DATAGROUP (D6H) AI Stock Analysis

• Market Cap: €482.36M
• Dividend Yield: 1.72%
• Average Volume (3M): 49.51K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.91
• Revenue Growth: 11.11%
• EPS Growth: -8.72%
• Country: DE
• Employees: 3,500
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 0.82
• Shares Outstanding: 8,349,000
• 10 Day Avg. Volume: 66,163
• 30 Day Avg. Volume: 49,508
• PEG Ratio: -1.95
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.51
• 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: €67.00
• Price Target Upside: 15.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• 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 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

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

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

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

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
545.74M	527.56M	497.80M	499.47M	444.49M	367.23M
	Gross Profit
99.35M	145.89M	99.49M	96.33M	81.96M	60.09M
	EBIT
44.91M	45.81M	45.32M	41.32M	28.46M	9.78M
	EBITDA
81.66M	84.64M	82.06M	76.51M	68.46M	42.60M
	Net Income Common Stockholders
24.45M	26.20M	28.08M	21.88M	20.73M	248.74K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.13M	36.69M	21.88M	47.04M	44.09M	63.94M
	Total Assets
546.14M	537.38M	465.29M	483.58M	431.78M	385.35M
	Total Debt
0.00	191.36M	151.63M	130.73M	135.36M	149.09M
	Net Debt
―	154.78M	129.75M	83.69M	91.27M	85.15M
	Total Liabilities
389.91M	383.54M	317.85M	356.13M	337.49M	319.20M
	Stockholders Equity
156.23M	153.83M	147.40M	127.61M	94.30M	66.15M
Cash Flow		Free Cash Flow
24.88M	38.32M	31.43M	64.22M	42.54M	4.68M
	Operating Cash Flow
44.96M	58.89M	46.66M	70.25M	50.00M	21.68M
	Investing Cash Flow
-30.95M	―	-64.84M	-44.78M	-44.57M	12.59M
	Financing Cash Flow
12.21M	8.89M	-6.99M	-22.53M	-25.24M	-17.68M

DATAGROUP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

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 58.1 is above the 20-day moving average (MA) of 56.48, above the 50-day MA of 51.34, and above the 200-day MA of 44.46, indicating a bullish trend. The MACD of 1.41 indicates Positive momentum. The RSI at 74.84 is Negative, neither overbought nor oversold. The STOCH value of 83.06 is Negative, 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
D6H	68 Neutral	€482.36M	19.27	16.57%	1.72%	11.11%	-8.72%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
0N5I		€580.48M	77.22	4.09%	0.76%	―	―
0JCO		€276.00M	17.18	15.04%	2.89%	―	―
0O2W		€608.13M	14.19	16.30%	2.16%	―	―
0CHZ		€109.63M	―	-4.32%	―	―	―
0NJB		€522.21M	22.89	16.29%	―	―	―