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U.K. (FTSE) IT Industry Analysis

UpdatedApr 19, 2024
DataAggregated Company Financials
Companies24
  • 7D-4.1%
  • 3M-3.4%
  • 1Y-8.4%
  • YTD-4.5%

Over the last 7 days, the IT industry has dropped 4.1%, driven by a pullback from Computacenter of 5.8%. Meanwhile, Redcentric actually outperformed within the industry, gaining 8.4% in the last week. However, the industry is down 8.4% over the past year. Earnings are forecast to grow by 21% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 20 Apr 2024UK£9.9bUK£10.4bUK£355.1m27.4x28x1x
Mon, 18 Mar 2024UK£10.8bUK£10.8bUK£348.4m28x31x1x
Wed, 14 Feb 2024UK£10.9bUK£10.8bUK£359.2m25.5x30.2x1x
Fri, 12 Jan 2024UK£10.4bUK£12.8bUK£376.4m25.2x27.7x0.8x
Sun, 10 Dec 2023UK£10.1bUK£12.8bUK£379.4m22.9x26.6x0.8x
Tue, 07 Nov 2023UK£10.6bUK£13.4bUK£379.8m24.7x27.9x0.8x
Thu, 05 Oct 2023UK£10.9bUK£13.4bUK£372.3m25.9x29.3x0.8x
Sat, 02 Sep 2023UK£10.9bUK£12.6bUK£389.7m28x28x0.9x
Mon, 31 Jul 2023UK£11.2bUK£12.5bUK£404.5m27x27.8x0.9x
Wed, 28 Jun 2023UK£10.9bUK£12.5bUK£425.4m25.4x25.6x0.9x
Fri, 26 May 2023UK£11.2bUK£12.5bUK£424.5m26.6x26.4x0.9x
Sun, 23 Apr 2023UK£11.6bUK£12.4bUK£422.6m25x27.5x0.9x
Tue, 21 Mar 2023UK£11.3bUK£13.2bUK£422.1m27.2x26.8x0.9x
Thu, 16 Feb 2023UK£37.8bUK£22.0bUK£1.8b28.1x20.5x1.7x
Sat, 14 Jan 2023UK£38.2bUK£21.9bUK£1.8b28.2x21.2x1.7x
Mon, 12 Dec 2022UK£37.5bUK£21.7bUK£1.8b28.4x21.4x1.7x
Wed, 09 Nov 2022UK£36.0bUK£21.6bUK£1.8b28.2x20.3x1.7x
Fri, 07 Oct 2022UK£34.7bUK£21.7bUK£1.7b25.4x20.7x1.6x
Sun, 04 Sep 2022UK£32.1bUK£20.8bUK£1.7b28.7x19.4x1.5x
Tue, 02 Aug 2022UK£32.4bUK£20.5bUK£1.8b29.7x17.6x1.6x
Thu, 30 Jun 2022UK£19.1bUK£18.1bUK£820.0m28.7x23.3x1.1x
Sat, 28 May 2022UK£20.8bUK£18.0bUK£804.2m40.8x25.9x1.2x
Mon, 25 Apr 2022UK£22.4bUK£17.9bUK£784.2m36.9x28.6x1.3x
Wed, 23 Mar 2022UK£26.8bUK£17.8bUK£770.7m33.5x34.8x1.5x
Fri, 18 Feb 2022UK£26.9bUK£17.2bUK£770.1m34.4x34.9x1.6x
Sun, 16 Jan 2022UK£28.7bUK£15.5bUK£772.4m40.3x37.2x1.9x
Tue, 14 Dec 2021UK£29.2bUK£15.5bUK£745.2m40.9x39.2x1.9x
Thu, 11 Nov 2021UK£30.7bUK£15.3bUK£726.2m44.8x42.3x2x
Sat, 09 Oct 2021UK£31.4bUK£13.9bUK£704.5m43.3x44.6x2.3x
Mon, 06 Sep 2021UK£32.3bUK£13.9bUK£703.2m49.4x46x2.3x
Wed, 04 Aug 2021UK£29.7bUK£13.9bUK£661.1m43.6x45x2.1x
Sat, 08 May 2021UK£20.0bUK£13.1bUK£471.6m44x42.4x1.5x
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 37.9x202220232024
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 28.0x which is lower than its 3-year average PE of 37.9x.
  • The 3-year average PS ratio of 1.9x is higher than the industry's current PS ratio of 0.95x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 9.0% 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 Market-0.72%
Tech-3.71%
IT-4.12%
Internet Services and Infrastructure0.99%
Data Processing Services-4.32%
IT Consulting-4.40%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 100x.
    • Analysts are expecting annual earnings growth of 103.4%, 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 103% 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 17% 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
RCN RedcentricUK£1.4310.9%
+UK£22.2m
17.7%PS1.4x
KWS Keywords StudiosUK£11.682.0%
+UK£18.2m
-56.8%PE53.7x
ECK EckohUK£0.426.3%
+UK£7.2m
30.8%PE33.4x
IOM iomart GroupUK£1.342.3%
+UK£3.4m
4.4%PE22.8x
FDM FDM Group (Holdings)UK£3.310.3%
+UK£1.1m
-52.4%PE8.8x
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