Datatec

Datatec (JSE: DTCJ)

Currency in ZAR

Last close As at 28/11/2023

ZAR35.04

▲ −0.09 (−0.26%)

Market capitalisation

ZAR8,277m

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

07.11.23

Datatec — On track for better performance in FY24

TMT |
Flash note

23.10.23

Datatec — Solid H124 performance supports FY24 outlook

TMT |
Flash note

05.10.23

Datatec — Sustained demand in H124

TMT |
Update

05.06.23

Datatec — On a growth track for FY24

Visit Website

Sector

TMT

Equity Analyst

Katherine Thompson

Director

Key Management

Ivan Dittrich

Finance Director
Jens Montanana

CEO

Balance Sheet

Forecast net debt (US$m)

205.2

Forecast gearing ratio (%)

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(1.0)	(3.6)	(18.7)
Relative	(8.8)	(5.5)	(21.1)
52 week high/low	ZAR43.0/ZAR29.8

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.