ASX:DTL

Stock Analysis Report

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Market Cap

AU$725.2m

Last Updated

2021/08/04 08:05 UTC

Data Sources

Company Financials +

Executive Summary

Data#3 Limited, together with its subsidiaries, provides information technology (IT) solutions primarily in Australia. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Data#3's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DTL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DTL's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-4.2%

DTL

16.2%

AU IT

1.3%

AU Market


1 Year Return

-21.0%

DTL

33.8%

AU IT

27.5%

AU Market

Return vs Industry: DTL underperformed the Australian IT industry which returned 33.8% over the past year.

Return vs Market: DTL underperformed the Australian Market which returned 27.5% over the past year.


Shareholder returns

DTLIndustryMarket
7 Day-4.2%16.2%1.3%
30 Day-15.7%4.8%2.3%
90 Day-23.8%17.7%5.6%
1 Year-18.9%-21.0%34.9%33.8%32.2%27.5%
3 Year229.6%188.9%148.1%134.7%35.2%18.8%
5 Year310.9%227.3%101.3%77.8%65.9%34.0%

Long-Term Price Volatility Vs. Market

How volatile is Data#3's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Data#3 undervalued compared to its fair value and its price relative to the market?

28.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DTL (A$4.55) is trading above our estimate of fair value (A$3.39)

Significantly Below Fair Value: DTL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DTL is good value based on its PE Ratio (28.8x) compared to the Australian IT industry average (29.8x).

PE vs Market: DTL is poor value based on its PE Ratio (28.8x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: DTL is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: DTL is overvalued based on its PB Ratio (14.7x) compared to the AU IT industry average (3.5x).


Future Growth

How is Data#3 forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DTL's forecast earnings growth (15.8% per year) is above the savings rate (1.9%).

Earnings vs Market: DTL's earnings (15.8% per year) are forecast to grow faster than the Australian market (13.2% per year).

High Growth Earnings: DTL's earnings are forecast to grow, but not significantly.

Revenue vs Market: DTL's revenue (9% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: DTL's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DTL's Return on Equity is forecast to be very high in 3 years time (53.3%).


Past Performance

How has Data#3 performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTL has high quality earnings.

Growing Profit Margin: DTL's current net profit margins (1.4%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: DTL's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: DTL's earnings growth over the past year (17.6%) exceeds its 5-year average (13.9% per year).

Earnings vs Industry: DTL earnings growth over the past year (17.6%) exceeded the IT industry 3.3%.


Return on Equity

High ROE: DTL's Return on Equity (51.1%) is considered outstanding.


Financial Health

How is Data#3's financial position?


Financial Position Analysis

Short Term Liabilities: DTL's short term assets (A$239.6M) exceed its short term liabilities (A$216.8M).

Long Term Liabilities: DTL's short term assets (A$239.6M) exceed its long term liabilities (A$29.3M).


Debt to Equity History and Analysis

Debt Level: DTL is debt free.

Reducing Debt: DTL has not had any debt for past 5 years.

Debt Coverage: DTL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DTL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Data#3 current dividend yield, its reliability and sustainability?

3.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DTL's dividend (3.14%) is higher than the bottom 25% of dividend payers in the Australian market (1.96%).

High Dividend: DTL's dividend (3.14%) is low compared to the top 25% of dividend payers in the Australian market (4.98%).


Stability and Growth of Payments

Stable Dividend: DTL's dividend payments have been volatile in the past 10 years.

Growing Dividend: DTL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.6%), DTL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DTL's dividends in 3 years are not forecast to be well covered by earnings (90.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Laurence Baynham

6.75yrs

Tenure

AU$1,145,453

Compensation

Mr. Laurence C. Baynham, BBus (Honours), FAICD, has been the Chief Executive Officer of Data#3 Limited since November 21, 2014 and has been its Managing Director since November 16, 2016. Mr. Baynham is res...


CEO Compensation Analysis

Compensation vs Market: Laurence's total compensation ($USD845.23K) is about average for companies of similar size in the Australian market ($USD678.09K).

Compensation vs Earnings: Laurence's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DTL's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: DTL's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Data#3 Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Data#3 Limited
  • Ticker: DTL
  • Exchange: ASX
  • Founded: 1977
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: AU$725.222m
  • Shares outstanding: 153.97m
  • Website: https://www.data3.com

Number of Employees


Location

  • Data#3 Limited
  • 67 High Street
  • Toowong
  • Brisbane
  • Queensland
  • 4066
  • Australia

Listings


Biography

Data#3 Limited, together with its subsidiaries, provides information technology (IT) solutions primarily in Australia. It offers cloud solutions, such as public cloud services and modern data centers; mode...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 08:05
End of Day Share Price2021/08/04 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.