Narrative Update • May 31
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- 7D2.9%
- 3M9.6%
- 1Y-15.7%
- YTD-8.4%
The IT industry is up 3.0% in the last week, with Bechtle up 9.4%. In contrast, the industry has lost 15% in the last 12 months. Looking forward, earnings are forecast to grow by 13% annually.
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 |
|---|---|---|---|---|---|---|
| Mon, 01 Jun 2026 | €15.5b | €17.6b | €816.3m | 24.4x | 18.9x | 0.9x |
| Wed, 29 Apr 2026 | €14.1b | €17.4b | €787.2m | 21.3x | 17.9x | 0.8x |
| Fri, 27 Mar 2026 | €12.7b | €17.1b | €731.6m | 28.2x | 17.3x | 0.7x |
| Sun, 22 Feb 2026 | €14.1b | €17.4b | €736.0m | 27.1x | 19.2x | 0.8x |
| Tue, 20 Jan 2026 | €16.6b | €17.4b | €743.1m | 26.3x | 22.3x | 1x |
| Thu, 18 Dec 2025 | €16.1b | €17.5b | €744.4m | 25.3x | 21.7x | 0.9x |
| Sat, 15 Nov 2025 | €15.7b | €17.3b | €748.1m | 23.6x | 20.9x | 0.9x |
| Mon, 13 Oct 2025 | €16.0b | €17.4b | €736.8m | 21.6x | 21.7x | 0.9x |
| Wed, 10 Sep 2025 | €16.7b | €17.4b | €735.5m | 25.2x | 22.7x | 1x |
| Fri, 08 Aug 2025 | €17.6b | €17.4b | €728.7m | 27x | 24.1x | 1x |
| Sun, 06 Jul 2025 | €17.4b | €17.3b | €684.2m | 27.1x | 25.5x | 1x |
| Tue, 03 Jun 2025 | €17.9b | €17.3b | €684.1m | 25.9x | 26.1x | 1x |
| Thu, 01 May 2025 | €15.9b | €16.7b | €690.1m | 22.2x | 23x | 0.9x |
| Sat, 29 Mar 2025 | €15.7b | €17.4b | €726.8m | 19.3x | 21.6x | 0.9x |
| Mon, 24 Feb 2025 | €11.3b | €15.8b | €547.3m | 19.4x | 20.6x | 0.7x |
| Wed, 22 Jan 2025 | €10.7b | €15.8b | €562.0m | 19.1x | 19x | 0.7x |
| Fri, 20 Dec 2024 | €10.5b | €15.8b | €558.4m | 19x | 18.8x | 0.7x |
| Sun, 17 Nov 2024 | €10.7b | €15.8b | €559.6m | 18.8x | 19.2x | 0.7x |
| Tue, 15 Oct 2024 | €11.4b | €15.5b | €551.7m | 20.3x | 20.6x | 0.7x |
| Thu, 12 Sep 2024 | €10.9b | €15.5b | €563.0m | 18.4x | 19.4x | 0.7x |
| Sat, 10 Aug 2024 | €11.6b | €15.5b | €561.8m | 18.8x | 20.7x | 0.8x |
| Mon, 08 Jul 2024 | €12.6b | €15.3b | €546.1m | 19.6x | 23.1x | 0.8x |
| Wed, 05 Jun 2024 | €13.3b | €15.3b | €546.1m | 19.6x | 24.4x | 0.9x |
| Fri, 03 May 2024 | €13.0b | €15.0b | €546.8m | 20.8x | 23.8x | 0.9x |
| Sun, 31 Mar 2024 | €13.6b | €15.0b | €484.4m | 22.2x | 28.1x | 0.9x |
| Tue, 27 Feb 2024 | €13.7b | €14.7b | €455.0m | 23.1x | 30.2x | 0.9x |
| Thu, 25 Jan 2024 | €13.8b | €14.8b | €458.7m | 22.7x | 30.1x | 0.9x |
| Sat, 23 Dec 2023 | €13.5b | €14.9b | €464.3m | 21.4x | 29x | 0.9x |
| Mon, 20 Nov 2023 | €13.6b | €14.9b | €458.2m | 21.5x | 29.7x | 0.9x |
| Wed, 18 Oct 2023 | €12.7b | €14.6b | €457.9m | 18.9x | 27.7x | 0.9x |
| Fri, 15 Sep 2023 | €13.2b | €14.6b | €453.8m | 21.5x | 29x | 0.9x |
| Sun, 13 Aug 2023 | €13.2b | €14.5b | €481.8m | 17.5x | 27.3x | 0.9x |
| Tue, 11 Jul 2023 | €12.4b | €14.3b | €487.8m | 18x | 25.5x | 0.9x |
| Thu, 08 Jun 2023 | €12.5b | €13.8b | €491.8m | 20.5x | 25.5x | 0.9x |
Price to Earnings Ratio
25.5x
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 18.9x which is lower than its 3-year average PE of 23.5x.
- The industry is trading close to its 3-year average PS ratio of 0.86x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 19% per year over the last three years.
- Revenues for these companies have grown 8.4% 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 | -0.78% | |
| Tech | 2.39% | |
| IT | 2.87% | |
| IT Consulting | 3.60% | |
| Internet Services and Infrastructure | 0.82% | |
| 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 22.7x.
- Analysts are expecting annual earnings growth of 12.5%, which is higher than its past year's earnings growth of 3.8% 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 4.5x.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 15% over the next 5 years.
- However this is lower than its past earnings growth rate of 71% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 12% 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 | €33.42 | 7.9% +€307.4m | -13.7% | PE17.9x | |
| COK Cancom | €28.30 | 5.0% +€38.8m | -2.4% | PE24.4x | |
| IOS IONOS Group | €28.14 | 0.8% +€30.2m | -32.4% | PE17.3x | |
| YSN secunet Security Networks | €208.00 | 2.0% +€25.9m | -1.0% | PE45.1x | |
| D6H0 DATAGROUP | €77.49 | 4.0% +€24.8m | 35.2% | PE33.8x |