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Brazilian (BOVESPA) Tech Sector Analysis

UpdatedNov 27, 2022
DataAggregated Company Financials
Companies14
  • 7D-2.0%
  • 3M-9.9%
  • 1Y-7.8%
  • YTD-5.4%

Over the last 7 days, the Tech industry has dropped 2.0%, driven by a pullback from Cielo of 5.7%. The industry has fallen 7.8% in the last year. Looking forward, earnings are forecast to grow by 29% annually.

Sector Valuation and Performance

Has the Brazilian Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 27 Nov 2022R$58.9bR$41.9bR$3.4b9.8x17.6x1.4x
Tue, 25 Oct 2022R$69.0bR$41.4bR$3.4b11x20.3x1.7x
Thu, 22 Sep 2022R$63.8bR$41.4bR$3.4b10.2x18.7x1.5x
Sat, 20 Aug 2022R$64.6bR$41.2bR$3.6b10.3x17.9x1.6x
Mon, 18 Jul 2022R$51.0bR$40.0bR$3.3b8.6x15.5x1.3x
Wed, 15 Jun 2022R$51.1bR$40.0bR$3.3b8.1x15.5x1.3x
Fri, 13 May 2022R$48.9bR$38.8bR$3.5b8.8x14x1.3x
Sun, 10 Apr 2022R$62.2bR$38.3bR$3.5b9.7x17.7x1.6x
Tue, 08 Mar 2022R$57.1bR$37.9bR$3.6b9.7x15.8x1.5x
Thu, 03 Feb 2022R$57.0bR$37.4bR$3.7b11.4x15.6x1.5x
Sat, 01 Jan 2022R$59.4bR$37.4bR$3.7b12.2x16.3x1.6x
Mon, 29 Nov 2021R$59.5bR$37.4bR$3.7b11.7x16.3x1.6x
Wed, 27 Oct 2021R$68.5bR$35.5bR$3.6b13.5x18.9x1.9x
Fri, 24 Sep 2021R$74.8bR$33.2bR$3.3b19.3x23x2.3x
Sun, 22 Aug 2021R$75.5bR$33.2bR$3.3b18.2x23.2x2.3x
Fri, 09 Jul 2021R$65.6bR$27.2bR$2.4b19.7x27.6x2.4x
Thu, 01 Apr 2021R$51.7bR$20.1bR$1.6b35.1x31.3x2.6x
Sun, 03 Jan 2021R$41.9bR$17.3bR$1.1b55.1x39.5x2.4x
Wed, 07 Oct 2020R$36.2bR$16.6bR$785.6m41.9x46.1x2.2x
Tue, 30 Jun 2020R$33.9bR$16.3bR$1.0b86.1x33.9x2.1x
Fri, 03 Apr 2020R$25.1bR$16.7bR$1.5b19.8x16.6x1.5x
Mon, 06 Jan 2020R$38.1bR$16.2bR$1.8b33.7x20.7x2.4x
Price to Earnings Ratio

14x


Total Market Cap: R$35.7bTotal Earnings: R$2.5bTotal Revenue: R$16.1bTotal Market Cap vs Earnings and Revenue0%0%0%
Brazilian Tech Sector Price to Earnings3Y Average 25.3x202020212022
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 17.6x which is lower than its 3-year average PE of 25.3x.
  • The 3-year average PS ratio of 2.0x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 9.7% per year over the last three years.
  • Revenues for these companies have grown 38% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Brazilian Tech sector?

BR Market-1.01%
Tech-2.00%
Communications1.10%
Semiconductors0%
Electronic Equipment and Components-1.60%
Software-1.97%
Tech Hardware-2.29%
IT-3.32%
Industry PE
  • Investors are most optimistic about the Software industry even though it's trading below its 3-year average PE ratio of 62.9x.
    • Analysts are expecting annual earnings growth of 36.5%, which is higher than its past year's earnings growth of 25.8% per year.
  • Investors are most pessimistic about the Electronic Equipment and Components industry, which is trading below its 3-year average of 5.5x.
Forecasted Growth
  • Analysts are most optimistic on the Tech Hardware industry, expecting annual earnings growth of 68% over the next 5 years.
  • This is better than its past earnings decline of 51% per year.
  • In contrast, the Electronic Equipment and Components industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
INTB3 Intelbras - Indústria de Telecomunicação Eletrônica BrasileiraR$31.170.8%
+R$81.9m
14.8%PE24.3x
LVTC3 Livetech da Bahia Indústria e ComércioR$5.4510.3%
+R$33.0m
-67.8%PE7.7x
IFCM3 Infracommerce CXaaSR$4.801.3%
+R$16.9m
-68.4%PS1.7x
NGRD3 Neogrid ParticipaçõesR$1.451.4%
+R$4.6m
-51.8%PE206x
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