Datatec

JSE: DTCJ

Market CapZAR8,726m

Last Close ZAR30.56

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).

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Investment summary

Datatec reported a mixed performance in H123: strong demand for cloud infrastructure, cybersecurity and networking solutions drove revenue and order growth, while supply chain issues continued to hamper the ability to deliver orders. Currency headwinds further impacted profitability, however, healthy order backlogs across all divisions should support better revenue growth in H223/FY24 as supply chain issues ease.

Y/E Feb
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2021A 4109.5 152.5 73.1 13.2 13.0 1.7
2022A 4546.4 158.9 69.1 14.2 12.1 5.0
2023E 5017.4 175.2 74.3 20.2 8.5 4.1
2024E 5282.2 191.8 95.6 23.3 7.4 3.9
Industry outlook

Datatec has seen strong growth globally, with elevated demand for networking, cybersecurity and cloud infrastructure. Amidst 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 H223/FY24.

Last updated on 30/11/2022
Content on Datatec
Datatec – Resilient performance despite challenges
TMT | research Update | 17 November 2022
XP Power
Datatec – The positives outweigh the negatives
TMT | research Flash note | 3 November 2022
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Datatec – Mixed performance in H123, special dividend
TMT | research Flash note | 11 October 2022
XP Power
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Share price graph
Balance sheet
Forecast net debt (US$m) 154.6
Forecast gearing ratio (%) 25
Price performance
%
1m
3m
12m
Actual (25.8) (28.1) (18.6)
Relative* (33.9) (35.4) (23.4)
52-week high/low ZAR47.9/ZAR30.5
*% relative to local index
Key management
Jens Montanana CEO
Ivan Dittrich Finance Director