Is Metrofile Holdings (JSE:MFL) A Risky Investment?
Nov 08
Have your own idea? Try our Stock Screener
South African (JSE) Tech Sector Analysis
UpdatedNov 22, 2024
DataAggregated Company Financials
Companies10
- 7D1.2%
- 3M10.9%
- 1Y31.4%
- YTD24.7%
In the last week, the Tech industry is up 1.2%, with EOH Holdings leading the way, up 9.9%. Meanwhile, Metrofile Holdings actually underperformed within the industry, shrinking 10.0% in the last week. This means that the industry has gained 31% over the past year. 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 |
|---|---|---|---|---|---|---|
| Fri, 22 Nov 2024 | R21.6b | R124.5b | R1.2b | 11.3x | 17.6x | 0.2x |
| Sun, 20 Oct 2024 | R20.0b | R124.7b | R684.9m | 15.8x | 29.2x | 0.2x |
| Tue, 17 Sep 2024 | R18.6b | R125.7b | R918.3m | 10.1x | 20.3x | 0.1x |
| Thu, 15 Aug 2024 | R19.0b | R128.2b | R939.4m | 9.6x | 20.2x | 0.1x |
| Sat, 13 Jul 2024 | R18.3b | R127.6b | R1.0b | 10.4x | 17.8x | 0.1x |
| Mon, 10 Jun 2024 | R17.9b | R132.5b | R1.1b | 10x | 16.7x | 0.1x |
| Wed, 08 May 2024 | R17.0b | R132.7b | -R750,730,333.00 | 10x | -22.6x | 0.1x |
| Fri, 05 Apr 2024 | R16.7b | R134.0b | -R758,722,652.50 | 9.2x | -22x | 0.1x |
| Sun, 03 Mar 2024 | R21.4b | R139.5b | -R520,850,563.50 | 9.8x | -41.1x | 0.2x |
| Tue, 30 Jan 2024 | R24.9b | R162.2b | R61.3m | 9.8x | 405.3x | 0.2x |
| Thu, 28 Dec 2023 | R24.1b | R159.8b | R70.0m | 9.3x | 343.5x | 0.2x |
| Sat, 25 Nov 2023 | R22.6b | R162.3b | R212.3m | 9.2x | 106.3x | 0.1x |
| Mon, 23 Oct 2023 | R21.6b | R156.1b | R23.9m | 9.4x | 906.4x | 0.1x |
| Wed, 20 Sep 2023 | R21.2b | R149.6b | R112.3m | 9.8x | 188.4x | 0.1x |
| Fri, 18 Aug 2023 | R21.4b | R149.9b | R82.6m | 9.4x | 258.7x | 0.1x |
| Sun, 16 Jul 2023 | R21.9b | R144.5b | -R386,460,567.00 | 10.2x | -56.6x | 0.2x |
| Tue, 13 Jun 2023 | R22.5b | R146.2b | -R309,978,554.00 | 10.1x | -72.6x | 0.2x |
| Thu, 11 May 2023 | R22.7b | R141.7b | R1.0b | 11.7x | 22x | 0.2x |
| Sat, 08 Apr 2023 | R24.3b | R138.4b | R1.0b | 11.6x | 24x | 0.2x |
| Mon, 06 Mar 2023 | R24.9b | R138.0b | R1.1b | 10.9x | 21.7x | 0.2x |
| Wed, 01 Feb 2023 | R24.4b | R134.5b | R1.1b | 11.7x | 21.7x | 0.2x |
| Fri, 30 Dec 2022 | R22.9b | R132.0b | R1.1b | 13x | 21.6x | 0.2x |
| Sun, 27 Nov 2022 | R25.5b | R132.6b | R923.2m | 12.3x | 27.6x | 0.2x |
| Tue, 25 Oct 2022 | R25.6b | R140.0b | R854.2m | 11.1x | 30x | 0.2x |
| Thu, 22 Sep 2022 | R26.8b | R133.0b | R723.4m | 11.3x | 37x | 0.2x |
| Sat, 20 Aug 2022 | R27.1b | R129.2b | R1.3b | 12.7x | 20.9x | 0.2x |
| Mon, 18 Jul 2022 | R25.9b | R129.3b | R1.4b | 13.5x | 18.3x | 0.2x |
| Wed, 15 Jun 2022 | R24.1b | R125.1b | R1.4b | 14x | 16.8x | 0.2x |
| Fri, 13 May 2022 | R25.4b | R120.8b | R1.2b | 13x | 21.6x | 0.2x |
| Sun, 10 Apr 2022 | R25.8b | R108.1b | R1.3b | 13.8x | 20.4x | 0.2x |
| Tue, 08 Mar 2022 | R24.4b | R112.5b | R1.3b | 12.7x | 18.1x | 0.2x |
| Thu, 03 Feb 2022 | R26.1b | R108.3b | R1.2b | 14.1x | 22.1x | 0.2x |
| Sat, 01 Jan 2022 | R26.5b | R111.6b | R1.3b | 12.9x | 21.2x | 0.2x |
| Mon, 29 Nov 2021 | R25.1b | R112.9b | R1.4b | 13.5x | 17.7x | 0.2x |
Price to Earnings Ratio
17.7x
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 17.6x which is lower than its 3-year average PE of 56.6x.
- The industry is trading close to its 3-year average PS ratio of 0.17x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have declined 4.7% per year over the last three years.
- Meanwhile revenues for these companies have grown 3.3% 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 | 2.42% | |
| Tech | 1.20% | |
| Tech Hardware | 11.92% | |
| Electronic Equipment and Components | 4.14% | |
| Communications | 0% | |
| Semiconductors | 0% | |
| Software | -0.53% | |
| IT | -1.76% | |
Industry PE
- Investors are most optimistic about the IT industry which is trading above its 3-year average PE ratio of 0.93x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Electronic Equipment and Components industry, which is trading below its 3-year average of 79.6x.
Forecasted Growth
- Analysts are most optimistic on the Electronic Equipment and Components industry, expecting annual earnings growth of 13% over the next 5 years.
- In contrast, the Electronic Equipment and Components industry is expected to see its earnings grow by 13% 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 | |
|---|---|---|---|---|---|
| EOH EOH Holdings | R2.45 | 9.9% +R138.7m | 69.0% | PS0.3x | |
| DTC Datatec | R39.94 | 1.5% +R136.9m | 12.1% | PE8.9x | |
| PBG PBT Group | R5.79 | 5.1% +R28.4m | -20.1% | PE9.1x | |
| MST Mustek | R15.05 | 2.3% +R18.4m | 15.8% | PE38.1x | |
| AYO AYO Technology Solutions | R0.49 | 2.1% +R3.4m | -66.9% | PS0.07x |