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U.K. (FTSE) Software Industry Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies68
- 7D1.0%
- 3M10.3%
- 1Y-5.9%
- YTD-7.9%
Over the last 7 days, the Software industry has risen 1.0%, driven by gains from Sage Group of 1.6%. During this same period, the GB Group underperformed, falling 8.3%. In the past year, the industry is down 5.9%. Earnings are forecast to grow by 20% annually.
Industry Valuation and Performance
Has the U.K. Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | UK£40.1b | UK£10.3b | UK£325.1m | 36.4x | 123.4x | 3.9x |
| Wed, 26 Oct 2022 | UK£38.5b | UK£10.2b | UK£344.8m | 39.3x | 111.7x | 3.8x |
| Fri, 23 Sep 2022 | UK£39.0b | UK£10.1b | UK£338.9m | 47.4x | 115.1x | 3.9x |
| Sun, 21 Aug 2022 | UK£37.1b | UK£9.7b | UK£245.6m | 49x | 151.2x | 3.8x |
| Tue, 19 Jul 2022 | UK£32.6b | UK£9.6b | UK£295.9m | 42x | 110.1x | 3.4x |
| Thu, 16 Jun 2022 | UK£32.7b | UK£9.7b | UK£151.0m | 42.1x | 216.6x | 3.4x |
| Sat, 14 May 2022 | UK£33.6b | UK£9.4b | UK£203.9m | 41.8x | 164.8x | 3.6x |
| Mon, 11 Apr 2022 | UK£37.6b | UK£9.1b | UK£155.6m | 38.5x | 241.9x | 4.1x |
| Wed, 09 Mar 2022 | UK£36.2b | UK£9.0b | UK£107.3m | 38.4x | 337x | 4x |
| Fri, 04 Feb 2022 | UK£39.9b | UK£8.9b | -UK£1,231,431,833.00 | 48.3x | -32.4x | 4.5x |
| Sun, 02 Jan 2022 | UK£44.8b | UK£8.9b | -UK£1,243,930,972.00 | 50.7x | -36x | 5x |
| Tue, 30 Nov 2021 | UK£42.6b | UK£8.9b | -UK£1,271,108,632.00 | 50.9x | -33.6x | 4.8x |
| Thu, 28 Oct 2021 | UK£44.9b | UK£8.7b | -UK£1,221,489,141.00 | 59.7x | -36.8x | 5.2x |
| Sat, 25 Sep 2021 | UK£48.8b | UK£8.7b | -UK£1,200,837,798.00 | 54x | -40.6x | 5.6x |
| Mon, 23 Aug 2021 | UK£42.4b | UK£8.3b | -UK£1,095,385,509.28 | 58.1x | -38.7x | 5.1x |
| Sat, 10 Jul 2021 | UK£38.6b | UK£8.3b | -UK£1,097,244,509.28 | 51.4x | -35.2x | 4.7x |
| Fri, 02 Apr 2021 | UK£36.9b | UK£8.2b | -UK£1,468,036,845.81 | 46.5x | -25.2x | 4.5x |
| Mon, 04 Jan 2021 | UK£34.6b | UK£8.3b | -UK£1,904,708,252.51 | 41.1x | -18.2x | 4.2x |
| Thu, 08 Oct 2020 | UK£30.9b | UK£7.9b | -UK£1,105,218,115.03 | 48.8x | -27.9x | 3.9x |
| Wed, 01 Jul 2020 | UK£29.1b | UK£8.2b | -UK£347,001,763.16 | 29.9x | -83.8x | 3.6x |
| Sat, 04 Apr 2020 | UK£24.8b | UK£8.1b | -UK£120,417,465.18 | 25x | -206.1x | 3.1x |
| Tue, 07 Jan 2020 | UK£32.4b | UK£8.1b | UK£436.5m | 37.3x | 74.2x | 4x |
Price to Earnings Ratio
79.7x
Current Industry PE
- Investors are optimistic on the British Software industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 123x which is higher than its 3-year average PE of 73.7x.
- The industry is trading close to its 3-year average PS ratio of 4.3x.
Past Earnings Growth
- The earnings for companies in the Software industry have declined 6.4% per year over the last three years.
- Meanwhile revenues for these companies have grown 8.9% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.K. Tech industry?
| GB Market | 1.33% | |
| Tech | 2.53% | |
| Software | 1.04% | |
| Application Software | 1.12% | |
| Systems Software | 0.87% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 152x.
- Analysts are expecting annual earnings growth of 22.8%, which is higher than its past year's earnings growth of 3.2% per year.
- Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 232x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 23% over the next 5 years.
- This is better than its past earnings growth rate of 3.2% per year.
- In contrast, the Systems Software industry is expected to see its earnings grow by 14% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SGE Sage Group | UK£8.13 | 1.6% +UK£125.9m | 5.0% | PE31.7x | |
| AVV AVEVA Group | UK£31.91 | 0.9% +UK£82.3m | -0.3% | PS7.7x | |
| KAPE Kape Technologies | UK£2.52 | 7.0% +UK£69.8m | -37.6% | PE22.7x | |
| ACSO accesso Technology Group | UK£8.10 | 21.6% +UK£59.6m | -3.8% | PE17.2x | |
| LTG Learning Technologies Group | UK£1.29 | 5.3% +UK£51.4m | -24.2% | PE41.9x |