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Data#3 Limited. (DTL) AI Stock Analysis

AU:DTL

Data#3 Limited.

(ASX:DTL)

Select Model
Rating:62Neutral
Price Target:AUD 16.00â–²(8.40% Upside)
Action:reiterated
Date:10/29/26

The score is driven primarily by improving profitability and a strengthening, low-leverage balance sheet, but is held back by highly volatile operating/free cash flow and a high P/E valuation. Technicals are supportive due to a strong uptrend, though overbought readings add near-term risk.

Positive Factors
Improved profitabilityImproved gross and net margins, alongside steady EBIT and net income growth, indicate stronger earnings conversion than in earlier years. If maintained, this profitability base can support reinvestment in consulting, cloud, cybersecurity and managed services while strengthening resilience across the business cycle.
Negative Factors
Volatile cash conversionLarge swings in operating cash flow, including a negative year, reduce confidence that reported earnings consistently convert into cash. The sharp 2026 free-cash-flow decline could constrain internally funded investment and make capital allocation less predictable over the next several reporting periods.

Data#3 Limited. (DTL) vs. iShares MSCI Australia ETF (EWA)

-40%-20%0%20%40%60%80%AU:DTL+69.77%EWA+13.51%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
AUD 2.29B
Dividend Yield
2.15%
Average Volume (3M)
507.69K
Price to Earnings (P/E)
42.2
Beta (1Y)
0.61
Revenue Growth
6.37%
EPS Growth
13.05%
Country
Australia
Employees
1,427
Sector
Technology
Sector Strength
61
Industry
Information Technology Services

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 mode...

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 software...

Data#3 Limited. Financial Statement Overview

Summary

Fundamentals are mixed: profitability has improved (gross margin ~33%, net margin ~6% in 2026) and the balance sheet is conservative with improving leverage (debt-to-equity ~0.24) and very strong ROE (~0.57). However, cash-flow quality is a key risk—operating cash flow has been volatile (including a negative year) and free cash flow dropped sharply in 2026, reducing confidence in cash conversion stability.

Income Statement

74Positive

Balance Sheet

81Very Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue906.98M906.98M852.66M805.75M808.63M2.19B
Gross Profit298.29M298.29M289.38M270.60M244.37M218.22M
EBITDA76.09M76.09M75.64M69.16M60.45M50.38M
Net Income54.52M54.52M48.19M43.31M37.03M30.26M
Balance Sheet
Total Assets1.10B1.10B942.10M866.15M944.48M780.16M
Cash, Cash Equivalents and Short-Term Investments326.05M326.05M356.69M276.38M404.77M149.46M
Total Debt22.67M22.67M18.55M20.59M23.88M25.64M
Total Liabilities1.01B1.01B857.93M791.23M876.14M718.46M
Stockholders Equity95.16M95.16M84.17M74.92M68.34M61.70M
Cash Flow
Free Cash Flow19.12M19.12M124.13M-86.80M290.04M-26.50M
Operating Cash Flow23.25M23.25M126.29M-86.19M291.02M-22.62M
Investing Cash Flow-5.04M-5.04M-2.17M-605.00K-968.00K-3.88M
Financing Cash Flow-47.97M-47.97M-44.19M-41.40M-34.97M-28.58M

Data#3 Limited. Technical Analysis

Technical Analysis SentimentPositive
Last Price14.76

Price Trends

50DMA12.07Positive
100DMA10.82Positive
200DMA9.36Positive

Market Momentum

MACD0.70Negative
RSI72.06Negative
STOCH76.56Neutral

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 14.76 is above the 20-day moving average (MA) of 13.70, above the 50-day MA of 12.07, and above the 200-day MA of 9.36, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 72.06 is Negative, neither overbought nor oversold. The STOCH value of 76.56 is Neutral, 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

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

AU:DTL against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
AU:CCGAU:CCG63NeutralAUD 44.69M36.823.15%3.09%-7.66%―
AU:DTLAU:DTL62NeutralAUD 2.29B42.1760.74%2.15%6.37%13.05%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
AU:ITSAU:ITS44NeutralAUD 45.46M-1.94-28.68%―-37.44%-1340.48%
AU:ATAAU:ATA43NeutralAUD 133.69M-6.21-10.46%―17.03%-326.15%
AU:AI1AU:AI140UnderperformAUD 91.84M-8.13-14.07%―29.91%56.10%
AU:DXNAU:DXN40UnderperformAUD 52.75M-7.22-161.71%―-36.84%-100.00%

* Technology Sector Average

Performance Comparison

0%200%400%600%800%AU:DTLAU:CCGAU:ATAAU:AI1AU:DXNAU:ITSDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
AU:DTL and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
AU:DTLData#3 Limited.14.766.1371.09%
AU:CCGComms Group Ltd. (Australia)0.080.0122.73%
AU:ATAAtturra Limited0.36-0.39-51.33%
AU:AI1DC Two Ltd.0.080.0111.43%
AU:DXNDXN Ltd.0.140.08133.33%
AU:ITSSpirit Technology Solutions Ltd.0.23-0.31-56.48%

Data#3 Limited. Corporate Events

Data#3 Releases Results of 2026 Annual General Meeting

Oct 28, 2026

Data#3 Limited has announced the results of its 2026 Annual General Meeting, held on 28 October 2026, in accordance with Australian Securities Exchange Listing Rule 3.13.2 and Section 251AA of the Corporations Act. While detailed voting outcomes were...

Data#3 Delivers Record Results and Tightens Governance, Backing Growth and Dividends

Oct 27, 2026

Data#3 Limited reported another year of above-market growth in FY26, with record gross sales of $3.4 billion and earnings before tax of $78.8 million, continuing its track record of consistent expansion in sales, profits and dividends. Over the past...

Data#3 to Update Investors on Strategy and Growth at November Briefing

Oct 11, 2026

Data#3 Limited, Australia’s leading IT services and solutions provider, will host an in-person investor briefing in Sydney on 25 November 2026, open to all investors and analysts. The session will be led by Managing Director and CEO Brad Colled...

Data#3 Director Restructures Indirect Shareholdings Without Changing Overall Stake

Oct 8, 2026

Data#3 Limited has reported a change in the indirect shareholdings of director Mark Esler, as disclosed in a recent notice to the ASX. Esler’s total indirect interest remains at 2,799,330 ordinary shares, but there has been a reallocation of 75...

Data#3 flags strong first-half FY27 profit surge driven by one-off deals

Oct 1, 2026

Data#3 Limited has flagged a strong start to FY27, guiding that first-half gross profit will be more than 15% higher than the prior corresponding period and that net profit before tax will be over 40% higher than the $33.5 million recorded in 1H FY26...

Data#3 sets hybrid AGM with focus on governance and executive incentives

Sep 22, 2026

Data#3 Limited has called a hybrid Annual General Meeting for 28 October 2026, giving shareholders the option to attend in person at its Brisbane head office or online via a dedicated platform, with meeting materials made available digitally rather t...

Data#3 Confirms ASX Governance Compliance With 2026 Appendix 4G Lodgement

Sep 17, 2026

Data#3 Limited, an ASX-listed technology company, operates under a comprehensive corporate governance framework aligned with the ASX Corporate Governance Council’s recommendations. Its governance disclosures, including board charters and execut...

Data#3 Unveils Comprehensive 2026 Annual Report

Sep 17, 2026

Data#3 Limited has released its Annual Report for the 2026 financial year, detailing its financial performance, operating review, governance structures, tax position, and sustainability initiatives. The report also highlights board and executive lead...

Data#3 Updates Director’s Indirect Holding After LTIP Vesting

Sep 8, 2026

Data#3 Limited has reported a change in the indirect shareholding of director Bradley Dean Colledge following the vesting of performance rights under the company’s Long Term Incentive Plan. On 4 September 2026, 21,964 ordinary shares were issue...

Data#3 Updates Director Shareholding After Termination Benefit Grant

Sep 8, 2026

Data#3 Limited has disclosed a change in director Laurence Baynham’s relevant interests in the company’s ordinary shares following the provision of a termination benefit. The company acquired 15,325 DTL shares on market for $169,698.32 an...

Data#3 Seeks ASX Quotation for Additional Ordinary Shares

Sep 4, 2026

Data#3 Limited has applied for quotation of 105,428 new ordinary fully paid shares on the Australian Securities Exchange. The securities result from the exercise or conversion of existing options or other convertible instruments, modestly increasing...

Data#3 director Laurence Baynham trims indirect shareholding in routine on-market trade

Aug 27, 2026

Data#3 Limited has reported a change in the shareholding of director Laurence Christopher Baynham, in line with ASX requirements for director interest notices. The disclosure highlights ongoing governance and transparency in the company’s handl...

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 Septemb...

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 earni...

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 reve...

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.

Date of analysis: Oct 29, 2026