Data Storage (DTST) AI Stock Analysis

• Market Cap: $29.99M
• Dividend Yield: N/A
• Average Volume (3M): 64.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -20.20%
• EPS Growth: -799.54%
• Country: US
• Employees: 53
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.20
• Shares Outstanding: 7,262,436
• 10 Day Avg. Volume: 66,873
• 30 Day Avg. Volume: 64,763
• PEG Ratio: 1.59
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 1.16
• P/FCF Ratio: -486.43
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: -133.34
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $4.50 ▲(1.35% Upside)

Data Storage Corporation's overall stock score is driven by strong revenue growth and a strategic shift following the sale of the CloudFirst subsidiary, which improved its financial position. However, challenges in profitability, cash flow management, and weak technical indicators weigh down the score. The negative P/E ratio and lack of dividend yield further impact the valuation negatively.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates successful market expansion and product adoption, which are crucial for long-term sustainability and competitiveness.

Strategic Shift

The sale of CloudFirst simplifies the company's structure and provides capital for strategic investments, enhancing its focus on high-value markets like AI and cybersecurity.

Strong Cash Position

A strong cash position enhances financial flexibility, enabling the company to pursue growth opportunities and manage potential risks effectively.

Negative Factors

Profitability Challenges

Weak profitability metrics indicate challenges in cost management and efficiency, which could hinder long-term financial performance and shareholder returns.

Cash Flow Issues

Negative free cash flow suggests difficulties in generating sufficient cash from operations, potentially limiting the company's ability to invest in growth and manage debt.

Increased SG&A Expenses

Rising SG&A expenses can pressure margins and profitability, necessitating improved cost control measures to sustain financial health.

Data Storage Business Overview & Revenue Model

Company Description

Data Storage (DTST) is a technology company specializing in data storage solutions, catering to both individual and enterprise-level clients. Operating in the information technology sector, DTST offers a range of products and services including cloud storage, data management systems, and backup solutions designed to enhance data accessibility, security, and scalability. The company focuses on innovative storage technologies that facilitate efficient data handling for various industries such as healthcare, finance, and e-commerce.

How the Company Makes Money

Data Storage generates revenue primarily through the sale of its cloud storage subscriptions, which provide users with scalable storage options based on their needs. Additional revenue streams include licensing fees for its proprietary data management software and consulting services that help businesses optimize their data storage strategies. The company also partners with major tech firms to integrate its solutions into larger enterprise systems, enhancing its market reach and providing bundled services that attract more clients. These partnerships often lead to joint marketing initiatives, further boosting DTST's visibility and sales.

Data Storage Financial Statement Overview

Summary

Data Storage shows strong revenue growth with a TTM revenue growth rate of 93.7%, but faces challenges in profitability and cash flow management. The balance sheet is solid with low leverage, but the company needs to enhance its return on equity and cash flow efficiency.

Income Statement

Data Storage shows a strong revenue growth trajectory with a TTM revenue growth rate of 93.7%, indicating robust expansion. However, profitability metrics such as the net profit margin and EBIT margin are weak, with the company reporting a negative EBIT and a low net profit margin of 0.75% for TTM. The gross profit margin remains healthy at 43.6%, suggesting efficient cost management at the gross level.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial risk. However, the return on equity is negative at -1.40% for TTM, highlighting inefficiencies in generating returns for shareholders. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow and a low operating cash flow to net income ratio of 0.19 for TTM. Despite a positive free cash flow growth rate, the negative free cash flow to net income ratio indicates cash flow issues. The company needs to improve its cash generation capabilities to support growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.06M	25.37M	24.96M	23.87M	14.88M	9.32M
Gross Profit	8.81M	11.10M	9.58M	8.08M	6.42M	3.90M
EBITDA	-103.14K	2.11M	1.68M	-2.85M	1.27M	1.48M
Net Income	16.36M	523.21K	381.57K	-4.36M	267.84K	-325.59K
Balance Sheet
Total Assets	47.68M	25.28M	23.30M	24.09M	26.33M	7.75M
Cash, Cash Equivalents and Short-Term Investments	45.76M	12.33M	12.75M	11.30M	12.14M	893.60K
Total Debt	0.00	673.45K	601.47K	1.65M	2.01M	3.27M
Total Liabilities	8.41M	4.11M	3.55M	5.14M	3.72M	5.83M
Stockholders Equity	39.51M	21.42M	19.99M	19.10M	22.72M	2.02M
Cash Flow
Free Cash Flow	-52.81K	-60.27K	2.33M	536.54K	-816.52K	929.61K
Operating Cash Flow	631.68K	1.74M	3.87M	663.80K	-360.69K	1.11M
Investing Cash Flow	-1.36M	-1.74M	-3.85M	-9.14M	-6.42M	-181.07K
Financing Cash Flow	-109.46K	-352.96K	-878.79K	-1.37M	18.02M	-362.57K

Data Storage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTST, the sentiment is Positive. The current price of 4.44 is above the 20-day moving average (MA) of 4.21, above the 50-day MA of 4.22, and above the 200-day MA of 4.03, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 83.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DTST.

Data Storage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USIO	67 Neutral	$39.32M	―	-2.06%	―	3.24%	-115.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DTST	61 Neutral	$29.99M	-99.04	-0.97%	―	-20.20%	-799.54%
GLE	54 Neutral	$8.40M	-11.22	-15.17%	―	-53.14%	-325.97%
CLPS	49 Neutral	$25.00M	-3.33	-11.94%	―	15.17%	-172.09%
CYCU	46 Neutral	$9.44M	―	-184.82%	―	―	-81.60%

Data Storage Corporate Events

Data Storage Corp’s Strategic Shift Post-CloudFirst Sale

Data Storage Corporation (Nasdaq: DTST) is a company focused on providing services in the data storage, AI-driven software applications, cybersecurity, and telecommunications sectors. The company aims to create sustainable revenue streams through strategic investments and financial discipline.

Data Storage Corporation Delays Q3 10-Q Filing

Data Storage Corporation has announced a delay in filing its Form 10-Q (Quarter Report) for the financial period ending September 30, 2025. The delay is primarily due to challenges in obtaining and compiling necessary information, which could not be resolved without unreasonable effort or expense. The company anticipates filing the report within five calendar days following the prescribed due date. Significant changes in financial results are expected, largely due to the sale of its cloud solutions business, which is projected to increase net income and earnings per share. Data Storage Corporation is actively working on finalizing its financial statements and ensuring compliance, as confirmed by CEO Charles M. Piluso.

The most recent analyst rating on (DTST) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Data Storage stock, see the DTST Stock Forecast page.

Data Storage Sells Cloud Solutions Business

Data Storage Corporation has repurchased warrants issued in July 2021 for $2,049,388, which were exercisable for 858,750 shares of common stock. This repurchase was triggered by the sale of its cloud solutions business on September 11, 2025, impacting the company’s operations and market positioning.

The most recent analyst rating on (DTST) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Data Storage stock, see the DTST Stock Forecast page.

Data Storage Sells CloudFirst Business for $40 Million

On September 11, 2025, Data Storage Corporation completed the sale of its CloudFirst business to Performive, generating approximately $40 million in gross proceeds, with estimated net proceeds of $24 million after fees and adjustments. The company plans to use these proceeds to support strategic investments and acquisitions in technology sectors such as AI-enabled software, GPU technologies, and cybersecurity, while continuing to operate its telecommunications subsidiary, Nexxis, Inc. The transaction, approved by shareholders, positions Data Storage Corporation to pursue growth opportunities and enhance shareholder value.

The most recent analyst rating on (DTST) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Data Storage stock, see the DTST Stock Forecast page.

Data Storage Corp’s Earnings Call: Growth Amid Challenges

The recent earnings call of Data Storage Corporation presented a balanced outlook, highlighting significant growth in core services and a strategic shift towards transformative initiatives. Despite these positive developments, the company faces challenges such as increased net loss, rising operating expenses, and a heavy reliance on CloudFirst. The proposed sale of CloudFirst offers a potential reset for the company, aiming to unlock shareholder value and reinvest in future growth.

Data Storage to Divest Cloud Solutions Business

On August 8, 2025, Data Storage Corporation filed a definitive proxy statement with the SEC for its upcoming annual stockholders meeting on September 10, 2025. The meeting will address the proposed divestiture of its cloud solutions business, which includes selling all assets of its subsidiary, CloudFirst Technologies Corporation, and CloudFirst Europe Ltd. The company received letters from shareholders demanding additional disclosures regarding the divestiture, claiming omissions in the proxy statement. To avoid potential legal disputes and delays, Data Storage Corporation decided to voluntarily provide supplemental disclosures, although it maintains that the original disclosures were sufficient.

The most recent analyst rating on (DTST) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Data Storage stock, see the DTST Stock Forecast page.