South African (JSE) Tech Sector Analysis
UpdatedOct 31, 2023
DataAggregated Company Financials
Companies16
- 7D-3.6%
- 3M-6.1%
- 1Y-17.1%
- YTD-11.6%
Over the last 7 days, the Tech industry has dropped 2.5%, driven by pullbacks in MiX Telematics and Datatec of 15% and 4.4%, respectively. On the other hand AYO Technology Solutions is actually up 33%. However, the industry is down 18% over the past year. As for the next few years, earnings are expected to grow by 65% 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 |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | R21.1b | R162.0b | R182.5m | 9.1x | 115.4x | 0.1x |
| Thu, 28 Sep 2023 | R20.9b | R151.0b | R104.3m | 9.3x | 200.8x | 0.1x |
| Sat, 26 Aug 2023 | R21.6b | R147.6b | R95.6m | 9.1x | 225.7x | 0.1x |
| Mon, 24 Jul 2023 | R21.7b | R143.9b | R109.0m | 9.8x | 199.6x | 0.2x |
| Wed, 21 Jun 2023 | R22.8b | R146.0b | -R396,105,178.00 | 10.4x | -57.5x | 0.2x |
| Fri, 19 May 2023 | R22.2b | R144.1b | R1.1b | 12.2x | 21.1x | 0.2x |
| Sun, 16 Apr 2023 | R24.0b | R137.7b | R1.0b | 11.7x | 23.8x | 0.2x |
| Tue, 14 Mar 2023 | R24.7b | R139.2b | R1.1b | 11.2x | 21.8x | 0.2x |
| Thu, 09 Feb 2023 | R24.4b | R136.2b | R1.1b | 11.7x | 21.5x | 0.2x |
| Sat, 07 Jan 2023 | R23.2b | R133.3b | R1.1b | 12.9x | 21.7x | 0.2x |
| Mon, 05 Dec 2022 | R22.5b | R134.7b | R884.9m | 12.4x | 25.4x | 0.2x |
| Wed, 02 Nov 2022 | R25.8b | R141.0b | R910.5m | 12.3x | 28.3x | 0.2x |
| Fri, 30 Sep 2022 | R26.7b | R138.9b | R857.7m | 11.3x | 31.1x | 0.2x |
| Sun, 28 Aug 2022 | R26.6b | R128.2b | R1.3b | 11.8x | 20.6x | 0.2x |
| Tue, 26 Jul 2022 | R26.8b | R128.1b | R1.4b | 13x | 19x | 0.2x |
| Thu, 23 Jun 2022 | R23.8b | R124.2b | R1.4b | 13.7x | 16.6x | 0.2x |
| Sat, 21 May 2022 | R25.9b | R120.0b | R1.2b | 12.7x | 22.1x | 0.2x |
| Mon, 18 Apr 2022 | R26.3b | R114.3b | R1.1b | 13.3x | 22.9x | 0.2x |
| Wed, 16 Mar 2022 | R24.8b | R111.6b | R1.3b | 13.3x | 18.5x | 0.2x |
| Fri, 11 Feb 2022 | R26.3b | R106.8b | R1.1b | 14.1x | 24.1x | 0.2x |
| Sun, 09 Jan 2022 | R26.2b | R109.5b | R1.2b | 12.8x | 22.1x | 0.2x |
| Tue, 07 Dec 2021 | R26.0b | R111.6b | R1.5b | 11.1x | 17.5x | 0.2x |
| Thu, 04 Nov 2021 | R26.0b | R109.1b | R1.4b | 13.1x | 18.8x | 0.2x |
| Sat, 02 Oct 2021 | R26.6b | R109.9b | R651.1m | 11.1x | 40.8x | 0.2x |
| Mon, 30 Aug 2021 | R24.0b | R111.0b | R363.0m | 9.7x | 66x | 0.2x |
| Tue, 06 Jul 2021 | R23.5b | R111.0b | R363.0m | 10.4x | 64.8x | 0.2x |
| Fri, 09 Apr 2021 | R23.2b | R110.5b | R221.7m | 10.5x | 104.8x | 0.2x |
| Thu, 31 Dec 2020 | R22.4b | R112.5b | -R199,409,584.62 | 10.5x | -112.2x | 0.2x |
Price to Earnings Ratio
1120.6x
Current Industry PE
- Investors are optimistic on the South African Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 116x which is higher than its 3-year average PE of 87.6x.
- 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 104% per year over the last three years.
- Revenues for these companies have grown 7.0% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Tech sector?
| ZA Market | -0.87% | |
| Tech | -3.65% | |
| Semiconductors | 0% | |
| Tech Hardware | -0.21% | |
| IT | -0.56% | |
| Communications | -2.10% | |
| Electronic Equipment and Components | -3.18% | |
| Software | -13.91% | |
Industry PE
- Investors are most optimistic about the Electronic Equipment and Components industry even though it's trading below its 3-year average PE ratio of 84.3x.
- Analysts are expecting annual earnings growth of 69.2%, which is lower than the prior year's growth of 110.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Electronic Equipment and Components industry, expecting annual earnings growth of 69% over the next 5 years.
- However this is lower than its past earnings growth rate of 111% per year.
- In contrast, the Software industry is expected to see its earnings grow by 50% 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 | |
|---|---|---|---|---|---|
| AYO AYO Technology Solutions | R0.80 | 33.3% +R68.6m | -66.7% | PS0.1x | |
| EOH EOH Holdings | R1.29 | 0.8% +R6.3m | -69.5% | PS0.1x | |
| SEB Sebata Holdings | R2.04 | 1.5% +R3.4m | -18.1% | PS8.1x |