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U.K. (FTSE) IT Industry Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies42
  • 7D-4.7%
  • 3M-15.2%
  • 1Y27.4%
  • YTD2.9%

Over the last 7 days, the IT industry has dropped 4.7%, driven by pullbacks in Softcat and Network International Holdings of 6.7% and 12%, respectively. Meanwhile, Universe Group actually outperformed within the industry, gaining 119% in the last week. This takes the industry's 12 month performance to a gain of 27%.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Sun, 28 Nov 2021UK£29.6bUK£15.4bUK£744.1m42.6x
Tue, 26 Oct 2021UK£30.6bUK£15.1bUK£722.3m45x
Thu, 23 Sep 2021UK£31.6bUK£13.9bUK£703.5m48.8x
Sat, 21 Aug 2021UK£31.4bUK£13.9bUK£661.1m46.7x
Sat, 05 Jun 2021UK£19.5bUK£13.1bUK£471.6m42.5x
Tue, 09 Mar 2021UK£16.5bUK£9.4bUK£305.6m47.8x
Mon, 30 Nov 2020UK£14.5bUK£9.3bUK£302.7m32.8x
Thu, 03 Sep 2020UK£14.9bUK£9.1bUK£306.6m36.2x
Sun, 07 Jun 2020UK£13.2bUK£9.0bUK£314.3m28.5x
Sat, 29 Feb 2020UK£13.7bUK£8.9bUK£329.0m29.4x
Tue, 03 Dec 2019UK£15.1bUK£8.7bUK£337.7m27.6x
Fri, 06 Sep 2019UK£14.3bUK£8.5bUK£303.2m27.9x
Mon, 10 Jun 2019UK£14.1bUK£8.1bUK£279.4m30.2x
Sun, 03 Mar 2019UK£8.4bUK£7.5bUK£256.8m24.1x
Wed, 05 Dec 2018UK£8.4bUK£7.3bUK£225.9m32x
PE Ratio

32x

Total Market Cap: UK£8.4bTotal Earnings: UK£225.9mTotal Revenue: UK£7.3b0%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 42.6x which is higher than its 3-year average PE of 34.0x. 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 IT industry have grown 49% per year over the last three years, and revenues for these companies have grown 28% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

Data Processing Services-3.86%
Internet Services and Infrastructure-4.59%
IT Consulting-5.51%

Industry PE: Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 36.2x. However analysts are expecting annual earnings growth of 12%, which is lower than the prior year's growth of 35% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Internet Services and Infrastructure industry, which is trading below its 3-year average of 39.4x.

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 22% per year. Meanwhile, the IT Consulting 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?

Company7D1YValuation
UNG Universe Group119.0%+UK£16.4m180.5%PS1.4x
TUNG Tungsten5.1%+UK£1.5m-13.6%PS0.9x
SYS SysGroup10.0%+UK£1.5m-5.7%PE51.7x
GST GSTechnologies2.9%+UK£891.0k1,007.7%PS12.6x
SPA 1Spatial1.1%+UK£552.4k72.2%PS2x
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Latest News

SCT

UK£18.35

Softcat

7D

-6.7%

1Y

60.1%

WISE

UK£7.41

Wise

7D

-2.0%

1Y

n/a

SYS

UK£0.33

SysGroup

7D

10.0%

1Y

-5.7%