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DTC

DatatecJSE:DTC Stock Report

Market Cap

R7.8b

7D

3.0%

1Y

79.4%

Updated

16 Oct, 2021

Data

Company Financials +
DTC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health5/6
Dividends1/6

DTC Overview

Datatec Limited, together with its subsidiaries, provides information and communication technology (ICT) solutions and services worldwide.

Datatec Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Datatec
Historical stock prices
Current Share PriceR38.40
52 Week HighR20.67
52 Week LowR41.25
Beta-0.024
1 Month Change11.86%
3 Month Change54.34%
1 Year Change79.44%
3 Year Change65.66%
5 Year Change-18.85%
Change since IPO1,645.46%

Recent News & Updates

Shareholder Returns

DTCZA ElectronicZA Market
7D3.0%1.2%1.6%
1Y79.4%16.8%21.3%

Return vs Industry: DTC exceeded the ZA Electronic industry which returned 16.8% over the past year.

Return vs Market: DTC exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is DTC's price volatile compared to industry and market?
DTC volatility
DTC Beta-0.024
Industry Beta1
Market Beta1

Stable Share Price: DTC is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DTC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19869,939Jens Montananahttps://www.datatec.com

Datatec Limited, together with its subsidiaries, provides information and communication technology (ICT) solutions and services worldwide. The company operates in three segments: Westcon International; Logicalis; and Corporate, Management Consulting and Financial Services. The Westcon International segment distributes security, networking, collaboration, networking and data centre, and cloud products, as well as global deployment and services.

Datatec Fundamentals Summary

How do Datatec's earnings and revenue compare to its market cap?
DTC fundamental statistics
Market CapUS$533.56m
Earnings (TTM)US$2.60m
Revenue (TTM)US$4.11b

205.2x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DTC income statement (TTM)
RevenueUS$4.11b
Cost of RevenueUS$3.42b
Gross ProfitUS$685.07m
ExpensesUS$682.47m
EarningsUS$2.60m

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

Oct 28, 2021

Earnings per share (EPS)0.013
Gross Margin16.67%
Net Profit Margin0.063%
Debt/Equity Ratio67.9%

How did DTC perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

503%

Payout Ratio

Valuation

Is Datatec undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DTC (ZAR38.4) is trading below our estimate of fair value (ZAR106.93)

Significantly Below Fair Value: DTC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DTC is poor value based on its PE Ratio (205.2x) compared to the Global Electronic industry average (21.1x).

PE vs Market: DTC is poor value based on its PE Ratio (205.2x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DTC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DTC is good value based on its PB Ratio (0.9x) compared to the XX Electronic industry average (2.1x).


Future Growth

How is Datatec forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DTC's forecast earnings growth is above the savings rate (8.8%).

Earnings vs Market: Insufficient data to determine if DTC's earnings are forecast to grow faster than the ZA market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DTC's revenue (5.1% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: DTC's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DTC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Datatec performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTC has a large one-off loss of $28.3M impacting its February 28 2021 financial results.

Growing Profit Margin: DTC's current net profit margins (0.06%) are lower than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: DTC has become profitable over the past 5 years, growing earnings by 16.3% per year.

Accelerating Growth: DTC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DTC had negative earnings growth (-79.8%) over the past year, making it difficult to compare to the Electronic industry average (33.6%).


Return on Equity

High ROE: DTC's Return on Equity (0.9%) is considered low.


Financial Health

How is Datatec's financial position?


Financial Position Analysis

Short Term Liabilities: DTC's short term assets ($2.2B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: DTC's short term assets ($2.2B) exceed its long term liabilities ($176.6M).


Debt to Equity History and Analysis

Debt Level: DTC's debt to equity ratio (67.9%) is considered high.

Reducing Debt: DTC's debt to equity ratio has reduced from 70.7% to 67.9% over the past 5 years.

Debt Coverage: DTC's debt is well covered by operating cash flow (39.5%).

Interest Coverage: DTC's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Dividend

What is Datatec current dividend yield, its reliability and sustainability?

2.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DTC's dividend (2.49%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: DTC's dividend (2.49%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: DTC's dividend payments have been volatile in the past 10 years.

Growing Dividend: DTC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (503.5%), DTC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DTC's dividends in 3 years are forecast to be well covered by earnings (33.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average board tenure


CEO

Jens Montanana (60 yo)

no data

Tenure

US$6,283,000

Compensation

Mr. Jens Peter Montanana founded Datatec Limited, the parent company of Westcon Group Inc., in February 1986 and has been its Chief Executive Officer since 1994. Mr. Montanana served as the Chief Executive...


CEO Compensation Analysis

Compensation vs Market: Jens's total compensation ($USD6.28M) is above average for companies of similar size in the ZA market ($USD731.45K).

Compensation vs Earnings: Jens's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: DTC's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Datatec Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Datatec Limited
  • Ticker: DTC
  • Exchange: JSE
  • Founded: 1986
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: R7.802b
  • Shares outstanding: 203.18m
  • Website: https://www.datatec.com

Number of Employees


Location

  • Datatec Limited
  • Sandown Chambers
  • 3rd Floor
  • Sandown
  • Free State
  • 2031
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 17:02
End of Day Share Price2021/10/15 00:00
Earnings2021/02/28
Annual Earnings2021/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.