Datatec - Edison Group

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. 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

25.06.24

Datatec — Positive outlook for FY25

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Flash note

28.05.24

Datatec — Underlying earnings more than tripled in FY24

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Flash note

02.05.24

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

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Flash note

27.03.24

Datatec — FY24 revenue growth of 5.8%

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)

206.8

Forecast gearing ratio (%)

33

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	1.6	0.0	(3.4)
Relative	1.4	(7.2)	(9.4)
52 week high/low	ZAR41.6/ZAR33.6

Financials

Datatec reported 6% revenue growth in FY24, with the backlog normalising after a period of tightness in the supply chain. Strong performances from Westcon and Logicalis International were partially offset by weaker profitability in Logicalis Latin America, resulting in flat adjusted EBITDA margins year-on-year. Management confirmed that the group continues to benefit from secular technology growth trends, including strong demand for cybersecurity and hybrid working, and the adoption of generative artificial intelligence (GenAI). Management expects improved financial performance from all divisions in FY25; we forecast year-on-year growth in underlying EPS of 26%.

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	8.5	3.0
2024A	5457.9	192.1	76.5	19.7	10.5	3.1
2025E	5730.6	223.9	111.3	27.4	7.5	8.7
2026E	5991.4	239.9	127.1	31.6	6.5	2.9

Research

Flash note

TMT

18.05.23

Datatec — Confirming EPS for FY23

Flash note

TMT

27.03.23

Datatec — Another year of double-digit revenue growth

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Flash note

Datatec — Starting FY24 in a strong position

Update

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23.02.23

Datatec — Focus on Westcon International

Update

TMT

17.11.22

Datatec — Resilient performance despite challenges

Flash note

TMT

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

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

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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

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

07.11.23

MediaWatch – Still waiting…

thematic

TMT

28.07.23

MediaWatch – Targeting the opportunities

thematic

TMT

25.04.23

MediaWatch – Vision On

Digital Marketing and Internet Media Technology Platform

thematic

TMT

31.01.23

MediaWatch – Screening well

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