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Data#3 Limited.
(Sydney:DTL)
Select Model
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Rating:68Neutral
Price Target:
AU$13.00
▲(16.49% Upside)
Action:Downgraded
Date:08/26/26
The score is driven primarily by solid financial performance (improving profitability, conservative leverage, and strong ROE) and supportive technical strength (price above key moving averages with positive MACD). Offsetting these positives are volatile cash-flow conversion and a relatively high P/E, which reduce confidence and valuation appeal.
Positive Factors
Improving Profitability
Improved gross and net margins, alongside sustained EBIT and net income growth, indicate stronger earnings conversion. If maintained, this can increase resilience and support investment in higher-value consulting, cloud, security and managed-service offerings.
Negative Factors
Volatile Cash Generation
Large year-to-year swings in operating and free cash flow reduce visibility into cash conversion. Although free cash flow covered about 0.82 times net income in 2026, weaker conversion can constrain reinvestment and increase working-capital dependence.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability
Improved gross and net margins, alongside sustained EBIT and net income growth, indicate stronger earnings conversion. If maintained, this can increase resilience and support investment in higher-value consulting, cloud, security and managed-service offerings.
Read all positive factors
Data#3 Limited. (DTL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.62B
Dividend Yield2.71%
Average Volume (3M)494.84K
Price to Earnings (P/E)30.0
Beta (1Y)0.52
Revenue Growth6.37%
EPS Growth13.05%
CountryAU
Employees1,427
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.35
Shares Outstanding155,183,270
10 Day Avg. Volume456,602
30 Day Avg. Volume494,839
Financial Highlights & Ratios
PEG Ratio2.18
Price to Book (P/B)16.05
Price to Sales (P/S)1.68
P/FCF Ratio79.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$10.17Price Target Upside-8.87% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)0.39
Revenue Forecast (FY)AU$3.45B
Data#3 Limited. Business Overview & Revenue Model
Company Description
Data#3 Limited operates across Australia and Fiji, providing comprehensive information technology solutions and services. The company's offerings begin with advanced cloud solutions, covering both public and private cloud environments, alongside m...
How the Company Makes Money
Data#3 primarily makes money by selling and implementing third-party technology products and ongoing services for customers across Australia. Key revenue streams include: (1) Product and licensing resale: Revenue from procuring and reselling softw...
Data#3 Limited. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
81
Very Positive
Cash Flow
45
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 906.98M | 852.66M | 805.75M | 808.63M | 2.19B |
| Gross Profit | 298.29M | 289.38M | 270.60M | 244.37M | 218.22M |
| EBITDA | 76.09M | 75.64M | 69.16M | 60.45M | 50.38M |
| Net Income | 54.52M | 48.19M | 43.31M | 37.03M | 30.26M |
Balance Sheet | |||||
| Total Assets | 1.10B | 942.10M | 866.15M | 944.48M | 780.16M |
| Cash, Cash Equivalents and Short-Term Investments | 326.05M | 356.69M | 276.38M | 404.77M | 149.46M |
| Total Debt | 22.67M | 18.55M | 20.59M | 23.88M | 25.64M |
| Total Liabilities | 1.01B | 857.93M | 791.23M | 876.14M | 718.46M |
| Stockholders Equity | 95.16M | 84.17M | 74.92M | 68.34M | 61.70M |
Cash Flow | |||||
| Free Cash Flow | 19.12M | 124.13M | -86.80M | 290.04M | -26.50M |
| Operating Cash Flow | 23.25M | 126.29M | -86.19M | 291.02M | -22.62M |
| Investing Cash Flow | -5.04M | -2.17M | -605.00K | -968.00K | -3.88M |
| Financing Cash Flow | -47.97M | -44.19M | -41.40M | -34.97M | -28.58M |
Data#3 Limited. Technical Analysis
Positive
11.16
Price Trends
10.07
Positive
9.47
Positive
8.86
Positive
Market Momentum
0.18
Positive
51.16
Neutral
10.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DTL, the sentiment is Positive. The current price of 11.16 is above the 20-day moving average (MA) of 10.57, above the 50-day MA of 10.07, and above the 200-day MA of 8.86, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 10.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DTL.
Data#3 Limited. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | AU$1.62B | 30.00 | 60.74% | 2.71% | 6.37% | 13.05% | |
62 Neutral | AU$45.78M | 37.27 | 3.15% | 2.94% | -7.66% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | AU$159.45M | -20.10 | -161.71% | ― | -36.84% | -100.00% | |
46 Neutral | AU$141.02M | -6.89 | -10.46% | ― | 17.03% | -326.15% | |
46 Neutral | AU$50.29M | -2.40 | -28.68% | ― | -37.44% | -1340.48% | |
45 Neutral | AU$147.17M | -13.02 | -14.07% | ― | 29.91% | 53.66% |
* Technology Sector Average
AU:DTL
Data#3 Limited.
10.54
1.32
14.29%
AU:CCG
Comms Group Ltd. (Australia)
0.09
0.03
51.79%
AU:ATA
Atturra Limited
0.40
-0.37
-48.05%
AU:AI1
DC Two Ltd.
0.13
0.06
85.71%
AU:DXN
DXN Ltd.
0.40
0.35
700.00%
AU:ITS
Spirit Technology Solutions Ltd.
0.29
-0.26
-47.27%
Data#3 Limited. Corporate Events
Data#3 declares interim dividend of AUD 0.1825 per share
Aug 24, 2026
Data#3 Limited has announced a new ordinary dividend for holders of its fully paid shares, relating to the six‑month period ended 30 June 2026. The distribution has been set at AUD 0.1825 per share, with the ex‑dividend date on 15 Sept...
Data#3 posts record FY26 result and accelerates AI and cyber security push
Aug 24, 2026
Data#3 Limited reported another record financial performance for the year to 30 June 2026, with gross sales rising 12.7% to $3.4 billion and statutory revenue up 6.4% to $907.3 million. Net profit after tax climbed 13.1% to $54.5 million, while ea...
Data#3 posts record FY26 profit and lifts fully franked dividends
Aug 24, 2026
Data#3 Limited reported record results for the year ended 30 June 2026, with revenue from ordinary activities rising 6.3% to $917.4 million and net profit after tax attributable to members increasing 13.1% to $54.5 million. Gross sales and other r...
Data#3 schedules FY26 results release and investor webcast
Jul 8, 2026
Data#3 Limited has announced it will release its audited financial results for the year ended 30 June 2026 on 24 August 2026, underscoring the upcoming disclosure of performance metrics for one of Australia’s major IT services providers. The...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.