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South African (JSE) Tech Sector Analysis

UpdatedJul 26, 2024
DataAggregated Company Financials
Companies10
  • 7D3.2%
  • 3M14.6%
  • 1Y13.4%
  • YTD8.2%

The Tech industry is up 3.2% in the last week, with Altron up 5.7%. This means that the industry has gained 13% over the past year. As for the next few years, earnings are expected to grow by 12% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 26 Jul 2024R18.5bR129.7bR1.0b10x17.7x0.1x
Sun, 23 Jun 2024R18.4bR127.7bR1.0b10.4x17.8x0.1x
Tue, 21 May 2024R17.1bR130.8b-R741,404,668.5010.6x-23x0.1x
Thu, 18 Apr 2024R16.5bR135.5b-R764,426,476.509.9x-21.6x0.1x
Sat, 16 Mar 2024R22.1bR137.1b-R600,624,757.5010x-36.8x0.2x
Mon, 12 Feb 2024R21.4bR140.0b-R607,976,812.509.8x-35.3x0.2x
Wed, 10 Jan 2024R24.7bR161.4bR64.3m9.7x383.8x0.2x
Fri, 08 Dec 2023R22.5bR162.1bR67.6m8.8x333.7x0.1x
Sun, 05 Nov 2023R22.4bR158.6bR195.1m9.4x114.7x0.1x
Tue, 03 Oct 2023R21.0bR150.9bR104.9m9.3x200.3x0.1x
Thu, 31 Aug 2023R21.4bR147.3bR97.4m9.3x219.6x0.1x
Sat, 29 Jul 2023R21.0bR141.9bR120.5m9.7x174.2x0.1x
Mon, 26 Jun 2023R22.1bR147.9b-R406,906,154.0010.4x-54.4x0.1x
Wed, 24 May 2023R23.0bR143.3bR1.0b12.3x22x0.2x
Fri, 21 Apr 2023R23.5bR137.5bR1.0b11.8x23.5x0.2x
Sun, 19 Mar 2023R22.2bR139.3bR1.0b10.5x21.7x0.2x
Tue, 14 Feb 2023R23.8bR136.7bR1.1b11.9x20.9x0.2x
Thu, 12 Jan 2023R23.1bR132.0bR1.1b13x21.8x0.2x
Sat, 10 Dec 2022R25.0bR134.1bR880.8m12.2x28.3x0.2x
Mon, 07 Nov 2022R25.7bR136.9bR951.9m12x27x0.2x
Wed, 05 Oct 2022R27.5bR137.2bR843.4m11.4x32.6x0.2x
Fri, 02 Sep 2022R26.9bR130.5bR1.3b11.7x20.6x0.2x
Sun, 31 Jul 2022R26.3bR127.2bR1.4b12.4x19.5x0.2x
Tue, 28 Jun 2022R23.7bR124.0bR1.4b14x16.6x0.2x
Thu, 26 May 2022R24.9bR119.2bR1.2b12.8x21.6x0.2x
Sat, 23 Apr 2022R25.6bR118.8bR1.2b13.9x21.9x0.2x
Mon, 21 Mar 2022R26.1bR111.0bR1.3b13.3x19.5x0.2x
Wed, 16 Feb 2022R26.3bR107.2bR1.1b13.8x24x0.2x
Fri, 14 Jan 2022R26.5bR108.5bR1.2b13.8x22.5x0.2x
Sun, 12 Dec 2021R24.9bR112.0bR1.5b11.2x16.8x0.2x
Tue, 09 Nov 2021R26.9bR106.8bR1.4b13x19.6x0.3x
Thu, 07 Oct 2021R26.9bR110.9bR655.7m11x41x0.2x
Sat, 04 Sep 2021R24.7bR111.0bR363.0m10.1x68x0.2x
Mon, 02 Aug 2021R23.1bR111.0bR363.0m10.5x63.7x0.2x
Price to Earnings Ratio

63.7x


Total Market Cap: R23.1bTotal Earnings: R363.0mTotal Revenue: R111.0bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Tech Sector Price to Earnings3Y Average 59.2x202220232024
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 17.7x which is lower than its 3-year average PE of 59.2x.
  • The industry is trading close to its 3-year average PS ratio of 0.18x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 42% per year over the last three years.
  • Revenues for these companies have grown 5.3% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the South African Tech sector?

ZA Market1.28%
Tech3.17%
Tech Hardware31.03%
IT5.81%
Communications0%
Semiconductors0%
Electronic Equipment and Components-1.33%
Software-4.04%
Industry PE
  • Investors are most optimistic about the IT industry which is trading above its 3-year average PE ratio of 6.1x.
    • Analysts are expecting annual earnings growth of 6.7%, which is lower than the prior year's growth of 19.4% per year.
  • Investors are most pessimistic about the Tech Hardware industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 3.7x.
Forecasted Growth
  • Analysts are most optimistic on the Electronic Equipment and Components industry, expecting annual earnings growth of 17% over the next 5 years.
  • In contrast, the IT industry is expected to see its earnings grow by 6.7% 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
AEL AltronR16.505.7%
+R337.1m		120.6%PE14.4x
MST MustekR13.5122.9%
+R145.0m		-18.6%PE5.4x
AYO AYO Technology SolutionsR0.6423.1%
+R41.2m		-74.4%PS0.1x
PBG PBT GroupR6.473.4%
+R21.3m		-19.1%PE10.2x
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Latest News

MST

R13.51

Mustek

7D

22.9%

1Y

-18.6%

AEL

R16.50

Altron

7D

5.7%

1Y

120.6%

PBG

R6.47

PBT Group

7D

3.4%

1Y

-19.1%

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DTC

R35.39

Datatec

7D

-2.3%

1Y

-0.3%

ISA

R1.90

ISA Holdings

7D

-4.0%

1Y

75.9%

AYO

R0.64

AYO Technology Solutions

7D

23.1%

1Y

-74.4%

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Jun 15
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MFL

R2.24

Metrofile Holdings

7D

-10.4%

1Y

-25.3%