Datatec - Edison Group

Datatec (JSE: DTCJ)

Currency in ZAR

Last close As at 06/12/2023

ZAR35.49

▲ 0.49 (1.40%)

Market capitalisation

ZAR8,146m

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

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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

Datatec_resized

Sector

TMT

Equity Analyst

Katherine Thompson

Katherine Thompson

Director

Key Management

Ivan Dittrich

Finance Director
Jens Montanana

CEO

Balance Sheet

Forecast net debt (US$m)

205.2

Forecast gearing ratio (%)

36

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(7.5)	(3.3)	17.5
Relative	(10.4)	(3.6)	16.7
52 week high/low	ZAR41.1/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.

Y/E Feb	Revenue (US$m)	EBITDA (US$m)	PBT (US$m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2022A	4546.4	158.9	69.1	14.2	13.7	5.6
2023A	5143.1	180.2	86.7	24.1	8.1	2.8
2024E	5567.8	197.3	86.7	20.8	9.4	11.9
2025E	5833.2	222.0	112.1	27.6	7.0	2.7

Research

Flash note

TMT

03.11.22

Datatec — The positives outweigh the negatives

Flash note

11.10.22

Datatec — Mixed performance in H123, special dividend

TMT

Update

Datatec — Resilient performance despite challenges

Flash note

TMT

30.06.22

Datatec — Management buyout of Analysys Mason

Update

TMT

13.06.22

Datatec — Potential strategic sale of Analysys Mason

Flash note

TMT

25.05.22

Datatec — Strong year across the board despite challenges

Flash note

TMT

11.05.22

Datatec — Operational gearing shines through

Flash note

TMT

17.03.22

Datatec — 13% growth despite supply chain constraints

Update

TMT

24.02.22

Datatec — Westcon is key to unlocking upside potential

Update

TMT

03.11.21

Datatec — Attractive value play with upside potential

Flash note

TMT

06.10.21

Datatec — Operational gearing drives EPS growth

Flash note

TMT

15.09.21

Datatec — 15% y-o-y growth in H122, with buoyant demand

Update

TMT

31.08.21

Datatec — Strategic review to unlock embedded value

Flash note

TMT

02.06.21

Datatec — Siticom, an investment in 5G private networks

Update

TMT

27.05.21

Datatec — Robust underlying performance across the board

Flash note

TMT

13.05.21

Datatec — FY21 underlying EPS expected to rise by over 35%

edison tv

TMT

13.11.20

Webinar: Datatec

Initiation

TMT

02.11.20

Datatec — Starting to unlock underlying value

QuickView

TMT

05.08.20

Datatec — Benefiting from operating leverage

thematic

TMT

25.04.23

MediaWatch – April 2023

Digital Marketing and Internet Media Technology Platform

thematic

TMT

31.01.23

MediaWatch – January 2023

thematic

Consumer

05.10.22

IPO apocalypse

thematic

TMT

10.08.22

ESG, moving beyond the box tick

thematic

TMT

11.05.22

Direct tech investors

thematic

Consumer

24.03.22

Circular economy business models

thematic

TMT

29.09.21

Quantum dots – all the colours of the rainbow

thematic

TMT

09.09.21

Micro-LEDs – small is beautiful

thematic

TMT

16.08.20

Semiconductor winners – European companies with strong positions

thematic

TMT

24.06.20

The small satellite market – Small is beautiful

thematic

TMT

08.04.20

European video games: A safe haven in troubled times

thematic

TMT

27.02.20

Blockchain adoption: Implications for the financial services sector

thematic

Consumer

14.08.19

Illuminator: August Update

thematic

TMT

05.08.19

European video games

thematic

TMT

10.07.19

Diversification and scale for online success

thematic

TMT

08.05.19

5G – Strategic importance, but lacking a near-term commercial driver

thematic

TMT

26.02.19

UK video games – Heterogeneous not homogeneous

thematic

TMT

24.02.17

Mobile ecosystems

thematic

TMT

08.02.17

Mobile ecosystems

thematic

TMT

13.10.15

Mobile ecosystems

thematic

TMT

23.03.15

NZ – Edison talks tech

thematic

TMT

23.03.15

AUS – Edison talks tech

thematic

TMT

18.03.15

Mobile ecosystems

thematic

Consumer

11.11.14

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

TMT

15.10.14

Mobile ecosystems

thematic

Energy & Resources

04.03.14

ASX Spotlight Conference – London, 6 March 2014

thematic

Energy & Resources

01.03.13

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

thematic

TMT

24.09.10

The third pillar

thematic

TMT

10.09.10

The real disruptor

thematic

TMT

27.08.10

Merger mania is back