Data#3 Limited. (DTL) AI Stock Analysis

• Market Cap: AU$1.43B
• Dividend Yield: 3.05%
• Average Volume (3M): 352.69K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.82
• Revenue Growth: 5.82%
• EPS Growth: 11.11%
• Country: AU
• Employees: 1,480
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.17
• Shares Outstanding: 155,077,840
• 10 Day Avg. Volume: 271,452
• 30 Day Avg. Volume: 352,695
• PEG Ratio: 2.28
• Price to Book (P/B): 14.00
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 9.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$9.34
• Price Target Upside: 1.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: AU$10.00 ▲(8.70% Upside)

Data#3 Limited's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue and profit growth and efficient cash management. The technical analysis presents a mixed picture with short-term weakness but a longer-term uptrend. Valuation concerns arise due to a high P/E ratio, although the dividend yield offers some compensation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates strong demand for its ICT solutions, suggesting a competitive market position and potential for continued expansion.

Cash Generation

Strong cash generation capabilities enhance financial flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations.

Partnerships

Strategic partnerships with major tech companies strengthen Data#3's service offerings and market reach, providing a durable competitive advantage.

Negative Factors

Low Equity Ratio

A low equity ratio could pose a risk if asset values fluctuate, potentially impacting the company's ability to leverage financing for growth.

Valuation Concerns

High valuation metrics may limit upside potential and make the stock vulnerable to market corrections, affecting long-term investor sentiment.

Equity Ratio Risk

A low equity ratio indicates limited buffer against asset devaluation, which could impact financial stability and growth financing options.

Data#3 Limited. Business Overview & Revenue Model

Company Description

Data#3 Limited (DTL) is an Australian-based IT services and solutions provider that specializes in delivering technology solutions to various sectors, including government, education, health, and corporate environments. The company offers a broad range of services, including software licensing, cloud solutions, IT infrastructure, managed services, and consulting. Data#3 partners with leading technology vendors to provide innovative solutions that help organizations enhance their operational efficiency and drive digital transformation.

How the Company Makes Money

Data#3 generates revenue primarily through the sale of IT products and services. Its key revenue streams include software licensing, where the company resells software from top vendors such as Microsoft and VMware, and managed services, which involve ongoing IT support and infrastructure management for clients. Additionally, the company earns revenue from consulting services that help organizations optimize their IT strategies and implement new technologies. Significant partnerships with major technology providers, along with a strong reputation in the market, contribute to its earnings by enabling Data#3 to offer comprehensive solutions tailored to client needs.

Data#3 Limited. Financial Statement Overview

Summary

Data#3 Limited presents a strong financial profile with impressive revenue and profit growth, efficient operational management, and robust cash generation. The balance sheet is stable with low leverage, although the equity ratio is relatively low. Overall, the company is well-positioned financially with strong growth prospects and effective cash management.

Income Statement

Data#3 Limited has demonstrated strong revenue growth with a 13.18% increase in the latest year, indicating robust demand for its services. The company maintains healthy profitability margins, with a gross profit margin of 33.94% and a net profit margin of 5.64% in the latest period. The EBIT and EBITDA margins are also solid, reflecting efficient operational management. Overall, the income statement shows a positive growth trajectory and stable profitability.

Balance Sheet

The balance sheet of Data#3 Limited reflects a stable financial position with a manageable debt-to-equity ratio of 0.22, indicating low leverage. The return on equity is impressive at 57.24%, showcasing effective use of shareholder funds. The equity ratio stands at 8.93%, suggesting a conservative capital structure. The company appears financially stable with a strong equity base, although the relatively low equity ratio could be a potential risk if asset values fluctuate.

Cash Flow

Data#3 Limited exhibits exceptional cash flow performance, with a significant free cash flow growth rate of 121.08%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio is also favorable, highlighting the company's ability to generate cash relative to its net income. Overall, the cash flow statement reflects excellent liquidity and cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	852.66M	852.66M	805.75M	2.56B	2.19B	1.96B
Gross Profit	182.42M	289.38M	270.60M	244.37M	218.22M	194.75M
EBITDA	69.97M	75.64M	69.16M	60.45M	50.38M	43.20M
Net Income	48.19M	48.19M	43.31M	37.03M	30.26M	25.41M
Balance Sheet
Total Assets	942.10M	942.10M	866.15M	944.48M	780.16M	704.13M
Cash, Cash Equivalents and Short-Term Investments	356.69M	356.69M	276.38M	404.77M	149.46M	204.32M
Total Debt	18.55M	18.55M	20.59M	23.88M	25.64M	26.87M
Total Liabilities	857.93M	857.93M	791.23M	876.14M	718.46M	647.83M
Stockholders Equity	84.17M	84.17M	74.92M	68.34M	61.70M	56.30M
Cash Flow
Free Cash Flow	125.38M	124.13M	-86.80M	290.04M	-26.50M	-24.61M
Operating Cash Flow	126.29M	126.29M	-86.19M	291.02M	-22.62M	-22.69M
Investing Cash Flow	-2.17M	-2.17M	-605.00K	-968.00K	-3.88M	-2.07M
Financing Cash Flow	-44.19M	-44.19M	-41.40M	-34.97M	-28.58M	-25.21M

Data#3 Limited. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DTL, the sentiment is Positive. The current price of 9.2 is above the 20-day moving average (MA) of 9.11, above the 50-day MA of 9.02, and above the 200-day MA of 8.07, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 53.54 is Neutral, neither overbought nor oversold. The STOCH value of 62.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DTL.

Data#3 Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTL	75 Outperform	AU$1.43B	29.56	60.59%	3.05%	5.82%	11.11%
COS	66 Neutral	AU$87.35M	10.96	10.79%	4.56%	14.59%	-11.13%
ATA	64 Neutral	AU$278.17M	28.85	4.81%	―	23.53%	-23.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KYP	57 Neutral	AU$146.91M	125.93	4.26%	―	11.90%	42.11%
DUG	40 Neutral	AU$311.05M	-47.23	-10.10%	―	-3.10%	-236.41%
APX	39 Underperform	AU$183.27M	―	-24.40%	―	-9.02%	80.67%

Data#3 Limited. Corporate Events

Data#3 Limited Announces 2025 AGM Results

Data#3 Limited has announced the results of its 2025 Annual General Meeting, as required by the Australian Securities Exchange regulations. The release, authorized by Company Secretary Terence Bonner, provides stakeholders with the outcomes of the meeting, which are crucial for understanding the company’s governance and strategic direction.

Data#3 Limited Announces Strategic Board Changes at 2025 AGM

Data#3 Limited, during its 2025 Annual General Meeting, announced significant board changes as part of its succession planning strategy. The company emphasized the importance of these changes in ensuring a mix of experience and fresh perspectives in leadership. Notably, the appointment of Bronwyn Morris as Non-Executive Director and Chair of the Audit and Risk Committee was highlighted, along with the introduction of Diana Eilert and Laurence Baynham as new Non-Executive Directors. These appointments are expected to strengthen the board and support the company’s continued growth. The board also proposed adjustments to the Remuneration and Nomination Committee, contingent on the approval of the elections.

Data#3 Limited Announces 2025 Annual General Meeting

Data#3 Limited has announced its Annual General Meeting (AGM) scheduled for October 29, 2025, which will be conducted as a hybrid meeting. The AGM will address several key business items, including the consideration of financial statements, adoption of the remuneration report, and approval for issuing rights to a related party, Mr. Bradley Colledge. The meeting reflects the company’s ongoing commitment to transparency and stakeholder engagement, with implications for corporate governance and executive compensation policies.

Data#3 Limited Releases 2025 Corporate Governance Statement

Data#3 Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available in their annual report and on their website. The statement, approved by the board, outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, indicating full compliance with the guidelines for the reporting period. This disclosure is crucial for stakeholders as it provides transparency regarding the company’s governance practices and ensures accountability in its management and oversight processes.

Data#3 Limited Releases FY25 Annual Report Highlighting Strategic Growth

Data#3 Limited has released its annual report, highlighting its financial performance and strategic initiatives for the fiscal year 2025. The report outlines the company’s focus on enhancing shareholder value through improved operational efficiencies and strategic growth initiatives. Key insights include a detailed financial summary, an operating and financial review, and updates on corporate governance, which are crucial for stakeholders to understand the company’s direction and market positioning.