Technology Sector Report
Market Cap: $33.7T
Stocks: 678
Median P/E: 22.1x
Median ROIC: 4.4%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
The Technology sector encompasses companies involved in the design, development, and distribution of technology-based goods and services. This includes semiconductor manufacturers, software developers, IT services firms, and electronic equipment makers. The sector is typically characterized by high R&D intensity, strong gross margins, and secular growth driven by digital transformation and enterprise modernization.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | -0.2% | +0.1% |
| 1 Week | -1.0% | +0.6% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +1.0% | +0.6% |
| 1 Year | +61.6% | -3.8% |
| 3 Years | +292.8% | -0.8% |
| 5 Years | +371.1% | -36.0% |
Today's Breadth: 306 advancing · 256 declining · 41 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 22.1x | 0.1x | 37.5x | -9% |
| P/B | 2.7x | 0.9x | 6.2x | -23% |
| P/S | 1.9x | 0.5x | 4.8x | — |
| P/FCF | 19.4x | 9.3x | 34.6x | — |
| EV/EBITDA | 15.9x | 9.7x | 25.2x | — |
| EV/EBIT | 21.7x | 13.7x | 32.2x | — |
Earnings Yield
3.3%
FCF Yield
2.9%
Below Fair Value
51% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 51.6% | 51.0% | 35.0% | 68.0% |
| Operating Margin | 4.8% | — | -6.9% | 16.2% |
| Net Margin | 3.2% | 1.4% | -8.2% | 13.1% |
| FCF Margin | 10.2% | — | 1.4% | 20.9% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 3.9% | — | -14.2% | 16.8% |
| ROA | 1.5% | — | -8.3% | 7.5% |
| ROIC | 4.4% | 3.5% | -12.5% | 17.4% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +6.4% | +6.8% | +9.9% |
| EPS | +19.8% | +7.4% | +10.7% |
| Free Cash Flow | +19.4% | +13.9% | +10.9% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.3x
Net Debt / EBITDA
0.2x
Interest Coverage
4.2x
Current Ratio
1.7x
Altman Z-Score
Safe (>3): 252 (42%)
Gray (1.8–3): 118 (20%)
Distress (<1.8): 235 (39%)
Piotroski F-Score
Strong (7–9): 140 (21%)
Moderate (4–6): 372 (55%)
Weak (0–3): 162 (24%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| NVDA | 1 | $4.6T | 39.1x | 34.8x | 146.3% | 55.6% | +65.5% | 0.0% | -5.7% | 6/9 |
| GOOGL | 2 | $3.9T | 29.0x | 25.0x | 36.3% | 32.8% | +15.1% | 0.3% | +2.4% | 6/9 |
| AAPL | 3 | $3.9T | 34.2x | 26.8x | 103.9% | 26.9% | +6.4% | 0.4% | -0.1% | 6/9 |
| MSFT | 4 | $2.9T | 36.1x | 22.3x | 38.2% | 36.1% | +14.9% | 0.7% | -0.6% | 6/9 |
| TSM | 5 | $1.9T | 28.6x | — | 56.7% | 40.0% | +29.5% | 1.1% | +1.2% | 7/9 |
| GOOG | 6 | $1.9T | 13.9x | 11.8x | 36.3% | 32.8% | +15.1% | 0.6% | -1.9% | 6/9 |
| AVGO | 7 | $1.8T | 84.1x | 76.0x | 21.7% | 36.2% | +23.9% | 0.6% | +18.2% | 6/9 |
| META | 8 | $1.6T | 28.2x | 16.5x | 33.1% | 30.1% | +22.2% | 0.3% | -2.4% | 6/9 |
| ASML-AS | 9 | $489.5B | 35.5x | 25.9x | 67.9% | 31.3% | +21.1% | 0.2% | — | 6/9 |
| MU | 10 | $479.9B | 20.7x | 10.0x | 15.6% | 22.8% | +48.9% | 0.3% | +13.9% | 2/9 |
| ORCL | 11 | $446.2B | 37.5x | 23.3x | 14.4% | 21.7% | +8.4% | 1.0% | -2.8% | 3/9 |
| AMD | 12 | $403.8B | 81.1x | 17.1x | 6.6% | 12.5% | +34.3% | — | -0.6% | 4/9 |
| PLTR | 13 | $341.4B | 299.5x | — | — | 36.3% | +56.2% | — | +1.0% | 3/9 |
| CSCO | 14 | $328.8B | 26.3x | 19.6x | 16.1% | 18.0% | +5.3% | 2.4% | +2.0% | 5/9 |
| AMAT | 15 | $319.8B | 26.2x | 20.8x | 36.6% | 24.7% | +4.4% | 0.8% | +4.5% | 6/9 |
| INTC | 16 | $290.1B | — | 18.2x | -0.2% | -0.5% | -0.5% | 1.1% | -2.6% | 1/9 |
| KLAC | 17 | $236.6B | 29.1x | 22.5x | 65.5% | 33.4% | +23.9% | 0.8% | +5.1% | 7/9 |
| IBM | 18 | $225.5B | 27.2x | 18.6x | 18.8% | 15.7% | +7.6% | 2.2% | +3.4% | 5/9 |
| TXN | 19 | $198.9B | 32.5x | 21.7x | 21.3% | 28.3% | +13.1% | 3.1% | +2.3% | 5/9 |
| SAP | 20 | $197.5B | 34.6x | — | 22.8% | 19.9% | +12.8% | 1.1% | -3.0% | 6/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Semiconductors & Related Devices | 87 | $11.3T | 33.4% | |
| Services-Computer Programming, Data Processing, Etc. | 49 | $7.8T | 23.0% | |
| Services-Prepackaged Software | 175 | $5.7T | 16.8% | |
| Electronic Computers | 6 | $4.0T | 12.0% | |
| Computer Communications Equipment | 11 | $547.1B | 1.6% | |
| Semiconductors | 8 | $542.4B | 1.6% | |
| Computer Storage Devices | 6 | $421.1B | 1.2% | |
| Industrial Instruments For Measurement, Display, And Control | 17 | $349.9B | 1.0% | |
| Optical Instruments & Lenses | 5 | $293.3B | 0.9% | |
| Search, Detection, Navigation, Guidance, Aeronautical Sys | 11 | $281.9B | 0.8% | |
| Computer & Office Equipment | 3 | $280.5B | 0.8% | |
| Measuring & Controlling Devices, Nec | 11 | $274.8B | 0.8% | |
| Services-Computer Processing & Data Preparation | 53 | $251.9B | 0.7% | |
| Computer Peripheral Equipment, Nec | 12 | $192.8B | 0.6% | |
| Electronic Connectors | 4 | $186.1B | 0.6% |
Showing top 15 of 41 industries.
Quality Distribution
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9
Quality Score (0-9)
High Quality (7+)
5%
Median Piotroski F
5/9
Profitable Years
3 of 10
Dividends & Shareholder Returns
Paying Dividends
23%
Median Div Yield
1.2%
Median Buyback Yield
0.9%
Shareholder Yield
1.4%
Payout Ratio
32.5%
Div Growth (3Y)
6.3%
Div Growth (5Y)
7.6%
Strengths & Weaknesses
Strengths
- +[Profitability]High pricing power with a median gross margin of 51.6%, reflecting differentiated products or strong brand moats.
Weaknesses
- −[Financial Health]38.8% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Profitability]Below-average capital returns with a median ROIC of 4.4%, suggesting limited pricing power or capital-intensive operations.
- −[Quality]Only 4.6% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.