Xero's (ASX:XRO) Solid Earnings Are Supported By Other Strong Factors
May 29
Australian (ASX) Software Industry Analysis
UpdatedJun 03, 2024
DataAggregated Company Financials
Companies83
- 7D0.1%
- 3M1.9%
- 1Y25.5%
- YTD24.4%
Over the last 7 days, the Software industry has remained flat, although notably Nuix gained 4.7%. As for the the longer term, the industry is up 26% over the past 12 months. As for the next few years, earnings are expected to grow by 29% 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 |
|---|---|---|---|---|---|---|
| Mon, 03 Jun 2024 | AU$83.7b | AU$7.8b | -AU$96,529,790.08 | 62.4x | -867.1x | 10.8x |
| Wed, 01 May 2024 | AU$79.4b | AU$7.6b | -AU$316,191,617.25 | 62.8x | -251.2x | 10.5x |
| Fri, 29 Mar 2024 | AU$81.5b | AU$7.6b | -AU$389,305,616.27 | 63x | -209.4x | 10.7x |
| Sun, 25 Feb 2024 | AU$75.9b | AU$7.6b | -AU$529,189,887.92 | 52.6x | -143.5x | 10x |
| Tue, 23 Jan 2024 | AU$70.4b | AU$8.4b | -AU$1,048,425,769.00 | 60.5x | -67.1x | 8.4x |
| Thu, 21 Dec 2023 | AU$69.2b | AU$8.4b | -AU$1,046,918,083.00 | 60.8x | -66.1x | 8.3x |
| Sat, 18 Nov 2023 | AU$64.8b | AU$8.4b | -AU$1,057,816,818.00 | 57.5x | -61.3x | 7.8x |
| Mon, 16 Oct 2023 | AU$65.7b | AU$8.1b | -AU$1,112,355,359.00 | 57.9x | -59.1x | 8.1x |
| Wed, 13 Sep 2023 | AU$68.7b | AU$8.1b | -AU$1,117,115,883.00 | 60x | -61.5x | 8.5x |
| Fri, 11 Aug 2023 | AU$73.9b | AU$7.7b | -AU$892,224,383.00 | 51.3x | -82.8x | 9.6x |
| Sun, 09 Jul 2023 | AU$68.2b | AU$7.7b | -AU$890,393,077.00 | 49.6x | -76.6x | 8.8x |
| Tue, 06 Jun 2023 | AU$68.1b | AU$7.7b | -AU$898,818,913.00 | 51x | -75.8x | 8.8x |
| Thu, 04 May 2023 | AU$60.9b | AU$7.5b | -AU$878,735,123.00 | 45.5x | -69.4x | 8.1x |
| Sat, 01 Apr 2023 | AU$60.0b | AU$7.5b | -AU$871,719,082.00 | 45.6x | -68.8x | 8x |
| Mon, 27 Feb 2023 | AU$58.3b | AU$7.3b | -AU$636,598,115.00 | 53.3x | -91.6x | 8x |
| Wed, 25 Jan 2023 | AU$57.0b | AU$7.1b | -AU$705,616,390.00 | 53.1x | -80.7x | 8x |
| Fri, 23 Dec 2022 | AU$53.8b | AU$7.1b | -AU$713,647,073.00 | 50.1x | -75.3x | 7.5x |
| Sun, 20 Nov 2022 | AU$55.9b | AU$7.1b | -AU$729,928,836.00 | 51.4x | -76.5x | 7.9x |
| Tue, 18 Oct 2022 | AU$53.1b | AU$6.9b | -AU$693,920,836.00 | 46.3x | -76.5x | 7.7x |
| Thu, 15 Sep 2022 | AU$58.0b | AU$6.8b | -AU$650,095,620.00 | 47.6x | -89.2x | 8.5x |
| Sat, 13 Aug 2022 | AU$57.8b | AU$6.4b | -AU$465,662,367.00 | 26.7x | -124.1x | 9.1x |
| Mon, 11 Jul 2022 | AU$51.6b | AU$6.4b | -AU$466,787,146.00 | 25.2x | -110.6x | 8.1x |
| Wed, 08 Jun 2022 | AU$49.1b | AU$6.3b | -AU$423,603,845.00 | 29.1x | -115.8x | 7.8x |
| Fri, 06 May 2022 | AU$54.6b | AU$6.2b | -AU$440,629,138.00 | 28.4x | -124x | 8.9x |
| Sun, 03 Apr 2022 | AU$60.7b | AU$6.1b | -AU$437,693,056.00 | 33.9x | -138.6x | 9.9x |
| Tue, 01 Mar 2022 | AU$56.4b | AU$6.2b | -AU$336,763,106.00 | 28.6x | -167.6x | 9.1x |
| Thu, 27 Jan 2022 | AU$62.2b | AU$5.7b | -AU$143,520,124.00 | 41.2x | -433.4x | 10.9x |
| Sat, 25 Dec 2021 | AU$73.3b | AU$5.5b | -AU$151,263,266.00 | 39.6x | -484.5x | 13.3x |
| Mon, 22 Nov 2021 | AU$75.6b | AU$5.5b | -AU$148,261,175.00 | 40.9x | -510.2x | 13.8x |
| Wed, 20 Oct 2021 | AU$70.9b | AU$5.5b | -AU$132,680,583.00 | 45.1x | -534.7x | 13x |
| Fri, 17 Sep 2021 | AU$71.0b | AU$5.5b | -AU$126,998,125.00 | 44x | -558.8x | 12.9x |
| Sun, 15 Aug 2021 | AU$65.0b | AU$5.4b | -AU$118,915,907.78 | 46.6x | -546.4x | 12.1x |
| Thu, 10 Jun 2021 | AU$56.9b | AU$5.2b | -AU$119,068,098.50 | 35x | -477.5x | 10.9x |
Price to Earnings Ratio
-477.5x
Current Industry PE
- Investors are optimistic on the Australian Software industry, and appear confident in long term growth rates.
- The 3-year average PS ratio of 9.4x is lower than the industry's current PS ratio of 10.8x.
Past Earnings Growth
- The earnings for companies in the Software industry have improved over the last three years.
- Revenues for these companies have grown 14% per year.
- This means that more sales are being generated by these companies overall, and subsequently losses are decreasing too.
Industry Trends
Which industries have driven the changes within the Australian Tech industry?
| AU Market | -0.33% | |
| Tech | -0.003% | |
| Software | 0.12% | |
| Systems Software | 2.68% | |
| Application Software | 0.10% | |
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 29% 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 | |
|---|---|---|---|---|---|
| NXL Nuix | AU$3.13 | 4.7% +AU$45.3m | 209.9% | PS5.2x | |
| CAT Catapult Group International | AU$1.75 | 11.1% +AU$44.7m | 72.8% | PS3.2x | |
| XRO Xero | AU$134.24 | 0.1% +AU$25.9m | 22.2% | PE126.6x | |
| ALU Altium | AU$67.00 | 0.2% +AU$15.8m | 71.1% | PE84.2x | |
| RUL RPMGlobal Holdings | AU$2.71 | 2.7% +AU$15.5m | 80.7% | PE64.7x |
