Datatec - Edison Group

Overview
Price performance
Financials
Research
Thematics

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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Update

14.11.24

Datatec — Operational focus drives H125 profit growth

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Flash note

24.10.24

Datatec — Better profitability across the board

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Flash note

07.10.24

Datatec — Encouraging H1 across all divisions

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Update

25.06.24

Datatec — Positive outlook for FY25

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)

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

Research

Flash note

TMT

05.10.23

Datatec — Sustained demand in H124

Update

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05.06.23

Datatec — On a growth track for FY24

Datatec_resized

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Flash note

Datatec — Solid H124 performance supports FY24 outlook

Datatec_resized

Flash note

TMT

23.05.23

Datatec — Starting FY24 in a strong position

Flash note

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18.05.23

Datatec — Confirming EPS for FY23

Flash note

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27.03.23

Datatec — Another year of double-digit revenue growth

Update

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23.02.23

Datatec — Focus on Westcon International

Update

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17.11.22

Datatec — Resilient performance despite challenges

Flash note

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03.11.22

Datatec — The positives outweigh the negatives

Flash note

11.10.22

Datatec — Mixed performance in H123, special dividend

Flash note

TMT

30.06.22

Datatec — Management buyout of Analysys Mason

Update

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13.06.22

Datatec — Potential strategic sale of Analysys Mason

Flash note

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25.05.22

Datatec — Strong year across the board despite challenges

Flash note

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11.05.22

Datatec — Operational gearing shines through

Flash note

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17.03.22

Datatec — 13% growth despite supply chain constraints

Update

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24.02.22

Datatec — Westcon is key to unlocking upside potential

Update

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03.11.21

Datatec — Attractive value play with upside potential

Flash note

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06.10.21

Datatec — Operational gearing drives EPS growth

Flash note

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15.09.21

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

Update

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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

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13.11.20

Webinar: Datatec

Initiation

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02.11.20

Datatec — Starting to unlock underlying value

QuickView

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05.08.20

Datatec — Benefiting from operating leverage

thematic

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21.11.23

Deutsches Eigenkapitalforum (EKF) 2023 consumer and media

thematic

TMT

21.11.23

Deutsches Eigenkapitalforum (EKF) 2023 technology

thematic

TMT

07.11.23

MediaWatch – Still waiting…

thematic

TMT

28.07.23

MediaWatch – Targeting the opportunities

thematic

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25.04.23

MediaWatch – Vision On

Digital Marketing and Internet Media Technology Platform

thematic

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31.01.23

MediaWatch – Screening well

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IPO apocalypse

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27.02.20

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14.08.19

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05.08.19

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10.07.19

Diversification and scale for online success

thematic

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08.05.19

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

thematic

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26.02.19

UK video games – Heterogeneous not homogeneous

thematic

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24.02.17

Mobile ecosystems

thematic

TMT

08.02.17

Mobile ecosystems

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13.10.15

Mobile ecosystems

thematic

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23.03.15

NZ – Edison talks tech

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23.03.15

AUS – Edison talks tech

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18.03.15

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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

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24.09.10

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10.09.10

The real disruptor

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27.08.10

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