ASX:DTL

Stock Analysis Report

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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 outstanding 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.0%

DTL

3.4%

AU IT

0.5%

AU Market


1 Year Return

98.4%

DTL

80.2%

AU IT

-5.6%

AU Market

Return vs Industry: DTL exceeded the Australian IT industry which returned 80.2% over the past year.

Return vs Market: DTL exceeded the Australian Market which returned -5.6% over the past year.


Shareholder returns

DTLIndustryMarket
7 Day3.0%3.4%0.5%
30 Day18.2%20.4%5.0%
90 Day33.0%16.9%2.9%
1 Year104.6%98.4%82.6%80.2%-2.3%-5.6%
3 Year350.4%295.6%188.7%171.6%12.4%-1.2%
5 Year674.4%510.1%164.0%134.8%41.5%12.9%

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?

47.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DTL (A$7.26) is trading above our estimate of fair value (A$2.29)

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


Price To Earnings Ratio

PE vs Industry: DTL is poor value based on its PE Ratio (47.3x) compared to the AU IT industry average (21.1x).

PE vs Market: DTL is poor value based on its PE Ratio (47.3x) compared to the Australian market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: DTL is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: DTL is overvalued based on its PB Ratio (21.4x) compared to the AU IT industry average (3.1x).


Next Steps

Future Growth

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

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DTL's forecast earnings growth (14.7% per year) is above the savings rate (2.3%).

Earnings vs Market: DTL's earnings (14.7% per year) are forecast to grow slower than the Australian market (17.5% 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 (4.6% 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 (55.2%).


Next Steps

Past Performance

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

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTL has high quality earnings.

Growing Profit Margin: DTL's current net profit margins (1.5%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: DTL's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: DTL's earnings growth over the past year (30.4%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: DTL earnings growth over the past year (30.4%) exceeded the IT industry -10.7%.


Return on Equity

High ROE: DTL's Return on Equity (45%) is considered outstanding.


Next Steps

Financial Health

How is Data#3's financial position?


Financial Position Analysis

Short Term Liabilities: DTL's short term assets (A$541.9M) exceed its short term liabilities (A$514.4M).

Long Term Liabilities: DTL's short term assets (A$541.9M) exceed its long term liabilities (A$20.3M).


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


Next Steps

Dividend

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

1.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DTL's dividend (1.91%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.13%).

High Dividend: DTL's dividend (1.91%) is low compared to the top 25% of dividend payers in the Australian market (5.51%).


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 forecast to be covered by earnings (73.1% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Laurence Baynham

5.92yrs

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 ($USD811.69K) is about average for companies of similar size in the Australian market ($USD932.12K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Laurence Baynham
MD, CEO & Executive Director5.92yrsAU$1.15m0.089%
A$ 991.7k
Bremner Hill
CFO, Company Secretary & Financial Controller28.75yrsAU$771.41k0.29%
A$ 3.2m
Brad Colledge
Executive GM of Software Solutions & Infrastructure Solutions5.25yrsAU$948.96k0.15%
A$ 1.7m
Michael Bowser
Executive General Manager of Services5.25yrsAU$839.94k0.093%
A$ 1.0m
David Lennon
Managing Partner of Business Aspectno datano datano data
Terence Bonner
General Counsel & Joint Company Secretary15.75yrsno datano data
Paul Crouch
General Manager of NSW/ACTno dataAU$328.61kno data

5.9yrs

Average Tenure

Experienced Management: DTL's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Laurence Baynham
MD, CEO & Executive Director5.92yrsAU$1.15m0.089%
A$ 991.7k
Richard Anderson
Independent Non-Executive Chairman20.08yrsAU$147.95k0.39%
A$ 4.4m
Mark Esler
Founder & Non-Executive Director1.17yrsAU$72.61k0.43%
A$ 4.8m
Leanne Muller
Independent Non-Executive Director4.67yrsAU$95.81k0.032%
A$ 363.0k
Mark Gray
Independent Non-Executive Director3.17yrsAU$90.53kno data

3.9yrs

Average Tenure

Experienced Board: DTL's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: DTL 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$1.118b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DTLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1997
DTLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1997
20YDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1997

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 Analysis2020/10/20 10:32
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.