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adesso SE ( ETR:ADN1 ), is not the largest company out there, but it received a lot of attention from a substantial...
Has the German IT Industry valuation changed over the past few years?
|Wed, 19 Jan 2022||€19.2b||€13.5b||€561.4m||32.1x|
|Fri, 17 Dec 2021||€20.8b||€13.5b||€561.8m||33.7x|
|Sun, 14 Nov 2021||€22.6b||€13.4b||€538.3m||35.1x|
|Tue, 12 Oct 2021||€18.8b||€13.2b||€489.2m||35.6x|
|Thu, 09 Sep 2021||€20.7b||€13.2b||€488.9m||37x|
|Sat, 07 Aug 2021||€19.9b||€15.8b||€970.6m||35.4x|
|Fri, 30 Apr 2021||€17.7b||€15.4b||€913.0m||35.8x|
|Mon, 01 Feb 2021||€16.7b||€15.1b||€877.7m||33.7x|
|Thu, 05 Nov 2020||€12.9b||€14.2b||€787.0m||29.5x|
|Sun, 09 Aug 2020||€14.9b||€14.0b||€770.5m||29.6x|
|Sat, 02 May 2020||€23.3b||€14.0b||€884.5m||26.1x|
|Tue, 04 Feb 2020||€28.9b||€13.8b||€889.2m||31.8x|
|Fri, 08 Nov 2019||€24.3b||€13.5b||€930.0m||25.6x|
|Thu, 01 Aug 2019||€29.3b||€13.1b||€867.3m||27.8x|
|Sun, 05 May 2019||€26.6b||€12.6b||€718.6m||30.2x|
|Wed, 06 Feb 2019||€26.3b||€12.1b||€672.5m||24.8x|
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 30.5x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the IT industry have declined 5.8% per year over the last three years, while revenues for these companies have grown 3.7% 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.
Which industries have driven the changes within the German IT industry?
|Data Processing Services||0%|
|Internet Services and Infrastructure||-4.18%|
Industry PE: Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 32.2x. However analysts expect its future annual earnings growth (9.2%) to be largely in line with prior year's earnings growth, so the market might believe analysts are underestimating its future growth since investors are willing to pay a bigger premium today. Meanwhile, investors are most pessimistic about the Internet Services and Infrastructure industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 15.5x.
Forecasted Growth: Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 17% over the next 5 years. However this is lower than its past earnings growth rate of 75% per year. Meanwhile, the IT Consulting industry is expected to see its earnings grow by 9.2% per year over the next few years.
Which companies have driven the market over the last 7 days?
SNP Schneider-Neureither & Partner
secunet Security Networks
DCI Database for Commerce and Industry
NorCom Information Technology GmbH KGaA