Should You Think About Buying Melexis NV (EBR:MELE) Now?
Melexis NV ( EBR:MELE ), might not be a large cap stock, but it led the ENXTBR gainers with a relatively large price...
Has the Belgian Tech Sector valuation changed over the past few years?
|Thu, 25 Nov 2021||€7.8b||€4.4b||€176.4m||34.8x|
|Sat, 23 Oct 2021||€7.6b||€4.3b||€154.4m||38.5x|
|Mon, 20 Sep 2021||€7.8b||€4.3b||€148.9m||40.1x|
|Wed, 18 Aug 2021||€7.7b||€4.3b||€148.8m||39.4x|
|Wed, 02 Jun 2021||€7.3b||€4.2b||€111.5m||45.2x|
|Sat, 06 Mar 2021||€7.5b||€4.2b||€89.7m||30.4x|
|Tue, 08 Dec 2020||€6.5b||€4.3b||€125.7m||41.8x|
|Mon, 31 Aug 2020||€5.3b||€4.5b||€199.3m||25.1x|
|Thu, 04 Jun 2020||€5.2b||€4.6b||€223.0m||24.9x|
|Sun, 08 Mar 2020||€6.0b||€4.8b||€234.0m||19.4x|
|Sat, 30 Nov 2019||€6.3b||€4.9b||€255.0m||22.1x|
|Tue, 03 Sep 2019||€5.9b||€5.0b||€265.9m||26.2x|
|Fri, 07 Jun 2019||€6.0b||€5.0b||€263.8m||24.6x|
|Thu, 28 Feb 2019||€5.4b||€4.9b||€258.0m||20.1x|
|Sun, 02 Dec 2018||€4.7b||€4.8b||€234.9m||18.4x|
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 36.3x which is higher than its 3-year average PE of 28.5x. 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 Information Technology industry have declined 9.1% per year over the last three years, and revenues have also declined 2.8% per year. This means overall sales from these companies are declining and profits are subsequently falling as well.
Which industries have driven the changes within the Belgian Tech sector?
|Electronic Equipment and Components||-4.94%|
Industry PE: Investors are most optimistic about the IT industry which is trading above its 3-year average PE ratio of 66.8x. However analysts are expecting annual earnings growth of 8.7%, which is lower than the prior year's growth of 37% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Communications industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 13.4x.
Forecasted Growth: Analysts are most optimistic on the Electronic Equipment and Components industry, expecting annual earnings growth of 88% over the next 5 years. This is better than its past earnings decline of 3.0% per year. Meanwhile, the Communications industry is expected to see its earnings grow by 6.2% per year over the next few years.
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