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U.K. (FTSE) IT Industry Analysis

UpdatedMar 17, 2024
DataAggregated Company Financials
Companies24
  • 7D1.2%
  • 3M6.4%
  • 1Y1.9%
  • YTD3.8%

Over the last 7 days, the IT industry has risen 1.2%, driven by gains from Softcat of 3.1%. The industry has been flat over the past 12 months despite the gain this week. Earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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

40.8x


Total Market Cap: UK£18.9bTotal Earnings: UK£462.0mTotal Revenue: UK£13.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 38.2x202220232024
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 31.0x which is lower than its 3-year average PE of 38.2x.
  • The 3-year average PS ratio of 1.9x is higher than the industry's current PS ratio of 1.0x.
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 6.3% 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 Market0.70%
Tech-0.65%
IT1.24%
IT Consulting1.33%
Internet Services and Infrastructure-0.40%
Data Processing Services-13.86%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 96.5x.
    • Analysts are expecting annual earnings growth of 98.0%, which is higher than its past year's earnings decline of 10.0% per year.
Forecasted Growth
  • Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 103% over the next 5 years.
  • 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
SCT SoftcatUK£15.733.1%
+UK£95.6m
41.7%PE28x
KWS Keywords StudiosUK£14.267.2%
+UK£75.3m
-46.0%PE66x
CCC ComputacenterUK£29.041.0%
+UK£31.7m
44.8%PE17x
IOM iomart GroupUK£1.462.8%
+UK£4.5m
8.1%PE24.8x
TRD Triad GroupUK£2.238.8%
+UK£3.0m
68.3%PS2.6x
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Latest News

KWS

UK£14.26

Keywords Studios

7D

7.2%

1Y

-46.0%

BKS

UK£1.75

Beeks Financial Cloud Group

7D

1.5%

1Y

36.3%

SPA

UK£0.59

1Spatial

7D

-4.8%

1Y

24.2%

NCC

UK£1.25

NCC Group

7D

0.6%

1Y

-19.3%

MTEC

UK£0.087

Made Tech Group

7D

-5.4%

1Y

-73.7%

RCN

UK£1.27

Redcentric

7D

-2.9%

1Y

-7.3%

ECK

UK£0.39

Eckoh

7D

2.3%

1Y

-0.3%

KNOS

UK£10.39

Kainos Group

7D

-3.0%

1Y

-19.5%

FDM

UK£3.78

FDM Group (Holdings)

7D

-6.3%

1Y

-52.5%

NARF

UK£0.011

Narf Industries

7D

-16.7%

1Y

24.3%

GST

UK£0.011

GSTechnologies

7D

-10.0%

1Y

204.1%