Returns On Capital Signal Tricky Times Ahead For SAP (ETR:SAP)
Dec 08
German (DAX) Software Industry Analysis
UpdatedDec 08, 2022
DataAggregated Company Financials
Companies44
- 7D-1.5%
- 3M15.7%
- 1Y-20.3%
- YTD-23.4%
The Software is pretty flat in the last 7 days, but Nemetschek has stood out, gaining 3.1%. Unfortunately though, the industry is down 21% over the past 12 months. Looking forward, earnings are forecast to grow by 28% annually.
Industry Valuation and Performance
Has the German Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 08 Dec 2022 | €132.4b | €35.9b | €3.8b | 26.7x | 34.8x | 3.7x |
| Sat, 05 Nov 2022 | €124.1b | €35.9b | €3.8b | 23.2x | 32.5x | 3.5x |
| Mon, 03 Oct 2022 | €114.1b | €34.8b | €4.5b | 22.1x | 25.1x | 3.3x |
| Wed, 31 Aug 2022 | €118.3b | €34.5b | €4.2b | 26.5x | 27.9x | 3.4x |
| Fri, 29 Jul 2022 | €123.5b | €34.4b | €4.2b | 28.4x | 29.1x | 3.6x |
| Sun, 26 Jun 2022 | €128.7b | €33.5b | €5.1b | 26x | 25.5x | 3.8x |
| Tue, 24 May 2022 | €131.5b | €33.5b | €5.0b | 30.3x | 26.1x | 3.9x |
| Thu, 21 Apr 2022 | €141.7b | €32.6b | €5.3b | 27.3x | 26.7x | 4.3x |
| Sat, 19 Mar 2022 | €150.2b | €32.8b | €5.3b | 32.1x | 28.3x | 4.6x |
| Mon, 14 Feb 2022 | €155.2b | €32.7b | €5.3b | 35x | 29.3x | 4.7x |
| Wed, 12 Jan 2022 | €174.4b | €32.2b | €5.8b | 35.4x | 30.3x | 5.4x |
| Fri, 10 Dec 2021 | €175.1b | €32.2b | €5.8b | 35.2x | 30.2x | 5.4x |
| Sun, 07 Nov 2021 | €188.1b | €32.6b | €5.8b | 41.2x | 32.5x | 5.8x |
| Tue, 05 Oct 2021 | €169.3b | €32.2b | €6.0b | 40.6x | 28.4x | 5.3x |
| Thu, 02 Sep 2021 | €182.9b | €32.1b | €6.0b | 41.4x | 30.5x | 5.7x |
| Sat, 31 Jul 2021 | €175.1b | €32.1b | €6.0b | 43.1x | 29.2x | 5.5x |
| Tue, 04 May 2021 | €165.8b | €31.6b | €5.7b | 37.8x | 29.3x | 5.2x |
| Fri, 05 Feb 2021 | €152.1b | €31.7b | €5.4b | 39.7x | 28x | 4.8x |
| Mon, 09 Nov 2020 | €132.9b | €32.1b | €5.2b | 22x | 25.6x | 4.1x |
| Sun, 02 Aug 2020 | €185.2b | €32.3b | €4.9b | 26x | 37.6x | 5.7x |
| Wed, 06 May 2020 | €152.6b | €32.1b | €4.6b | 22x | 33x | 4.8x |
| Sat, 08 Feb 2020 | €161.3b | €31.5b | €3.7b | 22.9x | 43.4x | 5.1x |
Price to Earnings Ratio
44.1x
Current Industry PE
- Investors are optimistic on the German Software industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 35.0x which is higher than its 3-year average PE of 31.1x.
- The 3-year average PS ratio of 4.8x is higher than the industry's current PS ratio of 3.7x.
Past Earnings Growth
- The earnings for companies in the Software industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 4.4% 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 and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the German Tech industry?
| DE Market | -1.21% | |
| Tech | -1.38% | |
| Software | -1.54% | |
| Systems Software | 0.15% | |
| Application Software | -1.61% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 30.2x.
- Analysts are expecting annual earnings growth of 26.2%, which is higher than its past year's earnings growth of 14.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 71% over the next 5 years.
- This is better than its past earnings decline of 14% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 26% 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 | |
|---|---|---|---|---|---|
| NEM Nemetschek | €48.04 | 3.1% +€166.3m | -56.5% | PE33.5x | |
| TMV TeamViewer | €12.57 | 2.2% +€47.8m | 7.8% | PE31.2x | |
| SOW Software | €24.82 | 1.8% +€32.6m | -36.8% | PE37.6x | |
| AOF ATOSS Software | €147.60 | 1.8% +€20.7m | -31.8% | PE57.5x | |
| IVU IVU Traffic Technologies | €17.50 | 7.1% +€20.0m | -12.5% | PE30.4x |
