Analysis Article • Jun 07
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- 7D-5.0%
- 3M1.1%
- 1Y-27.5%
- YTD-21.5%
Over the last 7 days, the IT industry has dropped 5.0%, driven by Capgemini declining 6.1%. On the other hand OVH Groupe is actually up 7.5%. However, the industry is down 27% over the past year. As for the next few years, earnings are expected to grow by 9.7% per annum.
Industry Valuation and Performance
Has the French IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 10 Jun 2026 | €26.3b | €36.8b | €2.2b | 13.7x | 12x | 0.7x |
| Fri, 08 May 2026 | €26.4b | €36.8b | €2.2b | 13.9x | 12.1x | 0.7x |
| Sun, 05 Apr 2026 | €25.4b | €36.8b | €2.2b | 12.1x | 11.5x | 0.7x |
| Tue, 03 Mar 2026 | €26.5b | €36.8b | €2.2b | 14.4x | 12.1x | 0.7x |
| Thu, 29 Jan 2026 | €32.0b | €36.4b | €2.2b | 16.8x | 14.6x | 0.9x |
| Sat, 27 Dec 2025 | €34.1b | €37.1b | €2.2b | 15.9x | 15.4x | 0.9x |
| Mon, 24 Nov 2025 | €31.3b | €37.1b | €2.2b | 14.7x | 14.2x | 0.8x |
| Wed, 22 Oct 2025 | €30.0b | €37.1b | €2.2b | 16.1x | 13.6x | 0.8x |
| Fri, 19 Sep 2025 | €31.2b | €37.1b | €2.3b | 15x | 13.8x | 0.8x |
| Sun, 17 Aug 2025 | €31.1b | €37.1b | €2.3b | 15.6x | 13.7x | 0.8x |
| Tue, 15 Jul 2025 | €34.9b | €46.8b | €2.6b | 15.3x | 13.2x | 0.7x |
| Thu, 12 Jun 2025 | €38.1b | €46.8b | €2.6b | 15.4x | 14.4x | 0.8x |
| Sat, 10 May 2025 | €36.8b | €46.7b | €2.6b | 15.1x | 14x | 0.8x |
| Mon, 07 Apr 2025 | €34.2b | €47.7b | €2.6b | 14.2x | 13.2x | 0.7x |
| Wed, 05 Mar 2025 | €37.3b | €39.6b | €2.4b | 15.9x | 15.8x | 0.9x |
| Fri, 31 Jan 2025 | €42.9b | €40.0b | €2.3b | 16.9x | 18.3x | 1.1x |
| Sun, 29 Dec 2024 | €40.4b | €40.0b | €2.3b | 16.6x | 17.2x | 1x |
| Tue, 26 Nov 2024 | €40.8b | €40.1b | €2.3b | 17.2x | 17.4x | 1x |
| Thu, 24 Oct 2024 | €46.0b | €39.7b | €2.3b | 17x | 19.9x | 1.2x |
| Sat, 21 Sep 2024 | €47.2b | €39.9b | €2.3b | 19.1x | 20.4x | 1.2x |
| Mon, 19 Aug 2024 | €45.5b | €40.0b | €2.3b | 17.6x | 19.7x | 1.1x |
| Wed, 17 Jul 2024 | €48.4b | €40.1b | €2.2b | 20.3x | 21.5x | 1.2x |
| Fri, 14 Jun 2024 | €49.1b | €40.1b | €2.2b | 21.7x | 21.8x | 1.2x |
| Sun, 12 May 2024 | €51.7b | €40.0b | €2.2b | 22.7x | 23x | 1.3x |
| Tue, 09 Apr 2024 | €54.5b | €39.7b | €2.3b | 22.2x | 23.9x | 1.4x |
| Thu, 07 Mar 2024 | €57.5b | €51.9b | €1.2b | 21.2x | 47.1x | 1.1x |
| Sat, 03 Feb 2024 | €55.2b | €54.3b | €1.5b | 19x | 36.4x | 1x |
| Mon, 01 Jan 2024 | €51.7b | €54.3b | €1.5b | 18.8x | 34.1x | 1x |
| Wed, 29 Nov 2023 | €49.1b | €54.3b | €1.5b | 17.2x | 32.4x | 0.9x |
| Fri, 27 Oct 2023 | €43.8b | €54.3b | €1.5b | 16.7x | 28.6x | 0.8x |
| Sun, 24 Sep 2023 | €46.6b | €54.0b | €1.6b | 17.1x | 29.9x | 0.9x |
| Tue, 22 Aug 2023 | €46.3b | €53.9b | €1.6b | 17.3x | 28.1x | 0.9x |
| Thu, 20 Jul 2023 | €50.9b | €52.6b | €1.6b | 19.6x | 31.9x | 1x |
| Sat, 17 Jun 2023 | €51.2b | €52.6b | €1.6b | 18.9x | 32.1x | 1x |
Price to Earnings Ratio
32.1x
Current Industry PE
- Investors are pessimistic on the French 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 12.0x which is lower than its 3-year average PE of 20.9x.
- The industry is trading close to its 3-year average PS ratio of 0.94x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 11% per year over the last three years.
- Meanwhile revenues for these companies have declined 11% per year.
- This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the French Tech industry?
| FR Market | 0.59% | |
| Tech | 2.69% | |
| IT | -5.00% | |
| Internet Services and Infrastructure | -3.92% | |
| IT Consulting | -5.00% | |
| Data Processing Services | -8.78% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 13.4%, which is higher than its past year's earnings decline of 14.4% per year.
- Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 9.6x.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 13% over the next 5 years.
- This is better than its past earnings decline of 14% per year.
- In contrast, the Data Processing Services industry is expected to see its earnings grow by 6.7% 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 | |
|---|---|---|---|---|---|
| AUB Aubay Société Anonyme | €57.00 | 3.4% +€24.2m | 13.3% | PE19x | |
| SWP Sword Group | €31.90 | 1.1% +€3.3m | -11.9% | PE15.8x | |
| ALKEY Keyrus | €7.44 | 2.5% +€2.9m | 0.3% | PE35.8x |
