Is There An Opportunity With Growens S.p.A.'s (BIT:GROW) 26% Undervaluation?
How far off is Growens S.p.A. ( BIT:GROW ) from its intrinsic value? Using the most recent financial data, we'll take a...
Italian (Borsa Italiana) Software Industry Analysis
UpdatedDec 02, 2021
DataAggregated Company Financials
Companies14
- 7D-2.6%
- 3M2.1%
- 1Y94.6%
- YTD66.1%
Over the last 7 days, the Software industry has dropped 1.6%, driven by a pullback from Digital Value of 7.8%. Meanwhile, Doxee actually outperformed within the industry, gaining 12% in the last week. This takes the industry's 12 month performance to a gain of 99%.
Industry Valuation and Performance
Has the Italian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 05 Dec 2021 | €2.6b | €1.1b | €68.5m | 40.4x |
| Tue, 02 Nov 2021 | €2.4b | €1.1b | €67.1m | 35.2x |
| Thu, 30 Sep 2021 | €2.3b | €1.1b | €66.1m | 31.1x |
| Sat, 28 Aug 2021 | €2.4b | €1.0b | €60.4m | 36.5x |
| Sun, 04 Jul 2021 | €1.9b | €1.0b | €60.4m | 28x |
| Wed, 07 Apr 2021 | €1.7b | €994.8m | €61.4m | 26.9x |
| Sat, 09 Jan 2021 | €1.3b | €958.8m | €58.8m | 21.4x |
| Fri, 02 Oct 2020 | €1.1b | €766.4m | €44.2m | 20.4x |
| Mon, 06 Jul 2020 | €1.0b | €783.1m | €30.6m | 21.1x |
| Thu, 09 Apr 2020 | €839.2m | €847.0m | €102.3m | 16.6x |
| Wed, 01 Jan 2020 | €928.1m | €719.7m | €28.7m | 29.1x |
| Sat, 05 Oct 2019 | €868.6m | €1.2b | €29.1m | 23x |
| Tue, 09 Jul 2019 | €897.3m | €1.2b | €28.4m | 34.9x |
| Mon, 01 Apr 2019 | €669.4m | €1.2b | €31.0m | 22.1x |
| Thu, 03 Jan 2019 | €529.8m | €1.2b | €21.5m | 26.1x |
PE Ratio
26.1x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 40.2x which is higher than its 3-year average PE of 27.1x. It appears they are confident that earnings will grow faster in the future than they have historically.
Past Earnings Growth: The earnings for companies in the Software industry have grown 267% per year over the last three years, and revenues for these companies have grown 16% 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 Italian Software industry?
| Application Software | 2.40% | |
| Systems Software | -5.57% | |
Industry PE: Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 20.7x. This is likely because analysts are expecting annual earnings growth of 24%, which is higher than its past year's earnings growth of 13% per year. Meanwhile, investors are most pessimistic about the Application Software industry, which is trading below its 3-year average of 41.2x.
Forecasted Growth: Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 30% over the next 5 years. This is better than it's past earnings growth rate of 9.6% per year. Meanwhile, the Systems Software industry is expected to see its earnings grow by 24% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| DOX Doxee | 11.6%+€9.3m | 267.6% | PE55x | |
| RLT Relatech | 6.6%+€6.3m | 40.3% | PE26.3x | |
| EXAI Expert.ai | 4.0%+€4.6m | 3.1% | PS3.2x | |
| GROW Growens | 4.1%+€3.0m | 15.4% | PE164.8x | |
| TXT TXT e-solutions | 2.3%+€2.5m | 25.5% | PE21.1x |