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.
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Ivan Dittrich
Finance Director
Jens Montanana
CEO
Forecast net debt (US$m)
205.2
Forecast gearing ratio (%)
36
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (0.8) | (8.5) | 1.6 |
Relative | (2.9) | (10.5) | 3.5 |
52 week high/low | ZAR41.6/ZAR33.6 |
In a second more detailed trading update for FY24, Datatec confirmed revenue growth of 6% to $5.46bn, with Westcon International delivering excellent performance, Logicalis International having a strong H2 and Logicalis Latin America affected by difficult market conditions in Argentina and Brazil. The company also provided provisional EPS data, with reported EPS likely to come in ahead of our forecast and underlying EPS just below our forecast. We maintain our forecasts pending FY24 results on or around 27 May.
Y/E Feb | Revenue (US$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 | 12.7 | 5.2 |
2023A | 5143.1 | 180.2 | 86.7 | 24.1 | 7.5 | 2.6 |
2024E | 5567.8 | 197.3 | 86.7 | 20.8 | 8.7 | 11.1 |
2025E | 5833.2 | 222.0 | 112.1 | 27.6 | 6.6 | 2.5 |