Datasea (DTSS) AI Stock Analysis

• Market Cap: $15.69M
• Dividend Yield: N/A
• Average Volume (3M): 73.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 198.70%
• EPS Growth: 78.41%
• Country: US
• Employees: 36
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.03
• Shares Outstanding: 8,256,816
• 10 Day Avg. Volume: 34,913
• 30 Day Avg. Volume: 73,643
• PEG Ratio: 0.03
• Price to Book (P/B): -0.88
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -5.40
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 7.29
• Enterprise Value/Ebitda: -4.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $2.00 ▲(3.09% Upside)

The overall stock score reflects significant financial challenges, including profitability and cash flow issues, and a weak balance sheet. Technical analysis shows mixed signals, while valuation metrics are unattractive due to negative earnings. These factors collectively result in a low score.

Datasea Business Overview & Revenue Model

Company Description

Datasea Inc. (DTSS) is a technology company specializing in big data and artificial intelligence solutions. The company operates primarily in the data services sector, providing a range of products and services that include data analytics, cloud computing, and cybersecurity. Datasea aims to empower businesses with actionable insights derived from data, enhancing decision-making processes across various industries.

How the Company Makes Money

Datasea generates revenue through multiple streams, primarily by offering subscription-based data analytics services and cloud solutions to businesses seeking to leverage big data for operational efficiency. Additionally, the company earns income through consulting services that help clients implement AI-driven strategies. Significant partnerships with technology firms and enterprises enhance its market presence and provide avenues for collaborative projects, further contributing to its revenue. The company may also explore licensing its proprietary technologies, which could serve as an additional revenue source.

Datasea Financial Statement Overview

Summary

Datasea faces substantial financial challenges across all verticals. Despite revenue growth, profitability and cash flow issues persist, compounded by a weak balance sheet with negative equity. The company must address operational inefficiencies and improve its financial stability.

Income Statement

Datasea's income statement reveals significant challenges. Despite a notable revenue growth rate of 27.31% in the latest year, the company struggles with profitability, evidenced by a negative net profit margin of -7.09% and an EBIT margin of 0%. The gross profit margin is low at 3.41%, indicating high cost relative to revenue. These factors highlight ongoing operational inefficiencies and profitability issues.

Balance Sheet

The balance sheet shows a precarious financial position with negative stockholders' equity, leading to a negative debt-to-equity ratio. This suggests financial instability and potential solvency risks. The return on equity is positive at 34.78%, but this is due to the negative equity base rather than operational success. Overall, the balance sheet reflects significant financial risk.

Cash Flow

Cash flow analysis indicates improvement in free cash flow growth at 3.62%, but operating cash flow remains negative, suggesting ongoing liquidity challenges. The operating cash flow to net income ratio is negative, highlighting cash flow issues relative to reported earnings. The free cash flow to net income ratio is 1.0, indicating that cash flow aligns with net losses, but overall cash generation remains weak.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	71.62M	71.62M	23.98M	7.05M	17.08M	175.14K
Gross Profit	2.44M	2.44M	474.11K	340.93K	955.67K	94.00K
EBITDA	-4.02M	-3.94M	-11.63M	-7.48M	-6.66M	-4.66M
Net Income	-5.09M	-5.08M	-11.38M	-9.48M	-6.52M	-4.65M
Balance Sheet
Total Assets	6.74M	4.05M	3.29M	2.75M	3.76M	3.90M
Cash, Cash Equivalents and Short-Term Investments	620.81K	580.24K	181.26K	19.73K	164.22K	49.68K
Total Debt	2.67M	166.44K	1.22M	2.15M	571.37K	2.78M
Total Liabilities	3.79M	18.65M	3.60M	6.33M	2.16M	3.82M
Stockholders Equity	2.95M	-14.60M	-236.75K	-3.52M	2.45M	319.65K
Cash Flow
Free Cash Flow	-2.38M	-2.37M	-6.57M	-3.22M	-6.24M	-4.12M
Operating Cash Flow	-2.37M	-2.37M	-6.40M	-3.14M	-5.14M	-3.95M
Investing Cash Flow	-4.11M	-4.09M	-167.96K	-113.13K	-1.13M	-168.69K
Financing Cash Flow	6.98M	6.95M	6.84M	3.11M	6.38M	2.45M

Datasea Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.94 is below the 20-day moving average (MA) of 1.96, below the 50-day MA of 2.05, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.03 is Neutral, neither overbought nor oversold. The STOCH value of 49.72 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 *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BLIN	―	$16.02M	―	-25.48%	―	0.54%	70.74%
CETX	―	$3.36M	<0.01	-1102.76%	―	16.50%	―
BNAI	―	$19.97M	-0.65	-200.90%	―	30.55%	43.63%
MSAI	―	$33.25M	-1.43	-335.10%	―	―	―
DTSS	―	$15.69M	―	-374.57%	―	198.70%	78.41%
RVYL	―	$11.03M	―	-2201.06%	―	-33.86%	74.09%

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.