Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

U.K. (FTSE) IT Industry Analysis

UpdatedDec 30, 2024
DataAggregated Company Financials
Companies20
  • 7D1.1%
  • 3M-6.8%
  • 1Y-8.4%
  • YTD-7.2%

In the last week, the IT industry is up 1.1%, with Computacenter leading the way, up 1.0%. In the past year, the industry is down 8.4%. Earnings are forecast to grow by 14% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 30 Dec 2024UK£8.1bUK£9.0bUK£337.2m26.2x24x0.9x
Wed, 27 Nov 2024UK£8.4bUK£9.0bUK£334.3m28.4x25.2x0.9x
Fri, 25 Oct 2024UK£8.3bUK£9.0bUK£322.5m23.5x25.8x0.9x
Sun, 22 Sep 2024UK£10.8bUK£9.7bUK£293.5m24.9x36.7x1.1x
Tue, 20 Aug 2024UK£11.6bUK£10.1bUK£361.0m29x32.2x1.1x
Thu, 18 Jul 2024UK£11.4bUK£10.2bUK£385.5m27.2x29.6x1.1x
Sat, 15 Jun 2024UK£11.6bUK£10.2bUK£381.2m26.6x30.5x1.1x
Mon, 13 May 2024UK£10.3bUK£10.2bUK£374.0m28.2x27.5x1x
Wed, 10 Apr 2024UK£10.3bUK£10.4bUK£355.2m28.4x29.1x1x
Fri, 08 Mar 2024UK£10.8bUK£10.8bUK£359.5m25.8x30x1x
Sun, 04 Feb 2024UK£11.3bUK£12.8bUK£367.2m24.9x30.8x0.9x
Tue, 02 Jan 2024UK£10.9bUK£12.8bUK£376.7m24.2x29.1x0.9x
Thu, 30 Nov 2023UK£10.6bUK£13.4bUK£389.7m24.1x27.1x0.8x
Sat, 28 Oct 2023UK£10.2bUK£13.4bUK£375.6m25.2x27.1x0.8x
Mon, 25 Sep 2023UK£11.1bUK£13.4bUK£389.2m26.4x28.6x0.8x
Wed, 23 Aug 2023UK£10.5bUK£12.5bUK£406.5m26.1x25.9x0.8x
Fri, 21 Jul 2023UK£11.5bUK£12.5bUK£400.4m27x28.7x0.9x
Sun, 18 Jun 2023UK£11.6bUK£12.5bUK£425.2m26.4x27.2x0.9x
Tue, 16 May 2023UK£11.6bUK£12.4bUK£421.3m26.7x27.4x0.9x
Thu, 13 Apr 2023UK£11.7bUK£12.4bUK£422.5m27x27.7x0.9x
Sat, 11 Mar 2023UK£36.7bUK£22.3bUK£2.0b27.3x18x1.7x
Mon, 06 Feb 2023UK£38.5bUK£21.9bUK£1.8b28.1x21.2x1.8x
Wed, 04 Jan 2023UK£36.4bUK£21.8bUK£1.8b28.7x20.5x1.7x
Fri, 02 Dec 2022UK£39.2bUK£21.7bUK£1.8b30.5x22.3x1.8x
Sun, 30 Oct 2022UK£35.2bUK£21.6bUK£1.8b27.4x19.9x1.6x
Tue, 27 Sep 2022UK£33.2bUK£21.7bUK£1.7b25.1x19.9x1.5x
Thu, 25 Aug 2022UK£33.0bUK£20.7bUK£1.7b28.7x19.9x1.6x
Sat, 23 Jul 2022UK£29.6bUK£20.5bUK£1.8b29.7x16.5x1.4x
Mon, 20 Jun 2022UK£19.3bUK£18.1bUK£805.9m35.3x24x1.1x
Wed, 18 May 2022UK£19.8bUK£17.9bUK£788.0m32.8x25.1x1.1x
Fri, 15 Apr 2022UK£25.5bUK£17.8bUK£782.2m36.3x32.6x1.4x
Sun, 13 Mar 2022UK£25.0bUK£17.3bUK£766.7m31.4x32.6x1.4x
Tue, 08 Feb 2022UK£27.5bUK£17.2bUK£771.0m37.2x35.7x1.6x
Thu, 06 Jan 2022UK£30.0bUK£15.5bUK£772.7m40.8x38.8x1.9x
Price to Earnings Ratio

38.8x


Total Market Cap: UK£30.0bTotal Earnings: UK£772.7mTotal Revenue: UK£15.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 35.2x20232024
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 24.0x which is lower than its 3-year average PE of 35.2x.
  • The 3-year average PS ratio of 1.7x is higher than the industry's current PS ratio of 0.90x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 24% per year over the last three years,
  • Revenues have also declined 16% 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 Market0.56%
Tech0.71%
IT1.06%
Internet Services and Infrastructure4.69%
IT Consulting0.81%
Data Processing Services-4.03%
Industry PE
  • Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 29.5x.
    • Analysts are expecting annual earnings growth of 11.3%, which is higher than its past year's earnings growth of 1.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 50% over the next 5 years.
  • This is better than its past earnings decline of 48% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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£21.341.0%
+UK£23.1m		-23.6%PE13.1x
KNOS Kainos GroupUK£7.852.2%
+UK£21.4m		-29.8%PE19x
RCN RedcentricUK£1.235.1%
+UK£9.5m		-3.1%PE320.8x
FDM FDM Group (Holdings)UK£3.162.6%
+UK£8.7m		-31.2%PE11.3x
GST GSTechnologiesUK£0.02215.8%
+UK£6.1m		63.0%PS15.9x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlans & PricingLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

CCC

UK£21.34

Computacenter

7D

1.0%

1Y

-23.6%

A Look Into Computacenter's (LON:CCC) Impressive Returns On Capital

Dec 29
A Look Into Computacenter's (LON:CCC) Impressive Returns On Capital

NCC

UK£1.46

NCC Group

7D

1.3%

1Y

13.2%

NCC Group (LON:NCC) Is Due To Pay A Dividend Of £0.015

Dec 24
NCC Group (LON:NCC) Is Due To Pay A Dividend Of £0.015

KNOS

UK£7.85

Kainos Group

7D

2.2%

1Y

-29.8%

Many Would Be Envious Of Kainos Group's (LON:KNOS) Excellent Returns On Capital

Dec 20
Many Would Be Envious Of Kainos Group's (LON:KNOS) Excellent Returns On Capital

GST

UK£0.022

GSTechnologies

7D

15.8%

1Y

63.0%

CLBS

UK£2.75

Celebrus Technologies

7D

2.8%

1Y

26.4%

IOM

UK£0.77

iomart Group

7D

6.1%

1Y

-49.6%

RCN

UK£1.23

Redcentric

7D

5.1%

1Y

-3.1%

FDM

UK£3.16

FDM Group (Holdings)

7D

2.6%

1Y

-31.2%

NARF

UK£0.006

Narf Industries

7D

-4.0%

1Y

-22.6%

TRD

UK£2.75

Triad Group

7D

-1.8%

1Y

86.4%