Datatec (JSE: DTCJ)

Last close As at 13/04/2024

ZAR35.56

−0.46 (−1.28%)

Market capitalisation

ZAR8,162m

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 (7.7) (12.8) (3.9)
Relative (9.9) (14.5) (0.5)
52 week high/low ZAR41.6/ZAR33.6

Financials

Datatec reported a strong performance in H124, with revenue up 15% y-o-y, adjusted EBITDA up 2% and underlying EPS up 336%. As supply chain issues have eased, the company has been able to reduce its backlog from previously elevated levels. Datatec expects improved performance in all divisions in FY24. While the company closely manages working capital, higher revenues and a gradual reduction in supplier extended payment terms drive our higher net debt forecasts. Our estimates are broadly unchanged at a group level, with adjustments at a divisional level to reflect Westcon strength and uncertainty in Latin America, and higher operating profitability offsetting increased interest costs.

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 11.0
2025E 5833.2 222.0 112.1 27.6 6.5 2.5

Thematics

thematic

TMT

MediaWatch – Rinse and repeat

thematic

TMT

MediaWatch – Still waiting…

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