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Dec 01
Australian (ASX) Software Industry Analysis
UpdatedDec 02, 2023
DataAggregated Company Financials
Companies110
- 7D2.6%
- 3M-8.7%
- 1Y11.4%
- YTD22.5%
Over the last 7 days, the Software industry has risen 2.6%, driven by gains from WiseTech Global of 3.3%. Meanwhile, DUG Technology actually underperformed within the industry, shrinking 15% in the last week. In the last 12 months, the industry was up 11%. As for the next few years, earnings are expected to grow by 36% 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 |
|---|---|---|---|---|---|---|
| Sun, 03 Dec 2023 | AU$64.5b | AU$8.4b | -AU$1,047,635,038.00 | 58.2x | -61.5x | 7.7x |
| Tue, 31 Oct 2023 | AU$60.7b | AU$8.1b | -AU$1,118,131,040.00 | 53x | -54.3x | 7.5x |
| Thu, 28 Sep 2023 | AU$65.7b | AU$8.1b | -AU$1,118,070,243.00 | 58.5x | -58.7x | 8.1x |
| Sat, 26 Aug 2023 | AU$69.6b | AU$8.0b | -AU$1,130,909,857.00 | 54.5x | -61.5x | 8.7x |
| Mon, 24 Jul 2023 | AU$71.6b | AU$7.7b | -AU$888,941,420.00 | 47.5x | -80.6x | 9.3x |
| Wed, 21 Jun 2023 | AU$71.3b | AU$7.7b | -AU$897,251,169.00 | 50.2x | -79.4x | 9.3x |
| Fri, 19 May 2023 | AU$64.2b | AU$7.7b | -AU$944,963,919.00 | 44.8x | -67.9x | 8.3x |
| Sun, 16 Apr 2023 | AU$61.5b | AU$7.5b | -AU$871,837,856.00 | 46.1x | -70.5x | 8.2x |
| Tue, 14 Mar 2023 | AU$58.5b | AU$7.5b | -AU$876,328,726.00 | 45.5x | -66.8x | 7.8x |
| Thu, 09 Feb 2023 | AU$58.7b | AU$7.1b | -AU$706,304,763.00 | 55.7x | -83.1x | 8.3x |
| Sat, 07 Jan 2023 | AU$52.6b | AU$7.1b | -AU$711,658,850.00 | 50.6x | -73.9x | 7.4x |
| Mon, 05 Dec 2022 | AU$57.2b | AU$7.1b | -AU$725,113,878.00 | 55.5x | -78.8x | 8.1x |
| Wed, 02 Nov 2022 | AU$57.1b | AU$6.9b | -AU$711,622,157.00 | 52.7x | -80.2x | 8.3x |
| Fri, 30 Sep 2022 | AU$53.3b | AU$6.8b | -AU$662,255,044.00 | 46.5x | -80.5x | 7.8x |
| Sun, 28 Aug 2022 | AU$59.0b | AU$6.6b | -AU$577,345,854.00 | 40.9x | -102.1x | 8.9x |
| Tue, 26 Jul 2022 | AU$54.9b | AU$6.4b | -AU$464,565,283.00 | 24.9x | -118.1x | 8.6x |
| Thu, 23 Jun 2022 | AU$44.3b | AU$6.4b | -AU$456,413,522.00 | 27x | -97.1x | 6.9x |
| Sat, 21 May 2022 | AU$52.4b | AU$6.3b | -AU$431,779,728.00 | 26.9x | -121.5x | 8.3x |
| Mon, 18 Apr 2022 | AU$58.6b | AU$6.1b | -AU$437,120,143.00 | 31.8x | -134x | 9.5x |
| Wed, 16 Mar 2022 | AU$56.1b | AU$6.2b | -AU$443,551,860.00 | 30.2x | -126.6x | 9x |
| Fri, 11 Feb 2022 | AU$63.5b | AU$5.7b | -AU$142,389,502.00 | 42.1x | -445.9x | 11.1x |
| Sun, 09 Jan 2022 | AU$70.1b | AU$5.7b | -AU$142,880,631.00 | 44.3x | -490.4x | 12.3x |
| Tue, 07 Dec 2021 | AU$68.7b | AU$5.5b | -AU$152,240,233.00 | 40.6x | -451.2x | 12.4x |
| Thu, 04 Nov 2021 | AU$73.7b | AU$5.5b | -AU$134,403,161.00 | 45.6x | -548x | 13.4x |
| Sat, 02 Oct 2021 | AU$69.0b | AU$5.5b | -AU$134,657,843.00 | 45.6x | -512.1x | 12.6x |
| Mon, 30 Aug 2021 | AU$69.0b | AU$5.4b | -AU$118,915,907.78 | 44.2x | -580.3x | 12.8x |
| Tue, 06 Jul 2021 | AU$60.9b | AU$5.4b | -AU$118,915,907.78 | 43.3x | -512.4x | 11.3x |
| Fri, 09 Apr 2021 | AU$55.6b | AU$5.2b | -AU$110,354,965.50 | 35.5x | -503.8x | 10.7x |
| Thu, 31 Dec 2020 | AU$61.2b | AU$5.1b | -AU$70,260,606.42 | 37.2x | -871.7x | 12x |
Price to Earnings Ratio
-747x
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 9.7x is higher than the industry's current PS ratio of 7.7x.
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 21% 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 | 0.46% | |
| Tech | 2.29% | |
| Software | 2.60% | |
| Application Software | 2.65% | |
| Systems Software | -2.40% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 73% over the next 5 years.
- In contrast, the Application Software industry is expected to see its earnings grow by 35% 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$66.16 | 3.3% +AU$697.7m | 14.1% | PE103.1x | |
| IRE Iress | AU$7.36 | 25.4% +AU$273.3m | -24.7% | PS2.2x | |
| XRO Xero | AU$101.13 | 1.6% +AU$237.8m | 34.6% | PS10.7x | |
| ALU Altium | AU$44.67 | 2.1% +AU$124.0m | 15.6% | PE59.3x | |
| TNE Technology One | AU$15.25 | 1.7% +AU$81.4m | 7.6% | PE48.3x |
