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Datatec (JSE: DTCJ)

Last close As at 20/11/2024

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

Research

Flash note

TMT

Datatec — Better profitability across the board

Flash note

TMT

Datatec — Encouraging H1 across all divisions

TMT

Update

Datatec — Operational focus drives H125 profit growth

Update

TMT

Datatec — Positive outlook for FY25

Flash note

TMT

Datatec — Underlying earnings more than tripled in FY24

Flash note

TMT

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

Flash note

TMT

Datatec — FY24 revenue growth of 5.8%
Datatec_resized

Update

TMT

Datatec — On track for better performance in FY24
Datatec_resized

Flash note

TMT

Datatec — Solid H124 performance supports FY24 outlook

Flash note

TMT

Datatec — Sustained demand in H124

Update

TMT

Datatec — On a growth track for FY24
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Thematics

thematic

TMT

MediaWatch – One step forward, two steps back

thematic

TMT

MediaWatch – Encouragements and frustrations

thematic

TMT

MediaWatch – Glimpses of positivity

thematic

TMT

MediaWatch – Rinse and repeat
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