Altron (JSE: AEL)

Last close As at 17/07/2024

ZAR15.15

0.15 (1.00%)

Market capitalisation

ZAR6,171m

Altron is a South African provider of platforms and IT services. The company operates via three divisions: IT Services, Platforms and Altron Arrow. In H124, 89% of revenue was generated in South Africa and annuity revenue made up 60% of total revenue.

Altron operates in the IT services, identity security, telematics, fintech and healthcare software markets, predominantly in South Africa. Growth rates in these key technology markets are well ahead of GDP, supporting organic growth. The company would also consider supplementing this with acquisitions in the telematics, security and fintech markets.

Latest Insights

TMT | Initiation

Altron — Rising star

Sector

TMT

Equity Analyst

Key Management

  • Carel Snyman

    CFO

  • Werner Kapp

    CEO

Balance Sheet

Forecast net debt (ZARm)

552.5

Forecast gearing ratio (%)

13

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 21.0 32.4 96.8
Relative 15.9 20.2 88.9
52 week high/low ZAR15.2/ZAR7.4

Financials

Altron’s FY24 results confirmed good progress with its strategic plan, with headline EPS from continuing operations of ZAR1.16 up 36% y-o-y and well ahead of our ZAR1.00 forecast. Year-end net debt was significantly lower than expected due to tight control of working capital. The bulk of restructuring is now complete and has already boosted operating margins from 4.9% in FY21 to 9.0% in FY24. Altron is now positioned to drive revenue and profit growth through a combination of innovation, cross-selling and ongoing operational improvements.

Y/E Feb Revenue (ZARm) EBITDA (ZARm) PBT (ZARm) EPS (fd) (c) P/E (x) P/CF (x)
2023A 8445.0 1251.0 482.0 88.12 17.2 16.5
2024A 8250.0 1502.0 634.0 114.66 13.2 27.3
2025E 8403.6 1710.6 724.8 130.83 11.6 9.2
2026E 9075.9 1971.9 870.7 157.36 9.6 6.9

Thematics

thematic

TMT

MediaWatch – Glimpses of positivity

thematic

TMT

MediaWatch – Rinse and repeat

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free