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AYO

AYO Technology SolutionsJSE:AYO Stock Report

Market Cap

R1.2b

7D

-16.3%

1Y

-52.1%

Updated

08 Dec, 2021

Data

Company Financials
AYO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends2/6

AYO Stock Overview

AYO Technology Solutions Limited, through its subsidiaries, provides information and communication technology (ICT) solutions in South Africa, rest of Africa, Europe, India, and the United States.

Price History & Performance

Summary of all time highs, changes and price drops for AYO Technology Solutions
Historical stock prices
Current Share PriceR3.35
52 Week HighR30.00
52 Week LowR2.98
Beta0.77
1 Month Change-44.17%
3 Month Change-4.29%
1 Year Change-52.14%
3 Year Change-85.44%
5 Year Changen/a
Change since IPO-92.39%

Recent News & Updates

Mar 15
AYO Technology Solutions (JSE:AYO) Has Gifted Shareholders With A Fantastic 244% Total Return On Their Investment

AYO Technology Solutions (JSE:AYO) Has Gifted Shareholders With A Fantastic 244% Total Return On Their Investment

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a...

Shareholder Returns

AYOZA ITZA Market
7D-16.3%-1.1%0.5%
1Y-52.1%3.6%17.9%

Return vs Industry: AYO underperformed the ZA IT industry which returned 4% over the past year.

Return vs Market: AYO underperformed the ZA Market which returned 36.2% over the past year.

Price Volatility

Is AYO's price volatile compared to industry and market?
AYO volatility
AYO Average Weekly Movement34.9%
IT Industry Average Movement11.9%
Market Average Movement6.1%
10% most volatile stocks in ZA Market12.2%
10% least volatile stocks in ZA Market3.5%

Stable Share Price: AYO is more volatile than 90% of ZA stocks over the past 3 months, typically moving +/- 35% a week.

Volatility Over Time: AYO's weekly volatility has decreased from 42% to 35% over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
19961,100Howard Plaatjeshttps://ayotsl.com

AYO Technology Solutions Limited, through its subsidiaries, provides information and communication technology (ICT) solutions in South Africa, rest of Africa, Europe, India, and the United States. It operates through Software and Consulting, Security Solutions, Unified Communications, Tracking Solutions, Health Care Services, and Managed Services segments. The company offers Enterprise Healthcare Information System, a centralized laboratory information system and health information exchange to the healthcare industry covering public and private health sector organizations; cyber security solutions to blue-chip multinationals, financial institutions, SOE’s, and public sector clients, as well as data center infrastructure services; and ICT solutions.

AYO Technology Solutions Fundamentals Summary

How do AYO Technology Solutions's earnings and revenue compare to its market cap?
AYO fundamental statistics
Market CapR1.15b
Earnings (TTM)-R205.11m
Revenue (TTM)R2.40b

0.5x

P/S Ratio

-5.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AYO income statement (TTM)
RevenueR2.40b
Cost of RevenueR1.85b
Gross ProfitR546.84m
ExpensesR751.95m
Earnings-R205.11m

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.60
Gross Margin22.81%
Net Profit Margin-8.56%
Debt/Equity Ratio0.4%

How did AYO perform over the long term?

See historical performance and comparison

Dividends

28.4%

Current Dividend Yield

-218%

Payout Ratio

Does AYO pay a reliable dividends?

See AYO dividend history and benchmarks
When do you need to buy AYO by to receive an upcoming dividend?
AYO Technology Solutions dividend dates
Ex Dividend DateDec 22 2021
Dividend Pay DateDec 28 2021
Days until Ex dividend12 days
Days until Dividend pay date18 days

Does AYO pay a reliable dividends?

See AYO dividend history and benchmarks

Valuation

Is AYO Technology Solutions undervalued compared to its fair value and its price relative to the market?

42.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AYO (ZAR3.35) is trading below our estimate of fair value (ZAR5.79)

Significantly Below Fair Value: AYO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AYO is unprofitable, so we can't compare its PE Ratio to the ZA IT industry average.

PE vs Market: AYO is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AYO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AYO is good value based on its PB Ratio (0.3x) compared to the ZA IT industry average (0.8x).


Future Growth

How is AYO Technology Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.7%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AYO Technology Solutions has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has AYO Technology Solutions performed over the past 5 years?

-16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AYO is currently unprofitable.

Growing Profit Margin: AYO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AYO is unprofitable, and losses have increased over the past 5 years at a rate of 16% per year.

Accelerating Growth: Unable to compare AYO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AYO is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-6%).


Return on Equity

High ROE: AYO has a negative Return on Equity (-4.5%), as it is currently unprofitable.


Financial Health

How is AYO Technology Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: AYO's short term assets (ZAR3.7B) exceed its short term liabilities (ZAR581.1M).

Long Term Liabilities: AYO's short term assets (ZAR3.7B) exceed its long term liabilities (ZAR61.4M).


Debt to Equity History and Analysis

Debt Level: AYO has more cash than its total debt.

Reducing Debt: AYO's debt to equity ratio has reduced from 4827.3% to 0.4% over the past 5 years.

Debt Coverage: AYO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if AYO's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is AYO Technology Solutions's current dividend yield, its reliability and sustainability?

28.36%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 09 2021Ex Dividend DateDec 22 2021Dividend Pay DateDec 28 20216 days from Ex DividendBuy in the next 12 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AYO's dividend (28.36%) is higher than the bottom 25% of dividend payers in the ZA market (3.02%).

High Dividend: AYO's dividend (28.36%) is in the top 25% of dividend payers in the ZA market (7.35%)


Stability and Growth of Payments

Stable Dividend: AYO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AYO's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: AYO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Howard Plaatjes

3yrs

Tenure

R8,225,000

Compensation

Mr. Howard Plaatjes has been Executive Director at AYO Technology Solutions Ltd., since December 21, 2018 and its Chief Executive Officer since January 22, 2019 also served as its Acting Chief Executive Of...


CEO Compensation Analysis

Compensation vs Market: Howard's total compensation ($USD524.74K) is above average for companies of similar size in the ZA market ($USD257.91K).

Compensation vs Earnings: Howard's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AYO's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: AYO's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AYO Technology Solutions Limited's employee growth, exchange listings and data sources


Key Information

  • Name: AYO Technology Solutions Limited
  • Ticker: AYO
  • Exchange: JSE
  • Founded: 1996
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: R1.153b
  • Shares outstanding: 344.12m
  • Website: https://ayotsl.com

Number of Employees


Location

  • AYO Technology Solutions Limited
  • Waterway House
  • 3 Dock Road
  • Cape Town
  • Western Cape
  • 8001
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/08 22:09
End of Day Share Price2021/12/08 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.