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U.K. (FTSE) IT Industry Analysis

UpdatedSep 11, 2024
DataAggregated Company Financials
Companies21
  • 7D-5.3%
  • 3M-9.4%
  • 1Y4.1%
  • YTD4.3%

Over the last 7 days, the IT industry has dropped 5.3%, driven by a pullback from Computacenter of 11%. In the past year, the industry has gained 4.1%. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 11 Sep 2024UK£10.6bUK£9.7bUK£333.5m26.2x31.7x1.1x
Fri, 09 Aug 2024UK£11.1bUK£10.2bUK£359.4m27x31x1.1x
Sun, 07 Jul 2024UK£11.8bUK£10.2bUK£383.0m26.6x30.8x1.2x
Tue, 04 Jun 2024UK£11.7bUK£10.2bUK£380.6m28.7x30.7x1.1x
Thu, 02 May 2024UK£9.9bUK£10.2bUK£374.6m27.4x26.3x1x
Sat, 30 Mar 2024UK£10.4bUK£10.4bUK£353.9m27.9x29.3x1x
Mon, 26 Feb 2024UK£11.0bUK£10.8bUK£359.4m25.5x30.5x1x
Wed, 24 Jan 2024UK£10.9bUK£12.8bUK£376.2m26x28.9x0.9x
Fri, 22 Dec 2023UK£10.8bUK£12.8bUK£379.8m24x28.5x0.8x
Sun, 19 Nov 2023UK£10.6bUK£13.4bUK£384.2m24.6x27.6x0.8x
Tue, 17 Oct 2023UK£10.7bUK£13.4bUK£371.5m25.7x28.9x0.8x
Thu, 14 Sep 2023UK£11.2bUK£13.4bUK£389.2m28.3x28.7x0.8x
Sat, 12 Aug 2023UK£11.0bUK£12.5bUK£404.6m27x27.1x0.9x
Mon, 10 Jul 2023UK£10.8bUK£12.5bUK£412.1m26x26.2x0.9x
Wed, 07 Jun 2023UK£11.1bUK£12.5bUK£424.1m26.7x26.2x0.9x
Fri, 05 May 2023UK£11.5bUK£12.4bUK£422.8m26.7x27.3x0.9x
Sun, 02 Apr 2023UK£11.7bUK£12.4bUK£422.4m27.8x27.7x0.9x
Tue, 28 Feb 2023UK£37.5bUK£22.0bUK£1.8b28.8x20.4x1.7x
Thu, 26 Jan 2023UK£35.8bUK£21.9bUK£1.8b28.2x19.9x1.6x
Sat, 24 Dec 2022UK£35.2bUK£21.8bUK£1.8b27x19.9x1.6x
Mon, 21 Nov 2022UK£37.2bUK£21.7bUK£1.8b28.8x20.8x1.7x
Wed, 19 Oct 2022UK£34.7bUK£21.7bUK£1.7b26.6x20.9x1.6x
Fri, 16 Sep 2022UK£33.9bUK£21.5bUK£1.7b28.7x20.5x1.6x
Sun, 14 Aug 2022UK£34.2bUK£20.6bUK£1.6b28.9x21x1.7x
Tue, 12 Jul 2022UK£28.4bUK£18.4bUK£833.8m29.5x34x1.5x
Thu, 09 Jun 2022UK£20.7bUK£18.0bUK£804.5m41.5x25.7x1.1x
Sat, 07 May 2022UK£20.1bUK£18.0bUK£789.3m33.6x25.4x1.1x
Mon, 04 Apr 2022UK£26.2bUK£17.9bUK£782.5m36.9x33.4x1.5x
Wed, 02 Mar 2022UK£25.9bUK£17.3bUK£772.1m34x33.5x1.5x
Fri, 28 Jan 2022UK£27.4bUK£15.5bUK£773.2m36.9x35.4x1.8x
Sun, 26 Dec 2021UK£29.9bUK£15.5bUK£775.9m37.6x38.5x1.9x
Tue, 23 Nov 2021UK£30.9bUK£15.4bUK£734.8m43.5x42x2x
Thu, 21 Oct 2021UK£33.3bUK£15.1bUK£722.2m45.6x46.1x2.2x
Sat, 18 Sep 2021UK£31.6bUK£13.9bUK£703.0m49.2x45x2.3x
Price to Earnings Ratio

45x


Total Market Cap: UK£31.6bTotal Earnings: UK£703.0mTotal Revenue: UK£13.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 36.5x202220232024
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 31.7x which is lower than its 3-year average PE of 36.5x.
  • 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 22% per year over the last three years,
  • Revenues have also declined 11% 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 Market-1.17%
Tech-2.64%
IT-5.31%
Data Processing Services0.56%
Internet Services and Infrastructure-2.13%
IT Consulting-5.48%
Industry PE
  • Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 30.7x.
    • Analysts are expecting annual earnings growth of 17.3%, which is higher than its past year's earnings growth of 4.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 54% over the next 5 years.
  • This is better than its past earnings decline of 3.2% per year.
  • 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
NCC NCC GroupUK£1.542.0%
+UK£9.4m		62.2%PS1.5x
KWS Keywords StudiosUK£24.280.2%
+UK£4.8m		72.8%PE116.3x
BKS Beeks Financial Cloud GroupUK£2.702.7%
+UK£4.7m		196.7%PE305.1x
ECK EckohUK£0.493.2%
+UK£4.3m		10.1%PE31.1x
CLBS Celebrus TechnologiesUK£2.860.4%
+UK£394.4k		50.5%PE27.9x
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Latest News

CCC

UK£24.18

Computacenter

7D

-11.0%

1Y

-1.0%

TPX

UK£0.41

TPXimpact Holdings

7D

-5.7%

1Y

2.5%

SCT

UK£14.87

Softcat

7D

-3.8%

1Y

0.6%

Here's Why We Think Softcat (LON:SCT) Is Well Worth Watching

Sep 06
Here's Why We Think Softcat (LON:SCT) Is Well Worth Watching

KNOS

UK£8.43

Kainos Group

7D

-11.2%

1Y

-32.3%

FDM

UK£3.95

FDM Group (Holdings)

7D

-2.8%

1Y

-28.2%

BKS

UK£2.70

Beeks Financial Cloud Group

7D

2.7%

1Y

196.7%

NCC

UK£1.54

NCC Group

7D

2.0%

1Y

62.2%

RCN

UK£1.30

Redcentric

7D

-2.1%

1Y

3.2%

ECK

UK£0.49

Eckoh

7D

3.2%

1Y

10.1%

Earnings Not Telling The Story For Eckoh plc (LON:ECK)

Aug 20
Earnings Not Telling The Story For Eckoh plc (LON:ECK)

IOM

UK£1.15

iomart Group

7D

-8.4%

1Y

-36.6%

KWS

UK£24.28

Keywords Studios

7D

0.2%

1Y

72.8%

CLBS

UK£2.86

Celebrus Technologies

7D

0.4%

1Y

50.5%

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

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

MTEC

UK£0.16

Made Tech Group

7D

-12.2%

1Y

-6.3%

KCT

UK£1.30

Kin and Carta

7D

0.2%

1Y

62.0%