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Australian (ASX) Software Industry Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies106
  • 7D-7.3%
  • 3M2.4%
  • 1Y20.1%
  • YTD12.3%

Over the last 7 days, the Software industry has dropped 7.3%, driven by a decline by WiseTech Global of 7.7%. Meanwhile, Vection Technologies actually outperformed within the industry, gaining 38% in the last week. This takes the industry's 12 month performance to a gain of 20%.

Industry Valuation and Performance

Has the Australian Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Mon, 29 Nov 2021AU$70.2bAU$5.5b-AU$147,037,760.0046.3x
Wed, 27 Oct 2021AU$72.7bAU$5.5b-AU$132,523,963.0044.8x
Fri, 24 Sep 2021AU$72.1bAU$5.5b-AU$135,308,929.0045.1x
Sun, 22 Aug 2021AU$65.7bAU$5.4b-AU$118,915,907.7845.8x
Fri, 09 Jul 2021AU$60.9bAU$5.4b-AU$118,915,907.7843.3x
Thu, 01 Apr 2021AU$55.6bAU$5.2b-AU$110,354,965.5035.5x
Sun, 03 Jan 2021AU$61.2bAU$5.1b-AU$70,260,606.4237.2x
Wed, 07 Oct 2020AU$48.4bAU$4.8b-AU$66,490,902.4634.5x
Tue, 30 Jun 2020AU$40.5bAU$4.6b-AU$67,534,794.6933.8x
Fri, 03 Apr 2020AU$32.3bAU$4.5b-AU$108,733,949.5229x
Mon, 06 Jan 2020AU$40.8bAU$4.2b-AU$186,723,744.2845x
Thu, 10 Oct 2019AU$39.7bAU$3.9b-AU$99,160,115.5731.8x
Wed, 03 Jul 2019AU$36.8bAU$3.6b-AU$117,042,047.0632.9x
Sat, 06 Apr 2019AU$31.3bAU$3.3b-AU$79,992,837.0733.1x
Tue, 08 Jan 2019AU$24.3bAU$3.2b-AU$78,152,287.5028.9x
PE Ratio

28.6x

Total Market Cap: AU$24.9bTotal Earnings: -AU$137,495,547.63Total Revenue: AU$3.1b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 46.3x which is higher than its 3-year average PE of 36.8x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: The earnings for companies in the Software industry have deteriorated over the last three years, while 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 Software industry?

Application Software-7.26%
Systems Software-9.94%

Industry PE: Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 36.7x. However analysts expect its future annual earnings growth (37%) to be largely in line with prior year's earnings growth, so the market might believe analysts are underestimating its future growth since investors are willing to pay a bigger premium today.

Forecasted Growth: Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 65% over the next 5 years. Meanwhile, the Application Software industry is expected to see its earnings grow by 37% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
VR1 Vection Technologies37.5%+AU$78.2m103.7%PS82.6x
OLX OliveX Holdings55.0%+AU$42.2mn/aPS184.7x
PRO Prophecy International Holdings31.3%+AU$26.1m131.0%PS8.2x
BTH Bigtincan Holdings2.9%+AU$16.4m-14.3%PS13.1x
AV1 Adveritas24.0%+AU$13.2m-18.4%PS70.8x
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360

AU$11.80

Life360

7D

-12.7%

1Y

197.2%

ALU

AU$41.42

Altium

7D

-3.1%

1Y

16.9%

XRO

AU$141.21

Xero

7D

-3.5%

1Y

6.6%

LME

AU$0.55

Limeade

7D

4.8%

1Y

-69.3%

AV1

AU$0.15

Adveritas

7D

24.0%

1Y

-18.4%