Data Storage (DTST) AI Stock Analysis

• Market Cap: $33.52M
• Dividend Yield: N/A
• Average Volume (3M): 64.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• 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: 7,498,358
• 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: 0.99
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 3.77
• Enterprise Value/Ebitda: -322.20
• 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: 56 Neutral
• Price Target: $4.50 ▼(-4.46% Downside)

DTST scores highest on balance-sheet strength and recent strategic actions (asset sale, cash build, and major share count reduction), but the overall score is held back by weak TTM operating performance and cash-flow quality, plus bearish technicals and limited valuation support due to a negative P/E.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates successful market expansion and increased demand for the company's products and services, supporting long-term business sustainability.

Strategic Acquisitions

The focus on strategic acquisitions in high-value markets like AI and cybersecurity positions the company for sustained growth and competitive advantage.

Strong Cash Position

A strong cash position enhances financial flexibility, enabling the company to invest in growth opportunities and weather economic uncertainties.

Negative Factors

Profitability Challenges

Weak profitability metrics indicate challenges in converting revenue into profit, which may hinder long-term financial health and shareholder returns.

Cash Flow Issues

Negative cash flow suggests difficulties in generating sufficient cash from operations, potentially impacting the company's ability to fund growth initiatives.

Increased SG&A Expenses

Rising SG&A expenses can erode profit margins and indicate inefficiencies in cost management, potentially affecting long-term profitability.

Data Storage Business Overview & Revenue Model

Company Description

Data Storage Corporation provides multi-cloud information technology solutions primarily in the United States. The company offers data protection and disaster recovery solutions; high availability, data vaulting, DRaaS, IaaS, message logic, standby server, support and maintenance and internet solutions. It also provides cybersecurity solutions comprising managed endpoint security with active threat mitigation, system security assessment, and risk analysis services, as well as applications for continuous security and auditing; and voice and data solutions, such as VoIP and data services with fiber optic, coaxial, and wireless networks for businesses to connect from any location. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government sectors. Data Storage Corporation is headquartered in Melville, New York.

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

Strong, low-leverage balance sheet (debt essentially zero) is a clear positive, but fundamentals are weighed down by TTM revenue decline, a return to operating losses (negative EBIT/EBITDA), and weak cash conversion with slightly negative free cash flow. Exceptionally high TTM net income versus revenue appears non-recurring, reducing earnings quality confidence.

Income Statement

Revenue has been volatile: strong growth in 2021–2022, modest growth in 2023–2024, then a sharp decline in TTM (Trailing-Twelve-Months) (down ~21%). Profitability improved materially from the 2022 loss to small profits in 2023–2024, but TTM operating results slipped back to an operating loss (negative EBIT/EBITDA). TTM net income is exceptionally high versus revenue, which looks non-recurring and reduces confidence in earnings quality despite the headline margin.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage in recent years (debt-to-equity near zero in 2023–TTM; essentially no debt in TTM). Equity and total assets increased meaningfully into TTM, strengthening the capital base. The main weakness is that returns have been inconsistent over time (loss-driven negative return in 2022 and unusually high return in TTM that likely reflects one-time net income), making underlying profitability less stable than the low-debt profile suggests.

Cash Flow

Cash generation has weakened: operating cash flow fell sharply in TTM versus 2024, and free cash flow is slightly negative in both 2024 and TTM after being strongly positive in 2022–2023. In TTM, operating cash flow covers only a small portion of reported net income and free cash flow is negative relative to net income, signaling weaker cash conversion and/or working-capital pressure. The bright spot is that operating cash flow remains positive in TTM, but consistency is an issue given prior swings (including negative operating cash flow in 2021).

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: 4.71
• 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 DTST, the sentiment is Positive. The current price of 4.71 is above the 20-day moving average (MA) of 4.61, above the 50-day MA of 4.70, and above the 200-day MA of 4.27, indicating a bullish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 54.23 is Neutral, neither overbought nor oversold. The STOCH value of 63.03 is Neutral, 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
USIO	61 Neutral	$38.23M	-92.67	-2.06%	―	3.24%	-115.15%
DTST	56 Neutral	$33.52M	-30.72	-0.97%	―	-20.20%	-799.54%
GLE	54 Neutral	$6.12M	-7.41	-15.17%	―	-53.14%	-325.97%
CLPS	51 Neutral	$31.23M	-4.24	-11.94%	―	15.17%	-172.09%
CYCU	44 Neutral	$7.95M	―	-184.82%	―	―	-81.60%

Data Storage Corporate Events

Data Storage Completes Major Cash Tender Offer Buyback

On January 15, 2026, Data Storage Corporation reported the final results of a cash tender offer that expired on January 12, 2026, in which it purchased 5,625,129 shares of its common stock at $5.20 per share, for a total of about $29.3 million funded from cash on hand. The buyback retired approximately 72% of the company’s outstanding shares as of December 8, 2025, leaving 2,167,138 shares outstanding and more than $10 million in cash, with directors and officers including Chairman and CEO Chuck Piluso among those tendering shares. By significantly reducing its share count while preserving a sizable cash balance, Data Storage has streamlined its capital structure and positioned itself to pursue future strategic initiatives and potential acquisitions across technology-enabled services, including areas such as GPU-related environments, AI-driven software, cybersecurity, and telecommunications, with implications for increased ownership concentration and potential long‑term value creation for remaining shareholders.

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 Extends Tender Offer Expiration for Shareholders

On December 23, 2025, Data Storage Corporation announced that it had extended the expiration time of its ongoing tender offer for its common stock, moving the deadline from January 7, 2026 to 12:00 midnight New York City time on January 12, 2026, and said it would file an amendment to its Schedule TO with the U.S. Securities and Exchange Commission to reflect the new expiry. The extension gives shareholders additional time to review the tender offer materials and consider their participation, while the company continues to position itself for future investment in high-growth technology and communications segments once the tender process is complete.

The most recent analyst rating on (DTST) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Data Storage stock, see the DTST Stock Forecast page.

Data Storage unveils 2026 hybrid acquisition growth strategy

On December 18, 2025, Data Storage Corporation released a shareholder letter from CEO Chuck Piluso outlining its 2026 corporate strategy, which is built around a disciplined hybrid acquisition approach focused on consolidating technology-enabled service providers, including managed IT, cybersecurity monitoring, telecom and UCaaS platforms. The company plans to prioritize targets with solid annual recurring revenue, high margins and established customer bases in areas such as compliance-as-a-service, document security and digitization, access-control, healthcare BPO and niche micro-SaaS+ services, while selectively evaluating opportunities in GPU, AI workflow and automation platforms under strict valuation criteria. Management emphasized that this consolidation-led strategy, supported by enhancements to centralized marketing, cross-selling, shared CRM infrastructure and unified operational standards, is intended to deliver stable recurring earnings, lower integration risk and stronger cross-selling potential, positioning Data Storage for long-term value creation once the tender offer process clarifies its available cash.

The most recent analyst rating on (DTST) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Data Storage stock, see the DTST Stock Forecast page.

Data Storage Announces Tender Offer for Shares

On December 8, 2025, Data Storage Corporation announced its intention to commence a tender offer to purchase up to 6,192,990 shares of its common stock at $5.20 per share, totaling up to $32,203,548. This move follows the company’s divestiture of its disaster recovery and CPU cloud hosting services, as it shifts focus towards higher-growth areas. The tender offer provides liquidity options for stockholders and will result in an increased percentage interest for those who do not participate. The company plans to fund the purchase using cash on hand, including proceeds from its recent business sale.

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.