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DATAGROUP (DE:D6H)
XETRA:D6H

DATAGROUP (D6H) AI Stock Analysis

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DE

DATAGROUP

(XETRA:D6H)

Rating:68Neutral
Price Target:
DATAGROUP's strong financial performance and reasonable valuation are major strengths, supported by consistent revenue growth and a stable balance sheet with minimal debt. The main concern is technical analysis, with the stock trading below key moving averages, indicating potential short-term challenges. The absence of corporate events or earnings call data limits further insights into immediate strategic directions.
Positive Factors
Operational Efficiency
Datagroup's proprietary AI system, HIRO, has automated 25,000 tasks, improving efficiency and enabling the team to serve more customers.
Strategic Focus
The planned spin-off of Almato will enable a clearer strategic focus for Datagroup and Almato, enhancing shareholder value.
Negative Factors
Profitability
EBIT margin of 8.6% after 9.1% last year with the decline mainly coming from investments in AI, cybersecurity and cloud technologies.

DATAGROUP (D6H) vs. iShares MSCI Germany ETF (EWG)

DATAGROUP Business Overview & Revenue Model

Company DescriptionDATAGROUP (D6H) is a leading IT service provider based in Germany, specializing in the design, implementation, and management of IT infrastructures. The company offers a comprehensive range of services, including cloud solutions, IT security, and managed services, catering primarily to medium-sized businesses across various sectors. With a strong focus on innovation and customer-centric solutions, DATAGROUP helps organizations optimize their IT operations, enhance security, and drive digital transformation.
How the Company Makes MoneyDATAGROUP generates revenue primarily through its extensive portfolio of IT services. The company's key revenue streams include managed services contracts, where it provides ongoing IT support and infrastructure management to clients. These contracts typically involve recurring fees, providing a steady income stream. Additionally, DATAGROUP earns revenue from project-based engagements, such as implementing cloud solutions or upgrading IT systems, which are billed on a per-project basis. The company also capitalizes on strategic partnerships with technology providers to expand its service offerings and enhance its market reach, thereby boosting its revenue potential.

DATAGROUP Financial Statement Overview

Summary
DATAGROUP displays solid financial performance with consistent revenue growth and strong profitability margins. The balance sheet is healthy with minimal debt, providing financial stability. There is a noted decrease in free cash flow growth, suggesting a need for careful cash management.
Income Statement
88
Very Positive
DATAGROUP shows strong revenue growth from the previous year, with a TTM revenue of €545.7M, reflecting a 3.4% increase from the last annual report. The company maintains a healthy gross profit margin of 18.2% and a net profit margin of 4.5%, indicating stable profitability. However, there is a slight decrease in gross profit margin compared to the previous period. The EBIT margin is at 8.2% and EBITDA margin at 15.0%, showcasing robust operational efficiency.
Balance Sheet
82
Very Positive
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0 in the TTM period, signaling minimal leverage risk. The return on equity is solid at 15.6%, highlighting efficient use of shareholder funds. The equity ratio stands at 28.6%, indicating a stable financial structure, though slightly lower than some previous periods due to increased total assets.
Cash Flow
75
Positive
Operating cash flow remains strong at €44.96M in the TTM period, although it has decreased from the previous annual figure. Free cash flow is positive at €24.88M, showing good cash generation, albeit a decline from the previous year's €38.32M. The operating cash flow to net income ratio is robust at 1.84, indicating solid cash conversion efficiency, though free cash flow growth has faced some challenges.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
545.74M527.56M497.80M499.47M444.49M367.23M
Gross Profit
99.35M145.89M99.49M96.33M81.96M60.09M
EBIT
44.91M45.81M45.32M41.32M28.46M9.78M
EBITDA
81.66M84.64M82.06M76.51M68.46M42.60M
Net Income Common Stockholders
24.45M26.20M28.08M21.88M20.73M248.74K
Balance SheetCash, Cash Equivalents and Short-Term Investments
35.13M36.69M21.88M47.04M44.09M63.94M
Total Assets
546.14M537.38M465.29M483.58M431.78M385.35M
Total Debt
0.00191.36M151.63M130.73M135.36M149.09M
Net Debt
154.78M129.75M83.69M91.27M85.15M
Total Liabilities
389.91M383.54M317.85M356.13M337.49M319.20M
Stockholders Equity
156.23M153.83M147.40M127.61M94.30M66.15M
Cash FlowFree Cash Flow
24.88M38.32M31.43M64.22M42.54M4.68M
Operating Cash Flow
44.96M58.89M46.66M70.25M50.00M21.68M
Investing Cash Flow
-30.95M-64.84M-44.78M-44.57M12.59M
Financing Cash Flow
12.21M8.89M-6.99M-22.53M-25.24M-17.68M

DATAGROUP Technical Analysis

Technical Analysis Sentiment
Positive
Last Price57.90
Price Trends
50DMA
51.03
Positive
100DMA
46.63
Positive
200DMA
44.38
Positive
Market Momentum
MACD
1.41
Positive
RSI
73.94
Negative
STOCH
76.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:D6H, the sentiment is Positive. The current price of 57.9 is above the 20-day moving average (MA) of 56.40, above the 50-day MA of 51.03, and above the 200-day MA of 44.38, indicating a bullish trend. The MACD of 1.41 indicates Positive momentum. The RSI at 73.94 is Negative, neither overbought nor oversold. The STOCH value of 76.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:D6H.

DATAGROUP Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEGFT
79
Outperform
€627.87M14.6216.30%2.08%8.63%-3.90%
73
Outperform
€1.43B14.1912.25%1.18%-6.50%-34.18%
DED6H
68
Neutral
€479.03M19.0716.57%1.75%11.11%-8.72%
62
Neutral
$11.72B10.43-7.10%2.91%7.41%-7.94%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:D6H
DATAGROUP
57.90
8.95
18.27%
DE:AIXA
AIXTRON
12.57
-9.67
-43.49%
DE:GFT
GFT Technologies
23.10
-3.26
-12.38%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.