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U.K. (FTSE) IT Industry Analysis

UpdatedDec 09, 2022
DataAggregated Company Financials
Companies43
  • 7D-3.1%
  • 3M13.3%
  • 1Y-28.2%
  • YTD-25.5%

Over the last 7 days, the IT industry has dropped 3.1%, driven by Kaspi.kz declining 5.2%. In contrast, iomart Group has gained 8.9%. Overall the industry is down 28% in 12 months. Looking forward, earnings are forecast to grow by 23% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 10 Dec 2022UK£38.0bUK£21.7bUK£1.7b29.1x21.8x1.8x
Mon, 07 Nov 2022UK£35.6bUK£21.7bUK£1.8b27.4x20.1x1.6x
Wed, 05 Oct 2022UK£34.3bUK£21.6bUK£1.7b25.8x20.5x1.6x
Fri, 02 Sep 2022UK£31.9bUK£20.7bUK£1.6b28.7x19.3x1.5x
Sun, 31 Jul 2022UK£32.4bUK£20.5bUK£1.8b29.6x17.5x1.6x
Tue, 28 Jun 2022UK£20.2bUK£18.1bUK£819.0m29.1x24.6x1.1x
Thu, 26 May 2022UK£20.3bUK£18.0bUK£787.6m40.8x25.8x1.1x
Sat, 23 Apr 2022UK£22.4bUK£17.9bUK£784.2m36.9x28.6x1.3x
Mon, 21 Mar 2022UK£26.7bUK£17.8bUK£771.6m33x34.6x1.5x
Wed, 16 Feb 2022UK£27.3bUK£17.2bUK£770.7m34.4x35.4x1.6x
Fri, 14 Jan 2022UK£28.9bUK£15.5bUK£772.1m37.9x37.4x1.9x
Sun, 12 Dec 2021UK£29.5bUK£15.5bUK£745.3m40.9x39.6x1.9x
Tue, 09 Nov 2021UK£30.8bUK£15.3bUK£726.0m43.2x42.4x2x
Thu, 07 Oct 2021UK£30.2bUK£13.9bUK£704.8m44x42.8x2.2x
Sat, 04 Sep 2021UK£32.1bUK£13.9bUK£661.1m48.7x48.6x2.3x
Mon, 02 Aug 2021UK£30.0bUK£13.9bUK£661.1m43.5x45.4x2.2x
Thu, 06 May 2021UK£20.0bUK£13.1bUK£471.6m44x42.4x1.5x
Sun, 07 Feb 2021UK£16.5bUK£9.4bUK£305.6m48.2x54.1x1.8x
Sat, 31 Oct 2020UK£13.7bUK£9.3bUK£302.2m31.9x45.5x1.5x
Tue, 04 Aug 2020UK£14.3bUK£9.1bUK£306.1m33x46.9x1.6x
Fri, 08 May 2020UK£12.1bUK£9.0bUK£315.1m27.7x38.5x1.3x
Mon, 10 Feb 2020UK£14.9bUK£8.9bUK£329.8m32.1x45.2x1.7x
Price to Earnings Ratio

47.2x


Total Market Cap: UK£16.0bTotal Earnings: UK£338.1mTotal Revenue: UK£8.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 46.7x20212022
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 21.8x which is lower than its 3-year average PE of 46.7x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 73% per year over the last three years.
  • Revenues for these companies have grown 35% 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. Tech industry?

GB Market-1.34%
Tech-2.93%
IT-3.09%
Internet Services and Infrastructure-0.23%
Data Processing Services-2.23%
IT Consulting-4.95%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry even though it's trading below its 3-year average PE ratio of 127x.
    • Analysts are expecting annual earnings growth of 6.2%, which is higher than its past year's earnings decline of 46.5% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 105x.
Forecasted Growth
  • Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 30% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Internet Services and Infrastructure industry is expected to see its earnings grow by 6.2% 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£1.156.7%
+UK£11.3m
-8.2%PE23.7x
IOM iomart GroupUK£1.238.9%
+UK£11.0m
-23.2%PE16.1x
TPX TPXimpact HoldingsUK£0.6311.6%
+UK£5.9m
-75.2%PS0.7x
BKS Beeks Financial Cloud GroupUK£1.525.6%
+UK£5.2m
-3.8%PE120x
EYE Eagle Eye Solutions GroupUK£5.932.6%
+UK£4.2m
-3.7%PE297.4x
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Latest News

RCN

UK£1.15

Redcentric

7D

6.7%

1Y

-8.2%

TPX

UK£0.63

TPXimpact Holdings

7D

11.6%

1Y

-75.2%

IOM

UK£1.23

iomart Group

7D

8.9%

1Y

-23.2%

NETW

UK£3.10

Network International Holdings

7D

-12.8%

1Y

15.0%

KWS

UK£28.00

Keywords Studios

7D

-5.0%

1Y

6.8%

KNOS

UK£16.04

Kainos Group

7D

-2.1%

1Y

-10.2%

SCT

UK£12.22

Softcat

7D

-6.3%

1Y

-30.6%

BKS

UK£1.52

Beeks Financial Cloud Group

7D

5.6%

1Y

-3.8%

EYE

UK£5.93

Eagle Eye Solutions Group

7D

2.6%

1Y

-3.7%

KSPI

US$73.00

Kaspi.kz

7D

-5.2%

1Y

-43.2%

FNX

UK£1.96

Fonix Mobile

7D

0.3%

1Y

21.0%

WISE

UK£6.32

Wise

7D

-3.9%

1Y

-16.6%

TNT

UK£2.75

Tintra

7D

10.0%

1Y

423.8%

PCIP

UK£0.53

PCI-PAL

7D

1.0%

1Y

-14.5%