Optimistic Investors Push ISA Holdings Limited (JSE:ISA) Shares Up 34% But Growth Is Lacking
Nov 28
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South African (JSE) Tech Sector Analysis
UpdatedJan 25, 2026
DataAggregated Company Financials
Companies8
- 7D-2.0%
- 3M10.3%
- 1Y33.1%
- YTD0.2%
Over the last 7 days, the Tech industry has dropped 2.0%, driven by Datatec declining 3.4%. This takes the industry's 12 month performance to a gain of 33%. As for the next few years, earnings are expected to grow by 18% 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 |
|---|---|---|---|---|---|---|
| Sun, 25 Jan 2026 | R30.9b | R84.5b | R2.6b | 11.7x | 12.1x | 0.4x |
| Tue, 23 Dec 2025 | R32.8b | R87.8b | R2.5b | 12.3x | 13.1x | 0.4x |
| Thu, 20 Nov 2025 | R31.6b | R89.6b | R2.5b | 11.3x | 12.4x | 0.4x |
| Sat, 18 Oct 2025 | R29.3b | R90.7b | R1.1b | 13.8x | 25.6x | 0.3x |
| Mon, 15 Sep 2025 | R26.9b | R91.4b | R1.1b | 11.6x | 24.8x | 0.3x |
| Wed, 13 Aug 2025 | R26.9b | R92.3b | R1.1b | 11.3x | 25.2x | 0.3x |
| Fri, 11 Jul 2025 | R29.4b | R92.9b | R1.1b | 12.8x | 27.3x | 0.3x |
| Sun, 08 Jun 2025 | R29.4b | R92.9b | R1.1b | 14x | 27.5x | 0.3x |
| Tue, 06 May 2025 | R27.3b | R124.0b | R1.2b | 12.6x | 23.2x | 0.2x |
| Thu, 03 Apr 2025 | R26.5b | R127.0b | R1.7b | 12.1x | 16x | 0.2x |
| Sat, 01 Mar 2025 | R23.7b | R126.8b | R1.5b | 11.8x | 15.9x | 0.2x |
| Mon, 27 Jan 2025 | R24.1b | R125.7b | R1.5b | 12.5x | 16.4x | 0.2x |
| Wed, 25 Dec 2024 | R23.2b | R127.1b | R1.3b | 12.2x | 18.5x | 0.2x |
| 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 |
Price to Earnings Ratio
21.7x
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 12.1x which is lower than its 3-year average PE of 55.8x.
- The industry is trading close to its 3-year average PS ratio of 0.20x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 32% per year over the last three years.
- Meanwhile revenues for these companies have declined 14% per year.
- This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the South African Tech sector?
| ZA Market | 2.11% | |
| Tech | -1.98% | |
| Semiconductors | 40.00% | |
| Software | 2.93% | |
| IT | 0.035% | |
| Communications | 0% | 0 |
| Tech Hardware | -2.73% | |
| Electronic Equipment and Components | -3.38% | |
Industry PE
- Investors are most optimistic about the Tech Hardware industry which is trading above its 3-year average PE ratio of 3.0x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Semiconductors industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the IT industry, expecting annual earnings growth of 21% over the next 5 years.
- This is better than its past earnings growth rate of 10% per year.
- In contrast, the Electronic Equipment and Components industry is expected to see its earnings grow by 16% 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 | |
|---|---|---|---|---|---|
| IOC iOCO | R4.58 | 2.9% +R82.1m | 85.4% | PE11.5x | |
| PBT PBT Holdings | R7.01 | 6.2% +R39.8m | 18.8% | PE9.7x | |
| LAB Labat Africa | R0.07 | 40.0% +R25.0m | -22.2% | PE0.6x | |
| ISA ISA Holdings | R2.46 | 2.9% +R10.9m | 24.2% | PE14x |