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U.K. (FTSE) IT Industry Analysis

UpdatedJul 16, 2024
DataAggregated Company Financials
Companies23
  • 7D-1.2%
  • 3M17.1%
  • 1Y15.0%
  • YTD13.2%

Over the last 7 days, the IT industry has dropped 1.2%, driven by a pullback from Computacenter of 3.3%. Meanwhile, Beeks Financial Cloud Group actually outperformed within the industry, gaining 14% in the last week. Over the past 12 months, the industry was up 15%. As for the next few years, earnings are expected to grow by 16% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Jul 2024UK£11.6bUK£10.2bUK£385.5m27.6x30x1.1x
Thu, 13 Jun 2024UK£11.6bUK£10.2bUK£381.2m27.1x30.4x1.1x
Sat, 11 May 2024UK£10.3bUK£10.2bUK£374.7m28.2x27.4x1x
Mon, 08 Apr 2024UK£10.4bUK£10.4bUK£355.2m28.4x29.1x1x
Wed, 06 Mar 2024UK£10.7bUK£10.8bUK£359.5m25.3x29.7x1x
Fri, 02 Feb 2024UK£11.3bUK£12.8bUK£367.1m25.3x30.8x0.9x
Sun, 31 Dec 2023UK£10.9bUK£12.8bUK£376.6m24.2x29.1x0.9x
Tue, 28 Nov 2023UK£10.4bUK£13.4bUK£388.8m26.7x26.7x0.8x
Thu, 26 Oct 2023UK£10.2bUK£13.4bUK£375.6m25.2x27.3x0.8x
Sat, 23 Sep 2023UK£11.1bUK£13.4bUK£389.2m26.4x28.6x0.8x
Mon, 21 Aug 2023UK£10.6bUK£12.5bUK£407.0m26.2x25.9x0.8x
Wed, 19 Jul 2023UK£11.0bUK£12.5bUK£400.4m26.6x27.5x0.9x
Fri, 16 Jun 2023UK£11.5bUK£12.5bUK£425.4m26x26.9x0.9x
Sun, 14 May 2023UK£11.5bUK£12.4bUK£421.5m26.8x27.3x0.9x
Tue, 11 Apr 2023UK£11.5bUK£12.4bUK£422.4m27x27.2x0.9x
Thu, 09 Mar 2023UK£36.7bUK£22.3bUK£2.1b28x17.7x1.6x
Sat, 04 Feb 2023UK£38.5bUK£21.9bUK£1.8b28.1x21.2x1.8x
Mon, 02 Jan 2023UK£36.2bUK£21.8bUK£1.8b27.1x20.4x1.7x
Wed, 30 Nov 2022UK£38.4bUK£21.7bUK£1.8b30x21.7x1.8x
Fri, 28 Oct 2022UK£35.4bUK£21.6bUK£1.8b27.1x19.9x1.6x
Sun, 25 Sep 2022UK£32.8bUK£21.7bUK£1.7b26x19.8x1.5x
Tue, 23 Aug 2022UK£32.4bUK£20.6bUK£1.6b28.7x19.8x1.6x
Thu, 21 Jul 2022UK£29.5bUK£20.5bUK£1.8b29.5x16.5x1.4x
Sat, 18 Jun 2022UK£19.3bUK£18.1bUK£805.9m35.3x24x1.1x
Mon, 16 May 2022UK£19.9bUK£17.9bUK£790.1m33.4x25.2x1.1x
Wed, 13 Apr 2022UK£25.5bUK£17.9bUK£782.6m35.7x32.6x1.4x
Fri, 11 Mar 2022UK£24.7bUK£17.3bUK£800.1m31.2x30.9x1.4x
Sun, 06 Feb 2022UK£27.3bUK£17.2bUK£770.9m36.3x35.4x1.6x
Tue, 04 Jan 2022UK£30.2bUK£15.5bUK£773.3m41.7x39.1x2x
Thu, 02 Dec 2021UK£30.3bUK£15.4bUK£744.1m42.6x40.7x2x
Sat, 30 Oct 2021UK£30.1bUK£15.2bUK£729.4m44.1x41.3x2x
Mon, 27 Sep 2021UK£31.4bUK£13.9bUK£703.3m47.7x44.7x2.3x
Wed, 25 Aug 2021UK£31.3bUK£13.9bUK£661.1m46.6x47.4x2.3x
Price to Earnings Ratio

45.3x


Total Market Cap: UK£30.0bTotal Earnings: UK£661.1mTotal Revenue: UK£13.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 37.2x202220232024
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 30.0x which is lower than its 3-year average PE of 37.2x.
  • The 3-year average PS ratio of 1.8x is higher than the industry's current PS ratio of 1.1x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 16% per year over the last three years,
  • Revenues have also declined 9.8% 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 Market0.18%
Tech0.062%
IT-1.25%
Data Processing Services38.71%
Internet Services and Infrastructure5.95%
IT Consulting-1.59%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 119x.
    • Analysts are expecting annual earnings growth of 36.3%, which is higher than its past year's earnings decline of 3.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 87% over the next 5 years.
  • 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
BKS Beeks Financial Cloud GroupUK£2.0813.7%
+UK£16.6m		98.1%PE234.5x
RCN RedcentricUK£1.405.1%
+UK£10.7m		7.3%PS1.4x
ECK EckohUK£0.433.6%
+UK£4.3m		20.0%PE27.6x
MTEC Made Tech GroupUK£0.1916.7%
+UK£4.1m		16.7%PS0.7x
CLBS Celebrus TechnologiesUK£2.552.0%
+UK£2.0m		50.0%PE24.9x
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Latest News

SCT

UK£16.10

Softcat

7D

-1.6%

1Y

11.7%

A Look At The Intrinsic Value Of Softcat plc (LON:SCT)

Jul 13
A Look At The Intrinsic Value Of Softcat plc (LON:SCT)

TRD

UK£2.90

Triad Group

7D

-6.5%

1Y

100.0%

CLBS

UK£2.55

Celebrus Technologies

7D

2.0%

1Y

50.0%

Celebrus Technologies (LON:CLBS) Is Increasing Its Dividend To £0.0223

Jul 12
Celebrus Technologies (LON:CLBS) Is Increasing Its Dividend To £0.0223

GST

UK£0.0078

GSTechnologies

7D

12.9%

1Y

52.4%

KWS

UK£23.86

Keywords Studios

7D

-0.08%

1Y

41.2%

FDM

UK£4.02

FDM Group (Holdings)

7D

-1.6%

1Y

-30.7%

SYS

UK£0.36

SysGroup

7D

4.3%

1Y

17.7%

MTEC

UK£0.19

Made Tech Group

7D

16.7%

1Y

16.7%

CCC

UK£28.10

Computacenter

7D

-3.3%

1Y

31.7%

Computacenter plc's (LON:CCC) Share Price Not Quite Adding Up

Jun 23
Computacenter plc's (LON:CCC) Share Price Not Quite Adding Up

NCC

UK£1.51

NCC Group

7D

-1.3%

1Y

52.8%

ECK

UK£0.43

Eckoh

7D

3.6%

1Y

20.0%

Some May Be Optimistic About Eckoh's (LON:ECK) Earnings

Jun 19
Some May Be Optimistic About Eckoh's (LON:ECK) Earnings

IOM

UK£1.27

iomart Group

7D

0.8%

1Y

-28.7%

iomart Group (LON:IOM) Will Pay A Dividend Of £0.03

Jun 19
iomart Group (LON:IOM) Will Pay A Dividend Of £0.03

SPA

UK£0.68

1Spatial

7D

-5.6%

1Y

37.8%

KNOS

UK£10.70

Kainos Group

7D

-0.2%

1Y

-16.1%

Kainos Group (LON:KNOS) Has Announced That It Will Be Increasing Its Dividend To £0.191

Jun 14
Kainos Group (LON:KNOS) Has Announced That It Will Be Increasing Its Dividend To £0.191

RCN

UK£1.40

Redcentric

7D

5.1%

1Y

7.3%

BKS

UK£2.08

Beeks Financial Cloud Group

7D

13.7%

1Y

98.1%