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Brazilian (BOVESPA) IT Industry Analysis

UpdatedMay 25, 2023
DataAggregated Company Financials
Companies2
  • 7D3.3%
  • 3M24.0%
  • 1Y25.8%
  • YTD10.8%

In the last week, the IT industry is up 2.8%, with all of the companies up. This takes the industry's 12 month performance to a gain of 22%. As for the next few years, earnings are expected to grow by 39% per annum.

Industry Valuation and Performance

Has the Brazilian IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 26 May 2023R$8.8bR$4.5bR$626.6m69.7x14.1x1.9x
Sun, 23 Apr 2023R$7.6bR$4.5bR$623.9m55.4x12.2x1.7x
Tue, 21 Mar 2023R$7.9bR$4.4bR$597.8m416.5x13.3x1.8x
Thu, 16 Feb 2023R$23.5bR$16.4bR$1.9b8.9x12.6x1.4x
Sat, 14 Jan 2023R$23.3bR$16.8bR$1.9b8.3x12.4x1.4x
Mon, 12 Dec 2022R$22.0bR$16.8bR$1.9b7.8x11.7x1.3x
Wed, 09 Nov 2022R$27.3bR$16.6bR$1.9b9.7x14.3x1.7x
Fri, 07 Oct 2022R$28.0bR$16.9bR$1.7b10.5x16.5x1.7x
Sun, 04 Sep 2022R$26.5bR$16.9bR$1.7b10.2x15.6x1.6x
Tue, 02 Aug 2022R$22.5bR$16.7bR$1.4b9.1x16.1x1.3x
Thu, 30 Jun 2022R$19.4bR$16.7bR$1.4b8.4x13.9x1.2x
Sat, 28 May 2022R$19.6bR$16.2bR$1.5b8.9x13.1x1.2x
Mon, 25 Apr 2022R$17.8bR$15.9bR$1.5b9.6x11.9x1.1x
Wed, 23 Mar 2022R$17.1bR$15.7bR$1.5b9x11.4x1.1x
Fri, 18 Feb 2022R$16.9bR$15.6bR$1.4b9.4x12.2x1.1x
Sun, 16 Jan 2022R$14.4bR$15.4bR$1.3b9.3x10.7x0.9x
Tue, 14 Dec 2021R$19.2bR$15.4bR$1.3b10.1x14.3x1.2x
Thu, 11 Nov 2021R$24.5bR$15.3bR$1.4b12.7x18.1x1.6x
Sat, 09 Oct 2021R$21.0bR$12.5bR$886.3m14.7x23.7x1.7x
Mon, 06 Sep 2021R$22.4bR$12.5bR$886.3m15.7x25.3x1.8x
Wed, 04 Aug 2021R$25.0bR$12.5bR$886.3m16.6x28.2x2x
Sat, 08 May 2021R$27.3bR$12.1bR$628.6m21.5x43.4x2.3x
Tue, 09 Feb 2021R$24.7bR$12.1bR$556.8m22.7x44.4x2x
Mon, 02 Nov 2020R$18.4bR$12.0bR$471.2m22.1x39x1.5x
Thu, 06 Aug 2020R$21.1bR$11.9bR$719.9m21.9x29.4x1.8x
Price to Earnings Ratio

12.2x


Total Market Cap: R$14.9bTotal Earnings: R$1.2bTotal Revenue: R$12.3bTotal Market Cap vs Earnings and Revenue0%0%0%
Brazilian IT Industry Price to Earnings3Y Average 23.1x202120222023
Current Industry PE
    There are only 2 companies in the Brazilian IT industry, so there is insufficient data to make an industry-wide assessment of both the PE and PS ratio.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 20% per year over the last three years,
  • Revenues have also declined 28% 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 industry?

BR Market-0.061%
Tech2.62%
IT3.31%
Internet Services and Infrastructure6.60%
Data Processing Services2.26%
IT Consulting0%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry even though it's trading below its 3-year average PE ratio of 2kx.
    • Analysts are expecting annual earnings growth of 39.0% and investors are willing to pay a premium for that growth.
  • Investors are most pessimistic about the Data Processing Services industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 13.8x.
Forecasted Growth
  • Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 66% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Internet Services and Infrastructure industry is expected to see its earnings grow by 39% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
LWSA3 Locaweb Serviços de InternetR$7.916.6%
+R$289.6m		12.7%PE141.7x
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LWSA3

R$7.91

Locaweb Serviços de Internet

7D

6.6%

1Y

12.7%