Data#3 Limited. (DTL) AI Stock Analysis

• Market Cap: AU$1.42B
• Dividend Yield: 2.84%
• Average Volume (3M): 420.53K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 0.84
• Revenue Growth: 5.82%
• EPS Growth: 11.11%
• Country: AU
• Employees: 1,480
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 0.17
• Shares Outstanding: 154,908,340
• 10 Day Avg. Volume: 535,651
• 30 Day Avg. Volume: 420,533
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$8.76
• Price Target Upside: -4.47% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: AU$10.50 ▲(14.50% Upside)

Data#3 Limited scores well due to its strong financial performance, characterized by robust revenue growth and cash generation. The technical analysis indicates a strong upward trend, though caution is advised due to overbought signals. The valuation is a concern with a high P/E ratio, suggesting potential overvaluation.

Data#3 Limited. Business Overview & Revenue Model

Company Description

Data#3 Limited provides information technology solutions and services in Australia and Fiji. The company offers cloud solutions, such as public cloud and private cloud services, and modern data center solutions; modern workplace solutions, including collaboration, end user devices, systems management, and printing; and security solutions comprising cloud security, identity and access management, data security and privacy, infrastructure and end point security, and security monitoring and analytics. It also provides data and analytics solutions, such as business analytics, customer management, Internet of things (IOT), location-based analytics; and connectivity solutions consists of IT-OT networking, SD-WAN, and software-defined and wireless networks. In addition, the company offers consulting, procurement, project, managed, and resourcing services. Data#3 Limited was founded in 1977 and is headquartered in Brisbane, Australia.

How the Company Makes Money

Data#3 Limited generates revenue through the sale of ICT solutions and services. Its key revenue streams include the provision of software licensing, hardware procurement, and cloud-based services. The company also earns income from consulting, project services, and managed services, helping clients design, implement, and manage their IT systems. Significant partnerships with leading technology providers like Microsoft, Cisco, and HP contribute to its earnings by enabling Data#3 to offer a comprehensive portfolio of solutions. Additionally, the company benefits from long-term contracts with various sectors, including government and education, providing a stable and recurring revenue base.

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.

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: 9.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 9.17 is above the 20-day moving average (MA) of 8.40, above the 50-day MA of 7.94, and above the 200-day MA of 7.40, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 77.66 is Negative, neither overbought nor oversold. The STOCH value of 88.62 is Negative, 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	74 Outperform	AU$1.42B	29.40	60.59%	2.84%	5.82%	11.11%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
APPEF	―	$150.47M	―	-24.40%	―	―	―
COS	70 Outperform	AU$110.10M	13.81	10.79%	3.95%	14.59%	-11.13%
ATA	66 Neutral	AU$300.79M	30.19	4.81%	―	23.53%	-23.98%
KYP	63 Neutral	AU$120.99M	103.70	4.26%	―	11.90%	42.11%
DUG	54 Neutral	AU$266.62M	33.61	-10.10%	―	-3.10%	-236.41%

Data#3 Limited. Corporate Events

Data#3 Limited to Announce FY25 Financial Results

Data#3 Limited announced it will release its audited financial results for FY25 on August 25, 2025, with a market briefing by CEO Brad Colledge and CFO Cherie O’Riordan. The announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (AU:DTL) stock is a Hold with a A$8.30 price target. To see the full list of analyst forecasts on Data#3 Limited. stock, see the AU:DTL Stock Forecast page.

Data#3 Limited Announces New Director’s Interest Notice

Data#3 Limited has announced the initial interest notice for its newly appointed director, Laurence Christopher Baynham, effective from July 1, 2025. The notice details Baynham’s relevant interests in the company’s securities, including ordinary shares and performance rights held in various trusts. This appointment and disclosure are part of the company’s compliance with ASX listing rules, ensuring transparency in its governance and operations.

The most recent analyst rating on (AU:DTL) stock is a Hold with a A$8.30 price target. To see the full list of analyst forecasts on Data#3 Limited. stock, see the AU:DTL Stock Forecast page.

Data#3 Limited Announces Director’s Interest Notice for Laurence Baynham

Data#3 Limited has announced the initial director’s interest notice for Laurence Christopher Baynham, who was appointed as a director on July 1, 2025. The notice details Baynham’s holdings in the company, including 72,650 ordinary shares, additional shares held in trust, and performance rights. This announcement provides transparency regarding the director’s financial interests in the company, which is crucial for shareholder confidence and regulatory compliance.

The most recent analyst rating on (AU:DTL) stock is a Hold with a A$8.30 price target. To see the full list of analyst forecasts on Data#3 Limited. stock, see the AU:DTL Stock Forecast page.

Data#3 Limited Appoints New Director with No Initial Securities Interest

Data#3 Limited has announced the appointment of Diana Eilert as a director, effective from July 1, 2025. The initial director’s interest notice indicates that Diana Eilert currently holds no relevant interests in securities, which may suggest a neutral impact on the company’s current operations and stakeholder interests.

The most recent analyst rating on (AU:DTL) stock is a Hold with a A$8.30 price target. To see the full list of analyst forecasts on Data#3 Limited. stock, see the AU:DTL Stock Forecast page.

Data#3 Limited Strengthens Board with New Appointments

Data#3 Limited has announced the appointment of Diana Eilert and Laurence Baynham as non-executive directors, effective July 1, 2025. This strategic move aims to enhance the board’s capabilities as the company navigates the evolving IT landscape, leveraging Ms. Eilert’s extensive experience in technology and strategy and Mr. Baynham’s deep knowledge of Data#3’s operations and the broader IT industry.

The most recent analyst rating on (AU:DTL) stock is a Buy with a A$8.10 price target. To see the full list of analyst forecasts on Data#3 Limited. stock, see the AU:DTL Stock Forecast page.