What Novabase S.G.P.S., S.A.'s (FRA:NVQ) 27% Share Price Gain Is Not Telling You
Jun 06
German (DAX) IT Industry Analysis
UpdatedJun 06, 2024
DataAggregated Company Financials
Companies27
- 7D1.0%
- 3M-2.9%
- 1Y8.7%
- YTD1.6%
Last week, the IT industry hasn't moved much but IONOS Group is up 7.3% in that time. As for the the longer term, the industry is up 8.7% over the past 12 months. Looking forward, earnings are forecast to grow by 16% 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 |
|---|---|---|---|---|---|---|
| Thu, 06 Jun 2024 | €13.5b | €15.3b | €545.4m | 20.4x | 24.7x | 0.9x |
| Sat, 04 May 2024 | €13.1b | €15.0b | €547.5m | 18.8x | 24x | 0.9x |
| Mon, 01 Apr 2024 | €13.6b | €15.0b | €487.8m | 22.2x | 27.9x | 0.9x |
| Wed, 28 Feb 2024 | €13.8b | €14.7b | €455.0m | 23.3x | 30.4x | 0.9x |
| Fri, 26 Jan 2024 | €14.1b | €14.8b | €458.7m | 22.8x | 30.6x | 0.9x |
| Sun, 24 Dec 2023 | €13.5b | €14.9b | €464.3m | 21.4x | 29x | 0.9x |
| Tue, 21 Nov 2023 | €13.8b | €14.9b | €458.2m | 21.3x | 30x | 0.9x |
| Thu, 19 Oct 2023 | €12.6b | €14.6b | €457.9m | 19.4x | 27.4x | 0.9x |
| Sat, 16 Sep 2023 | €13.2b | €14.6b | €453.8m | 21.5x | 29x | 0.9x |
| Mon, 14 Aug 2023 | €13.1b | €14.5b | €481.8m | 17.5x | 27.2x | 0.9x |
| Wed, 12 Jul 2023 | €12.4b | €14.3b | €487.8m | 18x | 25.4x | 0.9x |
| Fri, 09 Jun 2023 | €12.6b | €14.3b | €491.9m | 18.4x | 25.5x | 0.9x |
| Sun, 07 May 2023 | €14.1b | €14.0b | €500.1m | 21.3x | 28.3x | 1x |
| Tue, 04 Apr 2023 | €14.2b | €13.8b | €497.4m | 21.2x | 28.5x | 1x |
| Thu, 02 Mar 2023 | €14.5b | €13.8b | €579.4m | 24.4x | 24.9x | 1.1x |
| Sat, 28 Jan 2023 | €14.6b | €13.7b | €576.5m | 25.2x | 25.3x | 1.1x |
| Mon, 26 Dec 2022 | €12.6b | €13.7b | €576.6m | 22.3x | 21.8x | 0.9x |
| Wed, 23 Nov 2022 | €13.1b | €13.5b | €584.4m | 22x | 22.5x | 1x |
| Fri, 21 Oct 2022 | €12.2b | €13.2b | €594.1m | 18.1x | 20.5x | 0.9x |
| Sun, 18 Sep 2022 | €13.0b | €13.2b | €594.4m | 20.5x | 21.9x | 1x |
| Tue, 16 Aug 2022 | €15.3b | €13.1b | €596.4m | 25.3x | 25.7x | 1.2x |
| Thu, 14 Jul 2022 | €14.0b | €12.8b | €574.3m | 23.1x | 24.4x | 1.1x |
| Sat, 11 Jun 2022 | €15.6b | €12.8b | €571.2m | 27.1x | 27.3x | 1.2x |
| Mon, 09 May 2022 | €16.1b | €12.5b | €560.1m | 24.6x | 28.7x | 1.3x |
| Wed, 06 Apr 2022 | €19.6b | €12.3b | €541.5m | 29.2x | 36.2x | 1.6x |
| Fri, 04 Mar 2022 | €17.4b | €13.6b | €568.3m | 28.4x | 30.6x | 1.3x |
| Sun, 30 Jan 2022 | €18.5b | €13.5b | €560.9m | 30.6x | 33x | 1.4x |
| Tue, 28 Dec 2021 | €22.1b | €13.5b | €561.2m | 34.1x | 39.5x | 1.6x |
| Thu, 25 Nov 2021 | €21.4b | €13.5b | €546.8m | 34.1x | 39.1x | 1.6x |
| Sat, 23 Oct 2021 | €20.9b | €13.2b | €489.2m | 36.4x | 42.6x | 1.6x |
| Mon, 20 Sep 2021 | €21.0b | €13.2b | €488.9m | 38x | 43x | 1.6x |
| Wed, 18 Aug 2021 | €19.4b | €15.8b | €970.6m | 36x | 20x | 1.2x |
Price to Earnings Ratio
18x
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 24.7x which is lower than its 3-year average PE of 28.2x.
- The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.88x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 17% 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 | 0.88% | |
| Tech | -1.34% | |
| IT | 0.97% | |
| IT Consulting | 1.00% | |
| Data Processing Services | 0% | |
| Internet Services and Infrastructure | -2.11% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 28.3x.
- Analysts are expecting annual earnings growth of 15.5%, which is higher than its past year's earnings decline of 0.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 106% over the next 5 years.
- This is better than its past earnings decline of 5.6% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 15% 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 | |
|---|---|---|---|---|---|
| IOS IONOS Group | €26.50 | 7.3% +€249.5m | 103.2% | PE24.3x | |
| SANT Kontron | €22.26 | 4.9% +€64.2m | 20.3% | PE18.3x | |
| ADN1 adesso | €101.20 | 5.3% +€33.3m | -12.8% | PS0.6x | |
| GFT GFT Technologies | €28.00 | 3.7% +€26.3m | -0.8% | PE15.2x | |
| NVQ Novabase S.G.P.S | €8.00 | 9.6% +€18.1m | 60.1% | PE68.4x |
