“Edison’s accessible and high-quality research gives us the opportunity to communicate an independent perspective of Tyman to a wide variety of potential stakeholders.”
Currency in ZAR
Last close As at 26/05/2023
ZAR36.00
▲ −1.55 (−4.13%)
Market capitalisation
ZAR8,097m
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.
Director
Ivan Dittrich
Finance Director
Jens Montanana
CEO
Forecast net debt (US$m)
154.6
Forecast gearing ratio (%)
25
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 1.0 | 8.0 | (5.0) |
| Relative | 3.3 | 9.0 | (15.7) |
| 52 week high/low | ZAR47.9/ZAR29.8 |
Datatec reported group continuing revenue growth of 13% for FY23 (20% in constant currency) with adjusted EBITDA from continuing operations also increasing 13%. Supply chain issues started to ease allowing the company to accelerate delivery of its order backlog. Demand remained robust, resulting in a flat order backlog at the year-end, despite double-digit revenue growth. At a divisional level, Westcon delivered excellent results, Logicalis International performance was solid and, while down for the year, Logicalis LatAm rebounded in H223. Management expects all divisions to deliver improved performance in FY24; we are reviewing our forecasts.
| Y/E Feb | Revenue (US$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 | 14.5 | 1.9 |
| 2022A | 4546.4 | 158.9 | 69.1 | 14.2 | 13.5 | 5.5 |
| 2023E | 5017.4 | 175.2 | 74.3 | 20.2 | 9.5 | 4.6 |
| 2024E | 5282.2 | 191.8 | 95.6 | 23.3 | 8.2 | 4.3 |
Get access to the very latest content matched to your personal investment style.
