When Should You Buy Keywords Studios plc (LON:KWS)?
Nov 19
U.K. (FTSE) Tech Sector Analysis
UpdatedDec 01, 2023
DataAggregated Company Financials
Companies150
- 7D-0.3%
- 3M3.8%
- 1Y-1.3%
- YTD1.0%
In the last week, the Tech industry is flat overall, with Keywords Studios standing out by going down 8.1%. Furthermore, the industry has been flat for the past year as well. Earnings are forecast to grow by 20% annually.
Sector Valuation and Performance
Has the U.K. Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 01 Dec 2023 | UK£70.8b | UK£32.0b | UK£969.5m | 27.1x | 73x | 2.2x |
| Sun, 29 Oct 2023 | UK£66.1b | UK£32.0b | UK£1.0b | 26.3x | 66x | 2.1x |
| Tue, 26 Sep 2023 | UK£71.1b | UK£31.8b | UK£1.0b | 28.4x | 69.1x | 2.2x |
| Thu, 24 Aug 2023 | UK£70.1b | UK£30.8b | UK£1.0b | 28.5x | 67.7x | 2.3x |
| Sat, 22 Jul 2023 | UK£74.8b | UK£31.2b | UK£1.1b | 29.3x | 71.2x | 2.4x |
| Mon, 19 Jun 2023 | UK£75.2b | UK£31.1b | UK£1.1b | 29.5x | 70.1x | 2.4x |
| Wed, 17 May 2023 | UK£73.9b | UK£31.0b | UK£1.1b | 30.8x | 68.2x | 2.4x |
| Fri, 14 Apr 2023 | UK£72.7b | UK£30.8b | UK£1.3b | 31.1x | 56.9x | 2.4x |
| Sun, 12 Mar 2023 | UK£97.3b | UK£40.3b | UK£2.9b | 28.7x | 33.4x | 2.4x |
| Tue, 07 Feb 2023 | UK£99.8b | UK£39.8b | UK£2.8b | 30.2x | 35.8x | 2.5x |
| Thu, 05 Jan 2023 | UK£96.6b | UK£39.8b | UK£2.8b | 29.3x | 34.9x | 2.4x |
| Sat, 03 Dec 2022 | UK£101.2b | UK£39.4b | UK£2.8b | 29.2x | 36.7x | 2.6x |
| Mon, 31 Oct 2022 | UK£94.0b | UK£39.1b | UK£2.8b | 28.5x | 33.4x | 2.4x |
| Wed, 28 Sep 2022 | UK£93.2b | UK£39.6b | UK£2.7b | 30x | 34.2x | 2.4x |
| Fri, 26 Aug 2022 | UK£92.0b | UK£37.4b | UK£2.6b | 33.3x | 35.7x | 2.5x |
| Sun, 24 Jul 2022 | UK£85.7b | UK£37.0b | UK£2.9b | 32x | 29.1x | 2.3x |
| Tue, 21 Jun 2022 | UK£72.2b | UK£34.6b | UK£1.8b | 29.7x | 40x | 2.1x |
| Thu, 19 May 2022 | UK£73.5b | UK£34.0b | UK£1.9b | 30x | 39.2x | 2.2x |
| Sat, 16 Apr 2022 | UK£85.2b | UK£33.7b | UK£1.8b | 30.7x | 47.1x | 2.5x |
| Mon, 14 Mar 2022 | UK£84.3b | UK£33.0b | UK£1.8b | 30.2x | 47.6x | 2.6x |
| Wed, 09 Feb 2022 | UK£90.9b | UK£32.8b | UK£294.4m | 36.3x | 308.8x | 2.8x |
| Fri, 07 Jan 2022 | UK£100.0b | UK£30.9b | UK£276.3m | 41.3x | 362.1x | 3.2x |
| Sun, 05 Dec 2021 | UK£99.2b | UK£31.1b | UK£211.2m | 40.6x | 469.8x | 3.2x |
| Tue, 02 Nov 2021 | UK£104.4b | UK£30.5b | UK£179.2m | 45.9x | 582.7x | 3.4x |
| Thu, 30 Sep 2021 | UK£105.1b | UK£29.2b | UK£85.9m | 45.8x | 1223.1x | 3.6x |
| Sat, 28 Aug 2021 | UK£104.8b | UK£28.5b | UK£170.6m | 49.5x | 614.4x | 3.7x |
| Sun, 04 Jul 2021 | UK£85.0b | UK£28.0b | UK£137.9m | 45.2x | 616.4x | 3x |
| Wed, 07 Apr 2021 | UK£80.2b | UK£27.5b | -UK£553,205,057.35 | 43.7x | -145x | 2.9x |
| Sat, 09 Jan 2021 | UK£74.8b | UK£23.8b | -UK£1,325,085,321.26 | 42.4x | -56.4x | 3.1x |
Price to Earnings Ratio
-55.5x
Current Industry PE
- Investors are pessimistic on the British Information Technology 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 73.0x which is lower than its 3-year average PE of 137x.
- The 3-year average PS ratio of 3.0x is higher than the industry's current PS ratio of 2.2x.
Past Earnings Growth
- Total earnings for the Information Technology industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 11% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.K. Tech sector?
| GB Market | -0.55% | |
| Tech | -0.28% | |
| Communications | 3.59% | |
| Semiconductors | 0.66% | |
| Software | -0.20% | |
| IT | -0.41% | |
| Electronic Equipment and Components | -0.51% | |
| Tech Hardware | -16.76% | |
Industry PE
- Investors are most optimistic about the Software industry which is trading above its 3-year average PE ratio of 154x.
- Analysts are expecting annual earnings growth of 21.2%, which is lower than the prior year's growth of 24.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 94% over the next 5 years.
- However this is lower than its past earnings growth rate of 696% per year.
- In contrast, the Electronic Equipment and Components 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 | |
|---|---|---|---|---|---|
| SCT Softcat | UK£12.67 | 2.8% +UK£69.6m | -3.0% | PE22.5x | |
| IQG IQGeo Group | UK£2.94 | 22.5% +UK£33.3m | 47.0% | PS4.8x | |
| SPT Spirent Communications | UK£1.14 | 5.2% +UK£31.9m | -59.8% | PE11.7x | |
| TRCS Tracsis | UK£8.80 | 12.8% +UK£30.1m | -7.9% | PE38.9x | |
| NCC NCC Group | UK£1.21 | 8.4% +UK£29.4m | -43.4% | PS1.1x |
