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Brazilian (BOVESPA) Tech Sector Analysis
UpdatedApr 15, 2025
DataAggregated Company Financials
Companies9
- 7D5.9%
- 3M15.0%
- 1Y2.9%
- YTD22.8%
Last week, the Tech industry hasn't moved much but TOTVS is up 3.6% in that time. As for the longer term, the industry has declined 4.1% in the last year. As for the next few years, earnings are expected to grow by 23% per annum.
Sector Valuation and Performance
Has the Brazilian Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 15 Apr 2025 | R$30.0b | R$25.4b | R$1.2b | 8x | 25.7x | 1.2x |
| Thu, 13 Mar 2025 | R$30.2b | R$26.3b | R$1.2b | 12.2x | 25.6x | 1.1x |
| Sat, 08 Feb 2025 | R$30.8b | R$26.0b | R$1.2b | 12.5x | 26.3x | 1.2x |
| Mon, 06 Jan 2025 | R$25.9b | R$26.0b | R$1.2b | 12.3x | 22.1x | 1x |
| Wed, 04 Dec 2024 | R$27.9b | R$26.0b | R$1.2b | 15.2x | 23.8x | 1.1x |
| Fri, 01 Nov 2024 | R$31.5b | R$26.1b | R$880.3m | 21.5x | 35.7x | 1.2x |
| Sun, 29 Sep 2024 | R$31.2b | R$25.8b | R$863.0m | 21.3x | 36.1x | 1.2x |
| Tue, 27 Aug 2024 | R$34.4b | R$25.8b | R$863.0m | 23.8x | 39.9x | 1.3x |
| Thu, 25 Jul 2024 | R$32.1b | R$25.6b | R$917.8m | 12.8x | 35x | 1.3x |
| Sat, 22 Jun 2024 | R$33.1b | R$25.6b | R$917.7m | 13.1x | 36.1x | 1.3x |
| Mon, 20 May 2024 | R$33.4b | R$25.3b | R$917.6m | 9.1x | 36.4x | 1.3x |
| Wed, 17 Apr 2024 | R$30.9b | R$24.8b | R$473.3m | 11.2x | 65.2x | 1.2x |
| Fri, 15 Mar 2024 | R$34.5b | R$24.7b | R$556.2m | 13.1x | 62.1x | 1.4x |
| Sun, 11 Feb 2024 | R$32.6b | R$24.8b | R$550.6m | 12.3x | 59.3x | 1.3x |
| Tue, 09 Jan 2024 | R$40.9b | R$28.6b | R$1.2b | 13.5x | 34.6x | 1.4x |
| Thu, 07 Dec 2023 | R$42.7b | R$28.6b | R$1.2b | 13.7x | 36.1x | 1.5x |
| Sat, 04 Nov 2023 | R$38.4b | R$28.5b | R$1.4b | 15.7x | 26.6x | 1.3x |
| Mon, 02 Oct 2023 | R$38.9b | R$28.7b | R$1.5b | 15.4x | 26.7x | 1.4x |
| Wed, 30 Aug 2023 | R$41.3b | R$28.7b | R$1.5b | 17.8x | 28.4x | 1.4x |
| Fri, 28 Jul 2023 | R$42.7b | R$29.4b | R$1.6b | 20.8x | 26.6x | 1.5x |
| Sun, 25 Jun 2023 | R$43.7b | R$29.4b | R$1.6b | 20.8x | 27.3x | 1.5x |
| Tue, 23 May 2023 | R$41.7b | R$29.4b | R$1.6b | 17.7x | 26x | 1.4x |
| Thu, 20 Apr 2023 | R$36.8b | R$29.5b | R$2.1b | 16.7x | 17.7x | 1.2x |
| Sat, 18 Mar 2023 | R$54.6b | R$41.7b | R$3.5b | 12.7x | 15.4x | 1.3x |
| Mon, 13 Feb 2023 | R$57.9b | R$41.4b | R$3.5b | 10.1x | 16.8x | 1.4x |
| Wed, 11 Jan 2023 | R$59.7b | R$41.8b | R$3.5b | 10.6x | 17.2x | 1.4x |
| Fri, 09 Dec 2022 | R$55.8b | R$41.8b | R$3.5b | 7.9x | 16.1x | 1.3x |
| Sun, 06 Nov 2022 | R$69.6b | R$41.4b | R$3.6b | 10x | 19.1x | 1.7x |
| Tue, 04 Oct 2022 | R$68.0b | R$41.4b | R$3.4b | 10.8x | 20x | 1.6x |
| Thu, 01 Sep 2022 | R$63.0b | R$41.4b | R$3.6b | 10.3x | 17.7x | 1.5x |
| Sat, 30 Jul 2022 | R$56.2b | R$40.3b | R$3.3b | 9.2x | 17x | 1.4x |
| Mon, 27 Jun 2022 | R$51.4b | R$40.0b | R$3.3b | 8.1x | 15.6x | 1.3x |
| Wed, 25 May 2022 | R$53.0b | R$39.5b | R$3.4b | 8.9x | 15.4x | 1.3x |
| Fri, 22 Apr 2022 | R$61.2b | R$38.3b | R$3.5b | 10.4x | 17.4x | 1.6x |
Price to Earnings Ratio
17.4x
Current Industry PE
- Investors are pessimistic on the Brazilian Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 24.9x which is lower than its 3-year average PE of 28.7x.
- The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have declined 31% per year over the last three years,
- Revenues have also declined 13% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Brazilian Tech sector?
| BR Market | 2.68% | |
| Tech | 5.89% | |
| IT | 11.15% | |
| Software | 5.84% | |
| Communications | 5.66% | |
| Tech Hardware | 3.72% | |
| Electronic Equipment and Components | 1.34% | |
Industry PE
- Investors are most optimistic about the IT industry even though it's trading below its 3-year average PE ratio of 130x.
- Analysts are expecting annual earnings growth of 41.5% and investors are willing to pay a premium for that growth.
Forecasted Growth
- Analysts are most optimistic on the Tech Hardware industry, expecting annual earnings growth of 98% over the next 5 years.
- This is better than its past earnings decline of 66% per year.
- In contrast, the Electronic Equipment and Components industry is expected to see its earnings decline by 8.1% 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 | |
|---|---|---|---|---|---|
| TOTS3 TOTVS | R$35.79 | 5.9% +R$1.2b | 35.3% | PE29.9x | |
| INTB3 Intelbras - Indústria de Telecomunicação Eletrônica Brasileira | R$12.32 | 5.5% +R$209.6m | -33.8% | PE7.6x | |
| LWSA3 Locaweb Serviços de Internet | R$2.99 | 11.2% +R$177.7m | -38.4% | PE42x | |
| MLAS3 Multilaser Industrial | R$1.20 | 4.3% +R$40.4m | -42.6% | PS0.3x | |
| LVTC3 Livetech da Bahia Indústria e Comércio | R$3.01 | 13.2% +R$22.2m | -21.0% | PE6.7x |