Datatec (JSE: DTCJ)

Last close As at 22/05/2024

ZAR37.76

0.11 (0.29%)

Market capitalisation

ZAR8,667m

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 underlying EPS more than doubles y-o-y

TMT | Flash note

Datatec — FY24 revenue growth of 5.8%

TMT | Flash note

Datatec — Solid H124 performance supports FY24 outlook

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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 7.3 (6.2) 3.2
Relative (0.8) (12.5) 1.2
52 week high/low ZAR41.6/ZAR33.6

Financials

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 13.1 5.4
2023A 5143.1 180.2 86.7 24.1 7.7 2.7
2024E 5567.8 197.3 86.7 20.8 9.0 11.4
2025E 5833.2 222.0 112.1 27.6 6.8 2.6

Flash note

TMT

Datatec — The positives outweigh the negatives

Flash note

TMT

Datatec — Management buyout of Analysys Mason

Flash note

TMT

Datatec — Operational gearing shines through

Flash note

TMT

Datatec — Operational gearing drives EPS growth

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Webinar: Datatec

Initiation

TMT

Datatec — Starting to unlock underlying value

QuickView

TMT

Datatec — Benefiting from operating leverage