South African (JSE) Tech Sector Analysis

Sector Valuation and Performance

Has the South African Tech Sector valuation changed over the past few years?

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Sat, 04 May 2024	R16.7b	R132.7b	-R750,595,608.00	9.9x	-22.3x	0.1x
Mon, 01 Apr 2024	R23.0b	R137.6b	-R657,302,955.00	10.2x	-35x	0.2x
Wed, 28 Feb 2024	R20.6b	R140.5b	-R607,596,554.50	9.8x	-33.9x	0.1x
Fri, 26 Jan 2024	R24.7b	R162.6b	R59.9m	10.3x	411.7x	0.2x
Sun, 24 Dec 2023	R23.6b	R160.6b	R67.0m	9.3x	351.9x	0.1x
Tue, 21 Nov 2023	R22.6b	R159.4b	R222.4m	8.6x	101.6x	0.1x
Thu, 19 Oct 2023	R21.6b	R156.4b	R22.4m	9.6x	965.7x	0.1x
Sat, 16 Sep 2023	R21.0b	R149.2b	R86.8m	9.7x	242x	0.1x
Mon, 14 Aug 2023	R21.2b	R149.0b	R75.0m	9.5x	282.2x	0.1x
Wed, 12 Jul 2023	R21.8b	R147.0b	-R400,690,569.00	9.8x	-54.5x	0.1x
Fri, 09 Jun 2023	R22.7b	R147.7b	-R318,702,537.00	9.9x	-71.2x	0.2x
Sun, 07 May 2023	R23.2b	R139.3b	R1.0b	12x	22.8x	0.2x
Tue, 04 Apr 2023	R23.9b	R136.3b	R996.0m	12.3x	24x	0.2x
Thu, 02 Mar 2023	R24.3b	R137.9b	R1.1b	10.9x	21.2x	0.2x
Sat, 28 Jan 2023	R23.9b	R133.3b	R1.1b	12.4x	21.5x	0.2x
Mon, 26 Dec 2022	R23.1b	R132.2b	R1.1b	13.1x	21.8x	0.2x
Wed, 23 Nov 2022	R25.6b	R133.5b	R929.4m	11.5x	27.6x	0.2x
Fri, 21 Oct 2022	R25.0b	R140.0b	R854.8m	11.1x	29.2x	0.2x
Sun, 18 Sep 2022	R27.7b	R132.7b	R747.2m	12x	37x	0.2x
Tue, 16 Aug 2022	R27.3b	R126.3b	R1.3b	12.8x	21.4x	0.2x
Thu, 14 Jul 2022	R25.6b	R128.6b	R1.4b	14.7x	18.2x	0.2x
Sat, 11 Jun 2022	R25.2b	R124.0b	R1.4b	13.9x	17.6x	0.2x
Mon, 09 May 2022	R25.9b	R120.1b	R1.2b	12.8x	22.1x	0.2x
Wed, 06 Apr 2022	R25.6b	R107.9b	R1.3b	13.7x	20.2x	0.2x
Fri, 04 Mar 2022	R26.2b	R108.3b	R1.1b	13.6x	23.7x	0.2x
Sun, 30 Jan 2022	R25.8b	R109.6b	R1.2b	13.9x	21.8x	0.2x
Tue, 28 Dec 2021	R26.3b	R109.8b	R1.2b	12.7x	21.2x	0.2x
Thu, 25 Nov 2021	R24.9b	R111.2b	R1.4b	13.8x	17.9x	0.2x
Sat, 23 Oct 2021	R26.9b	R109.5b	R649.7m	12.5x	41.4x	0.2x
Mon, 20 Sep 2021	R25.1b	R109.4b	R510.5m	10.4x	49.1x	0.2x
Wed, 18 Aug 2021	R23.6b	R111.0b	R363.0m	9.9x	65.1x	0.2x
Wed, 02 Jun 2021	R25.4b	R110.5b	R293.5m	10x	86.6x	0.2x

Current Industry PE

Investors are pessimistic on the South African Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.

The industry is trading close to its 3-year average PS ratio of 0.19x.

Past Earnings Growth

Total earnings for the Information Technology industry have declined over the last three years, with the industry now making a loss overall.
Meanwhile revenues have grown 6.4% per year.
This means that although more sales are being generated, 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 South African Tech sector?


ZA Market	1.90%
Tech	3.56%
Electronic Equipment and Components	8.10%
Tech Hardware	3.41%
Software	0%
Communications	0%
Semiconductors	0%
IT	-1.02%

Industry PE

Investors are most optimistic about the Software industry even though it's trading below its 3-year average PE ratio of 24.6x.

It looks like they are confident that earnings will grow faster in the future than they have historically.

Forecasted Growth

Analysts are most optimistic on the Electronic Equipment and Components industry, expecting annual earnings growth of 71% over the next 5 years.

In contrast, the Electronic Equipment and Components industry is expected to see its earnings grow by 71% 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
DTC Datatec	R37.35	8.1% +R635.6m	6.0%	PS0.08x
MFL Metrofile Holdings	R2.64	2.7% +R29.6m	-17.5%	PE8.7x
EOH EOH Holdings	R1.19	3.5% +R25.2m	-29.2%	PS0.1x
MST Mustek	R9.10	3.4% +R17.3m	-47.4%	PE3.7x
4SI 4Sight Holdings	R0.76	1.3% +R5.3m	171.4%	PE14x