Datasea (DTSS) AI Stock Analysis

• Market Cap: $16.92M
• Dividend Yield: N/A
• Average Volume (3M): 233.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 141.65%
• EPS Growth: -28.86%
• Country: US
• Employees: 36
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Infrastructure
• EPS (TTM): -0.24
• Shares Outstanding: 7,653,871
• 10 Day Avg. Volume: 585,134
• 30 Day Avg. Volume: 233,673
• PEG Ratio: -0.04
• Price to Book (P/B): -14.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.55
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 15.72
• Enterprise Value/Ebitda: -0.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $2.00 ▼( -9.50% Downside)

Datasea's stock score is primarily impacted by its financial performance, which shows significant risks due to negative profitability and financial instability. The technical analysis suggests some mild positive momentum, but valuation concerns remain due to the lack of profitability. No additional insights are provided from earnings calls or corporate events.

Datasea Business Overview & Revenue Model

Company Description

Datasea Inc., through its subsidiaries, provides smart security solutions in the People's Republic of China. It develops big data security and smart 3D security platforms, safe campus security systems, scenic area security systems, and public community security systems, as well as epidemic system. The company offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. It also provides 5G messaging and smart payment solutions. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Datasea Inc. generates revenue primarily through the sale and installation of its smart security and surveillance systems. The company offers a range of products and services tailored to different customer needs, including smart city, smart campus, and smart community solutions. Revenue is derived from direct sales of hardware and software, as well as from ongoing service agreements for maintenance, support, and updates. Additionally, Datasea seeks partnerships with government agencies, educational institutions, and private enterprises to expand its market presence and enhance its service offerings. These collaborations often result in long-term contracts that contribute to stable revenue streams. The company's ability to integrate cutting-edge technologies like AI and IoT into its solutions also plays a crucial role in attracting clients and driving sales growth.

Datasea Financial Statement Overview

Summary

Datasea is experiencing strong revenue growth but faces significant operational and financial instability, with negative profitability margins and cash flow deficits. The reliance on external financing and negative equity position highlight the need for strategic financial improvements.

Income Statement

Datasea has shown significant revenue growth, with a TTM revenue of $56.3 million compared to $23.9 million in the previous year. However, the company is struggling with profitability, evidenced by negative EBIT and net income margins. Net profit margin is deeply negative at -18.2%, and EBIT margin is also negative, indicating challenges in managing operating expenses.

Balance Sheet

The company's balance sheet reveals financial instability, with a negative stockholders' equity of $-840,404 in the TTM period, indicating liabilities exceed assets. The debt-to-equity ratio cannot be calculated due to negative equity, and overall leverage remains a concern. A low equity ratio suggests a high level of financial risk.

Cash Flow

Cash flow analysis shows negative operating and free cash flow, indicating the company is burning cash. The operating cash flow to net income ratio is negative, reflecting ongoing operational challenges. Financing cash flow is positive, primarily due to funds raised, suggesting reliance on external financing to support operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
56.26M	23.98M	7.05M	17.08M	175.14K	1.41M
	Gross Profit
1.20M	474.11K	340.93K	955.67K	94.00K	1.27M
	EBIT
-10.41M	-12.13M	-9.69M	-7.24M	-4.86M	-1.91M
	EBITDA
-9.93M	-11.63M	-7.48M	-6.66M	-4.66M	-1.79M
	Net Income Common Stockholders
-10.26M	-11.38M	-9.48M	-6.52M	-4.65M	-1.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
857.42K	181.26K	19.73K	164.22K	49.68K	1.07M
	Total Assets
2.43M	3.29M	2.75M	3.76M	3.90M	4.91M
	Total Debt
189.99K	1.22M	2.15M	571.37K	2.78M	687.90K
	Net Debt
-667.43K	1.04M	2.13M	407.15K	2.73M	-378.03K
	Total Liabilities
3.27M	3.60M	6.33M	2.16M	3.82M	1.03M
	Stockholders Equity
-840.40K	-236.75K	-3.52M	2.45M	319.65K	3.88M
Cash Flow		Free Cash Flow
-2.34M	-6.57M	-3.22M	-6.24M	-4.12M	-4.88M
	Operating Cash Flow
-2.23M	-6.40M	-3.14M	-5.14M	-3.95M	-4.57M
	Investing Cash Flow
-4.10M	-167.96K	-113.13K	-1.13M	-168.69K	-306.81K
	Financing Cash Flow
7.18M	6.84M	3.11M	6.38M	2.45M	-84.84K

Datasea Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.21
• 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 DTSS, the sentiment is Negative. The current price of 2.21 is below the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.12, and above the 200-day MA of 2.21, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 29.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DTSS.

Datasea Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$11.28B	10.16	-6.88%	2.97%	7.41%	-8.93%
BLIN	56 Neutral	$18.47M	―	-19.92%	―	1.30%	75.93%
SOS	50 Neutral	$18.80M	―	-3.13%	―	-35.46%	60.83%
DTSS	49 Neutral	$16.92M	―	-501.24%	―	141.65%	-28.86%
APCX	44 Neutral	$8.95M	―	-220.48%	―	-25.38%	67.34%
BNAI	35 Underperform	$10.95M	―	-422.39%	―	―	-20.33%
FAAS		$39.91M	―		―	―	―

Datasea Corporate Events

Datasea Approves Key Proposals at Annual Meeting

On May 7, 2025, Datasea Inc., a Nevada corporation, held its annual meeting of stockholders. During the meeting, four key proposals were voted on and approved. These included the election of five directors, the ratification of the appointment of Paris Kreit & Chiu CPA LLP as the independent auditor for the fiscal year ending June 30, 2025, the approval of Amendment No. 4 to the 2018 Equity Incentive Plan, and the authorization to adjourn the meeting if necessary to solicit additional proxies. The approval of these proposals reflects the company’s ongoing governance and operational strategies.