ASX:DTL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

11.2%

DTL

-5.6%

AU IT

-0.2%

AU Market


1 Year Return

142.4%

DTL

16.6%

AU IT

10.5%

AU Market

Return vs Industry: DTL exceeded the Australian IT industry which returned 16.6% over the past year.

Return vs Market: DTL exceeded the Australian Market which returned 10.5% over the past year.


Shareholder returns

DTLIndustryMarket
7 Day11.2%-5.6%-0.2%
30 Day34.6%-1.8%-1.4%
90 Day46.4%3.6%-1.0%
1 Year153.8%142.4%18.9%16.6%16.9%10.5%
3 Year171.5%133.9%53.0%41.9%36.9%18.6%
5 Year569.9%408.3%72.0%51.2%50.2%16.2%

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?

31.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DTL (A$3.66) is trading above our estimate of fair value (A$2.27)

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 (31.1x) compared to the IT industry average (22.6x).

PE vs Market: DTL is poor value based on its PE Ratio (31.1x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: DTL is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: DTL is overvalued based on its PB Ratio (12x) compared to the AU IT industry average (2.1x).


Next Steps

Future Growth

How is Data#3 forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DTL's forecast earnings growth (10.5% per year) is above the savings rate (2.3%).

Earnings vs Market: DTL's earnings (10.5% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: DTL's revenue (6.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: DTL's revenue (6.7% 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 (41.1%).


Next Steps

Past Performance

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

14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DTL's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: DTL's earnings growth over the past year (28.7%) exceeds its 5-year average (14% per year).

Earnings vs Industry: DTL earnings growth over the past year (28.7%) underperformed the IT industry 60.9%.


Return on Equity

High ROE: DTL's Return on Equity (37.8%) is considered high.


Return on Assets

ROA vs Industry: DTL's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: DTL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Data#3's financial position?


Financial Position Analysis

Short Term Liabilities: DTL's short term assets (A$431.3M) exceeds its short term liabilities (A$405.2M)

Long Term Liabilities: DTL's short term assets (431.3M) exceeds its long term liabilities (6.3M)


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

Inventory Level: DTL has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DTL's debt is covered by short term assets.


Next Steps

Dividend

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

2.92%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.4%markettop25%5.6%industryaverage2.5%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DTL's dividend (2.92%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: DTL's dividend (2.92%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).

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 (91%), 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 (92.3% payout ratio).


Next Steps

Management

What is the CEO of Data#3's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Laurence Baynham 0

4.9yrs

Tenure

AU$1,074,954

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 ($USD737.68K) is about average for companies of similar size in the Australian market ($USD735.92K).

Compensation vs Earnings: Laurence's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.9yrs

Average Tenure

Experienced Management: DTL's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

Experienced Board: DTL's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$513,39317 Oct 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares175,505
Max PriceAU$3.35
BuyAU$763,52225 Sep 19
Colonial First State Asset Management (Australia) Limited
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Shares411,962
Max PriceAU$1.85
SellAU$776,52425 Sep 19
Realindex Investments Pty Limited
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Shares462,023
Max PriceAU$1.68
BuyAU$3,608,10025 Sep 19
Realindex Investments Pty Limited
EntityCompany
Shares2,127,125
Max PriceAU$1.70
SellAU$1,649,24925 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares838,232
Max PriceAU$2.00
SellAU$240,32327 Aug 19
Elterry Pty Ltd
EntityCompany
Shares100,000
Max PriceAU$2.40
BuyAU$26,48626 Aug 19
Laurence Baynham
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares11,100
Max PriceAU$2.39
BuyAU$1,272,95006 Aug 19
Realindex Investments Pty Limited
EntityCompany
Shares611,112
Max PriceAU$2.64
SellAU$11,411,84112 Mar 19
Cat Rock Capital Management LP
EntityCompany
Shares5,606,396
Max PriceAU$2.04
BuyAU$16,00007 Mar 19
Richard Anderson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares10,000
Max PriceAU$1.60
SellAU$48,98801 Mar 19
W. Powell
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares30,000
Max PriceAU$1.63
SellAU$128,58527 Feb 19
Elterry Pty Ltd
EntityCompany
Shares80,000
Max PriceAU$1.61
BuyAU$16,05026 Feb 19
Leanne Muller
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$1.60
BuyAU$30,40021 Nov 18
Richard Anderson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares20,000
Max PriceAU$1.52

Ownership Breakdown


Management Team

  • Brem Hill

    CFO, Company Secretary & Financial Controller

    • Tenure: 27.8yrs
    • Compensation: AU$708.75k
  • Brad Colledge

    Executive GM of Software Solutions & Infrastructure Solutions

    • Tenure: 4.3yrs
    • Compensation: AU$876.28k
  • Michael Bowser

    Executive General Manager of Services

    • Tenure: 4.3yrs
    • Compensation: AU$785.91k
  • Paul Crouch

    General Manager of NSW/ACT

    • Tenure: 0yrs
    • Compensation: AU$328.61k
  • Laurence Baynham

    MD, CEO & Executive Director

    • Tenure: 4.9yrs
    • Compensation: AU$1.07m
  • Terence Bonner

    General Counsel & Joint Company Secretary

    • Tenure: 14.8yrs
  • Dave Lennon

    Managing Partner of Business Aspect

    • Tenure: 0yrs

Board Members

  • W. Powell

    Independent Non-Executive Director

    • Tenure: 17.7yrs
    • Compensation: AU$82.13k
  • Richard Anderson (73yo)

    Non-Executive Chairman

    • Tenure: 19.1yrs
    • Compensation: AU$142.35k
  • Mark Esler

    Founder & Non-Executive Director

    • Tenure: 0.2yrs
  • Laurence Baynham

    MD, CEO & Executive Director

    • Tenure: 4.9yrs
    • Compensation: AU$1.07m
  • Leanne Muller

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: AU$93.08k
  • Alan Gray

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$82.13k

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$562.009m
  • Shares outstanding: 153.97m
  • Website: https://www.data3.com

Number of Employees


Location

  • Data#3 Limited
  • 67 High Street
  • Toowong
  • 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 operates in two segments, Product and Services. The Product segment offers hardware ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 10:33
End of Day Share Price2019/10/22 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.