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U.K. (FTSE) IT Industry Analysis

UpdatedApr 27, 2024
DataAggregated Company Financials
Companies23
  • 7D2.0%
  • 3M-5.9%
  • 1Y-10.0%
  • YTD-3.1%

In the last week, IT has been flat. As for the longer term, the industry has declined 9.3% in the last year. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

Has the U.K. IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 27 Apr 2024UK£9.9bUK£10.2bUK£374.8m27.7x26.3x1x
Mon, 25 Mar 2024UK£10.2bUK£10.5bUK£352.7m26.6x28.9x1x
Wed, 21 Feb 2024UK£10.8bUK£10.8bUK£359.4m24.9x30x1x
Fri, 19 Jan 2024UK£10.6bUK£12.8bUK£376.2m25.2x28.3x0.8x
Sun, 17 Dec 2023UK£10.4bUK£12.8bUK£379.5m23.5x27.4x0.8x
Tue, 14 Nov 2023UK£10.3bUK£13.4bUK£380.0m24.7x27x0.8x
Thu, 12 Oct 2023UK£10.9bUK£13.4bUK£371.5m26x29.3x0.8x
Sat, 09 Sep 2023UK£11.4bUK£12.6bUK£389.5m28x29.2x0.9x
Mon, 07 Aug 2023UK£10.9bUK£12.5bUK£404.9m26.6x27x0.9x
Wed, 05 Jul 2023UK£11.1bUK£12.5bUK£427.6m26.3x25.9x0.9x
Fri, 02 Jun 2023UK£11.3bUK£12.5bUK£424.0m26.3x26.6x0.9x
Sun, 30 Apr 2023UK£11.8bUK£12.4bUK£422.8m26.6x27.8x0.9x
Tue, 28 Mar 2023UK£11.6bUK£13.2bUK£422.4m27.5x27.4x0.9x
Thu, 23 Feb 2023UK£37.4bUK£22.0bUK£1.8b28.5x20.4x1.7x
Sat, 21 Jan 2023UK£36.2bUK£21.9bUK£1.8b28x20.2x1.7x
Mon, 19 Dec 2022UK£36.3bUK£21.7bUK£1.8b27.3x20.6x1.7x
Wed, 16 Nov 2022UK£36.9bUK£21.7bUK£1.8b29x20.6x1.7x
Fri, 14 Oct 2022UK£140.3bUK£21.6bUK£1.6b25.6x85.1x6.5x
Sun, 11 Sep 2022UK£33.4bUK£21.5bUK£1.7b28.7x20.1x1.6x
Tue, 09 Aug 2022UK£32.6bUK£20.5bUK£1.6b28.7x20.4x1.6x
Thu, 07 Jul 2022UK£19.6bUK£18.2bUK£822.9m28.7x23.8x1.1x
Sat, 04 Jun 2022UK£20.4bUK£18.0bUK£805.3m41.5x25.3x1.1x
Mon, 02 May 2022UK£22.0bUK£17.9bUK£787.1m36.2x27.9x1.2x
Wed, 30 Mar 2022UK£26.4bUK£17.8bUK£759.0m35.9x34.7x1.5x
Fri, 25 Feb 2022UK£25.8bUK£17.2bUK£771.0m33.8x33.5x1.5x
Sun, 23 Jan 2022UK£28.5bUK£15.5bUK£772.8m37.9x36.9x1.8x
Tue, 21 Dec 2021UK£29.1bUK£15.5bUK£777.5m35.8x37.4x1.9x
Thu, 18 Nov 2021UK£31.9bUK£15.4bUK£734.0m43.5x43.4x2.1x
Sat, 16 Oct 2021UK£32.9bUK£15.1bUK£722.4m46.2x45.6x2.2x
Mon, 13 Sep 2021UK£31.7bUK£13.9bUK£703.2m48.9x45.1x2.3x
Wed, 11 Aug 2021UK£30.6bUK£13.9bUK£661.1m45x46.2x2.2x
Sun, 06 Jun 2021UK£19.5bUK£13.1bUK£471.6m42.5x41.3x1.5x
Price to Earnings Ratio

42.4x


Total Market Cap: UK£20.0bTotal Earnings: UK£471.6mTotal Revenue: UK£13.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 37.8x202220232024
Current Industry PE
  • Investors are pessimistic on the British 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 28.1x which is lower than its 3-year average PE of 37.8x.
  • The 3-year average PS ratio of 1.9x is higher than the industry's current PS ratio of 0.96x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 8.9% per year over the last three years,
  • Revenues have also declined 7.4% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

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

GB Market2.84%
Tech3.96%
IT1.99%
IT Consulting2.26%
Data Processing Services1.22%
Internet Services and Infrastructure-2.49%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 101x.
    • Analysts are expecting annual earnings growth of 104.9%, which is higher than its past year's earnings decline of 10.0% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 105% over the next 5 years.
  • This is better than its past earnings decline of 10.0% 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?

CompanyLast Price7D1YValuation
CCC ComputacenterUK£25.723.0%
+UK£83.5m		12.0%PE14.7x
SCT SoftcatUK£15.761.7%
+UK£51.8m		17.9%PE27.7x
KNOS Kainos GroupUK£9.503.9%
+UK£45.3m		-23.4%PE28.5x
NCC NCC GroupUK£1.3410.0%
+UK£38.1m		25.1%PS1.3x
MTEC Made Tech GroupUK£0.1445.9%
+UK£6.3m		-50.5%PS0.5x
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UK£0.60

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3.4%

1Y

19.8%

RCN

UK£1.42

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7D

-0.5%

1Y

10.3%

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UK£0.14

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7D

45.9%

1Y

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KNOS

UK£9.50

Kainos Group

7D

3.9%

1Y

-23.4%

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KWS

UK£11.39

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7D

-2.5%

1Y

-57.8%

RCGH

UK£0.048

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7D

-17.4%

1Y

-76.8%

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UK£1.29

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7D

-3.7%

1Y

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FDM

UK£3.34

FDM Group (Holdings)

7D

1.1%

1Y

-50.4%

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CCC

UK£25.72

Computacenter

7D

3.0%

1Y

12.0%

SCT

UK£15.76

Softcat

7D

1.7%

1Y

17.9%

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TRD

UK£2.46

Triad Group

7D

-3.5%

1Y

69.7%

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BKS

UK£1.77

Beeks Financial Cloud Group

7D

-2.7%

1Y

55.9%

NCC

UK£1.34

NCC Group

7D

10.0%

1Y

25.1%

NARF

UK£0.011

Narf Industries

7D

-14.0%

1Y

26.5%

GST

UK£0.01

GSTechnologies

7D

-15.0%

1Y

-24.4%