Israeli (TA) Software Industry Analysis
UpdatedNov 27, 2022
DataAggregated Company Financials
Companies25
- 7D-4.5%
- 3M-9.8%
- 1Y-26.8%
- YTD-32.3%
Over the last 7 days, the Software industry has dropped 4.5%, driven by a pullback from NICE of 4.5%. Meanwhile, Tectona actually outperformed within the industry, gaining 18% in the last week. The industry has fallen 27% in the last year. Looking forward, earnings are forecast to grow by 19% annually.
Industry Valuation and Performance
Has the Israeli Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 27 Nov 2022 | ₪47.3b | ₪10.6b | ₪589.8m | 21.7x | 80.2x | 4.5x |
| Tue, 25 Oct 2022 | ₪49.8b | ₪10.7b | ₪532.5m | 23.3x | 93.6x | 4.7x |
| Thu, 22 Sep 2022 | ₪50.1b | ₪10.4b | ₪551.7m | 25x | 90.8x | 4.8x |
| Sat, 20 Aug 2022 | ₪53.1b | ₪9.7b | ₪435.4m | 26.9x | 122x | 5.5x |
| Mon, 18 Jul 2022 | ₪50.6b | ₪9.9b | ₪382.6m | 23.9x | 132.4x | 5.1x |
| Wed, 15 Jun 2022 | ₪48.4b | ₪9.9b | ₪380.3m | 22.6x | 127.4x | 4.9x |
| Fri, 13 May 2022 | ₪47.8b | ₪9.4b | ₪387.7m | 24.7x | 123.2x | 5.1x |
| Sun, 10 Apr 2022 | ₪54.7b | ₪9.0b | ₪404.4m | 28.6x | 135.2x | 6.1x |
| Tue, 08 Mar 2022 | ₪54.4b | ₪8.9b | ₪427.4m | 29.7x | 127.3x | 6.1x |
| Thu, 03 Feb 2022 | ₪61.3b | ₪8.4b | ₪422.2m | 32.5x | 145.2x | 7.3x |
| Sat, 01 Jan 2022 | ₪69.1b | ₪8.3b | ₪416.3m | 32.8x | 166x | 8.3x |
| Mon, 29 Nov 2021 | ₪63.5b | ₪8.4b | ₪427.3m | 29.7x | 148.5x | 7.6x |
| Wed, 27 Oct 2021 | ₪65.5b | ₪7.9b | ₪470.6m | 28.4x | 139.2x | 8.3x |
| Fri, 24 Sep 2021 | ₪66.0b | ₪7.9b | ₪470.8m | 29.4x | 140.1x | 8.4x |
| Sun, 22 Aug 2021 | ₪63.3b | ₪8.0b | ₪571.6m | 27.8x | 110.7x | 7.9x |
| Fri, 09 Jul 2021 | ₪58.0b | ₪8.1b | ₪560.4m | 25.4x | 103.4x | 7.2x |
| Thu, 01 Apr 2021 | ₪52.0b | ₪7.9b | ₪663.5m | 16.8x | 78.4x | 6.6x |
| Sun, 03 Jan 2021 | ₪60.9b | ₪7.4b | ₪704.4m | 18.8x | 86.4x | 8.2x |
| Wed, 07 Oct 2020 | ₪52.7b | ₪7.8b | ₪771.2m | 12.8x | 68.3x | 6.8x |
| Tue, 30 Jun 2020 | ₪44.0b | ₪7.7b | ₪739.9m | 8.2x | 59.5x | 5.7x |
| Fri, 03 Apr 2020 | ₪35.5b | ₪7.9b | ₪755.8m | 9.8x | 47x | 4.5x |
| Mon, 06 Jan 2020 | ₪37.1b | ₪7.5b | ₪687.5m | 26.1x | 53.9x | 4.9x |
Price to Earnings Ratio
48.3x
Current Industry PE
- Investors are pessimistic on the Israeli 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 80.2x which is lower than its 3-year average PE of 94.5x.
- The 3-year average PS ratio of 6.3x is higher than the industry's current PS ratio of 4.5x.
Past Earnings Growth
- The earnings for companies in the Software industry have declined 8.0% per year over the last three years.
- Meanwhile revenues for these companies have grown 12% 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 Israeli Tech industry?
| IL Market | -1.85% | |
| Tech | -2.85% | |
| Software | -4.54% | |
| Systems Software | 0.63% | |
| Application Software | -4.58% | |
Industry PE
- Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 7.4%, which is lower than the prior year's growth of 77.2% per year.
- Investors are most pessimistic about the Application Software industry, which is trading below its 3-year average of 93.0x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 19% 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 7.4% 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 | |
|---|---|---|---|---|---|
| SNEL Synel M.L.L Payway | ₪15.49 | 10.3% +₪8.2m | -67.6% | PE1.6x | |
| TECT Tectona | ₪0.53 | 14.1% +₪5.3m | -78.1% | PS9.8x | |
| SFET Safe-T Group | ₪1.17 | 7.1% +₪2.5m | -63.0% | PS0.7x | |
| UWAY UserWay | ₪17.65 | 3.8% +₪2.3m | n/a | n/a | |
| RZR Razor Labs | ₪0.68 | 3.4% +₪863.1k | -82.7% | PS4.1x |