Returns On Capital At Infineon Technologies (ETR:IFX) Have Stalled
Jan 14
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German (DAX) Tech Sector Analysis
UpdatedJan 20, 2025
DataAggregated Company Financials
Companies117
- 7D4.9%
- 3M15.9%
- 1Y43.5%
- YTD6.9%
The Tech industry is up 4.9% in the last week, with SAP up 5.0%. In the last 12 months, the industry was up 43%. As for the next few years, earnings are expected to grow by 37% per annum.
Sector Valuation and Performance
Has the German Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 21 Jan 2025 | €387.2b | €78.7b | €5.5b | 19.1x | 69.9x | 4.9x |
| Thu, 19 Dec 2024 | €366.6b | €78.9b | €5.5b | 19.5x | 66.3x | 4.6x |
| Sat, 16 Nov 2024 | €335.1b | €79.1b | €5.6b | 18.8x | 59.4x | 4.2x |
| Mon, 14 Oct 2024 | €327.1b | €78.4b | €5.8b | 18.7x | 56.2x | 4.2x |
| Wed, 11 Sep 2024 | €304.6b | €78.4b | €5.8b | 18.6x | 52.3x | 3.9x |
| Fri, 09 Aug 2024 | €305.8b | €79.5b | €5.9b | 19.1x | 52.1x | 3.8x |
| Sun, 07 Jul 2024 | €312.9b | €78.1b | €6.5b | 19.7x | 48.3x | 4x |
| Tue, 04 Jun 2024 | €291.4b | €78.6b | €6.3b | 18.8x | 46x | 3.7x |
| Thu, 02 May 2024 | €289.4b | €79.5b | €6.9b | 17x | 41.9x | 3.6x |
| Sat, 30 Mar 2024 | €303.4b | €78.7b | €8.1b | 19.3x | 37.6x | 3.9x |
| Mon, 26 Feb 2024 | €294.0b | €78.1b | €8.3b | 17.9x | 35.3x | 3.8x |
| Wed, 24 Jan 2024 | €274.6b | €80.7b | €6.7b | 19.6x | 41.2x | 3.4x |
| Fri, 22 Dec 2023 | €264.1b | €80.4b | €6.7b | 19.8x | 39.5x | 3.3x |
| Sun, 19 Nov 2023 | €256.6b | €80.3b | €6.7b | 19.7x | 38.4x | 3.2x |
| Tue, 17 Oct 2023 | €233.5b | €79.3b | €6.2b | 20.2x | 37.5x | 2.9x |
| Thu, 14 Sep 2023 | €241.2b | €79.4b | €6.3b | 21x | 38.5x | 3x |
| Sat, 12 Aug 2023 | €242.6b | €78.9b | €6.2b | 21x | 38.8x | 3.1x |
| Mon, 10 Jul 2023 | €240.7b | €77.4b | €6.0b | 21.7x | 40.2x | 3.1x |
| Wed, 07 Jun 2023 | €244.2b | €77.8b | €6.3b | 22.1x | 38.7x | 3.1x |
| Fri, 05 May 2023 | €238.1b | €76.3b | €6.0b | 23x | 39.8x | 3.1x |
| Sun, 02 Apr 2023 | €237.8b | €75.4b | €6.6b | 24.7x | 35.9x | 3.2x |
| Tue, 28 Feb 2023 | €221.3b | €74.9b | €6.6b | 24.9x | 33.5x | 3x |
| Thu, 26 Jan 2023 | €215.6b | €73.5b | €7.3b | 25.8x | 29.5x | 2.9x |
| Sat, 24 Dec 2022 | €196.6b | €73.4b | €7.3b | 23.3x | 26.9x | 2.7x |
| Mon, 21 Nov 2022 | €206.5b | €73.2b | €7.3b | 22.2x | 28.3x | 2.8x |
| Wed, 19 Oct 2022 | €179.3b | €70.3b | €7.7b | 19.7x | 23.2x | 2.6x |
| Fri, 16 Sep 2022 | €176.5b | €70.1b | €7.7b | 20.5x | 23x | 2.5x |
| Sun, 14 Aug 2022 | €197.6b | €69.5b | €7.4b | 23.4x | 26.7x | 2.8x |
| Tue, 12 Jul 2022 | €181.2b | €67.3b | €8.1b | 21.8x | 22.4x | 2.7x |
| Thu, 09 Jun 2022 | €203.7b | €67.4b | €7.9b | 25.4x | 25.9x | 3x |
| Sat, 07 May 2022 | €197.7b | €66.2b | €7.6b | 23.4x | 26.1x | 3x |
| Mon, 04 Apr 2022 | €219.1b | €65.0b | €7.8b | 25.9x | 28.1x | 3.4x |
| Wed, 02 Mar 2022 | €215.2b | €66.4b | €7.8b | 26.1x | 27.5x | 3.2x |
| Fri, 28 Jan 2022 | €241.1b | €65.1b | €8.1b | 28.6x | 29.8x | 3.7x |
Price to Earnings Ratio
29.8x
Current Industry PE
- Investors are optimistic on the German Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 69.9x which is higher than its 3-year average PE of 37.8x.
- The 3-year average PS ratio of 3.3x is lower than the industry's current PS ratio of 4.9x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have declined 12% per year over the last three years.
- Meanwhile revenues for these companies have grown 6.5% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the German Tech sector?
| DE Market | 3.03% | |
| Tech | 4.87% | |
| Software | 5.07% | |
| Semiconductors | 4.61% | |
| IT | 2.50% | |
| Tech Hardware | 0.56% | |
| Electronic Equipment and Components | 0.36% | |
| Communications | -0.18% | |
Industry PE
- Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 48.7x.
- Analysts are expecting annual earnings growth of 46.9%, which is higher than its past year's earnings decline of 17.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 106% over the next 5 years.
- This is better than its past earnings decline of 29% per year.
- In contrast, the IT industry is expected to see its earnings grow by 13% 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 | |
|---|---|---|---|---|---|
| SAP SAP | €256.00 | 5.0% +€14.1b | 70.3% | PE108.5x | |
| IFX Infineon Technologies | €34.14 | 5.2% +€2.2b | -1.5% | PE25.3x | |
| NEM Nemetschek | €108.50 | 14.7% +€1.6b | 26.0% | PE73.3x | |
| IOS IONOS Group | €22.20 | 5.5% +€160.1m | 19.1% | PE21.1x | |
| SMHN SÜSS MicroTec | €47.40 | 16.5% +€128.1m | 50.5% | PE21.1x |
