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U.K. (FTSE) IT Industry Analysis

UpdatedMay 22, 2024
DataAggregated Company Financials
Companies24
  • 7D12.7%
  • 3M11.9%
  • 1Y10.2%
  • YTD15.7%

The IT industry is up 13% in the last week, with Keywords Studios up 68%. Meanwhile, Redcentric actually underperformed within the industry, shrinking 6.3% in the last week. In the last 12 months, the industry was up 10%. Looking forward, 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
Thu, 23 May 2024UK£11.8bUK£10.2bUK£380.8m29.9x30.9x1.2x
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
Price to Earnings Ratio

41.3x


Total Market Cap: UK£19.5bTotal Earnings: UK£471.6mTotal Revenue: UK£13.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 37.4x202220232024
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 30.9x which is lower than its 3-year average PE of 37.4x.
  • The 3-year average PS ratio of 1.8x is higher than the industry's current PS ratio of 1.2x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 6.9% per year over the last three years,
  • Revenues have also declined 8.0% 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 Market0.24%
Tech0.49%
IT12.71%
IT Consulting13.67%
Data Processing Services2.13%
Internet Services and Infrastructure-4.58%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 105x.
    • Analysts are expecting annual earnings growth of 102.6%, 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 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
KWS Keywords StudiosUK£22.0063.6%
+UK£676.8m		5.1%PE102.6x
KNOS Kainos GroupUK£12.2016.0%
+UK£211.4m		-3.1%PE31.5x
SCT SoftcatUK£17.093.8%
+UK£125.5m		31.3%PE30.1x
CCC ComputacenterUK£28.123.3%
+UK£101.6m		20.7%PE16.1x
FDM FDM Group (Holdings)UK£4.365.1%
+UK£22.9m		-34.8%PE11.7x
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Latest News

KNOS

UK£12.20

Kainos Group

7D

16.0%

1Y

-3.1%

KWS

UK£22.00

Keywords Studios

7D

63.6%

1Y

5.1%

FDM

UK£4.36

FDM Group (Holdings)

7D

5.1%

1Y

-34.8%

FDM Group (Holdings) plc's (LON:FDM) Shares Bounce 28% But Its Business Still Trails The Market

May 21
FDM Group (Holdings) plc's (LON:FDM) Shares Bounce 28% But Its Business Still Trails The Market

RCN

UK£1.33

Redcentric

7D

-7.0%

1Y

2.9%

Redcentric plc's (LON:RCN) Price In Tune With Revenues

May 21
Redcentric plc's (LON:RCN) Price In Tune With Revenues

SCT

UK£17.09

Softcat

7D

3.8%

1Y

31.3%

CCC

UK£28.12

Computacenter

7D

3.3%

1Y

20.7%

IOM

UK£1.34

iomart Group

7D

-8.8%

1Y

-14.2%

TIA

UK£0.57

Tialis Essential IT

7D

-4.2%

1Y

17.3%

ECK

UK£0.38

Eckoh

7D

2.4%

1Y

2.7%

SPA

UK£0.74

1Spatial

7D

4.2%

1Y

46.5%

1Spatial (LON:SPA) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of

May 02
1Spatial (LON:SPA) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of

NCC

UK£1.37

NCC Group

7D

0.3%

1Y

42.6%

RCGH

UK£0.031

RC365 Holding

7D

-6.7%

1Y

-85.5%

CLBS

UK£2.23

Celebrus Technologies

7D

-7.3%

1Y

19.6%

BKS

UK£1.75

Beeks Financial Cloud Group

7D

-1.1%

1Y

48.3%

NARF

UK£0.013

Narf Industries

7D

-1.9%

1Y

n/a

GST

UK£0.0094

GSTechnologies

7D

-1.1%

1Y

-18.3%