Does Technology One (ASX:TNE) Deserve A Spot On Your Watchlist?
Nov 26
Australian (ASX) Software Industry Analysis
UpdatedNov 29, 2022
DataAggregated Company Financials
Companies113
- 7D-0.4%
- 3M-7.1%
- 1Y-27.7%
- YTD-30.0%
The Software industry has been flat over the last week, but WiseTech Global has lost 3.7%. Unfortunately though, the industry is down 28% over the past 12 months. As for the next few years, earnings are expected to grow by 33% per annum.
Industry Valuation and Performance
Has the Australian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 30 Nov 2022 | AU$54.8b | AU$7.1b | -AU$727,870,516.00 | 53.4x | -75.3x | 7.8x |
| Fri, 28 Oct 2022 | AU$55.6b | AU$6.9b | -AU$708,220,673.00 | 47.8x | -78.6x | 8.1x |
| Sun, 25 Sep 2022 | AU$53.1b | AU$6.8b | -AU$661,061,574.00 | 46.7x | -80.3x | 7.8x |
| Tue, 23 Aug 2022 | AU$56.8b | AU$6.5b | -AU$575,414,768.00 | 37.4x | -98.7x | 8.8x |
| Thu, 21 Jul 2022 | AU$53.9b | AU$6.4b | -AU$465,935,826.00 | 26.1x | -115.7x | 8.4x |
| Sat, 18 Jun 2022 | AU$44.5b | AU$6.4b | -AU$456,346,440.00 | 27x | -97.4x | 7x |
| Mon, 16 May 2022 | AU$50.9b | AU$6.3b | -AU$434,081,087.00 | 26.1x | -117.2x | 8x |
| Wed, 13 Apr 2022 | AU$58.2b | AU$6.1b | -AU$436,931,254.00 | 32.1x | -133.3x | 9.5x |
| Fri, 11 Mar 2022 | AU$58.4b | AU$6.2b | -AU$441,245,981.00 | 31.7x | -132.4x | 9.4x |
| Sun, 06 Feb 2022 | AU$61.1b | AU$5.7b | -AU$142,661,271.00 | 43.3x | -428.6x | 10.7x |
| Tue, 04 Jan 2022 | AU$74.0b | AU$5.7b | -AU$141,603,753.00 | 43.3x | -522.6x | 13x |
| Thu, 02 Dec 2021 | AU$72.1b | AU$5.5b | -AU$150,125,011.00 | 41x | -480.1x | 13.1x |
| Sat, 30 Oct 2021 | AU$71.5b | AU$5.5b | -AU$132,499,075.00 | 45.4x | -540x | 13.1x |
| Mon, 27 Sep 2021 | AU$71.2b | AU$5.5b | -AU$135,095,300.00 | 45.1x | -526.9x | 12.9x |
| Wed, 25 Aug 2021 | AU$70.4b | AU$5.4b | -AU$118,915,907.78 | 44.9x | -591.6x | 13.1x |
| Thu, 01 Jul 2021 | AU$60.9b | AU$5.4b | -AU$118,915,907.78 | 43.3x | -512.4x | 11.3x |
| Sun, 04 Apr 2021 | AU$55.6b | AU$5.2b | -AU$110,354,965.50 | 35.5x | -503.8x | 10.7x |
| Wed, 06 Jan 2021 | AU$61.2b | AU$5.1b | -AU$70,260,606.42 | 37.2x | -871.7x | 12x |
| Sat, 10 Oct 2020 | AU$48.4b | AU$4.8b | -AU$66,490,902.46 | 34.5x | -727.8x | 10.1x |
| Fri, 03 Jul 2020 | AU$40.5b | AU$4.6b | -AU$67,534,794.69 | 33.8x | -599.8x | 8.9x |
| Mon, 06 Apr 2020 | AU$32.3b | AU$4.5b | -AU$108,733,949.52 | 29x | -296.6x | 7.2x |
| Thu, 09 Jan 2020 | AU$40.8b | AU$4.2b | -AU$186,723,744.28 | 45x | -218.6x | 9.6x |
Price to Earnings Ratio
-406.1x
Current Industry PE
- Investors are pessimistic on the Australian Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 10.2x is higher than the industry's current PS ratio of 7.8x.
Past Earnings Growth
- The earnings for companies in the Software industry have deteriorated over the last three years.
- Meanwhile revenues for these companies have grown 22% 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 caused losses to expand.
Industry Trends
Which industries have driven the changes within the Australian Tech industry?
| AU Market | 0.50% | |
| Tech | 0.12% | |
| Software | -0.40% | |
| Systems Software | 0.62% | |
| Application Software | -0.41% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 69% over the next 5 years.
- In contrast, the Application Software industry is expected to see its earnings grow by 32% 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 | |
|---|---|---|---|---|---|
| WTC WiseTech Global | AU$55.57 | 3.2% +AU$561.2m | 6.2% | PE92.6x | |
| TNE Technology One | AU$13.53 | 5.7% +AU$243.5m | 11.6% | PE56.6x | |
| XRO Xero | AU$69.50 | 2.1% +AU$211.6m | -53.3% | PS9x | |
| ALU Altium | AU$37.71 | 4.1% +AU$193.5m | -10.9% | PE59.8x | |
| NEA Nearmap | AU$2.09 | 6.1% +AU$60.0m | 34.8% | PS7.2x |
