AYO Technology Solutions Limited's (JSE:AYO) 104% Share Price Surge Not Quite Adding Up
Aug 27
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South African (JSE) IT Industry Analysis
UpdatedAug 31, 2025
DataAggregated Company Financials
Companies7
- 7D-7.7%
- 3M-11.7%
- 1Y22.2%
- YTD-0.9%
Over the last 7 days, the IT industry has dropped 7.7%, driven by Altron declining 10%. This takes the industry's 12 month performance to a gain of 22%. As for the next few years, earnings are expected to grow by 13% per annum.
Industry Valuation and Performance
Has the South African IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 31 Aug 2025 | R12.0b | R20.2b | R20.0m | 10.7x | 599.9x | 0.6x |
| Tue, 29 Jul 2025 | R12.9b | R20.2b | R20.0m | 11.2x | 642.8x | 0.6x |
| Thu, 26 Jun 2025 | R12.7b | R20.2b | R7.3m | 13.5x | 1747.7x | 0.6x |
| Sat, 24 May 2025 | R13.3b | R19.0b | R112.2m | 13.5x | 118.3x | 0.7x |
| Mon, 21 Apr 2025 | R11.5b | R19.0b | R112.2m | 12.1x | 102.2x | 0.6x |
| Wed, 19 Mar 2025 | R11.2b | R19.4b | R344.3m | 11.3x | 32.7x | 0.6x |
| Fri, 14 Feb 2025 | R11.9b | R19.4b | R366.4m | 12.4x | 32.5x | 0.6x |
| Sun, 12 Jan 2025 | R12.9b | R19.4b | R355.3m | 13.4x | 36.2x | 0.7x |
| Tue, 10 Dec 2024 | R11.5b | R19.7b | R130.6m | 12.7x | 87.7x | 0.6x |
| Thu, 07 Nov 2024 | R11.2b | R19.7b | R131.3m | 12.4x | 85.3x | 0.6x |
| Sat, 05 Oct 2024 | R10.0b | R19.9b | -R172,648,289.00 | 14.5x | -58x | 0.5x |
| Mon, 02 Sep 2024 | R9.8b | R20.0b | -R61,141,289.00 | 12x | -160.2x | 0.5x |
| Wed, 31 Jul 2024 | R9.7b | R19.9b | R31.7m | 12.4x | 307.1x | 0.5x |
| Fri, 28 Jun 2024 | R8.9b | R20.0b | R36.0m | 10.8x | 247.4x | 0.4x |
| Sun, 26 May 2024 | R8.2b | R20.0b | -R121,068,660.00 | 10.4x | -67.7x | 0.4x |
| Tue, 23 Apr 2024 | R7.5b | R21.4b | -R419,068,660.00 | 11.5x | -17.9x | 0.3x |
| Thu, 21 Mar 2024 | R7.4b | R21.5b | -R366,699,660.00 | 12.4x | -20.3x | 0.3x |
| Sat, 17 Feb 2024 | R7.4b | R21.3b | -R358,480,085.00 | 14.3x | -20.7x | 0.3x |
| Mon, 15 Jan 2024 | R7.3b | R21.3b | -R358,480,085.00 | 10.7x | -20.3x | 0.3x |
| Wed, 13 Dec 2023 | R7.1b | R21.3b | -R352,944,085.00 | 9.7x | -20.2x | 0.3x |
| Fri, 10 Nov 2023 | R6.7b | R20.8b | -R158,367,034.00 | 10.2x | -42.4x | 0.3x |
| Sun, 08 Oct 2023 | R5.7b | R14.6b | -R71,823,034.00 | 10x | -79.8x | 0.4x |
| Tue, 05 Sep 2023 | R6.1b | R14.6b | -R76,018,034.00 | 10.5x | -80.3x | 0.4x |
| Thu, 03 Aug 2023 | R5.6b | R14.4b | -R87,939,425.00 | 9.9x | -63.9x | 0.4x |
| Sat, 01 Jul 2023 | R6.3b | R14.4b | -R580,344,109.00 | 10.7x | -10.9x | 0.4x |
| Mon, 29 May 2023 | R6.2b | R13.4b | -R387,675,109.00 | 10.5x | -16x | 0.5x |
| Wed, 26 Apr 2023 | R7.7b | R13.4b | -R387,675,109.00 | 11.8x | -19.8x | 0.6x |
| Fri, 24 Mar 2023 | R7.2b | R13.3b | -R387,033,145.00 | 10x | -18.6x | 0.5x |
| Sun, 19 Feb 2023 | R8.8b | R14.1b | -R276,996,145.00 | 11.5x | -31.6x | 0.6x |
| Tue, 17 Jan 2023 | R9.1b | R14.1b | -R276,996,145.00 | 13.9x | -32.9x | 0.6x |
| Thu, 15 Dec 2022 | R9.0b | R14.1b | -R276,996,145.00 | 13.1x | -32.4x | 0.6x |
| Sat, 12 Nov 2022 | R8.7b | R13.8b | -R426,804,169.00 | 11.4x | -20.5x | 0.6x |
| Mon, 10 Oct 2022 | R9.8b | R19.3b | -R653,723,047.00 | 11.4x | -15x | 0.5x |
| Wed, 07 Sep 2022 | R10.1b | R19.2b | -R165,623,047.00 | 11.7x | -61x | 0.5x |
Price to Earnings Ratio
-61x
Current Industry PE
- Investors are optimistic on the South African IT industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 600x which is higher than its 3-year average PE of 79.2x.
- The industry is trading close to its 3-year average PS ratio of 0.51x.
Past Earnings Growth
- Total earnings for the IT industry have gone up over the last three years, and the industry is now profitable.
- Revenues have remained mostly flat. This means that the industry has become more efficient since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the South African Tech industry?
| ZA Market | -1.35% | |
| Tech | -0.60% | |
| IT | -7.68% | |
| Data Processing Services | 0% | 0 |
| IT Consulting | -7.68% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 81.4x.
- Analysts are expecting annual earnings growth of 13.3%, which is lower than the prior year's growth of 41.8% per year.
- Investors are most pessimistic about the IT Consulting industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 81.4x.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 13% over the next 5 years.
- However this is lower than its past earnings growth rate of 42% per year.
- In contrast, the IT Consulting 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 | |
|---|---|---|---|---|---|
| SEB Sebata Holdings | R0.83 | 2.5% +R2.3m | -30.3% | PS0.9x | |
| PBG PBT Group | R5.98 | 0.2% +R1.0m | -0.3% | PE9.2x |
