NEXTDC Limited's (ASX:NXT) Popularity With Investors Is Under Threat From Overpricing
Dec 15
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Australian (ASX) IT Industry Analysis
UpdatedDec 21, 2024
DataAggregated Company Financials
Companies17
- 7D-3.9%
- 3M-6.6%
- 1Y10.0%
- YTD7.2%
Over the last 7 days, the IT industry has dropped 3.5%, driven by a pullback from NEXTDC of 2.2%. On the other hand Spenda is actually up 11%. In the past year, the industry has gained 10%. Earnings are forecast to grow by 22% 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 |
|---|---|---|---|---|---|---|
| Sat, 21 Dec 2024 | AU$15.3b | AU$2.6b | -AU$190,966,268.00 | 71.6x | -80.3x | 5.8x |
| Mon, 18 Nov 2024 | AU$17.0b | AU$2.6b | -AU$185,683,318.90 | 70.1x | -91.6x | 6.5x |
| Wed, 16 Oct 2024 | AU$17.2b | AU$2.6b | -AU$180,270,840.40 | 69.5x | -95.4x | 6.6x |
| Fri, 13 Sep 2024 | AU$15.6b | AU$2.6b | -AU$171,704,247.40 | 62.2x | -91x | 6x |
| Sun, 11 Aug 2024 | AU$15.3b | AU$4.4b | -AU$217,479,346.40 | 41x | -70.4x | 3.5x |
| Tue, 09 Jul 2024 | AU$15.4b | AU$4.4b | -AU$213,204,886.60 | 37x | -72.4x | 3.5x |
| Thu, 06 Jun 2024 | AU$15.3b | AU$4.4b | -AU$215,672,737.70 | 33.7x | -71.1x | 3.5x |
| Sat, 04 May 2024 | AU$14.5b | AU$4.4b | -AU$217,302,227.90 | 35.3x | -66.9x | 3.3x |
| Mon, 01 Apr 2024 | AU$15.5b | AU$4.4b | -AU$219,014,373.40 | 39.2x | -70.6x | 3.5x |
| Wed, 28 Feb 2024 | AU$13.6b | AU$4.3b | -AU$206,292,432.10 | 41x | -66.1x | 3.2x |
| Fri, 26 Jan 2024 | AU$12.4b | AU$4.4b | -AU$455,682,334.00 | 35.7x | -27.3x | 2.8x |
| Sun, 24 Dec 2023 | AU$11.9b | AU$4.4b | -AU$443,014,438.00 | 33.8x | -27x | 2.7x |
| Tue, 21 Nov 2023 | AU$11.9b | AU$4.5b | -AU$455,674,168.00 | 31.8x | -26x | 2.6x |
| Thu, 19 Oct 2023 | AU$11.6b | AU$4.5b | -AU$467,632,225.00 | 29.4x | -24.9x | 2.6x |
| Sat, 16 Sep 2023 | AU$11.8b | AU$4.5b | -AU$462,713,368.00 | 28.6x | -25.6x | 2.6x |
| Mon, 14 Aug 2023 | AU$12.2b | AU$4.3b | -AU$463,087,239.00 | 25.2x | -26.3x | 2.9x |
| Wed, 12 Jul 2023 | AU$9.9b | AU$3.9b | -AU$463,946,833.00 | 19.1x | -21.4x | 2.5x |
| Fri, 09 Jun 2023 | AU$9.3b | AU$3.9b | -AU$462,820,845.00 | 18.6x | -20.1x | 2.4x |
| Sun, 07 May 2023 | AU$8.2b | AU$3.9b | -AU$462,090,349.00 | 24.1x | -17.8x | 2.1x |
| Tue, 04 Apr 2023 | AU$7.6b | AU$3.9b | -AU$463,423,302.00 | 24.2x | -16.5x | 2x |
| Thu, 02 Mar 2023 | AU$25.0b | AU$10.2b | -AU$629,546,715.00 | 25.9x | -39.7x | 2.4x |
| Sat, 28 Jan 2023 | AU$24.4b | AU$9.3b | -AU$75,065,839.00 | 34.4x | -324.5x | 2.6x |
| Mon, 26 Dec 2022 | AU$25.8b | AU$9.5b | -AU$64,949,238.00 | 32.1x | -397.4x | 2.7x |
| Wed, 23 Nov 2022 | AU$27.0b | AU$9.6b | -AU$69,668,062.00 | 41.4x | -387.1x | 2.8x |
| Fri, 21 Oct 2022 | AU$24.6b | AU$9.6b | AU$44.9m | 37x | 547.5x | 2.6x |
| Sun, 18 Sep 2022 | AU$26.1b | AU$9.3b | AU$25.9m | 39.3x | 1010.8x | 2.8x |
| Tue, 16 Aug 2022 | AU$26.7b | AU$9.0b | -AU$268,428,285.00 | 37.5x | -99.6x | 3x |
| Thu, 14 Jul 2022 | AU$26.1b | AU$8.9b | -AU$280,155,383.00 | 26.3x | -93.1x | 2.9x |
| Sat, 11 Jun 2022 | AU$25.4b | AU$8.7b | -AU$287,699,200.00 | 27x | -88.1x | 2.9x |
| Mon, 09 May 2022 | AU$27.2b | AU$8.7b | -AU$249,863,328.00 | 29.3x | -108.8x | 3.1x |
| Wed, 06 Apr 2022 | AU$31.1b | AU$8.5b | -AU$256,941,862.00 | 43.1x | -121x | 3.6x |
| Fri, 04 Mar 2022 | AU$48.2b | AU$9.5b | -AU$401,065,329.00 | 37.6x | -120.1x | 5.1x |
| Sun, 30 Jan 2022 | AU$47.3b | AU$9.3b | -AU$346,287,356.00 | 33.2x | -136.6x | 5.1x |
| Tue, 28 Dec 2021 | AU$55.6b | AU$9.1b | -AU$345,801,059.00 | 35.7x | -160.9x | 6.1x |
Price to Earnings Ratio
-160.9x
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 3.5x is lower than the industry's current PS ratio of 5.8x.
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 34% 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 | -2.74% | |
| Tech | -1.45% | |
| IT | -3.91% | |
| Data Processing Services | 1.24% | |
| Internet Services and Infrastructure | -2.63% | |
| IT Consulting | -11.47% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry even though it's trading below its 3-year average PE ratio of 63.0x.
- Analysts are expecting annual earnings growth of 8.6%, which is higher than its past year's earnings growth of 2.0% per year.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 37% over the next 5 years.
- This is better than its past earnings growth rate of 17% per year.
- In contrast, the Data Processing Services industry is expected to see its earnings grow by 8.6% 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 | |
|---|---|---|---|---|---|
| SPX Spenda | AU$0.01 | 11.1% +AU$4.6m | -16.7% | PS8.6x | |
| CYB AUCyber | AU$0.13 | 18.2% +AU$3.3m | -82.7% | PS2.1x | |
| PPL Pureprofile | AU$0.036 | 5.9% +AU$2.3m | 50.0% | PE389.9x | |
| VIG Victor Group Holdings | AU$0.058 | 5.5% +AU$2.0m | n/a | PS4.5x |
