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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?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Tue, 30 Nov 2021 | R9.5b | R12.8b | R226.1m | 14.5x |
| Thu, 28 Oct 2021 | R10.6b | R20.6b | -R322,487,504.00 | 14.2x |
| Sat, 25 Sep 2021 | R9.5b | R20.5b | -R379,284,434.00 | 10x |
| Mon, 23 Aug 2021 | R9.6b | R20.4b | -R520,490,344.07 | 10.7x |
| Sat, 10 Jul 2021 | R10.0b | R20.4b | -R520,490,344.07 | 10.7x |
| Fri, 02 Apr 2021 | R10.7b | R20.4b | -R520,490,344.07 | 10.5x |
| Mon, 04 Jan 2021 | R11.0b | R21.7b | -R716,169,230.07 | 10.5x |
| Thu, 08 Oct 2020 | R13.6b | R32.6b | -R844,159,334.59 | 10x |
| Wed, 01 Jul 2020 | R13.5b | R33.2b | -R2,002,440,605.59 | 9x |
| Sat, 04 Apr 2020 | R10.6b | R23.2b | -R2,490,024,552.90 | 6.8x |
| Tue, 07 Jan 2020 | R14.9b | R26.7b | -R2,676,799,798.96 | 7.6x |
| Mon, 30 Sep 2019 | R16.5b | R30.7b | -R3,257,321,965.40 | 14.8x |
| Thu, 04 Jul 2019 | R18.9b | R28.9b | -R3,176,161,889.21 | 12.7x |
| Sun, 07 Apr 2019 | R17.0b | R28.9b | -R3,741,015,905.30 | 9.3x |
| Wed, 09 Jan 2019 | R22.8b | R30.8b | -R2,313,565,644.77 | 11.5x |
PE Ratio
9.1x
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?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| PBG Group | 18.5%+R115.0m | 90.9% | PE13.5x | |
| MFL Metrofile Holdings | 0.7%+R8.7m | 18.9% | PE9.7x | |
| 4SI 4Sight Holdings | 4.5%+R6.6m | -28.1% | PE24.6x |