Datatec (JSE: DTCJ)

Last close As at 16/07/2024

ZAR38.01

0.06 (0.16%)

Market capitalisation

ZAR8,725m

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.

Latest Insights

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TMT | Update

Datatec — Positive outlook for FY25

TMT | Flash note

Datatec — FY24 underlying EPS more than doubles y-o-y

TMT | Flash note

Datatec — FY24 revenue growth of 5.8%

Datatec_resized

Sector

TMT

Equity Analyst

Key Management

  • Ivan Dittrich

    Finance Director

  • Jens Montanana

    CEO

Balance Sheet

Forecast net debt (US$m)

206.8

Forecast gearing ratio (%)

33

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 2.1 8.1 3.6
Relative (3.0) (2.8) (0.7)
52 week high/low ZAR41.6/ZAR33.6

Financials

Datatec reported 6% revenue growth in FY24, with the backlog normalising after a period of tightness in the supply chain. Strong performances from Westcon and Logicalis International were partially offset by weaker profitability in Logicalis Latin America, resulting in flat adjusted EBITDA margins year-on-year. Management confirmed that the group continues to benefit from secular technology growth trends, including strong demand for cybersecurity and hybrid working, and the adoption of generative artificial intelligence (GenAI). Management expects improved financial performance from all divisions in FY25; we forecast year-on-year growth in underlying EPS of 26%.

Y/E Feb Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2023A 5143.1 180.2 86.5 24.1 8.7 3.0
2024A 5457.9 192.1 76.5 19.7 10.6 3.2
2025E 5730.6 223.9 111.3 27.4 7.6 8.8
2026E 5991.4 239.9 127.1 31.6 6.6 2.9

Update

TMT

Datatec — Focus on Westcon International

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

edison tv

TMT

Webinar: Datatec

Initiation

TMT

Datatec — Starting to unlock underlying value

QuickView

TMT

Datatec — Benefiting from operating leverage