“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 28/03/2023
ZAR35.72
▲ 2.97 (9.07%)
Market capitalisation
ZAR7,263m
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 H223/FY24.
Director
Ivan Dittrich
Finance Director
Jens Montanana
CEO
Forecast net debt (US$m)
154.6
Forecast gearing ratio (%)
25
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 5.3 | 13.2 | (8.8) |
| Relative | 8.4 | 10.5 | (9.9) |
| 52 week high/low | ZAR47.9/ZAR29.8 |
Datatec expects to report FY23 revenue of $5.16bn, which represents growth of 13% compared to FY22 and is 3% ahead of our forecast. Westcon performance was well ahead of our expectations, with Logicalis International slightly ahead and Logicalis Latin America below. Overall, the group saw signs of improvement in the supply chain, although the backlog remained elevated at the year-end. The secular growth in networking and cyber security solutions continues to be the main driver of demand. We maintain our forecasts pending full FY23 results in May.
| Y/E Feb | Revenue (US$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 | 14.8 | 2.0 |
| 2022A | 4546.4 | 158.9 | 69.1 | 14.2 | 13.7 | 5.6 |
| 2023E | 5017.4 | 175.2 | 74.3 | 20.2 | 9.6 | 4.7 |
| 2024E | 5282.2 | 191.8 | 95.6 | 23.3 | 8.4 | 4.4 |
