Returns On Capital At adesso (ETR:ADN1) Have Stalled
Jan 26
German (DAX) IT Industry Analysis
UpdatedJan 31, 2023
DataAggregated Company Financials
Companies33
- 7D1.7%
- 3M17.3%
- 1Y-23.2%
- YTD14.2%
Over the last 7 days, the IT industry has risen 1.7%, driven by gains from Bechtle of 4.6%. However, the industry is down 23% over the past year. As for the next few years, earnings are expected to grow by 12% per annum.
Industry Valuation and Performance
Has the German IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Jan 2023 | €14.5b | €13.7b | €576.5m | 25.3x | 25.2x | 1.1x |
| Thu, 29 Dec 2022 | €12.5b | €13.7b | €576.6m | 22.1x | 21.6x | 0.9x |
| Sat, 26 Nov 2022 | €13.5b | €13.5b | €581.5m | 23.4x | 23.2x | 1x |
| Mon, 24 Oct 2022 | €12.2b | €13.2b | €594.1m | 18.7x | 20.5x | 0.9x |
| Wed, 21 Sep 2022 | €12.7b | €13.1b | €594.4m | 20x | 21.3x | 1x |
| Fri, 19 Aug 2022 | €15.2b | €13.2b | €584.6m | 25.9x | 26x | 1.2x |
| Sun, 17 Jul 2022 | €13.8b | €12.8b | €574.3m | 22.9x | 24.1x | 1.1x |
| Tue, 14 Jun 2022 | €14.9b | €12.8b | €573.6m | 26.2x | 26x | 1.2x |
| Thu, 12 May 2022 | €15.5b | €12.5b | €572.5m | 21.7x | 27.1x | 1.2x |
| Sat, 09 Apr 2022 | €18.7b | €12.3b | €541.5m | 28.3x | 34.5x | 1.5x |
| Mon, 07 Mar 2022 | €16.7b | €13.6b | €568.3m | 27x | 29.3x | 1.2x |
| Wed, 02 Feb 2022 | €19.2b | €13.5b | €560.9m | 30.9x | 34.2x | 1.4x |
| Fri, 31 Dec 2021 | €22.2b | €13.5b | €561.2m | 34.5x | 39.6x | 1.6x |
| Sun, 28 Nov 2021 | €21.1b | €13.5b | €553.5m | 33.4x | 38.1x | 1.6x |
| Tue, 26 Oct 2021 | €21.1b | €13.2b | €489.3m | 37.6x | 43.2x | 1.6x |
| Thu, 23 Sep 2021 | €20.6b | €13.2b | €488.9m | 36.4x | 42.2x | 1.6x |
| Sat, 21 Aug 2021 | €19.6b | €15.8b | €970.6m | 36.1x | 20.2x | 1.2x |
| Sat, 05 Jun 2021 | €17.3b | €15.4b | €913.0m | 37.4x | 19x | 1.1x |
| Tue, 09 Mar 2021 | €16.4b | €15.1b | €877.7m | 36.1x | 18.7x | 1.1x |
| Mon, 30 Nov 2020 | €15.9b | €14.2b | €787.0m | 34x | 20.3x | 1.1x |
| Thu, 03 Sep 2020 | €15.5b | €14.0b | €770.5m | 30.1x | 20.1x | 1.1x |
| Sun, 07 Jun 2020 | €25.6b | €14.0b | €884.5m | 25.3x | 28.9x | 1.8x |
| Sat, 29 Feb 2020 | €25.6b | €13.8b | €889.2m | 26.5x | 28.8x | 1.9x |
Price to Earnings Ratio
32.5x
Current Industry PE
- Investors are relatively neutral on the German IT industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 25.4x.
- 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 IT industry have declined 13% per year over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, 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 industry?
| DE Market | 0.26% | |
| Tech | 0.29% | |
| IT | 1.67% | |
| IT Consulting | 1.69% | |
| Internet Services and Infrastructure | -0.42% | |
| Data Processing Services | -5.52% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 84% over the next 5 years.
- However this is lower than its past earnings growth rate of 146% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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 | |
|---|---|---|---|---|---|
| BC8 Bechtle | €38.62 | 4.6% +€215.5m | -26.7% | PE19.7x | |
| NA9 Nagarro | €131.40 | 4.3% +€73.8m | -16.3% | PE25.6x | |
| YSN secunet Security Networks | €219.00 | 4.0% +€55.0m | -29.6% | PE38.1x | |
| SANT Kontron | €19.12 | 1.3% +€15.3m | 18.1% | PE23.5x | |
| KSC KPS | €3.90 | 9.6% +€12.7m | -15.6% | PE20.8x |
