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, underpinned by the unwinding of Datatec’s backlog during FY24.
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Ivan Dittrich
Finance Director
Jens Montanana
CEO
Forecast net debt (US$m)
205.2
Forecast gearing ratio (%)
36
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (7.5) | (6.1) | 5.8 |
Relative | (7.4) | (5.1) | 7.3 |
52 week high/low | ZAR41.6/ZAR33.6 |
Datatec expects to report revenue of $5.44bn for FY24, up 5.8% y-o-y, and noted that the quality of earnings improved in the year. During H224, Westcon International continued to deliver a strong financial performance. Logicalis International also had a strong half, although its reported revenue growth has been suppressed by a higher proportion of net revenue-reported software sales. Logicalis Latin America had a tougher H2 due to difficult market conditions in Argentina and Brazil. We maintain our forecasts pending FY24 results, which are expected to be on or around 27 May.
Y/E Feb | Revenue (US$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 | 13.5 | 5.5 |
2023A | 5143.1 | 180.2 | 86.7 | 24.1 | 7.9 | 2.8 |
2024E | 5567.8 | 197.3 | 86.7 | 20.8 | 9.2 | 11.7 |
2025E | 5833.2 | 222.0 | 112.1 | 27.6 | 6.9 | 2.7 |