South African (JSE) Tech Sector Analysis
UpdatedDec 08, 2022
DataAggregated Company Financials
Companies16
- 7D-0.04%
- 3M-11.7%
- 1Y-8.6%
- YTD-12.2%
Last week, the Tech industry hasn't moved much but Metrofile Holdings is up 15% in that time. Unfortunately though, the industry is down 8.6% over the past 12 months. As for the next few years, earnings are expected to grow by 13% per annum.
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 |
|---|---|---|---|---|---|---|
| Thu, 08 Dec 2022 | R22.8b | R133.3b | R874.9m | 12.6x | 26x | 0.2x |
| Sat, 05 Nov 2022 | R26.4b | R143.2b | R834.9m | 12x | 31.6x | 0.2x |
| Mon, 03 Oct 2022 | R26.4b | R139.0b | R858.7m | 11x | 30.8x | 0.2x |
| Wed, 31 Aug 2022 | R26.8b | R128.7b | R1.3b | 11.4x | 20.8x | 0.2x |
| Fri, 29 Jul 2022 | R26.3b | R128.2b | R1.4b | 12.5x | 18.7x | 0.2x |
| Sun, 26 Jun 2022 | R24.1b | R123.9b | R1.4b | 14.2x | 16.9x | 0.2x |
| Tue, 24 May 2022 | R26.2b | R119.0b | R1.2b | 12.6x | 22.7x | 0.2x |
| Thu, 21 Apr 2022 | R26.0b | R116.3b | R1.2b | 13.2x | 22.5x | 0.2x |
| Sat, 19 Mar 2022 | R26.1b | R111.0b | R1.3b | 13.3x | 19.5x | 0.2x |
| Mon, 14 Feb 2022 | R26.2b | R107.1b | R1.1b | 13.9x | 23.9x | 0.2x |
| Wed, 12 Jan 2022 | R26.4b | R109.1b | R1.2b | 13.9x | 22.3x | 0.2x |
| Fri, 10 Dec 2021 | R25.5b | R111.9b | R1.5b | 11.2x | 17.2x | 0.2x |
| Sun, 07 Nov 2021 | R27.2b | R107.5b | R1.4b | 12.9x | 19.8x | 0.3x |
| Tue, 05 Oct 2021 | R26.5b | R110.6b | R654.6m | 10x | 40.4x | 0.2x |
| Thu, 02 Sep 2021 | R24.4b | R111.0b | R363.0m | 10x | 67.3x | 0.2x |
| Sat, 31 Jul 2021 | R22.8b | R111.0b | R363.0m | 10.5x | 62.8x | 0.2x |
| Tue, 04 May 2021 | R24.5b | R110.5b | R293.5m | 10.5x | 83.4x | 0.2x |
| Fri, 05 Feb 2021 | R24.1b | R112.0b | R298.9m | 10.4x | 80.7x | 0.2x |
| Mon, 09 Nov 2020 | R24.0b | R132.0b | R21.4m | 9.1x | 1120.6x | 0.2x |
| Sun, 02 Aug 2020 | R23.3b | R134.7b | -R330,279,937.24 | 9.2x | -70.5x | 0.2x |
| Wed, 06 May 2020 | R21.8b | R116.9b | -R1,833,518,649.50 | 5.9x | -11.9x | 0.2x |
| Sat, 08 Feb 2020 | R28.0b | R120.4b | -R1,078,219,867.06 | 6.5x | -26x | 0.2x |
Price to Earnings Ratio
-15x
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 at a PE ratio of 26.0x which is lower than its 3-year average PE of 56.7x.
- The industry is trading close to its 3-year average PS ratio of 0.21x.
Past Earnings Growth
- Total earnings for the Information Technology industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 3.3% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Tech sector?
| ZA Market | -2.22% | |
| Tech | -0.04% | |
| Semiconductors | 10.00% | |
| Software | 3.81% | |
| Tech Hardware | 2.63% | |
| IT | -0.10% | |
| Electronic Equipment and Components | -1.42% | |
| Communications | -3.18% | |
Industry PE
- Investors are most optimistic about the Software industry which is trading above its 3-year average PE ratio of 19.6x.
- Analysts are expecting annual earnings growth of 56.9%, which is higher than its past year's earnings decline of 29.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Software industry, expecting annual earnings growth of 57% over the next 5 years.
- This is better than its past earnings decline of 29% per year.
- In contrast, the Electronic Equipment and Components industry is expected to see its earnings decline by 7.2% 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 | |
|---|---|---|---|---|---|
| MFL Metrofile Holdings | R3.50 | 15.1% +R199.5m | 12.9% | PE11.4x | |
| MIX MiX Telematics | R5.38 | 4.5% +R127.3m | -27.1% | PE48.3x | |
| EOH EOH Holdings | R3.94 | 3.7% +R23.6m | -38.3% | PS0.1x | |
| MST Mustek | R14.84 | 2.6% +R22.4m | 12.3% | PE4x | |
| LAB Labat Africa | R0.11 | 10.0% +R5.8m | -68.6% | PS2.1x |