Datasea (DTSS) AI Stock Analysis

• Market Cap: $17.21M
• Dividend Yield: N/A
• Average Volume (3M): 72.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 99.64%
• EPS Growth: -958.75%
• Country: US
• Employees: 36
• Sector: Technology
• Sector Strength: 64
• Industry: Software - Infrastructure
• EPS (TTM): -3.70
• Shares Outstanding: 7,651,111
• 10 Day Avg. Volume: 60,611
• 30 Day Avg. Volume: 72,007
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 22.15
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Datasea's overall stock score is low, primarily due to its weak financial performance and concerning valuation metrics. Persistent operational inefficiencies and high leverage present significant risks. Technical analysis provides some neutral signals, but the stock remains under pressure, trading below key long-term moving averages.

Datasea Business Overview & Revenue Model

Company Description

Datasea Inc. (DTSS) is a technology company based in China, primarily focused on providing intelligent security solutions, smart hardware, and big data platforms. The company operates in sectors such as public safety, education, and commercial operations, leveraging its expertise in artificial intelligence and the Internet of Things (IoT) to offer integrated security solutions.

How the Company Makes Money

Datasea generates revenue through the sale of its intelligent security solutions and related services, which include smart city security systems, 5G messaging services, and other IoT-based applications. The company partners with various local governments and enterprises to implement its technologies in public areas, schools, and commercial settings, charging fees for installation, maintenance, and ongoing service support. Additionally, Datasea capitalizes on its big data analytics capabilities to provide insights and solutions that enhance operational efficiency for its clients, creating further monetization opportunities.

Datasea Financial Statement Overview

Summary

Datasea's financial statements highlight significant operational and financial challenges, with persistent losses and high leverage posing risks to sustainability. Despite revenue growth, profitability remains elusive, underscoring the need for strategic cost management and operational efficiency improvements. The precarious balance sheet and negative cash flows further emphasize the urgency for financial restructuring to ensure long-term viability.

Income Statement

Datasea's income statement reflects significant challenges in achieving profitability, with persistent negative net income and EBIT indicating operational inefficiencies. The TTM data shows a troubling net profit margin of -26.7% and EBIT margin of -27.0%, highlighting ongoing losses. However, there is a positive growth trajectory in revenue, increasing from $7.0M in 2023 to $47.3M in TTM 2024, indicating some market traction. Yet, the high negative margins suggest substantial cost management issues.

Balance Sheet

The balance sheet reveals a precarious financial position, with negative stockholders' equity indicating more liabilities than assets, raising concerns about solvency. The debt-to-equity ratio cannot be calculated due to negative equity, but the substantial liabilities compared to assets signal high leverage risk. Return on equity is negative due to losses, further emphasizing financial instability.

Cash Flow

Cash flow analysis shows consistent negative operating and free cash flows, reflecting an inability to generate cash from core operations. The TTM free cash flow stands at -$2.5M, with a ratio to net income of 0.20, indicating limited cash conversion efficiency. While financing activities provide temporary relief, reliance on external funding is unsustainable long-term.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
23.98M	7.05M	17.08M	175.14K	1.41M
	Gross Profit
474.11K	340.93K	955.67K	94.00K	1.27M
	EBIT
-12.13M	-9.69M	-7.24M	-4.86M	-1.91M
	EBITDA
-11.63M	-7.48M	-6.66M	-4.66M	-1.79M
	Net Income Common Stockholders
-11.38M	-9.48M	-6.52M	-4.65M	-1.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
181.26K	19.73K	164.22K	49.68K	1.07M
	Total Assets
3.29M	2.75M	3.76M	3.90M	4.91M
	Total Debt
1.22M	2.15M	571.37K	2.78M	687.90K
	Net Debt
1.04M	2.13M	407.15K	2.73M	-378.03K
	Total Liabilities
3.60M	6.33M	2.16M	3.82M	1.03M
	Stockholders Equity
-236.75K	-3.52M	2.45M	319.65K	3.88M
Cash Flow		Free Cash Flow
-6.57M	-3.22M	-6.24M	-4.12M	-4.88M
	Operating Cash Flow
-6.40M	-3.14M	-5.14M	-3.95M	-4.57M
	Investing Cash Flow
-167.96K	-113.13K	-1.13M	-168.69K	-306.81K
	Financing Cash Flow
6.84M	3.11M	6.38M	2.45M	-84.84K

Datasea Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTSS, the sentiment is Positive. The current price of 2.25 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 2.10, and above the 200-day MA of 2.24, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 69.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DTSS.

Datasea Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	$10.65B	10.45	-6.56%	3.01%	7.31%	-12.18%
BLIN	58 Neutral	$19.91M	―	-19.27%	―	-1.05%	80.22%
SOS	50 Neutral	$6.26M	―	-0.89%	―	-35.46%	60.83%
APCX	43 Neutral	$9.67M	―	-184.93%	―	-45.24%	64.61%
DTSS	37 Underperform	$17.21M	―	-432.30%	―	99.64%	-958.75%
BNAI	33 Underperform	$15.18M	―	-422.39%	―	―	-20.33%