Data#3 Limited. (DTL) AI Stock Analysis

• Market Cap: AU$1.52B
• Dividend Yield: 3.02%
• Average Volume (3M): 352.69K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.86
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: AU$11.00 ▲(12.47% 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

Cash Generation

Exceptional free cash flow growth (121.08%) and strong operating cash conversion indicate durable internal funding. This supports reinvestment, capital expenditure, dividends or acquisitions without relying on external financing, strengthening long-term financial resilience.

Balance Sheet Strength

Low leverage (debt/equity 0.22) combined with very high ROE (57.24%) signals financial flexibility and efficient use of capital. This capacity to deploy limited debt conservatively supports strategic investments and cushions against cyclical shocks over the medium term.

Revenue & Margin Trends

Consistent revenue growth (+13.18%) and healthy gross margins (33.94%) reflect sustained demand for its IT services and product mix. This revenue momentum and product-service mix underpin recurring revenue potential and long-term margin support from managed services.

Negative Factors

Low Equity Ratio

A low equity ratio (8.93%) means a thin shareholder capital buffer relative to assets, increasing vulnerability to asset write-downs or unexpected losses. Over months, this can magnify earnings volatility and constrain capital flexibility during adverse industry cycles.

Vendor Concentration Risk

High dependence on reselling third-party software and vendor partnerships concentrates revenue and margin exposure to supplier pricing, licensing changes and partner terms. Structural shifts by major vendors could materially affect margins and go-to-market differentiation.

Compressed Net Margins

A wide gap between gross (33.94%) and net margin (5.64%) suggests significant operating cost absorption or project variability. Persistently thin net margins limit retained earnings and make profits more sensitive to cost inflation or cyclical revenue declines over the medium term.

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 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: 9.78
• 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 9.78 is above the 20-day moving average (MA) of 9.60, above the 50-day MA of 9.30, and above the 200-day MA of 8.40, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 74.83 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$1.52B	31.43	60.59%	3.02%	5.82%	11.11%
COS	70 Outperform	AU$81.89M	10.27	10.79%	4.66%	14.59%	-11.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KYP	60 Neutral	AU$94.08M	79.63	4.26%	―	11.90%	42.11%
ATA	60 Neutral	AU$257.20M	26.73	4.81%	―	23.53%	-23.98%
APX	46 Neutral	AU$491.38M	-14.41	-24.40%	―	-9.02%	80.67%
DUG	46 Neutral	AU$253.35M	-38.40	-10.10%	―	-3.10%	-236.41%

Data#3 Limited. Corporate Events

Data#3 Announces Lapse of 49,961 Performance Rights

Data#3 Limited has announced the lapse of 49,961 performance rights (ASX code DTLAA), which ceased on 23 December 2025 after the conditional rights failed to meet, or became incapable of meeting, their vesting conditions. The cessation reduces the pool of potential equity-based remuneration and may marginally affect the company’s future share capital structure, signalling that certain performance hurdles tied to these rights were not achieved during the relevant period.

The most recent analyst rating on (AU:DTL) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Data#3 Limited. stock, see the AU:DTL Stock Forecast page.

Data#3 Updates Director Bradley Colledge’s Equity Interests Under Long-Term Incentive Plan

Data#3 Limited has reported a change in the interests of director Bradley Dean Colledge under its Long Term Incentive Plan, following the issue of 39,314 unquoted performance rights at no cost. After this change, Colledge holds a direct interest in 274,019 shares and 39,314 performance rights, as well as an indirect interest in 177,520 shares and 65,238 performance rights, reflecting ongoing alignment of executive remuneration with shareholder-approved incentive structures rather than any on-market trading activity.

The most recent analyst rating on (AU:DTL) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Data#3 Limited. stock, see the AU:DTL Stock Forecast page.

Data#3 Issues 161,744 Unquoted Performance Rights Under Employee Incentive Scheme

Data#3 Limited has notified the market of the issue of 161,744 new unquoted performance rights under its employee incentive scheme. The performance rights, which are not intended to be quoted on the ASX and were issued on 15 December 2025, form part of the company’s ongoing strategy to align staff incentives with long-term shareholder value, signalling continued focus on talent retention and performance-based remuneration.

The most recent analyst rating on (AU:DTL) stock is a Buy with a A$10.00 price target. To see the full list of analyst forecasts on Data#3 Limited. stock, see the AU:DTL Stock Forecast page.