JSE-listed technology group Datatec has delivered a total shareholder return of 361%¹ over five years, making it one of the best-performing stocks in the local technology sector – yet it remains one of the least discussed.
The figure, disclosed in an updated investor presentation (PDF) published on Thursday, covers the period from 1 March 2021 to 28 February 2026. Over shorter timeframes, the returns are equally striking: 149% over three years, 106% over two years and 69% over one year.
Datatec, which was founded 40 years ago and has been listed on the JSE since 1994, now has a market capitalisation of R16.6-billion and has returned approximately US$1-billion to shareholders since inception through a series of special dividends, share buybacks and regular distributions. In 2025, it was admitted to the OTCQX trading platform in the US, giving international investors easier access to the stock.
The company operates through two main divisions: Westcon International, a global technology distributor specialising in cybersecurity, networking and cloud infrastructure across more than 50 countries; and Logicalis, an ICT solutions and managed services business with operations in Europe, North America, Latin America, Africa and Asia-Pacific. Together, the group employs more than 11 000 people.
The latest financial results underpin the share price performance. In the first half of its 2026 financial year (the six months to 31 August 2025), Datatec reported gross invoiced income of $4.1-billion, up 9.4% year on year. Gross profit rose 11.7% to $483-million, while profit before tax nearly doubled to $86.4-million. Headline earnings per share more than doubled, rising 109.5% to $0.22, and the group more than doubled its interim dividend to R1.75/share.
‘Undervalued’
Adjusted Ebitda – earnings before interest, tax, depreciation and amortisation – climbed 21.9% to $129-million, with margin expansion across all three operating segments. Logicalis International posted an adjusted Ebitda margin of 8.5%, up from 6.7% in the prior period, while Logicalis Latin America – previously a weak spot – saw its margin improve from 2.6% to 5.3%.
The full-year results for the 2025 financial year were also strong. Despite an 8.8% decline in reported revenue – driven by an accounting mix shift towards more net-accounted software and services – gross profit rose 5.6%, operating profit jumped 36.8% and underlying earnings per share climbed 78.4%. Cash generated from operations rose to $286-million from $175-million the year before.
Read: Big changes sweeping through IT distribution: Westcon CEO
The performance reflects structural demand drivers reshaping enterprise IT spending globally: the buildout of AI infrastructure, cybersecurity and compliance requirements, hybrid cloud adoption and data centre modernisation.
In an interview with TechCentral last year, Westcon-Comstor CEO David Grant described how the distribution business, owned by Datatec, has shifted from traditional hardware towards software and services, with cybersecurity now accounting for more than half of Westcon’s revenue and 65% of sales recurring in nature.
Global partner-delivered IT spending is forecast to reach $2.7-trillion in 2026, according to research firm Omdia, with software, cybersecurity and infrastructure leading growth. Datatec’s distribution arm, Westcon International, is a direct beneficiary: the division generated gross invoiced income of $2.8-billion in the first half of the 2026 financial year, up 9.8%, and posted an operating profit margin of 7.8%.
Despite the returns, Datatec founder and long-serving CEO Jens Montanana has argued for years that the company remains significantly undervalued. In an interview with TechCentral in October 2024, Montanana said the group had been “wildly undervalued” for the past 15 years and that management remained focused on closing the valuation gap.
He has backed that conviction with his own money, steadily increasing his personal stake to 18.6% – worth roughly R3.3-billion at the current share price – making him the largest single shareholder.
Growth drivers
Although 98% of Datatec’s revenue and 99% of its profits are generated outside South Africa, the company remains listed on the JSE because most of its shareholders are South African. Montanana has previously said a listing on the Nasdaq would make the company “invisible” in a market of that size.
Datatec said current trading conditions are characterised by rapidly growing IT complexity that is driving strong demand for its specialised services and expertise.
Read: Datatec doubles dividend as profits soar
“AI-ready IT and network infrastructure will become essential for most businesses,” the company said. “For our industry, this will also drive faster networking, distributed data centres, more local computing and increased cyberthreats, all of which should continue to benefit the group.” — (c) 2026 NewsCentral Media
- ¹Calculation: (Price at the end of the period – share price at the beginning of the period + dividends) / share price at the beginning of the period
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