DATAGROUP (D6H) AI Stock Analysis

• Market Cap: €589.00M
• Dividend Yield: 1.43%
• Average Volume (3M): 2.37K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.70
• Revenue Growth: 7.30%
• EPS Growth: -15.88%
• Country: DE
• Employees: 3,500
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.65
• Shares Outstanding: 8,349,000
• 10 Day Avg. Volume: 2,484
• 30 Day Avg. Volume: 2,372
• PEG Ratio: -1.55
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 24.52
• 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: 62 Neutral
• Price Target: €74.00 ▲(5.71% Upside)

The score is primarily held back by financial-quality concerns: the sharp gross margin decline, weaker 2025 operating/free cash flow, and elevated leverage. Offsetting this, the stock shows solid technical strength (price above key moving averages with positive MACD), while valuation remains somewhat expensive at ~26.5x earnings with only a modest dividend yield.

DATAGROUP Business Overview & Revenue Model

Company Description

DATAGROUP SE provides information technology (IT) infrastructure, IT services, technology consulting, and IT development solutions in Germany, rest of European Union countries, and internationally. The company operates in two segments, Services, and Solutions and Consulting. It provides IT workplace services, including selection and procurement, on-site implementation, and exchange and disposal of old equipment, as well as technology and solutions consulting and software development services. The company also offers managed and private cloud, public cloud, application management, SAP cloud and outsourcing, communication and collaboration, network, security, and end user services, as well as service desk services. In addition, it provides IT consulting, robotic process automation and AI, mobile and app, and industry solutions, as well as cloud, platform, application, and SAP transformation solutions. The company was formerly known as Datagroup AG and changed its name to DATAGROUP SE in November 2016. The company was founded in 2005 and is headquartered in Pliezhausen, Germany. DATAGROUP SE is a subsidiary of HHS Beteiligungsgesellschaft mbH.

How the Company Makes Money

DATAGROUP 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

Strong 2025 revenue growth (+52.6%) and steady EBITDA margins (~15–16%) support the score, but earnings quality risks rose with a sharp 2025 gross margin drop (12.5% vs. 27.7% in 2024). Leverage is meaningfully elevated (debt-to-equity ~1.19) and cash generation weakened in 2025 (operating cash flow and free cash flow both down), limiting deleveraging flexibility.

Income Statement

Revenue has expanded strongly over the period, with a notable step-up in the latest year (2025 revenue growth of 52.6% vs. ~6% in 2024 and roughly flat in 2023). Profitability is generally positive and steady at the operating level (EBITDA margin ~15–16% in recent years), but net profitability remains modest (net margin ~3.9% in 2025) and was near break-even in 2020. A key concern is the sharp decline in gross margin in 2025 (12.5% vs. 27.7% in 2024), suggesting higher delivery costs, pricing pressure, or mix shift that could limit earnings quality if it persists.

Balance Sheet

The balance sheet shows meaningful leverage, with debt consistently exceeding equity (debt-to-equity ~1.19 in 2025; ~1.24 in 2024), which reduces flexibility if profitability or cash generation weakens. That said, equity has grown over time and returns on equity have been healthy in recent years (12.9% in 2025; 17.0% in 2024), indicating the business has been able to generate solid profits relative to its capital base. Overall, the structure is workable but more leveraged than ideal for a services business, making execution and margin stability important.

Cash Flow

Cash generation has become more volatile and weakened recently. Operating cash flow fell materially in 2025 (to ~34.3m from ~58.9m in 2024), and free cash flow declined as well (to ~21.7m from ~38.3m), with free cash flow growth turning negative in 2025. While free cash flow still covers a meaningful portion of net income (about 63% in 2025), the company’s operating cash flow is low relative to its debt load (operating cash flow-to-debt ~0.19 in 2025), which limits deleveraging capacity and increases reliance on continued earnings strength and stable working capital.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	566.08M	566.08M	527.56M	497.80M	499.47M	444.49M
Gross Profit	103.06M	70.73M	145.89M	99.49M	96.33M	81.96M
EBITDA	88.07M	86.47M	84.64M	82.06M	76.51M	68.46M
Net Income	21.95M	21.95M	26.20M	28.08M	21.88M	20.73M
Balance Sheet
Total Assets	582.17M	582.17M	537.38M	465.29M	483.58M	431.78M
Cash, Cash Equivalents and Short-Term Investments	10.49M	10.49M	36.69M	21.88M	47.04M	44.09M
Total Debt	203.57M	203.57M	191.36M	151.63M	130.73M	135.36M
Total Liabilities	411.72M	411.72M	383.54M	317.85M	356.13M	337.49M
Stockholders Equity	170.45M	170.45M	153.84M	147.40M	127.61M	94.30M
Cash Flow
Free Cash Flow	20.54M	21.65M	38.32M	31.43M	64.22M	42.54M
Operating Cash Flow	39.52M	34.27M	58.89M	46.66M	70.25M	50.00M
Investing Cash Flow	-39.74M	-40.44M	-53.07M	-64.84M	-44.78M	-44.57M
Financing Cash Flow	-26.07M	-20.12M	8.89M	-6.99M	-22.53M	-25.24M

DATAGROUP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 70 is above the 20-day moving average (MA) of 69.85, above the 50-day MA of 68.50, and above the 200-day MA of 62.44, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 62.38 is Neutral, neither overbought nor oversold. The STOCH value of 74.63 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFT	69 Neutral	€548.90M	15.57	13.78%	2.65%	3.28%	-26.16%
SHF	65 Neutral	€596.39M	22.73	19.08%	―	20.52%	84.19%
A1OS	63 Neutral	€199.78M	18.11	10.26%	3.99%	-1.50%	-37.05%
D6H	62 Neutral	€589.00M	26.72	13.54%	1.43%	7.30%	-15.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADN1	56 Neutral	€530.74M	38.81	6.82%	0.85%	12.37%	196.11%
QBY	50 Neutral	€100.91M	40.30	-1.93%	―	-3.43%	78.06%