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Altron (JSE: AEL)

Last close As at 02/05/2024

ZAR11.30

▲ −0.10 (−0.88%)

Market capitalisation

ZAR4,647m

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
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Sector

TMT

Equity Analyst

Katherine Thompson

Key Management

  • Carel Snyman

    CFO

  • Werner Kapp

    CEO

Balance Sheet

Forecast net debt (ZARm)

672.3

Forecast gearing ratio (%)

17

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (0.8) 12.9 25.7
Relative (2.9) 10.4 28.2
52 week high/low ZAR12.1/ZAR6.9

Financials

Altron is a South African-based provider of platforms and IT services, helping businesses transform and operate their IT. As part of the plan to refocus on strategic growth opportunities and to improve profitability, management has set ambitious medium-term profit targets. The group has made good progress to date, and we forecast a headline EPS CAGR of 21% from FY23 to FY26e. In our view, this performance is not yet reflected in the current share price. Full FY24 results in May should provide better clarity around individual business performance and we expect the discount to peers to reduce as positive margin progress becomes evident

Y/E Feb Revenue (ZARm) EBITDA (ZARm) PBT (ZARm) EPS (fd) (c) P/E (x) P/CF (x)
2022A 7930.0 1140.0 375.0 52.88 21.4 9.6
2023A 8445.0 1251.0 482.0 88.12 12.8 12.3
2024E 8337.1 1488.1 574.8 102.04 11.1 22.5
2025E 8508.3 1689.3 652.6 117.54 9.6 6.3

Research

TMT

Initiation

Altron — Rising star

Initiation

TMT

Altron — Rising star

Thematics

thematic

TMT

MediaWatch – Rinse and repeat

thematic

Consumer

Deutsches Eigenkapitalforum (EKF) 2023 consumer and media

thematic

TMT

Deutsches Eigenkapitalforum (EKF) 2023 technology

thematic

TMT

MediaWatch – Still waiting…
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