Our opinion on the current state of ISA Holdings (ISA) ISA Holdings (ISA) is a small Alt-X listed IT company offering network, internet, and information security services in sub-Saharan Africa. The company claims to employ some of the leading IT security specialists and to have the tools and experience to offer effective information security solutions.
In its results for the year to 29th February 2024, the company reported revenue up 33% and headline earnings per share (HEPS) up 35%. The company said, "The high proportion of subscription-derived turnover in the current reporting period is indicative of the trend in terms of which customers are showing a preference for subscribing to consumption-based security solutions." This looks like a good quality IT company that is profitable but has gone through a tough time.
The problem is that the share is thinly traded with only about R46,000 worth of shares changing hands on average each day. This makes it risky for private investors to buy a meaningful number of shares. However, on a P:E of 11.15 and a dividend yield of 7.18%, the shares look like good value. It was added to the Winning Shares List (WSL) on 8th February 2024 at 140c per share and has subsequently moved up to 175c.
ISA trade ideas
Our opinion on the current state of ISA Holdings (ISA) ISA Holdings (ISA) is a small Alt-X listed IT company that operates in sub-Saharan Africa, specializing in network, internet, and information security. The company is recognized for employing some of the leading IT security specialists in the region and boasts a robust set of tools and experience to deliver effective information security solutions.
In its financial results for the six months ending on 31st August 2023, ISA reported a significant turnover increase of 42% and an earnings per share (EPS) increase of 27%. The company noted, "Profit before other income and expenses increased by 22% during the current reporting period to R23.1 million, representing a gross margin of 47% compared to 55% in the prior reporting period."
Looking ahead, in a trading statement for the year ending on 29th February 2024, ISA estimated that headline earnings per share (HEPS) would increase by between 25% and 45%. This projection underscores the company's ongoing profitability and resilience, despite recent challenges.
However, a potential issue for investors is the limited liquidity of ISA's shares; with only about R36,000 worth of shares traded on average each day, it can be risky for private investors to acquire a significant stake. Nevertheless, with a price-to-earnings (P/E) ratio of 11.21 and a dividend yield of 7.14%, ISA's shares appear to offer good value, attracting those looking for investment opportunities in the IT sector.
Our opinion on the current state of ISAISA Holdings (ISA) is a small Alt-X listed IT company offering network, internet, and information security in sub-Saharan Africa. The company claims to employ some of the leading IT security specialists and to have the tools and experience to offer effective information security solutions. In its results for the six months to 31st August 2023 the company reported turnover up 42% and earnings per share (EPS) up 27%. The company said, "Profit before other income and expenses increased by 22% during the current reporting period to R23.1 million, representing a gross margin of 47% compared to 55% in the prior reporting period". This looks like a good quality IT company that is profitable but has gone through a tough time. The problem is that the share is thinly traded with only about R19 000 worth of shares changing hands on average each day. This makes it dangerous for private investors to buy a meaningful number of shares, however, on a P:E of 9,21 and a dividend yield of 8,68% the shares look like good value.
Our opinion on the current state of ISAISA Holdings (ISA) is a small Alt-X listed IT company offering network, internet, and information security in sub-Saharan Africa. The company claims to employ some of the leading IT security specialists and to have the tools and experience to offer effective information security solutions. In its results for the year to 28th February 2023 the company reported revenue up 1% and headline earnings per share (HEPS) up 34%. More than 90% of the company's revenue is recurring. The company said, "Operating expenditure increased by 22.5% to R25.9 million compared to R21.1 million in the prior reporting period, which is largely attributable to a sizeable increase in payroll expenses". In a trading statement for the six months to 30th September 2023 the company estimated that HEPS would increase by between 18% and 38%. This looks like a good quality IT company that is profitable but has gone through a tough time. The problem is that the share is thinly traded with only about R21 000 worth of shares changing hands on average each day. This makes it dangerous for private investors to buy a meaningful number of shares, however, on a P:E of 9 and a dividend yield of 8,89% the shares look like good value.