Datatec (JSE: DTCJ)

Last close As at 20/06/2024

ZAR37.86

0.31 (0.83%)

Market capitalisation

ZAR8,690m

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 | Flash note

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

TMT | Flash note

Datatec — FY24 revenue growth of 5.8%

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Sector

TMT

Equity Analyst

Key Management

  • Ivan Dittrich

    Finance Director

  • Jens Montanana

    CEO

Balance Sheet

Forecast net cash (US$m)

175.3

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 0.2 1.4 (4.4)
Relative (1.3) (9.7) (7.5)
52 week high/low ZAR41.6/ZAR33.6

Financials

Datatec reported FY24 revenue growth of 6%, with a strong performance from Westcon, a good performance in Logicalis International masked by a higher level of net revenue software sales and a mixed performance in Logicalis Latin America. Group gross profit grew 16% y-o-y and adjusted EBITDA grew 7%, resulting in a flat adjusted EBITDA margin of 3.5%. Underlying EPS of 20.2c more than tripled versus the prior year and good control of working capital resulted in year-end net debt of $123m. The company announced a dividend of ZAR1.3/US$0.07. Despite the difficult political and economic environment, management expects to see improved performances in each business in FY25 and continues to focus on unlocking shareholder value as part of its ongoing strategic review.

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 86.7 24.1 8.6 N/A
2024A 5457.9 192.1 76.5 19.7 10.5 N/A
2025E 5833.0 220.0 112.1 27.6 7.5 N/A
2026E N/A N/A N/A N/A N/A N/A

Research

Flash note

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Datatec — The positives outweigh the negatives

Flash note

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Datatec — Management buyout of Analysys Mason

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Datatec — Operational gearing shines through

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Datatec — Operational gearing drives EPS growth

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Webinar: Datatec

Initiation

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Datatec — Starting to unlock underlying value

QuickView

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Datatec — Benefiting from operating leverage

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MediaWatch – Still waiting…

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MediaWatch – Targeting the opportunities

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MediaWatch – Vision On

Digital Marketing and Internet Media Technology Platform

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MediaWatch – Screening well

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Consumer

IPO apocalypse

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ESG, moving beyond the box tick

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Direct tech investors

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Consumer

Circular economy business models

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Quantum dots – all the colours of the rainbow

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Micro-LEDs – small is beautiful

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Consumer

Illuminator: August Update

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European video games

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Diversification and scale for online success

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UK video games – Heterogeneous not homogeneous

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Mobile ecosystems

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Mobile ecosystems

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Mobile ecosystems

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NZ – Edison talks tech

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AUS – Edison talks tech

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Mobile ecosystems

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Consumer

Deutsche Börse Eigenkapitalforum 2014 Research Guide

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Mobile ecosystems

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Energy & Resources

ASX Spotlight Conference – London, 6 March 2014

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Energy & Resources

ASX Small to Mid Caps Conference – London, 7 March 2013

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The third pillar

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The real disruptor

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Merger mania is back