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South African (JSE) IT Industry Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies7
  • 7D-4.7%
  • 3M2.8%
  • 1Y-47.6%
  • YTD-4.2%

Over the last 7 days, the IT industry has dropped 4.7%, driven by declines in Altron and AYO Technology Solutions of 7.3% and 17%, respectively. Meanwhile, Group actually outperformed within the industry, gaining 19% in the last week. However, the industry is down 48% over the past year.

Industry Valuation and Performance

Has the South African IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Tue, 30 Nov 2021R9.5bR12.8bR226.1m14.5x
Thu, 28 Oct 2021R10.6bR20.6b-R322,487,504.0014.2x
Sat, 25 Sep 2021R9.5bR20.5b-R379,284,434.0010x
Mon, 23 Aug 2021R9.6bR20.4b-R520,490,344.0710.7x
Sat, 10 Jul 2021R10.0bR20.4b-R520,490,344.0710.7x
Fri, 02 Apr 2021R10.7bR20.4b-R520,490,344.0710.5x
Mon, 04 Jan 2021R11.0bR21.7b-R716,169,230.0710.5x
Thu, 08 Oct 2020R13.6bR32.6b-R844,159,334.5910x
Wed, 01 Jul 2020R13.5bR33.2b-R2,002,440,605.599x
Sat, 04 Apr 2020R10.6bR23.2b-R2,490,024,552.906.8x
Tue, 07 Jan 2020R14.9bR26.7b-R2,676,799,798.967.6x
Mon, 30 Sep 2019R16.5bR30.7b-R3,257,321,965.4014.8x
Thu, 04 Jul 2019R18.9bR28.9b-R3,176,161,889.2112.7x
Sun, 07 Apr 2019R17.0bR28.9b-R3,741,015,905.309.3x
Wed, 09 Jan 2019R22.8bR30.8b-R2,313,565,644.7711.5x
PE Ratio

9.1x

Total Market Cap: R22.9bTotal Earnings: -R2,260,277,649.72Total Revenue: R30.4b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 10.4x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: Total earnings for the IT industry have gone up over the last three years, and the industry is now profitable. However revenues have declined 25% per year. This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the South African IT industry?

Data Processing Services-0.70%
IT Consulting-5.54%

Industry PE: Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 14.2x. It looks like they are confident that earnings will grow faster in the future than they have historically. Meanwhile, investors are most pessimistic about the Data Processing Services industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 9.0x.

Forecasted Growth: There is insufficient data on the sub-industries of this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
PBG Group18.5%+R115.0m90.9%PE13.5x
MFL Metrofile Holdings0.7%+R8.7m18.9%PE9.7x
4SI 4Sight Holdings4.5%+R6.6m-28.1%PE24.6x
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Latest News

PBG

R8.00

Group

7D

18.5%

1Y

90.9%

AEL

R9.50

Altron

7D

-7.3%

1Y

-69.2%