ASX:DDT

Stock Analysis Report

Executive Summary

DataDot Technology Limited, together with its subsidiaries, provides asset identification, management, protection, and authentication solutions to governments, police, insurance companies, and blue-chip customer base within the automotive industry in Australasia, the Americas, and Europe.

Risk Analysis

Earnings have declined by -18.3% per year over past 5 years

Has less than 1 year of cash runway

Does not have a meaningful market cap (A$5M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 2 more risks


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has DataDot Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DDT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.7%

DDT

0.1%

AU Auto Components

2.0%

AU Market


1 Year Return

75.0%

DDT

15.2%

AU Auto Components

19.8%

AU Market

Return vs Industry: DDT exceeded the Australian Auto Components industry which returned 16.4% over the past year.

Return vs Market: DDT exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

DDTIndustryMarket
7 Day16.7%0.1%2.0%
30 Day-12.5%2.7%3.3%
90 Day40.0%9.3%5.8%
1 Year75.0%75.0%19.4%15.2%25.2%19.8%
3 Year-53.3%-53.3%39.0%27.3%39.6%20.9%
5 Year-70.8%-70.8%98.9%70.2%61.8%25.3%

Price Volatility Vs. Market

How volatile is DataDot Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DataDot Technology undervalued compared to its fair value and its price relative to the market?

53.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DDT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DDT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DDT is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: DDT is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DDT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DDT is overvalued based on its PB Ratio (45.8x) compared to the AU Auto Components industry average (4.9x).


Next Steps

Future Growth

How is DataDot Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.6%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as DataDot Technology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has DataDot Technology performed over the past 5 years?

-18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DDT is currently unprofitable.

Growing Profit Margin: DDT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DDT is unprofitable, and losses have increased over the past 5 years at a rate of -18.3% per year.

Accelerating Growth: Unable to compare DDT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DDT is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-10.7%).


Return on Equity

High ROE: DDT has a negative Return on Equity (-2166.8%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DataDot Technology's financial position?


Financial Position Analysis

Short Term Liabilities: DDT's short term assets (A$1.2M) exceed its short term liabilities (A$921.3K).

Long Term Liabilities: DDT's short term assets (A$1.2M) exceed its long term liabilities (A$463.5K).


Debt to Equity History and Analysis

Debt Level: DDT's debt to equity ratio (430.4%) is considered high.

Reducing Debt: DDT's debt to equity ratio has increased from 1.2% to 430.4% over the past 5 years.


Balance Sheet

Inventory Level: DDT has a high level of physical assets or inventory.

Debt Coverage by Assets: DDT's debt is covered by short term assets (assets are 2.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DDT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: DDT has less than a year of cash runway if free cash flow continues to grow at historical rates of 13.2% each year.


Next Steps

Dividend

What is DataDot Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate DDT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DDT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DDT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DDT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DDT's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of DataDot Technology's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average board tenure


CEO

Brad Kellas 0

0.2yrs

Tenure

AU$15,874

Compensation

Mr. Bradley Charles Kellas, also known as Brad, serves as Managing Director and Director of DataDot Technology Limited since May 13, 2019 and serves as its Chief Executive Officer since November 2019. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD10.96K) is below average for companies of similar size in the Australian market ($USD262.68K).

Compensation vs Earnings: Insufficient data to compare Brad's compensation with company performance.


Board Age and Tenure

0.7yrs

Average Tenure

Experienced Board: DDT's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: DDT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$99,34528 Oct 19
David Lloyd
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares14,192,116
Max PriceAU$0.007
BuyAU$39,33612 Apr 19
Bradley Kellas
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares4,916,866
Max PriceAU$0.008
BuyAU$69908 Mar 19
Bradley Kellas
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares8,500,000
Max PriceAU$0.000099
BuyAU$1,42722 Feb 19
Bradley Kellas
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares17,450,000
Max PriceAU$0.00009
BuyAU$144,40104 Feb 19
Bradley Kellas
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares42,069,924
Max PriceAU$0.0049

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Patrick Raper

    Company Secretary

    • Tenure: 5.1yrs
    • Compensation: AU$207.69k
  • Brad Kellas

    CEO, MD & Director

    • Tenure: 0.2yrs
    • Compensation: AU$15.87k
  • Andrew Baker

    Marketing Manager


    Board Members

    • Brad Kellas

      CEO, MD & Director

      • Tenure: 0.2yrs
      • Compensation: AU$15.87k
    • David Lloyd

      Non-Executive Director

      • Tenure: 0.7yrs
      • Compensation: AU$3.69k
    • Ray Carroll

      Chairman

      • Tenure: 0.7yrs
      • Compensation: AU$4.42k

    Company Information

    DataDot Technology Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: DataDot Technology Limited
    • Ticker: DDT
    • Exchange: ASX
    • Founded:
    • Industry: Auto Parts and Equipment
    • Sector: Automobiles
    • Market Cap: AU$5.623m
    • Shares outstanding: 803.32m
    • Website: https://www.datadotdna.com/au

    Number of Employees


    Location

    • DataDot Technology Limited
    • Unit 9, 19 Rodborough Road
    • Frenchs Forest
    • New South Wales
    • 2086
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    DDTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2005
    DADT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2005
    DDTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2005

    Biography

    DataDot Technology Limited, together with its subsidiaries, provides asset identification, management, protection, and authentication solutions to governments, police, insurance companies, and blue-chip customer base within the automotive industry in Australasia, the Americas, and Europe. The company operates in two segments, DataDotDNA and DataTraceID. It manufactures and distributes asset identification systems, including DataDotDNA polymer and metallic microdots; asset registers, which are databases that record asset identification data and are accessible by law enforcement agencies and insurance investigators; and security DataTraceID authentication solutions. The company also provides theft deterrence solutions, including ToolMate that protects tools, as well as deters thieves using the microdot identification technology; and PartMate, which protects stock by combining microdots with encoded serial numbers and a hidden tracer that can be viewed with a black-light. In addition, it offers authentication solutions for liability reduction, warranty claims, counterfeit detection, track and trace, grey market/diversion, supply chain management, enhanced packaging, retail loss prevention, credentials/ID cards, and document security. Additionally, the company offers DataDotDNA National Register, a law enforcement resource center that allows customers to verify the original owner of assets protected by DataDotDNA. It also operates as a re-seller of PadJack’s range of network security products. The company sells its products through a network of distributors in 28 countries. DataDot Technology Limited is based in Frenchs Forest, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 10:31
    End of Day Share Price2020/01/15 00:00
    Earnings2019/06/30
    Annual Earnings2019/06/30


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.