Software & IT Services

Indonesia / Technology /  Software & IT Services

The Software & IT Services subsector on the Indonesia Stock Exchange encompasses various subindustries such as Online Applications & Services, IT Services & Consulting, and Software. This subsector plays a major role in Indonesia's market due to several factors. Firstly, Indonesia has a large and growing population, which presents a significant market for technology-based services and software. Additionally, the country has been experiencing rapid digital transformation, with increasing internet penetration and smartphone usage. This has led to a surge in demand for online applications, IT services, and consulting. Furthermore, the government has been actively promoting the development of the digital economy, providing support and incentives for companies in the Software & IT Services subsector. At this moment, this sub-sector appears to be in a bearish market sentiment, with a total market cap depreciation of approximately -26% over the past 365 days. It's possible that around 21 companies within this sub-sector may have encountered a negative market cap change, while it seems that only about 9 companies might have experienced a positive market cap change, indicating a challenging market environment. Notable companies in this subsector, based on market capitalization, include PT DCI Indonesia Tbk, PT GoTo Gojek Tokopedia Tbk, PT Global Digital Niaga Tbk, Elang Mahkota Teknologi Tbk, and PT Bukalapak.com Tbk.

P/E Value

The Software & IT Services sub-sector is typically considered defensive due to its stable demand regardless of economic conditions. Historically, the P/E values for this sub-sector have been moderate. The current lower P/E value compared to last year may be influenced by increased competition, slower revenue growth, or concerns about future earnings potential. Companies like ...

6.35

Price to Earnings

Software & IT Services Sector P/E
6.35
The Price-to-Earnings (P/E) ratio is a key tool for investors and analysts to assess whether a stock is overvalued, undervalued, or fairly valued. The P/E ratio is calculated by dividing the market price of a company's stock by its earnings per share (EPS).
Software & IT Services Weighted Sector P/E
44.39
The weighted average P/E ratio is a measure of the average P/E ratio of the companies in the sector, weighted by market capitalization.
Indonesia Stocks Avg. P/E
8.22

Resilience & Health Index

In the last 30 days, the Software & IT Services sub-sector in Indonesia has experienced poor price changes compared to the overall IDX. With 33 companies in this sub-sector, it ranked 32nd in terms of price changes. This could be due to factors such as intense competition and rapid technological advancements leading to price wars and margin pressures. The lack of new ...

7.3

Sector Health Score

Software & IT Services Sector Max Drawdown
-0.42
The maximum drawdown is the maximum loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum Drawdown (MDD) is an indicator of downside risk over a specified time period.
Indonesia Stocks Avg. Max Drawdown
-0.26
Software & IT Services RSD (Close)
0.13
The RSD (Close) is a measure of the volatility of a stock's daily price change. It is calculated as the standard deviation of each day's logarithmic returns summed over the past 90 days.
Indonesia Stocks Avg. RSD (Close)
0.14

Key Figures

Software & IT Services companies on IDX

33

Total Market Cap. (IDR, billion)

IDR 282,868.83B

2.38% of total market cap. on IDX
Range of P/E Value

-204 - 469

Average of 6.3 P/E
Sector CAGR

> -10%

Compound Annual Revenue Growth of -10.41%

Software & IT Services Sector Performance

IDR 282.87T

Sector Market Cap. (IDR, trillion)
  1. Last 4 Quaters

  2. Prev 4 Quarters

Sector Composition

Sector Valuation

Historical valuation of companies in Software & IT Services
More than 5% deviation of median from the last 3 years
Within 5% deviation of median of last 3 years
TTM: Trailing Twelve Months (TTM)
Metric202020212022Current (TTM)
Price/Equity26.1531.1020.536.35Lower than average of last 3 years
Price/Book2.134.462.731.95Lower than average of last 3 years
Price/Sales0.505.723.650.89Lower than average of last 3 years
Price/Cash Flow-0.0011.93-0.031.77Lower than average of last 3 years

Executive Summary

Sector Performance

1W

-2.3%

1Y

-28.1%

YTD

-17.7%

Trailing 12 Months

Overall -28.1%

−0.100.100.20

Positive

Neutral (Within <2.5%)

Negative

Sector Percentile

6%

35
55
75
0
100

This sector has a return that beats 6% of all sectors on the Indonesia Stock Exchange over the past 12 months.

Sector Dividend Yield

2.25%

Dividend-paying companies in this sector pay out a dividend yield of 2.25% on average over the past 12 months. This beats the average dividend yield of all companies on IDX, which is around 3.23%.

Sector Stabillity

86%

35
55
75
0
100

This sector is comparably stable, with a RSD (Relative Standard Deviation) of 13%. Companies on IDX have an average RSD of 12%. This gives the sector a score of 86%.

RSD (Relative Standard Deviation)
86%
The relative standard deviation, caluclated from the S.D of the sector's returns.
Max Drawdown
-41.55%
The maximum loss from a peak to a trough during a specific period (TTM).

This past month

Over the last month, stocks in the Software & IT Services sector has remained flat, although notably PT ITSEC Asia Tbk. has gained 19.27% in the last month.

Current quarter

This quarter, the sector has seen an average revenue decline of -10.41% compared to the same quarter last year.
When it comes to earnings, the sector has seen an average decline of -3.30% compared to the same quarter in 2023. Much of this growth is driven by the following companies:
IRSX.JK(+4131.2%), WIFI.JK(+59.1%), ATIC.JK(+38.7%), BUKA.JK(+28.9%), DMMX.JK(+19.5%).

Last 12 Months

Companies in the Software & IT Services sector have seen a -28.1% change in market cap over the last 12 months. Investors have become pessimistic on the sector couple with macroeconomic factors that might be strong headwinds for the sector.

Most of the last 12 months in the Software & IT Services sector has been negative with November (+26.9%), May (+8.6%) and July (-1.8%) being the best performing months.

Sector Valuation

Has the Software & IT Services sector valuation in Indonesia changed over the past 12 months?

Price to Earnings Ratio

  • The Software & IT Services sector is trading at a median PE ratio of 6.35x, which is lower than its 3-year historical average PE of 44.39x. This puts the sector in the undervalued category based on its historical valuation.
  • Companies in the Software & IT Services have an extremely wide range of PE ratio, going between -204x to 469x.This makes it necessary to consider the outliers in the sector, and adjust for the respective market caps of each company to prevent any skewing of the data.
  • To add some perspective across the value disparity, among the top gainers in the last month,0 while 0
  • When weighted by market cap, the Software & IT Services sector is trading at a PE ratio of 44.39x as compared to the unweighted PE ratio of 6.35x. The unweighted sector median is a considerable discount (1.3x) to the overall IDX median of 8.22x.
  • The Software & IT Services sector is trading at a PE ratio (6.35) that represents a substantial discount to its historical average (25.93).

Sector Gainers

CYBR Logo
PT ITSEC Asia Tbk.
CYBR.JK
Last Trading Day

IDR 260.00

1 Month

+19.27%

UVCR Logo
PT Trimegah Karya Pratama Tbk.
UVCR.JK
Last Trading Day

IDR 118.00

1 Month

+16.83%

1 Year

+11.32%

ELIT Logo
PT Data Sinergitama Jaya Tbk
ELIT.JK
Last Trading Day

IDR 104.00

1 Month

+11.83%

1 Year

-51.85%

PGJO Logo
PT Tourindo Guide Indonesia Tbk.
PGJO.JK
Last Trading Day

IDR 88.00

1 Month

+10.00%

1 Year

+23.94%

RUNS Logo
PT Global Sukses Solusi Tbk
RUNS.JK
Last Trading Day

IDR 61.00

1 Month

+7.02%

1 Year

-60.13%