Datatec

Datatec (JSE: DTCJ)

Currency in ZAR

Last close As at 20/09/2023

ZAR36.26

▲ 0.46 (1.28%)

Market capitalisation

ZAR8,217m

Overview
Price performance
Financials
Research
Thematics

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. 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 FY24.

Latest Insights

TMT |
Update

05.06.23

Datatec — On a growth track for FY24

TMT |
Flash note

23.05.23

Datatec — Starting FY24 in a strong position

TMT |
Flash note

18.05.23

Datatec — Confirming EPS for FY23

TMT |
Flash note

27.03.23

Datatec — Another year of double-digit revenue growth

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Sector

TMT

Equity Analyst

Katherine Thompson

Director

Key Management

Ivan Dittrich

Finance Director
Jens Montanana

CEO

Balance Sheet

Forecast net debt (US$m)

187.3

Forecast gearing ratio (%)

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	2.1	(9.2)	(18.7)
Relative	(0.3)	(6.8)	(27.6)
52 week high/low	ZAR47.9/ZAR29.8

Financials

Datatec reported solid results for FY23 with revenue and adjusted EBITDA ahead of our forecasts. As supply chain issues eased in H2, all divisions accelerated revenue growth as they started to work down order backlogs, and working capital was tightly managed to reduce net debt by 18% at year-end. Datatec announced a final dividend of 10c/195 ZARc. Further unwind of the backlog combined with sustained strong demand drives our revenue and adjusted EBITDA upgrades for FY24 and FY25. After factoring in higher interest rates, our underlying EPS reduces by 8% in FY24 and 4% in FY25.