New Zealand (NZX) Tech Sector Analysis
UpdatedDec 06, 2022
DataAggregated Company Financials
Companies15
- 7D4.1%
- 3M0.2%
- 1Y-27.2%
- YTD-31.8%
In the last week, the Tech industry is up 4.1%, with Smartpay Holdings up 12%. During this same period, the Rakon underperformed, falling 8.3%. However, the industry is down 27% over the past year. Earnings are forecast to grow by 42% annually.
Sector Valuation and Performance
Has the New Zealand Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 06 Dec 2022 | NZ$3.4b | NZ$1.1b | -NZ$19,264,645.00 | 26.5x | -176.2x | 3.1x |
| Thu, 03 Nov 2022 | NZ$3.3b | NZ$1.0b | -NZ$563,472.00 | 19.2x | -5808.9x | 3.2x |
| Sat, 01 Oct 2022 | NZ$3.2b | NZ$1.1b | -NZ$23,184,824.00 | 17.4x | -137.6x | 3x |
| Mon, 29 Aug 2022 | NZ$3.6b | NZ$1.0b | -NZ$11,933,020.00 | 20.5x | -298.5x | 3.5x |
| Wed, 27 Jul 2022 | NZ$3.5b | NZ$1.0b | -NZ$12,265,775.00 | 20x | -284.9x | 3.5x |
| Fri, 24 Jun 2022 | NZ$3.4b | NZ$1.0b | -NZ$12,589,784.00 | 20.8x | -273.3x | 3.4x |
| Sun, 22 May 2022 | NZ$3.6b | NZ$931.3m | NZ$606.1k | 19.9x | 5908.9x | 3.8x |
| Tue, 19 Apr 2022 | NZ$3.8b | NZ$888.3m | NZ$4.3m | 19.1x | 878.6x | 4.2x |
| Thu, 17 Mar 2022 | NZ$3.8b | NZ$888.8m | NZ$4.3m | 19.2x | 883.7x | 4.2x |
| Sat, 12 Feb 2022 | NZ$4.3b | NZ$872.1m | NZ$4.5m | 16.5x | 952.2x | 4.9x |
| Mon, 10 Jan 2022 | NZ$4.9b | NZ$870.8m | NZ$4.2m | 21.2x | 1152x | 5.6x |
| Wed, 08 Dec 2021 | NZ$4.7b | NZ$871.0m | NZ$4.3m | 24x | 1108.9x | 5.4x |
| Fri, 05 Nov 2021 | NZ$5.3b | NZ$800.7m | -NZ$37,160,516.00 | 36.5x | -142.9x | 6.6x |
| Sun, 03 Oct 2021 | NZ$5.4b | NZ$808.0m | -NZ$35,887,172.00 | 31.8x | -149.3x | 6.6x |
| Tue, 31 Aug 2021 | NZ$5.0b | NZ$806.0m | -NZ$36,239,528.60 | 39.8x | -139x | 6.3x |
| Wed, 07 Jul 2021 | NZ$4.9b | NZ$806.0m | -NZ$36,239,528.60 | 43.5x | -134.8x | 6.1x |
| Sat, 10 Apr 2021 | NZ$4.9b | NZ$799.9m | -NZ$55,192,228.60 | 22.1x | -88.6x | 6.1x |
| Fri, 01 Jan 2021 | NZ$4.3b | NZ$770.5m | -NZ$80,263,506.50 | 16.6x | -53.9x | 5.6x |
| Mon, 05 Oct 2020 | NZ$4.3b | NZ$787.2m | -NZ$75,068,721.00 | 17.4x | -57.7x | 5.5x |
| Thu, 09 Jul 2020 | NZ$3.9b | NZ$788.6m | -NZ$50,378,635.55 | 19.7x | -78x | 5x |
| Wed, 01 Apr 2020 | NZ$1.9b | NZ$788.2m | -NZ$11,069,194.50 | 34.7x | -171.2x | 2.4x |
| Sat, 04 Jan 2020 | NZ$3.3b | NZ$751.9m | NZ$24.1m | 32.6x | 135.1x | 4.3x |
Price to Earnings Ratio
135.1x
Current Industry PE
- Investors are pessimistic on the New Zealander Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 4.8x is higher than the industry's current PS ratio of 3.1x.
Past Earnings Growth
- Total earnings for the Information Technology industry have declined over the last three years, with the industry now making a loss overall.
- Meanwhile revenues have grown 13% 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 New Zealand Tech sector?
| NZ Market | 2.08% | |
| Tech | 4.13% | |
| Software | 11.87% | |
| IT | 2.19% | |
| Communications | 0% | |
| Tech Hardware | 0% | |
| Semiconductors | 0% | |
| Electronic Equipment and Components | -3.16% | |
Industry PE
- Investors are most optimistic about the IT industry even though it's trading below its 3-year average PE ratio of 60.6x.
- Analysts are expecting annual earnings growth of 19.0%, which is higher than its past year's earnings decline of 5.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Software industry, expecting annual earnings growth of 73% over the next 5 years.
- In contrast, the IT industry is expected to see its earnings grow by 19% 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 | |
|---|---|---|---|---|---|
| SPY Smartpay Holdings | NZ$1.11 | 11.6% +NZ$27.4m | 46.1% | PE46.3x | |
| SKO Serko | NZ$2.53 | 3.3% +NZ$9.6m | -63.3% | PS10.8x | |
| GTK Gentrack Group | NZ$2.45 | 2.9% +NZ$7.1m | 40.8% | PS2x | |
| IKE ikeGPS Group | NZ$0.94 | 2.2% +NZ$3.2m | 9.3% | PS5.9x | |
| SNC Southern Charter Financial Group | NZ$0.006 | n/a NZ$3.1m | n/a | PB1.7x |