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U.K. (FTSE) IT Industry Analysis

UpdatedMay 08, 2024
DataAggregated Company Financials
Companies24
  • 7D1.8%
  • 3M-6.4%
  • 1Y-4.8%
  • YTD-0.6%

The IT industry is up 1.8% in the last week, with Softcat up 4.5%. In contrast, the industry has lost 4.8% in the last 12 months. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

Has the U.K. IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 09 May 2024UK£10.1bUK£10.2bUK£374.7m28.7x27x1x
Sat, 06 Apr 2024UK£10.4bUK£10.4bUK£355.2m28.4x29.1x1x
Mon, 04 Mar 2024UK£10.8bUK£10.8bUK£359.5m25.7x30x1x
Wed, 31 Jan 2024UK£11.3bUK£12.8bUK£367.2m25.8x30.8x0.9x
Fri, 29 Dec 2023UK£10.9bUK£12.8bUK£376.7m24.1x29.1x0.9x
Sun, 26 Nov 2023UK£10.4bUK£13.4bUK£388.8m26.7x26.9x0.8x
Tue, 24 Oct 2023UK£10.6bUK£13.4bUK£371.7m25.8x28.6x0.8x
Thu, 21 Sep 2023UK£11.2bUK£13.4bUK£389.2m26.9x28.9x0.8x
Sat, 19 Aug 2023UK£10.6bUK£12.5bUK£407.0m26.2x25.9x0.8x
Mon, 17 Jul 2023UK£11.1bUK£12.5bUK£400.3m26.9x27.8x0.9x
Wed, 14 Jun 2023UK£11.4bUK£12.5bUK£424.0m26.4x27x0.9x
Fri, 12 May 2023UK£11.5bUK£12.4bUK£422.1m26.6x27.3x0.9x
Sun, 09 Apr 2023UK£11.5bUK£12.4bUK£422.4m27x27.2x0.9x
Tue, 07 Mar 2023UK£37.2bUK£22.3bUK£2.1b28.6x17.9x1.7x
Thu, 02 Feb 2023UK£37.2bUK£21.9bUK£1.8b28.5x20.6x1.7x
Sat, 31 Dec 2022UK£36.2bUK£21.8bUK£1.8b27.2x20.4x1.7x
Mon, 28 Nov 2022UK£38.8bUK£21.7bUK£1.8b30.5x21.9x1.8x
Wed, 26 Oct 2022UK£35.3bUK£21.6bUK£1.7b27.1x21.3x1.6x
Fri, 23 Sep 2022UK£33.7bUK£21.6bUK£1.7b28.7x20.3x1.6x
Sun, 21 Aug 2022UK£33.0bUK£20.6bUK£1.6b28.7x20.2x1.6x
Tue, 19 Jul 2022UK£27.6bUK£20.4bUK£1.8b28.7x15.4x1.3x
Thu, 16 Jun 2022UK£19.2bUK£18.1bUK£807.4m35.2x23.8x1.1x
Sat, 14 May 2022UK£19.9bUK£17.9bUK£790.1m33.4x25.2x1.1x
Mon, 11 Apr 2022UK£25.8bUK£17.9bUK£782.8m35.6x32.9x1.4x
Wed, 09 Mar 2022UK£24.0bUK£17.3bUK£772.9m32.4x31.1x1.4x
Fri, 04 Feb 2022UK£27.6bUK£17.2bUK£770.4m36.2x35.8x1.6x
Sun, 02 Jan 2022UK£30.2bUK£15.5bUK£773.0m41.7x39.1x2x
Tue, 30 Nov 2021UK£29.6bUK£15.4bUK£744.0m42.6x39.8x1.9x
Thu, 28 Oct 2021UK£30.5bUK£15.2bUK£729.3m43.7x41.8x2x
Sat, 25 Sep 2021UK£31.4bUK£13.9bUK£703.3m47.7x44.7x2.3x
Mon, 23 Aug 2021UK£31.4bUK£13.9bUK£661.1m47x47.5x2.3x
Sat, 10 Jul 2021UK£19.0bUK£13.5bUK£630.2m40.4x30.2x1.4x
Price to Earnings Ratio

41.3x


Total Market Cap: UK£19.5bTotal Earnings: UK£471.6mTotal Revenue: UK£13.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 37.6x202220232024
Current Industry PE
  • Investors are pessimistic on the British IT 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 27.0x which is lower than its 3-year average PE of 37.6x.
  • The 3-year average PS ratio of 1.9x is higher than the industry's current PS ratio of 0.99x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 7.4% per year over the last three years,
  • Revenues have also declined 8.0% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the U.K. Tech industry?

GB Market1.96%
Tech1.65%
IT1.76%
Data Processing Services5.51%
IT Consulting1.95%
Internet Services and Infrastructure-1.49%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 103x.
    • Analysts are expecting annual earnings growth of 107.3%, which is higher than its past year's earnings decline of 10.0% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 107% over the next 5 years.
  • This is better than its past earnings decline of 10.0% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 15% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
SCT SoftcatUK£16.324.6%
+UK£143.4m		21.7%PE28.7x
CCC ComputacenterUK£26.163.0%
+UK£85.8m		9.5%PE14.9x
KWS Keywords StudiosUK£12.679.3%
+UK£85.2m		-41.9%PE58.3x
KNOS Kainos GroupUK£9.922.0%
+UK£23.9m		-20.9%PE29.8x
NCC NCC GroupUK£1.352.0%
+UK£8.1m		30.2%PS1.3x
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Latest News

CCC

UK£26.16

Computacenter

7D

3.0%

1Y

9.5%

Increases to Computacenter plc's (LON:CCC) CEO Compensation Might Cool off for now

May 08
Increases to Computacenter plc's (LON:CCC) CEO Compensation Might Cool off for now

SYS

UK£0.32

SysGroup

7D

-7.2%

1Y

-13.5%

Many Still Looking Away From SysGroup plc (LON:SYS)

May 07
Many Still Looking Away From SysGroup plc (LON:SYS)

KNOS

UK£9.92

Kainos Group

7D

2.0%

1Y

-20.9%

CLCO

UK£0.003

CloudCoCo Group

7D

-20.0%

1Y

-73.3%

CloudCoCo Group plc (LON:CLCO) Stock's 50% Dive Might Signal An Opportunity But It Requires Some Scrutiny

May 02
CloudCoCo Group plc (LON:CLCO) Stock's 50% Dive Might Signal An Opportunity But It Requires Some Scrutiny

SPA

UK£0.67

1Spatial

7D

6.3%

1Y

34.0%

1Spatial (LON:SPA) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of

May 02
1Spatial (LON:SPA) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of

NCC

UK£1.35

NCC Group

7D

2.0%

1Y

30.2%

ECK

UK£0.42

Eckoh

7D

-2.3%

1Y

-1.2%

Calculating The Fair Value Of Eckoh plc (LON:ECK)

Apr 25
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RCN

UK£1.40

Redcentric

7D

-4.1%

1Y

7.9%

KWS

UK£12.67

Keywords Studios

7D

9.3%

1Y

-41.9%

IOM

UK£1.29

iomart Group

7D

-0.8%

1Y

-23.8%

A Look At The Fair Value Of iomart Group plc (LON:IOM)

Apr 15
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FDM

UK£3.51

FDM Group (Holdings)

7D

0.7%

1Y

-46.2%

FDM Group (Holdings)'s (LON:FDM) Performance Is Even Better Than Its Earnings Suggest

Apr 15
FDM Group (Holdings)'s (LON:FDM) Performance Is Even Better Than Its Earnings Suggest

ING

UK£1.49

Ingenta

7D

-2.3%

1Y

34.4%

SCT

UK£16.32

Softcat

7D

4.6%

1Y

21.7%

Softcat's (LON:SCT) Dividend Will Be £0.085

Mar 29
Softcat's (LON:SCT) Dividend Will Be £0.085

TRD

UK£2.75

Triad Group

7D

3.8%

1Y

86.4%

There's Reason For Concern Over Triad Group plc's (LON:TRD) Massive 27% Price Jump

Mar 23
There's Reason For Concern Over Triad Group plc's (LON:TRD) Massive 27% Price Jump

BKS

UK£1.70

Beeks Financial Cloud Group

7D

-2.9%

1Y

44.7%

GRC

UK£0.048

GRC International Group

7D

-14.7%

1Y

-64.4%

Market Might Still Lack Some Conviction On GRC International Group plc (LON:GRC) Even After 68% Share Price Boost

Feb 08
Market Might Still Lack Some Conviction On GRC International Group plc (LON:GRC) Even After 68% Share Price Boost