With EPS Growth And More, 4Sight Holdings (JSE:4SI) Makes An Interesting Case
Apr 20
South African (JSE) Tech Sector Analysis
UpdatedApr 26, 2024
DataAggregated Company Financials
Companies10
- 7D-2.3%
- 3M-9.9%
- 1Y-12.2%
- YTD-7.0%
Over the last 7 days, the Tech industry has dropped 2.3%, driven by a pullback from Datatec of 5.1%. On the other hand AYO Technology Solutions is actually up 17%. The industry has fallen 12% in the last year. Earnings are forecast to grow by 71% annually.
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, 26 Apr 2024 | R15.9b | R135.5b | -R764,388,753.50 | 9.9x | -20.8x | 0.1x |
| Sun, 24 Mar 2024 | R22.7b | R138.4b | -R605,664,761.00 | 10x | -37.5x | 0.2x |
| Tue, 20 Feb 2024 | R21.1b | R139.7b | -R604,814,831.50 | 9.8x | -34.8x | 0.2x |
| Thu, 18 Jan 2024 | R24.4b | R163.6b | R56.6m | 9.7x | 432x | 0.1x |
| Sat, 16 Dec 2023 | R22.9b | R159.5b | R76.8m | 8.6x | 298.3x | 0.1x |
| Mon, 13 Nov 2023 | R21.6b | R161.3b | R212.3m | 9.2x | 101.6x | 0.1x |
| Wed, 11 Oct 2023 | R21.8b | R149.9b | R110.4m | 9.9x | 197.1x | 0.1x |
| Fri, 08 Sep 2023 | R21.8b | R150.2b | R81.0m | 9.6x | 268.4x | 0.1x |
| Sun, 06 Aug 2023 | R21.1b | R146.6b | R88.6m | 10x | 237.7x | 0.1x |
| Tue, 04 Jul 2023 | R22.1b | R147.9b | -R407,150,866.00 | 10.5x | -54.3x | 0.1x |
| Thu, 01 Jun 2023 | R22.4b | R152.4b | -R246,092,538.00 | 9.9x | -91x | 0.1x |
| Sat, 29 Apr 2023 | R23.7b | R138.8b | R1.0b | 12.6x | 23.4x | 0.2x |
| Mon, 27 Mar 2023 | R23.1b | R138.1b | R1.0b | 10.5x | 22.9x | 0.2x |
| Wed, 22 Feb 2023 | R23.9b | R138.6b | R1.2b | 11.9x | 20.7x | 0.2x |
| Fri, 20 Jan 2023 | R23.7b | R134.1b | R1.1b | 13.2x | 21.9x | 0.2x |
| Sun, 18 Dec 2022 | R23.0b | R135.8b | R1.1b | 12.5x | 21.2x | 0.2x |
| Tue, 15 Nov 2022 | R26.5b | R133.5b | R929.2m | 11.9x | 28.5x | 0.2x |
| Thu, 13 Oct 2022 | R25.5b | R140.3b | R869.3m | 11.1x | 29.3x | 0.2x |
| Sat, 10 Sep 2022 | R26.7b | R130.4b | R1.3b | 12x | 20.5x | 0.2x |
| Mon, 08 Aug 2022 | R26.7b | R128.1b | R1.3b | 12.6x | 20.7x | 0.2x |
| Wed, 06 Jul 2022 | R26.0b | R127.0b | R1.4b | 14.5x | 18.7x | 0.2x |
| Fri, 03 Jun 2022 | R24.9b | R122.4b | R1.5b | 13.5x | 16.5x | 0.2x |
| Sun, 01 May 2022 | R26.0b | R119.6b | R1.2b | 13.5x | 22.2x | 0.2x |
| Tue, 29 Mar 2022 | R25.5b | R108.3b | R1.3b | 13.8x | 20.1x | 0.2x |
| Thu, 24 Feb 2022 | R25.9b | R107.0b | R1.1b | 13.6x | 23.7x | 0.2x |
| Sat, 22 Jan 2022 | R26.3b | R107.0b | R1.2b | 14.1x | 22.4x | 0.2x |
| Mon, 20 Dec 2021 | R26.5b | R111.3b | R1.4b | 13.1x | 18.7x | 0.2x |
| Wed, 17 Nov 2021 | R26.6b | R108.2b | R1.4b | 13x | 19.3x | 0.2x |
| Fri, 15 Oct 2021 | R26.2b | R109.6b | R650.2m | 10.9x | 40.2x | 0.2x |
| Sun, 12 Sep 2021 | R24.7b | R111.0b | R503.7m | 9.9x | 48.9x | 0.2x |
| Tue, 10 Aug 2021 | R23.4b | R111.0b | R363.0m | 10x | 64.4x | 0.2x |
| Mon, 03 May 2021 | R24.5b | R110.5b | R293.5m | 10.5x | 83.4x | 0.2x |
Price to Earnings Ratio
83.4x
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 7.0% 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 | -0.35% | |
| Tech | -2.27% | |
| IT | 0.69% | |
| Software | 0% | |
| Communications | 0% | |
| Semiconductors | 0% | |
| Tech Hardware | -2.07% | |
| Electronic Equipment and Components | -5.11% | |
Industry PE
- Investors are most optimistic about the Software industry even though it's trading below its 3-year average PE ratio of 24.5x.
- 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 | |
|---|---|---|---|---|---|
| AYO AYO Technology Solutions | R0.55 | 17.0% +R27.5m | -88.5% | PS0.08x | |
| EOH EOH Holdings | R1.10 | 3.8% +R25.2m | -35.3% | PS0.1x | |
| AEL Altron | R11.30 | 0.4% +R18.9m | 25.6% | PE31.7x | |
| SEB Sebata Holdings | R2.20 | 2.8% +R6.8m | 10.0% | PS8.8x |