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Altron (JSE: AEL)

Last close As at 02/07/2024

ZAR14.08

▲ 0.97 (7.40%)

Market capitalisation

ZAR5,779m

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 | Update

Altron — Transformation plan drives margin growth

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)

552.5

Forecast gearing ratio (%)

13

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 12.2 21.8 75.6
Relative 12.1 13.1 64.6
52 week high/low ZAR14.2/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 16.0 15.4
2024A 8250.0 1502.0 634.0 114.66 12.3 25.4
2025E 8403.6 1710.6 724.8 130.83 10.8 8.5
2026E 9075.9 1971.9 870.7 157.36 8.9 6.5

Research

TMT

Update

Altron — Transformation plan drives margin growth

TMT

Initiation

Altron — Rising star

Update

TMT

Altron — Transformation plan drives margin growth

Initiation

TMT

Altron — Rising star

Thematics

thematic

TMT

MediaWatch – Glimpses of positivity

thematic

TMT

MediaWatch – Rinse and repeat

thematic

Consumer

Deutsches Eigenkapitalforum (EKF) 2023 consumer and media

thematic

TMT

Deutsches Eigenkapitalforum (EKF) 2023 technology
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