Is Enea AB (publ) (STO:ENEA) Trading At A 45% Discount?
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Enea AB (publ...
Swedish (OMX) Tech Sector Analysis
UpdatedDec 02, 2021
DataAggregated Company Financials
Companies175
- 7D-1.7%
- 3M-14.1%
- 1Y10.9%
- YTD7.7%
Over the last 7 days, the Tech industry has dropped 1.7%, driven by a decline by Sinch of 10%. Meanwhile, Truecaller actually outperformed within the industry, gaining 12% in the last week. This takes the industry's 12 month performance to a gain of 11%.
Sector Valuation and Performance
Has the Swedish Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 05 Dec 2021 | kr1.1t | kr368.2b | kr31.9b | 38.6x |
| Tue, 02 Nov 2021 | kr1.1t | kr363.5b | kr31.3b | 36.4x |
| Thu, 30 Sep 2021 | kr1.1t | kr361.0b | kr30.8b | 33.4x |
| Sat, 28 Aug 2021 | kr1.1t | kr360.5b | kr30.8b | 33.1x |
| Sun, 04 Jul 2021 | kr1.0t | kr360.5b | kr30.8b | 29.5x |
| Wed, 07 Apr 2021 | kr995.0b | kr354.9b | kr27.6b | 29.5x |
| Sat, 09 Jan 2021 | kr882.8b | kr349.5b | kr25.2b | 33.2x |
| Fri, 02 Oct 2020 | kr778.9b | kr345.2b | kr21.9b | 31.7x |
| Mon, 06 Jul 2020 | kr659.8b | kr344.3b | kr9.9b | 23.2x |
| Thu, 09 Apr 2020 | kr540.8b | kr346.0b | kr10.6b | 18.5x |
| Wed, 01 Jan 2020 | kr601.8b | kr342.2b | kr11.1b | 25.9x |
| Sat, 05 Oct 2019 | kr545.1b | kr337.4b | kr899.6m | 21.6x |
| Tue, 09 Jul 2019 | kr592.7b | kr329.2b | kr9.7b | 25.8x |
| Mon, 01 Apr 2019 | kr559.6b | kr321.3b | kr5.4b | 20.9x |
| Thu, 03 Jan 2019 | kr489.8b | kr311.8b | kr1.6b | 16.9x |
PE Ratio
16.9x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 38.3x which is higher than its 3-year average PE of 26.6x. 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 Information Technology industry have grown 172% per year over the last three years, and revenues for these companies have grown 5.7% 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 Swedish Tech sector?
| Tech Hardware | 0.04% | |
| IT | -0.20% | |
| Electronic Equipment and Components | -0.45% | |
| Communications | -1.21% | |
| Semiconductors | -2.12% | |
| Software | -5.04% | |
Industry PE: Investors are most optimistic about the Software industry which is trading above its 3-year average PE ratio of 61.1x. This is likely because analysts are expecting annual earnings growth of 42%, which is higher than its past year's earnings growth of 23% per year. Meanwhile, investors are most pessimistic about the IT industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 20.4x.
Forecasted Growth: Analysts are most optimistic on the Tech Hardware industry, expecting annual earnings growth of 99% over the next 5 years. This is better than it's past earnings growth rate of 52% per year. Meanwhile, the Communications industry is expected to see its earnings grow by 11% 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 | |
|---|---|---|---|---|
| TRUE B Truecaller | 12.1%+kr4.6b | n/a | PE384.6x | |
| NCAB NCAB Group | 5.3%+kr841.4m | 274.9% | PE68.5x | |
| NETI B Net Insight | 18.8%+kr379.0m | 273.2% | PE164.8x | |
| ANOD B Addnode Group | 2.7%+kr319.5m | 43.0% | PE60.7x | |
| ENEA Enea | 5.5%+kr289.5m | 50.3% | PE29x |
