Cancom's (ETR:COK) Soft Earnings Don't Show The Whole Picture
Apr 03
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- 7D5.7%
- 3M-18.0%
- 1Y-9.1%
- YTD-18.0%
In the last week, the IT industry is up 2.6%, with Bechtle up 6.4%. Meanwhile, Kontron actually underperformed within the industry, shrinking 7.2% in the last week. In the past year, the industry is down 9.3%. As for the next few years, earnings are expected to grow by 14% 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 |
|---|---|---|---|---|---|---|
| Fri, 03 Apr 2026 | €13.4b | €17.2b | €751.8m | 25.9x | 17.9x | 0.8x |
| Sun, 01 Mar 2026 | €14.1b | €17.4b | €736.0m | 27.4x | 19.2x | 0.8x |
| Tue, 27 Jan 2026 | €17.0b | €17.4b | €743.1m | 26.7x | 22.9x | 1x |
| Thu, 25 Dec 2025 | €16.3b | €17.5b | €744.4m | 25.3x | 21.9x | 0.9x |
| Sat, 22 Nov 2025 | €15.5b | €17.4b | €752.8m | 22.5x | 20.5x | 0.9x |
| Mon, 20 Oct 2025 | €15.7b | €17.4b | €736.8m | 21.4x | 21.3x | 0.9x |
| Wed, 17 Sep 2025 | €17.0b | €17.4b | €735.3m | 26.1x | 23.2x | 1x |
| Fri, 15 Aug 2025 | €17.3b | €17.4b | €743.0m | 25.4x | 23.3x | 1x |
| Sun, 13 Jul 2025 | €18.0b | €17.3b | €684.2m | 26.9x | 26.3x | 1x |
| Tue, 10 Jun 2025 | €18.1b | €17.3b | €684.1m | 27.1x | 26.5x | 1x |
| Thu, 08 May 2025 | €16.7b | €17.2b | €708.1m | 25.4x | 23.5x | 1x |
| Sat, 05 Apr 2025 | €14.9b | €17.0b | €711.6m | 22x | 20.9x | 0.9x |
| Mon, 03 Mar 2025 | €11.1b | €15.8b | €547.3m | 19.4x | 20.3x | 0.7x |
| Wed, 29 Jan 2025 | €10.6b | €15.8b | €562.0m | 19.4x | 18.9x | 0.7x |
| Fri, 27 Dec 2024 | €10.6b | €15.8b | €562.0m | 18.1x | 18.8x | 0.7x |
| Sun, 24 Nov 2024 | €10.7b | €15.8b | €556.1m | 18.1x | 19.2x | 0.7x |
| Tue, 22 Oct 2024 | €11.2b | €15.5b | €551.7m | 19.4x | 20.3x | 0.7x |
| Thu, 19 Sep 2024 | €11.1b | €15.5b | €563.0m | 18.7x | 19.7x | 0.7x |
| Sat, 17 Aug 2024 | €11.5b | €15.2b | €558.0m | 18.7x | 20.6x | 0.8x |
| Mon, 15 Jul 2024 | €12.4b | €15.3b | €546.1m | 20.1x | 22.7x | 0.8x |
| Wed, 12 Jun 2024 | €13.4b | €15.3b | €545.4m | 20.7x | 24.6x | 0.9x |
| Fri, 10 May 2024 | €13.0b | €15.0b | €547.3m | 20.6x | 23.7x | 0.9x |
| Sun, 07 Apr 2024 | €13.6b | €15.0b | €546.8m | 21x | 25x | 0.9x |
| Tue, 05 Mar 2024 | €13.9b | €14.7b | €454.9m | 23.4x | 30.6x | 0.9x |
| Thu, 01 Feb 2024 | €14.0b | €14.8b | €458.7m | 23x | 30.5x | 0.9x |
| Sat, 30 Dec 2023 | €13.6b | €14.9b | €464.3m | 21.6x | 29.3x | 0.9x |
| Mon, 27 Nov 2023 | €13.4b | €14.8b | €462.3m | 21.8x | 29.1x | 0.9x |
| Wed, 25 Oct 2023 | €12.5b | €14.6b | €457.9m | 19.4x | 27.3x | 0.9x |
| Fri, 22 Sep 2023 | €12.9b | €14.6b | €458.4m | 19.4x | 28.1x | 0.9x |
| Sun, 20 Aug 2023 | €13.2b | €14.6b | €458.6m | 19.4x | 28.8x | 0.9x |
| Tue, 18 Jul 2023 | €12.7b | €14.3b | €487.8m | 18.1x | 26.1x | 0.9x |
| Thu, 15 Jun 2023 | €13.2b | €14.3b | €487.3m | 20x | 27.1x | 0.9x |
| Sat, 13 May 2023 | €13.2b | €14.0b | €501.8m | 20.1x | 26.3x | 0.9x |
| Mon, 10 Apr 2023 | €13.9b | €13.9b | €496.0m | 21.3x | 28.1x | 1x |
Price to Earnings Ratio
28.1x
Current Industry PE
- Investors are pessimistic on the German IT 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 17.9x which is lower than its 3-year average PE of 24.0x.
- The industry is trading close to its 3-year average PS ratio of 0.87x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 15% per year over the last three years.
- Revenues for these companies have grown 7.5% 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 German Tech industry?
| DE Market | 1.86% | |
| Tech | 2.10% | |
| IT | 5.65% | |
| IT Consulting | 6.09% | |
| Internet Services and Infrastructure | 4.46% | |
| Data Processing Services | 0% | 0 |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 23.1x.
- Analysts are expecting annual earnings growth of 13.0%, which is higher than its past year's earnings decline of 16.2% per year.
- Investors are most pessimistic about the Internet Services and Infrastructure industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 3.4x.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 15% over the next 5 years.
- This is better than its past earnings decline of 22% per year.
- In contrast, the IT Consulting 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 | |
|---|---|---|---|---|---|
| BC8 Bechtle | €29.48 | 7.6% +€262.1m | -15.4% | PE16.2x | |
| IOS IONOS Group | €25.25 | 4.8% +€157.4m | -6.1% | PE17.1x | |
| KTN Kontron | €19.23 | 7.7% +€86.6m | -13.2% | PE8.7x | |
| COK Cancom | €25.20 | 12.0% +€79.8m | 2.2% | PE25.9x | |
| GFT GFT Technologies | €18.30 | 9.6% +€41.9m | -19.9% | PE14.6x |
