NasdaqCM:DTSS

Stock Analysis Report

Executive Summary

Datasea Inc., through its subsidiaries, provides smart security solutions primarily to schools, tourist attractions, and public communities in the People’s Republic of China.

Risk Analysis

Earnings have declined by -16.11% per year over past 5 years

Makes less than USD$1m in revenue ($-5K)

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

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Flawless balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

DTSS

-0.7%

US Software

-1.3%

US Market


1 Year Return

-44.8%

DTSS

38.6%

US Software

22.0%

US Market

Return vs Industry: DTSS underperformed the US Software industry which returned 39.8% over the past year.

Return vs Market: DTSS underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

DTSSIndustryMarket
7 Day-1.0%-0.7%-1.3%
30 Day-26.7%5.6%1.8%
90 Day-10.0%16.7%9.3%
1 Year-44.8%-44.8%39.8%38.6%24.6%22.0%
3 Year-89.4%-89.4%135.8%126.4%49.2%39.6%
5 Yearn/a223.9%201.3%77.9%58.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DTSS is overvalued based on its PB Ratio (8.2x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

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

14.8%

Forecasted Software 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 Datasea 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 Datasea performed over the past 5 years?

-16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTSS is currently unprofitable.

Growing Profit Margin: DTSS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DTSS is unprofitable, and losses have increased over the past 5 years at a rate of -16.1% per year.

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

Earnings vs Industry: DTSS is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.8%).


Return on Equity

High ROE: DTSS has a negative Return on Equity (-26.99%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Datasea's financial position?


Financial Position Analysis

Short Term Liabilities: DTSS's short term assets ($3.6M) exceed its short term liabilities ($1.7M).

Long Term Liabilities: DTSS's short term assets ($3.6M) exceed its long term liabilities ($838.9K).


Debt to Equity History and Analysis

Debt Level: DTSS is debt free.

Reducing Debt: DTSS had no debt 5 years ago.


Balance Sheet

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

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


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: DTSS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: DTSS has sufficient cash runway for 2.3 years if free cash flow continues to reduce at historical rates of -14.3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate DTSS'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 DTSS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DTSS'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 DTSS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.1yrs

Average board tenure


CEO

Zhixin Liu (33yo)

4.3yrs

Tenure

US$35,686

Compensation

Ms. Zhixin Liu has been the Chairperson, Chief Executive Officer, President, Treasurer and Secretary at Datasea Inc. since October 29, 2015 and served as its Interim Chief Financial Officer until December  ...


CEO Compensation Analysis

Compensation vs Market: Zhixin's total compensation ($USD35.69K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Zhixin's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

1.1yrs

Average Tenure

54yo

Average Age

Experienced Board: DTSS's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.3%.


Management Team

  • Zhixin Liu (33yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$35.69k
  • Jijin Zhang (50yo)

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: US$15.51k

Board Members

  • Zhixin Liu (33yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$35.69k
  • Fu Liu (54yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$27.64k
  • Tongjun Si (78yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$8.44k
  • Stephen Wong (37yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$8.44k
  • Ling Wang (63yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$8.44k

Company Information

Datasea Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Datasea Inc.
  • Ticker: DTSS
  • Exchange: NasdaqCM
  • Founded: 2014
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$41.048m
  • Shares outstanding: 20.94m
  • Website: https://www.shuhaixinxi.com

Number of Employees


Location

  • Datasea Inc.
  • Tower B, Guorui Plaza
  • 20th Floor
  • Beijing
  • 100176
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DTSSNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDApr 2016

Biography

Datasea Inc., through its subsidiaries, provides smart security solutions primarily to schools, tourist attractions, and public communities in the People’s Republic of China. It develops safe campus security systems, as well as focuses on developing scenic area security systems and public community security systems. The company markets and sells its smart security products, services, and solutions to governments, enterprises, institutions, families, and individuals through its distributors and city government partners. It also develops and offers education-related technologies to build campus networks, education management systems, education cloud platforms, science education platforms, and other education systems used in schools. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/25 01:05
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
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.