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Datatec (JSE: DTCJ)

Last close As at 21/11/2024

ZAR40.19

▲ 0.39 (0.98%)

Market capitalisation

ZAR9,374m

Datatec is a South African-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 | Update

Datatec — Operational focus drives H125 profit growth

TMT | Flash note

Datatec — Better profitability across the board

TMT | Flash note

Datatec — Encouraging H1 across all divisions

TMT | Update

Datatec — Positive outlook for FY25
Datatec_resized
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Sector

TMT

Equity Analyst

Katherine Thompson

Key Management

  • Ivan Dittrich

    Finance Director

  • Jens Montanana

    CEO

Balance Sheet

Forecast net debt (US$m)

181.3

Forecast gearing ratio (%)

29

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 7.7 11.6 10.2
Relative 10.2 9.7 (3.9)
52 week high/low ZAR41.6/ZAR33.6

Financials

In H125, while revenue declined due to mix and net revenue accounting, Datatec grew gross profit by 3.5% y-o-y and adjusted EBITDA by 18.5%, resulting in a 56.2% increase in underlying EPS (uEPS). Both Westcon and Logicalis International delivered strong profit growth, while Logicalis Latin America managed to offset lower revenues with reductions in its cost base. Management continues to expect a better financial performance from all three businesses in FY25. We have upgraded our forecasts to reflect the strong H125 performance, lifting FY25 uEPS by 10% and reducing year-end net debt by 12%.

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 86.5 24.1 9.4 3.3
2024A 5457.9 192.1 76.5 19.7 11.5 3.4
2025E 5303.6 233.6 122.8 30.5 7.4 6.1
2026E 5509.0 252.7 141.5 35.3 6.4 3.3

Flash note

TMT

Datatec — Starting FY24 in a strong position

Flash note

TMT

Datatec — Confirming EPS for FY23

Flash note

TMT

Datatec — Another year of double-digit revenue growth

Update

TMT

Datatec — Focus on Westcon International

Update

TMT

Datatec — Resilient performance despite challenges

Flash note

TMT

Datatec — The positives outweigh the negatives

Flash note

Datatec — Mixed performance in H123, special dividend

Flash note

TMT

Datatec — Management buyout of Analysys Mason

Update

TMT

Datatec — Potential strategic sale of Analysys Mason

Flash note

TMT

Datatec — Strong year across the board despite challenges

Flash note

TMT

Datatec — Operational gearing shines through

Flash note

TMT

Datatec — 13% growth despite supply chain constraints

Update

TMT

Datatec — Westcon is key to unlocking upside potential

Update

TMT

Datatec — Attractive value play with upside potential

Flash note

TMT

Datatec — Operational gearing drives EPS growth

Flash note

TMT

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

Update

TMT

Datatec — Strategic review to unlock embedded value

Flash note

TMT

Datatec — Siticom, an investment in 5G private networks

Update

TMT

Datatec — Robust underlying performance across the board

Flash note

TMT

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

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TMT

Webinar: Datatec

Initiation

TMT

Datatec — Starting to unlock underlying value

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TMT

Datatec — Benefiting from operating leverage