
Thu, 16 Jun 2022AU$25.0bAU$8.8b-AU$283,205,926.0025.7x-88.4x2.8x
Sat, 14 May 2022AU$26.2bAU$8.8b-AU$244,121,773.0028.9x-107.5x3x
Mon, 11 Apr 2022AU$30.3bAU$8.6b-AU$254,726,994.0042.5x-118.9x3.5x
Wed, 09 Mar 2022AU$46.6bAU$9.5b-AU$409,500,404.0036.4x-113.8x4.9x
Fri, 04 Feb 2022AU$48.0bAU$9.2b-AU$347,892,060.0033x-137.8x5.2x
Sun, 02 Jan 2022AU$54.9bAU$9.1b-AU$346,807,642.0035.7x-158.4x6.1x
Tue, 30 Nov 2021AU$62.1bAU$9.2b-AU$337,680,553.0034.4x-184x6.7x
Thu, 28 Oct 2021AU$67.2bAU$9.1b-AU$326,820,753.0045.2x-205.7x7.4x
Sat, 25 Sep 2021AU$69.1bAU$9.2b-AU$318,249,467.0041.7x-217x7.5x
Mon, 23 Aug 2021AU$68.7bAU$9.2b-AU$321,411,623.8440x-213.7x7.5x
Sat, 10 Jul 2021AU$64.5bAU$9.2b-AU$321,411,623.8441.3x-200.7x7x
Fri, 02 Apr 2021AU$55.8bAU$8.8b-AU$242,709,501.0532.1x-229.8x6.3x
Mon, 04 Jan 2021AU$62.5bAU$8.5b-AU$185,831,115.1233.7x-336.5x7.4x
Thu, 08 Oct 2020AU$50.6bAU$8.5b-AU$140,147,694.2322.9x-360.9x5.9x
Wed, 01 Jul 2020AU$41.7bAU$8.4bAU$5.4m17.8x7787.3x5x
Sat, 04 Apr 2020AU$21.9bAU$8.8bAU$219.3m23.9x99.9x2.5x
Tue, 07 Jan 2020AU$31.6bAU$8.2bAU$364.5m27.6x86.8x3.9x
Price to Earnings Ratio

48.4x


Total Market Cap: AU$31.1bTotal Earnings: AU$642.0mTotal Revenue: AU$7.9bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian IT Industry Price to Earnings3Y Average -1024.4x202020212022
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 Market1.17%
Tech-0.73%
IT2.76%
Internet Services and Infrastructure4.14%
Data Processing Services2.45%
IT Consulting1.83%
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?

CompanyLast Price7D1YValuation
CPU ComputershareAU$27.672.1%
+AU$350.2m
41.4%PE49.5x
NXT NEXTDCAU$9.752.8%
+AU$123.5m
-16.9%PE488.2x
MP1 MegaportAU$6.6410.7%
+AU$101.2m
-68.2%PS9.6x
EML EML PaymentsAU$0.6532.7%
+AU$59.8m
-82.1%PS1x
LNK Link Administration HoldingsAU$3.563.2%
+AU$56.2m
-27.9%PS1.5x
Simply Wall St
Simply Wall Street Pty Ltd
17-21 Bellevue Street, Surry Hills, Sydney
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Latest News

TYR

AU$1.58

Tyro Payments

7D

1.6%

1Y

-46.2%

DXN

AU$0.0045

DXN

7D

-10.0%

1Y

-50.0%

EML

AU$0.65

EML Payments

7D

32.7%

1Y

-82.1%

VIG

AU$0.03

Victor Group Holdings

7D

n/a

1Y

0%

LNK

AU$3.56

Link Administration Holdings

7D

3.2%

1Y

-27.9%

WCG

AU$0.17

Webcentral

7D

-10.3%

1Y

-59.8%

SZL

AU$0.56

Sezzle

7D

-6.7%

1Y

-86.5%

KYP

AU$0.089

Kinatico

7D

-1.1%

1Y

-38.6%

LBY

AU$0.055

Laybuy Group Holdings

7D

-3.5%

1Y

-81.4%

CNW

AU$0.032

Cirrus Networks Holdings

7D

-5.9%

1Y

6.7%

CPU

AU$27.67

Computershare

7D

2.1%

1Y

41.4%

NXT

AU$9.75

NEXTDC

7D

2.8%

1Y

-16.9%

APX

AU$2.84

Appen

7D

6.0%

1Y

-69.9%

NNG

AU$0.056

NEXION Group

7D

-17.6%

1Y

-66.1%