Datatec (JSE: DTCJ)

Last close As at 27/03/2024

ZAR37.76

−0.20 (−0.53%)

Market capitalisation

ZAR8,713m

Datatec is a South Africa-listed multinational ICT business, serving clients globally, predominantly in the networking and telecoms sectors. The group operates through three main divisions: Westcon International (distribution); Logicalis International (IT services); and Logicalis LatAm (IT services in Latin America).

Datatec has seen strong growth globally, with elevated demand for networking, cybersecurity and cloud infrastructure. Amid continuing uncertainties, there are signs that global growth is slowing but we expect established technology trends to persist, underpinned by the unwinding of Datatec’s backlog during FY24.

Latest Insights

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TMT | Flash note

Datatec — FY24 revenue growth of 5.8%

TMT | Flash note

Datatec — Solid H124 performance supports FY24 outlook

TMT | Flash note

Datatec — Sustained demand in H124

Datatec_resized

Sector

TMT

Equity Analyst

Key Management

  • Ivan Dittrich

    Finance Director

  • Jens Montanana

    CEO

Balance Sheet

Forecast net debt (US$m)

205.2

Forecast gearing ratio (%)

36

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (7.5) (6.1) 5.8
Relative (7.4) (5.1) 7.3
52 week high/low ZAR41.6/ZAR33.6

Financials

Datatec expects to report revenue of $5.44bn for FY24, up 5.8% y-o-y, and noted that the quality of earnings improved in the year. During H224, Westcon International continued to deliver a strong financial performance. Logicalis International also had a strong half, although its reported revenue growth has been suppressed by a higher proportion of net revenue-reported software sales. Logicalis Latin America had a tougher H2 due to difficult market conditions in Argentina and Brazil. We maintain our forecasts pending FY24 results, which are expected to be on or around 27 May.

Y/E Feb Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 4546.4 158.9 69.1 14.2 13.5 5.5
2023A 5143.1 180.2 86.7 24.1 7.9 2.8
2024E 5567.8 197.3 86.7 20.8 9.2 11.7
2025E 5833.2 222.0 112.1 27.6 6.9 2.7

Thematics

thematic

TMT

MediaWatch – Rinse and repeat

thematic

TMT

MediaWatch – Still waiting…

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