Datatec (DTC.JO)
Technology · JSE · South Africa
Fundamentals
Valuation and ratings
Datatec trades at R86.33, which is 125% below the R194.50 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 41 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 14.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Datatec
Datatec Limited, together with its subsidiaries, provides information and communication technology (ICT) solutions and services in North America, Europe, the Asia-Pacific, Africa, and the Middle East. It operates through Westcon International, Logicalis International, and Logicalis Latin America segments. The company cyber security, network infrastructure, unified collaboration products, data centre solutions, and channel services, and financing/leasing solutions for ICT customers, as well as digital services. It also distributes security and networking products. Datatec Limited was founded in 1986 and is headquartered in Sandown, South Africa.
DTC.JO passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Datatec (DTC.JO) undervalued?
Against our discounted cash flow estimate of R194.50, DTC.JO at R86.33 is 125% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is DTC.JO's P/E ratio?
DTC.JO trades at 14.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.