Returns On Capital Are A Standout For Matrix IT (TLV:MTRX)
Jul 19
Israeli (TA) Tech Sector Analysis
UpdatedJul 26, 2024
DataAggregated Company Financials
Companies57
- 7D0.9%
- 3M-13.8%
- 1Y-5.2%
- YTD-1.4%
Over the last 7 days, the Tech industry has risen 1.3%, driven by gains from Formula Systems (1985) of 9.7%. During this same period, the Priortech underperformed, falling 6.7%. In contrast, the industry has lost 4.6% in the last 12 months. As for the next few years, earnings are expected to grow by 25% per annum.
Sector Valuation and Performance
Has the Israeli Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Jul 2024 | ₪78.0b | ₪50.7b | ₪2.3b | 14.1x | 33.2x | 1.5x |
| Sun, 23 Jun 2024 | ₪71.6b | ₪50.1b | ₪2.3b | 12.8x | 30.7x | 1.4x |
| Tue, 21 May 2024 | ₪82.0b | ₪48.6b | ₪2.2b | 13.5x | 36.8x | 1.7x |
| Thu, 18 Apr 2024 | ₪90.3b | ₪48.8b | ₪2.1b | 13.2x | 42.6x | 1.9x |
| Sat, 16 Mar 2024 | ₪89.5b | ₪48.0b | ₪2.5b | 11.5x | 36.3x | 1.9x |
| Mon, 12 Feb 2024 | ₪82.6b | ₪47.6b | ₪2.3b | 11.2x | 35.6x | 1.7x |
| Wed, 10 Jan 2024 | ₪78.6b | ₪45.4b | ₪2.0b | 11.5x | 40.1x | 1.7x |
| Fri, 08 Dec 2023 | ₪74.9b | ₪45.2b | ₪1.9b | 11.4x | 38.6x | 1.7x |
| Sun, 05 Nov 2023 | ₪67.7b | ₪45.6b | ₪1.9b | 11.5x | 36.6x | 1.5x |
| Tue, 03 Oct 2023 | ₪72.8b | ₪45.1b | ₪1.8b | 13.2x | 40.3x | 1.6x |
| Thu, 31 Aug 2023 | ₪76.8b | ₪44.6b | ₪1.7b | 14.6x | 44.5x | 1.7x |
| Sat, 29 Jul 2023 | ₪79.1b | ₪43.4b | ₪1.7b | 13.9x | 45.4x | 1.8x |
| Mon, 26 Jun 2023 | ₪75.9b | ₪43.0b | ₪1.7b | 14x | 44.7x | 1.8x |
| Wed, 24 May 2023 | ₪72.4b | ₪41.4b | ₪1.6b | 14.9x | 44.7x | 1.7x |
| Fri, 21 Apr 2023 | ₪77.1b | ₪42.9b | ₪1.7b | 13.7x | 45.6x | 1.8x |
| Sun, 19 Mar 2023 | ₪77.8b | ₪44.1b | ₪1.8b | 14.4x | 42.9x | 1.8x |
| Tue, 14 Feb 2023 | ₪80.4b | ₪42.9b | ₪1.7b | 14.7x | 48.6x | 1.9x |
| Thu, 12 Jan 2023 | ₪74.3b | ₪42.4b | ₪1.7b | 14.8x | 44.6x | 1.8x |
| Sat, 10 Dec 2022 | ₪76.4b | ₪42.2b | ₪1.7b | 15.2x | 46.1x | 1.8x |
| Mon, 07 Nov 2022 | ₪72.6b | ₪41.3b | ₪1.6b | 18.2x | 45.1x | 1.8x |
| Wed, 05 Oct 2022 | ₪77.7b | ₪39.8b | ₪1.6b | 18.3x | 48.4x | 2x |
| Fri, 02 Sep 2022 | ₪84.1b | ₪38.6b | ₪1.5b | 21.1x | 55.1x | 2.2x |
| Sun, 31 Jul 2022 | ₪82.5b | ₪37.6b | ₪1.2b | 20.7x | 66.4x | 2.2x |
| Tue, 28 Jun 2022 | ₪79.9b | ₪39.2b | ₪1.3b | 21.1x | 61.4x | 2x |
| Thu, 26 May 2022 | ₪74.6b | ₪36.7b | ₪1.3b | 20.4x | 58.5x | 2x |
| Sat, 23 Apr 2022 | ₪82.6b | ₪35.5b | ₪1.2b | 21.3x | 67.3x | 2.3x |
| Mon, 21 Mar 2022 | ₪85.0b | ₪35.2b | ₪1.3b | 21.2x | 67.6x | 2.4x |
| Wed, 16 Feb 2022 | ₪93.6b | ₪34.0b | ₪1.3b | 26.2x | 74.6x | 2.8x |
| Fri, 14 Jan 2022 | ₪98.0b | ₪33.4b | ₪1.2b | 26.7x | 81.1x | 2.9x |
| Sun, 12 Dec 2021 | ₪102.2b | ₪33.4b | ₪1.2b | 27x | 88.3x | 3.1x |
| Tue, 09 Nov 2021 | ₪95.4b | ₪32.1b | ₪1.2b | 26.3x | 79.9x | 3x |
| Thu, 07 Oct 2021 | ₪91.8b | ₪32.7b | ₪1.2b | 23.3x | 75.6x | 2.8x |
| Sat, 04 Sep 2021 | ₪96.3b | ₪32.8b | ₪1.3b | 24.5x | 72.7x | 2.9x |
| Mon, 02 Aug 2021 | ₪93.6b | ₪32.8b | ₪1.3b | 26.4x | 70.8x | 2.9x |
Price to Earnings Ratio
70.8x
Current Industry PE
- Investors are pessimistic on the Israeli Information Technology 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 33.5x which is lower than its 3-year average PE of 53.2x.
- The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 21% per year over the last three years.
- Revenues for these companies have grown 15% 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 Israeli Tech sector?
| IL Market | 0.58% | |
| Tech | 0.93% | |
| IT | 1.74% | |
| Tech Hardware | 1.45% | |
| Software | 1.33% | |
| Electronic Equipment and Components | -0.90% | |
| Semiconductors | -1.26% | |
| Communications | -3.93% | |
Industry PE
- Investors are most optimistic about the Software industry even though it's trading below its 3-year average PE ratio of 93.6x.
- Analysts are expecting annual earnings growth of 15.1%, which is lower than the prior year's growth of 43.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Electronic Equipment and Components industry, expecting annual earnings growth of 154% over the next 5 years.
- This is better than its past earnings growth rate of 11% per year.
- In contrast, the Software 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NICE NICE | ₪666.00 | 1.2% +₪520.4m | -16.4% | PE31.5x | |
| FORTY Formula Systems (1985) | ₪320.30 | 6.6% +₪305.1m | 21.3% | PE20.7x | |
| MTRX Matrix IT | ₪77.25 | 2.4% +₪113.1m | 8.1% | PE20.9x | |
| NYAX Nayax | ₪88.88 | 3.3% +₪104.4m | 15.9% | PS3.6x | |
| ONE One Software Technologies | ₪51.75 | 2.4% +₪88.0m | 10.3% | PE19.5x |
