Altron (JSE: AEL)

Last close As at 24/04/2024

ZAR11.50

0.25 (2.22%)

Market capitalisation

ZAR4,730m

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.

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)

672.3

Forecast gearing ratio (%)

17

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.6 15.6 32.0
Relative 2.8 15.3 38.4
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 21.7 9.7
2023A 8445.0 1251.0 482.0 88.12 13.1 12.5
2024E 8337.1 1488.1 574.8 102.04 11.3 22.9
2025E 8508.3 1689.3 652.6 117.54 9.8 6.4

Research

thematic

TMT

MediaWatch – Targeting the opportunities

thematic

TMT

MediaWatch – Vision On

Digital Marketing and Internet Media Technology Platform

thematic

TMT

MediaWatch – Screening well

thematic

Consumer

IPO apocalypse

thematic

TMT

ESG, moving beyond the box tick

thematic

TMT

Direct tech investors

thematic

Consumer

Circular economy business models

thematic

TMT

Quantum dots – all the colours of the rainbow

thematic

TMT

Micro-LEDs – small is beautiful

thematic

Consumer

Illuminator: August Update

thematic

TMT

European video games

thematic

TMT

Diversification and scale for online success

thematic

TMT

UK video games – Heterogeneous not homogeneous

thematic

TMT

Mobile ecosystems

thematic

TMT

Mobile ecosystems

thematic

TMT

Mobile ecosystems

thematic

TMT

NZ – Edison talks tech

thematic

TMT

AUS – Edison talks tech

thematic

TMT

Mobile ecosystems

thematic

Consumer

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

TMT

Mobile ecosystems

thematic

Energy & Resources

ASX Spotlight Conference – London, 6 March 2014

thematic

Energy & Resources

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

TMT

The third pillar

thematic

TMT

The real disruptor

thematic

TMT

Merger mania is back