With EPS Growth And More, Cerillion (LON:CER) Makes An Interesting Case
Sep 11
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U.K. (FTSE) Software Industry Analysis
UpdatedSep 15, 2024
DataAggregated Company Financials
Companies57
- 7D1.8%
- 3M-2.3%
- 1Y8.6%
- YTD0.5%
In the last week, the Software industry is up 1.8%, with Sage Group up 3.1%. In the same time, Cerillion was down 10%. In the last 12 months, the industry was up 8.6%. Looking forward, 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 |
|---|---|---|---|---|---|---|
| Tue, 17 Sep 2024 | UK£20.9b | UK£5.2b | UK£278.0m | 36.1x | 75.3x | 4.1x |
| Thu, 15 Aug 2024 | UK£21.1b | UK£5.3b | UK£258.1m | 38.1x | 81.9x | 4x |
| Sat, 13 Jul 2024 | UK£21.6b | UK£5.3b | UK£259.7m | 38.9x | 83.1x | 4.1x |
| Mon, 10 Jun 2024 | UK£21.8b | UK£5.3b | UK£140.4m | 40.7x | 155.1x | 4.1x |
| Wed, 08 May 2024 | UK£22.7b | UK£5.2b | UK£107.4m | 37.5x | 211.1x | 4.3x |
| Fri, 05 Apr 2024 | UK£21.6b | UK£5.2b | UK£84.7m | 37.8x | 255.4x | 4.1x |
| Sun, 03 Mar 2024 | UK£21.4b | UK£5.2b | UK£66.0m | 36.4x | 324.1x | 4.2x |
| Tue, 30 Jan 2024 | UK£42.6b | UK£10.2b | UK£70.9m | 38.5x | 601.1x | 4.2x |
| Thu, 28 Dec 2023 | UK£42.6b | UK£10.1b | UK£72.2m | 36.5x | 590.2x | 4.2x |
| Sat, 25 Nov 2023 | UK£41.1b | UK£10.2b | UK£137.2m | 32.2x | 300x | 4x |
| Mon, 23 Oct 2023 | UK£39.2b | UK£10.1b | UK£130.0m | 30.9x | 301.7x | 3.9x |
| Wed, 20 Sep 2023 | UK£40.8b | UK£10.0b | UK£132.8m | 37.8x | 307.4x | 4.1x |
| Fri, 18 Aug 2023 | UK£39.6b | UK£10.0b | UK£97.8m | 34.3x | 404.7x | 4x |
| Sun, 16 Jul 2023 | UK£40.9b | UK£10.5b | UK£128.8m | 35.5x | 317.6x | 3.9x |
| Tue, 13 Jun 2023 | UK£40.8b | UK£10.6b | UK£251.7m | 37.4x | 162.3x | 3.9x |
| Thu, 11 May 2023 | UK£39.9b | UK£10.7b | UK£109.8m | 36.8x | 363.9x | 3.7x |
| Sat, 08 Apr 2023 | UK£39.2b | UK£10.6b | UK£289.7m | 37x | 135.4x | 3.7x |
| Mon, 06 Mar 2023 | UK£39.8b | UK£10.3b | UK£300.9m | 35.7x | 132.3x | 3.8x |
| Wed, 01 Feb 2023 | UK£39.3b | UK£10.3b | UK£302.0m | 32.9x | 130.1x | 3.8x |
| Fri, 30 Dec 2022 | UK£39.0b | UK£10.4b | UK£296.3m | 34.4x | 131.5x | 3.8x |
| Sun, 27 Nov 2022 | UK£40.1b | UK£10.3b | UK£325.1m | 36.4x | 123.4x | 3.9x |
| Tue, 25 Oct 2022 | UK£37.8b | UK£10.3b | UK£340.6m | 36.7x | 111.1x | 3.7x |
| Thu, 22 Sep 2022 | UK£39.5b | UK£10.1b | UK£339.7m | 47.9x | 116.4x | 3.9x |
| Sat, 20 Aug 2022 | UK£37.1b | UK£9.7b | UK£245.6m | 49x | 151.2x | 3.8x |
| Mon, 18 Jul 2022 | UK£32.6b | UK£9.6b | UK£295.9m | 42x | 110.1x | 3.4x |
| Wed, 15 Jun 2022 | UK£32.2b | UK£9.7b | UK£147.8m | 42x | 217.9x | 3.3x |
| Fri, 13 May 2022 | UK£33.4b | UK£9.3b | UK£205.6m | 40.5x | 162.3x | 3.6x |
| Sun, 10 Apr 2022 | UK£37.6b | UK£9.1b | UK£155.6m | 38.5x | 241.9x | 4.1x |
| Tue, 08 Mar 2022 | UK£36.6b | UK£9.0b | UK£107.7m | 38.7x | 339.8x | 4.1x |
| Thu, 03 Feb 2022 | UK£40.8b | UK£8.9b | -UK£1,237,260,077.00 | 47.7x | -33x | 4.6x |
| Sat, 01 Jan 2022 | UK£44.8b | UK£8.9b | -UK£1,243,930,972.00 | 50.7x | -36x | 5x |
| Mon, 29 Nov 2021 | UK£42.6b | UK£8.9b | -UK£1,269,440,265.00 | 49.9x | -33.6x | 4.8x |
| Wed, 27 Oct 2021 | UK£45.4b | UK£8.7b | -UK£1,215,601,063.00 | 59.5x | -37.4x | 5.2x |
| Fri, 24 Sep 2021 | UK£49.5b | UK£8.6b | -UK£1,194,433,762.00 | 55.4x | -41.4x | 5.7x |
Price to Earnings Ratio
-41.4x
Current Industry PE
- Investors are pessimistic on the British Software 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 75.3x which is lower than its 3-year average PE of 229x.
- The industry is trading close to its 3-year average PS ratio of 4.2x.
Past Earnings Growth
- Total earnings for the Software industry have gone up over the last three years and the industry is now profitable.
- Revenues have declined 16% per year.
- This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the U.K. Tech industry?
| GB Market | 1.10% | |
| Tech | 1.47% | |
| Software | 1.84% | |
| Application Software | 2.29% | |
| Systems Software | -0.014% | |
Industry PE
- Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 172x.
- Analysts are expecting annual earnings growth of 22.2%, which is higher than its past year's earnings growth of 19.9% per year.
- Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 130x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 22% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Systems Software industry is expected to see its earnings grow by 9.9% 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£10.18 | 1.8% +UK£176.6m | -0.3% | PE38x | |
| FDP FD Technologies | UK£15.60 | 3.3% +UK£14.1m | -0.1% | PS1.8x | |
| BIRD Blackbird | UK£0.065 | 23.8% +UK£4.8m | -35.0% | PS15.3x | |
| IGP Intercede Group | UK£2.06 | 3.0% +UK£3.5m | 296.2% | PE20.1x | |
| BYIT Bytes Technology Group | UK£4.58 | 0.3% +UK£3.4m | -5.7% | PE23.6x |