DataTec Limited. JSE: DTC

Datatec shares

Background of Datatec

  • Headquartered in South Africa and listed on the Johannesburg Stock Exchange (JSE), Datatec Limited is a global ICT solutions and services provider operating in more than 60 countries across six continents, with revenue exceeding $6 billion per year.

  • The company was started as a distributor of networking access and communication solutions in 1986 and Datatec shares have been available to buy on the JSE since 1995. The group also holds a listing on the AIM of the London Stock Exchange.

  • Datatec makes its products for sale in three principal areas: Technology, Integration and Consulting. The group’s diversified operations are carried out through subsidiaries such as WestconGroup, Logicalis, Analysys Mason and Mason Advisory. Through these subsidiaries, Datatec’s capabilities include IT security, unified communications, networking, data centres, cloud services, infrastructure solutions and strategic and technical consulting.

  • The group has a well-spread global footprint, with a presence in 11 African countries, 16 European countries, 8 Asian countries,10 South American countries, Australia, New Zealand, the United States and Canada. The group employs more than 8 000 people.

Datatec Shares Growth Driver

  • Datatec aims to deliver shareholder returns through portfolio management and the development of its subsidiaries in technology solutions and services. The group offers strategic direction to divisions, whilst providing central services such as mergers and acquisitions, management support, capital and financing, market intelligence and geographical expertise. The group continually focuses on sector opportunities, deciding to buy into acquisitions and investments throughout its history.

  • Datatec’s results for the financial year ended 29 February 2016 indicated improved results, with a 13.3% growth in revenue. This was particularly driven by a strong performance from Westcon (which contributed 75% of revenue) across all regions. Overall profit data was however severely impacted by foreign exchange losses and restructuring, dropping by 30%, and Datatec share price was reduced by the same margin. Logicalis recently made a number of acquisitions which are forecast to start contributing to profits in the medium-term.

  • As economies begin recovering, Datatec is seeing good growth in the North American and European markets, although local growth is expected to remain relatively slow.

  • The group anticipates that migration to cloud-based infrastructure delivery is a trend that will require increased buy in and create demand for networking, security and unified communications solutions, all of which are core activities for Datatec.

Datatec Group Investor Tip

  • The outlook for the global economy remains uncertain, which may continue to hamper the Datatec’s profits in the coming years, although the board has said that it expects improvements in earnings and operating leverage.

  • Datatec share price shows a sharp decline on the live online stocks chart, dropping from R77 in mid-2015 to R45 a year later. Some investment analysts view the shares as undervalued, which could make them a potentially profitable purchase once Datatec’s new acquisitions start generating revenue and economies strengthen.

Datatec Major Shareholders

Public Investment Corporation Ltd, Allan Gray, Old Mutual Investment Group (Pty) Ltd., Government Employees Pension Fund, Prudential Investment Managers (SA) (Pty) Ltd., Kagiso Asset Management (Pty) Ltd, Dimensional Fund Advisors LP, Allan Gray Unit Trust Management (RF) (Pty) Ltd., Foord Asset Management (Pty) Ltd. and Investment Solutions.

  • Sector

    Consumer Discretionary

  • Industry

    Distributors – Discretionary

  • Sub industry

    Consumer Elec & Applc Whslrs

How to buy Datatec Group Shares

  • Datatec : How to buy Datatec Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Datatec Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Datatec Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Datatec Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Datatec Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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