Improved Earnings Required Before Proact IT Group AB (publ) (STO:PACT) Stock's 26% Jump Looks Justified
May 22
Swedish (OMX) IT Industry Analysis
UpdatedMay 22, 2024
DataAggregated Company Financials
Companies28
- 7D3.5%
- 3M11.7%
- 1Y2.4%
- YTD25.6%
In the last week, the IT industry is up 3.5%, with Addnode Group up 5.8%. Meanwhile, Generic Sweden actually underperformed within the industry, shrinking 9.5% in the last week. The industry has been flat over the past 12 months despite the gain this week. Looking forward, earnings are forecast to grow by 23% annually.
Industry Valuation and Performance
Has the Swedish IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 22 May 2024 | kr37.7b | kr29.5b | kr820.9m | 17.2x | 45.9x | 1.3x |
| Fri, 19 Apr 2024 | kr36.5b | kr30.1b | kr927.1m | 16.7x | 39.3x | 1.2x |
| Sun, 17 Mar 2024 | kr35.0b | kr30.1b | kr910.0m | 16.8x | 38.5x | 1.2x |
| Tue, 13 Feb 2024 | kr34.6b | kr30.6b | kr573.8m | 17.7x | 60.3x | 1.1x |
| Thu, 11 Jan 2024 | kr30.8b | kr30.5b | kr606.9m | 15.7x | 50.7x | 1x |
| Sat, 09 Dec 2023 | kr28.8b | kr30.5b | kr612.6m | 15.8x | 47.1x | 0.9x |
| Mon, 06 Nov 2023 | kr26.6b | kr30.3b | kr601.0m | 14.5x | 44.2x | 0.9x |
| Wed, 04 Oct 2023 | kr25.7b | kr30.1b | kr677.2m | 14.1x | 37.9x | 0.9x |
| Fri, 01 Sep 2023 | kr27.6b | kr29.9b | kr666.5m | 15.2x | 41.4x | 0.9x |
| Sun, 30 Jul 2023 | kr29.0b | kr29.7b | kr673.2m | 16x | 43.1x | 1x |
| Tue, 27 Jun 2023 | kr35.8b | kr29.1b | kr1.5b | 13.3x | 24.2x | 1.2x |
| Thu, 25 May 2023 | kr37.1b | kr29.0b | kr1.5b | 14.6x | 25.1x | 1.3x |
| Sat, 22 Apr 2023 | kr40.9b | kr27.5b | kr1.5b | 16.5x | 28x | 1.5x |
| Mon, 20 Mar 2023 | kr39.3b | kr26.9b | kr1.4b | 15.7x | 27.6x | 1.5x |
| Wed, 15 Feb 2023 | kr39.6b | kr26.6b | kr1.3b | 16x | 30.1x | 1.5x |
| Fri, 13 Jan 2023 | kr36.1b | kr25.2b | kr1.2b | 15.1x | 28.9x | 1.4x |
| Sun, 11 Dec 2022 | kr35.4b | kr25.4b | kr1.3b | 15.1x | 27.9x | 1.4x |
| Tue, 08 Nov 2022 | kr34.8b | kr24.7b | kr1.3b | 15x | 26.3x | 1.4x |
| Thu, 06 Oct 2022 | kr31.9b | kr23.3b | kr1.3b | 13.9x | 25.2x | 1.4x |
| Sat, 03 Sep 2022 | kr42.2b | kr23.3b | kr1.3b | 14.6x | 33.1x | 1.8x |
| Mon, 01 Aug 2022 | kr44.6b | kr23.1b | kr1.3b | 15.4x | 34.4x | 1.9x |
| Wed, 29 Jun 2022 | kr41.1b | kr21.5b | kr1.1b | 16.4x | 35.9x | 1.9x |
| Fri, 27 May 2022 | kr39.6b | kr21.5b | kr1.2b | 16.5x | 34.2x | 1.8x |
| Sun, 24 Apr 2022 | kr43.6b | kr33.2b | kr1.1b | 21x | 38.1x | 1.3x |
| Tue, 22 Mar 2022 | kr41.3b | kr33.2b | kr1.1b | 19.8x | 36.1x | 1.2x |
| Thu, 17 Feb 2022 | kr43.0b | kr33.0b | kr1.1b | 21.7x | 38.1x | 1.3x |
| Sat, 15 Jan 2022 | kr45.2b | kr31.5b | kr972.8m | 26.4x | 46.4x | 1.4x |
| Mon, 13 Dec 2021 | kr45.8b | kr31.5b | kr973.7m | 25.5x | 47x | 1.5x |
| Wed, 10 Nov 2021 | kr45.8b | kr31.2b | kr1.0b | 23.5x | 44.8x | 1.5x |
| Fri, 08 Oct 2021 | kr42.4b | kr30.3b | kr975.8m | 24.6x | 43.4x | 1.4x |
| Sun, 05 Sep 2021 | kr45.4b | kr30.3b | kr975.8m | 25.6x | 46.6x | 1.5x |
| Tue, 03 Aug 2021 | kr42.4b | kr30.3b | kr975.8m | 24x | 43.4x | 1.4x |
Price to Earnings Ratio
37.9x
Current Industry PE
- Investors are optimistic on the Swedish IT industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 45.9x which is higher than its 3-year average PE of 37.3x.
- The industry is trading close to its 3-year average PS ratio of 1.3x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 5.1% per year over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, 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 Swedish Tech industry?
| SE Market | 0.64% | |
| Tech | -0.12% | |
| IT | 3.47% | |
| IT Consulting | 3.49% | |
| Internet Services and Infrastructure | 1.76% | |
| Data Processing Services | 0% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 32.4x.
- Analysts are expecting annual earnings growth of 22.9%, which is higher than its past year's earnings decline of 2.8% per year.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 23% over the next 5 years.
- This is better than its past earnings decline of 2.8% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 23% 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 | |
|---|---|---|---|---|---|
| ANOD B Addnode Group | kr120.40 | 4.7% +kr719.9m | -0.4% | PE54.4x | |
| KNOW Knowit | kr189.40 | 5.6% +kr273.5m | 0.7% | PE25.8x | |
| PACT Proact IT Group | kr131.40 | 5.5% +kr183.5m | 68.2% | PE17.3x | |
| ENEA Enea | kr74.60 | 8.1% +kr113.5m | 35.9% | PS1.8x | |
| EXS Exsitec Holding | kr172.00 | 4.2% +kr93.8m | 12.4% | PE32.4x |
