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U.K. (FTSE) Tech Sector Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies157
  • 7D-5.0%
  • 3M-11.6%
  • 1Y17.7%
  • YTD5.9%

Over the last 7 days, the Tech industry has dropped 5.0%, driven by declines in Halma and AVEVA Group of 6.1% and 6.9%, respectively. Meanwhile, Blue Prism Group actually outperformed within the industry, gaining 6.0% in the last week. This takes the industry's 12 month performance to a gain of 18%.

Sector Valuation and Performance

Has the U.K. Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Sun, 28 Nov 2021UK£99.5bUK£30.9bUK£220.9m42.3x
Tue, 26 Oct 2021UK£104.6bUK£30.4bUK£180.2m46.7x
Thu, 23 Sep 2021UK£111.8bUK£29.1bUK£107.1m48.9x
Sat, 21 Aug 2021UK£103.4bUK£28.5bUK£170.6m47.6x
Sat, 05 Jun 2021UK£84.0bUK£27.6b-UK£201,800,711.9045.3x
Tue, 09 Mar 2021UK£74.8bUK£23.7b-UK£868,083,256.8247.9x
Mon, 30 Nov 2020UK£69.0bUK£23.4b-UK£1,243,280,491.2036.2x
Thu, 03 Sep 2020UK£68.1bUK£23.3b-UK£339,605,330.1631.3x
Sun, 07 Jun 2020UK£61.7bUK£23.5bUK£258.4m27x
Sat, 29 Feb 2020UK£60.7bUK£23.3bUK£916.5m26.7x
Tue, 03 Dec 2019UK£65.8bUK£23.1bUK£1.2b26.9x
Fri, 06 Sep 2019UK£60.1bUK£22.4bUK£984.6m26.2x
Mon, 10 Jun 2019UK£63.5bUK£21.8bUK£1.1b27.8x
Sun, 03 Mar 2019UK£55.0bUK£21.0bUK£1.4b24.4x
Wed, 05 Dec 2018UK£50.5bUK£20.5bUK£1.7b22.9x
PE Ratio

22.9x

Total Market Cap: UK£50.5bTotal Earnings: UK£1.7bTotal Revenue: UK£20.5b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 42.3x which is higher than its 3-year average PE of 33.2x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: The earnings for companies in the Information Technology industry have declined 49% per year over the last three years, while revenues for these companies have grown 15% 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, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.K. Tech sector?

Software-3.92%
IT-4.75%
Tech Hardware-5.09%
Semiconductors-5.36%
Communications-5.89%
Electronic Equipment and Components-7.01%

Industry PE: Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 81.1x. However analysts are expecting annual earnings growth of 65%, which is lower than the prior year's growth of 1,384% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Tech Hardware industry, which is trading below its 3-year average of 24.5x.

Forecasted Growth: Analysts are most optimistic on the Tech Hardware industry, expecting annual earnings growth of 91% over the next 5 years. This is better than it's past earnings growth rate of 11% per year. Meanwhile, the Electronic Equipment and Components industry is expected to see its earnings grow by 7.5% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
PRSM Blue Prism Group6.0%+UK£70.8m-9.8%PS8.1x
AVST Avast1.1%+UK£66.3m20.7%PE28.7x
UNG Universe Group119.0%+UK£16.4m180.5%PS1.4x
DEV Dev Clever Holdings8.5%+UK£15.1m323.8%PS58.9x
AWE Alphawave IP Group1.0%+UK£13.3mn/aPE148.8x
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Latest News

SCT

UK£18.35

Softcat

7D

-6.7%

1Y

60.1%

AVST

UK£6.02

Avast

7D

1.1%

1Y

20.7%

RSW

UK£45.82

Renishaw

7D

-11.0%

1Y

-18.0%