Data#3 Limited (DTATF) Stock Analysis

Data#3 Limited (DTATF) Technology Profile & Competitive Position

Data#3 Limited is an Australian IT services and solutions provider, delivering cloud, security, data analytics, and modern workplace technologies to clients across Australia and Fiji. With a strong regional presence and a broad portfolio of professional and managed services, the company addresses complex enterprise technology needs.

What Is the Investment Thesis for DTATF?

Data#3 Limited presents an investment profile characterized by its established position within the Australian and Fijian IT services market and a comprehensive service portfolio. The company's consistent profitability, evidenced by a 5.5% profit margin and a 32.0% gross margin, reflects its operational efficiency in delivering complex IT solutions. With a market capitalization of $627M and a P/E ratio of 30.42, the company demonstrates investor confidence in its earnings potential. A dividend yield of 2.94% also suggests a commitment to shareholder returns. Key growth catalysts include the ongoing digital transformation initiatives across industries, driving demand for cloud computing, advanced cybersecurity, and data analytics solutions, all core competencies of Data#3. Its beta of 0.74 indicates lower volatility relative to the broader market. However, as an OTC-listed stock, DTATF faces inherent liquidity risks compared to companies on major exchanges, which investors should carefully consider. The company’s ability to capitalize on the evolving technology landscape through its broad service offerings and established regional presence remains a primary value driver.

Based on FMP financials and quantitative analysis

DTATF Key Highlights

Market capitalization stands at $0.63 billion, reflecting its valuation in the IT services sector.

• Achieved a P/E ratio of 30.42, indicating investor expectations for future earnings growth.
• Maintained a profit margin of 5.5%, demonstrating operational efficiency in its service delivery.
• Reported a gross margin of 32.0%, showcasing strong profitability on its core IT solutions and services.
• Offers a dividend yield of 2.94%, providing income to shareholders.

Who Are DTATF's Competitors?

DTATF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are DTATF's Key Strengths?

Established presence and long operating history in the Australian and Fijian IT sectors since 1977.

• Comprehensive portfolio of integrated IT solutions, including cloud, security, data analytics, and workplace services.
• Strong financial metrics with a 5.5% profit margin and 32.0% gross margin.
• Significant employee base of 1447, indicating substantial operational capacity and expertise.

What Are DTATF's Weaknesses?

OTC market listing potentially leading to lower liquidity and wider bid-ask spreads compared to major exchanges.

• Unknown disclosure status, which may limit investor access to timely and comprehensive financial information.
• Geographic concentration in Australia and Fiji, exposing it to regional economic fluctuations.
• Reliance on continuous adaptation to rapid technological changes to maintain competitive edge.

What Could Drive DTATF Stock Higher?

Digital transformation initiatives driving increased demand for integrated IT services across Australia and Fiji.

• Continued enterprise adoption of cloud computing solutions, including public, private, and hybrid cloud deployments.
• Escalating cybersecurity threats necessitating advanced security solutions and continuous monitoring services.
• Growing organizational focus on leveraging data and analytics for business intelligence and competitive advantage.
• Evolution of modern workplace models, increasing demand for collaboration tools and device management solutions.

What Are the Key Risks for DTATF?

Liquidity risks associated with its OTC market listing, potentially leading to wider bid-ask spreads and trading difficulties.

• Unknown disclosure status, which may limit investor access to comprehensive and timely financial information.
• Intense competition within the Australian and Fijian IT services market from both global and local providers.
• Rapid technological advancements requiring continuous investment in new solutions and employee skill development.
• Economic downturns or reduced corporate IT spending in its primary geographic markets of Australia and Fiji.

What Are the Growth Opportunities for DTATF?

• Cloud Services Expansion: Data#3 is well-positioned to capitalize on the increasing enterprise shift towards cloud infrastructure. The demand for both public and private cloud deployments continues to accelerate as businesses seek greater agility, scalability, and cost efficiency in their IT operations. Data#3's expertise in designing, implementing, and managing these complex cloud environments, coupled with its data center infrastructure solutions, allows it to address this growing market effectively. As organizations in Australia and Fiji further embrace hybrid cloud strategies and cloud-native applications, Data#3's comprehensive offerings in this domain are expected to drive sustained revenue growth by supporting clients through their entire cloud journey, from strategy to optimization.
• Cybersecurity Demand: The escalating threat landscape and increasingly stringent data privacy regulations are fueling a significant and continuous demand for advanced cybersecurity solutions. Data#3's robust security portfolio, encompassing cloud security, identity and access management, data protection, infrastructure defense, and continuous security monitoring, directly addresses these critical client needs. As cyberattacks become more sophisticated, businesses are investing heavily in proactive and reactive security measures. Data#3’s ability to provide end-to-end security services, from strategic consulting to ongoing analytics, positions it as a vital partner for organizations looking to protect their digital assets and maintain compliance, thereby securing a consistent revenue stream.
• Data & Analytics Solutions: Organizations are increasingly recognizing the strategic value of data and analytics to drive informed decision-making and gain competitive advantages. Data#3's expertise in business intelligence, customer relationship management (CRM) integration, Internet of Things (IoT) solutions, and location-based intelligence enables clients to transform raw data into actionable insights. The market for data-driven solutions is expanding rapidly as businesses seek to personalize customer experiences, optimize operations, and identify new revenue streams. Data#3's comprehensive offerings in this area allow it to support clients in leveraging their data assets effectively, contributing to its growth as a key enabler of digital transformation.
• Modern Workplace Solutions: The evolution of work models, particularly the rise of hybrid and remote work, has intensified the need for modern workplace solutions that enhance collaboration, manage diverse end-user devices, and optimize system performance. Data#3's offerings, which include tools for seamless collaboration, efficient device management, system optimization, and streamlined printing services, directly cater to these evolving requirements. As businesses continue to invest in creating flexible and productive work environments, Data#3's ability to provide integrated solutions that improve employee experience and operational efficiency represents a significant growth opportunity, driving demand for its specialized services.
• Managed Services & IT Resourcing: The complexity of modern IT environments often leads organizations to outsource the management and support of their technology infrastructure. Data#3's extensive range of professional services, including strategic consulting, technology procurement, project execution, and ongoing managed services, addresses this market need. Furthermore, its IT resourcing capabilities provide flexible access to skilled personnel. The trend towards managed services is driven by the desire for operational efficiency, access to specialized expertise, and cost predictability. Data#3’s comprehensive support model, from initial consultation to continuous operational management, fosters long-term client relationships and provides recurring revenue streams, solidifying its market position.

What Threats Does DTATF Face?

• Intense competition from both global IT service providers and specialized local firms.
• Rapid technological obsolescence requiring continuous investment in new solutions and employee training.
• Economic downturns or reduced IT spending by clients impacting revenue and profitability.
• Potential for regulatory changes affecting data privacy, cybersecurity, or IT service delivery.

What Are DTATF's Competitive Advantages?

• Established presence in the Australian and Fijian IT sectors since 1977, fostering long-term client relationships and market trust.
• Comprehensive and integrated portfolio of IT solutions and services, offering end-to-end capabilities from cloud to cybersecurity.
• Deep expertise in specialized areas like IT-OT networking, SD-WAN, and IoT integration, providing differentiated value.
• Strong regional focus allows for tailored solutions and localized support, enhancing customer satisfaction and retention.
• A substantial employee base of 1447, indicating significant operational capacity and skilled workforce.

What Does DTATF Do?

Data#3 Limited, an Australian technology firm headquartered in Brisbane, was founded in 1977, establishing a long-standing presence in the region's information technology sector. The company delivers a comprehensive array of IT solutions and services to clients across Australia and Fiji, positioning itself as a key partner for digital transformation. Its extensive portfolio encompasses cutting-edge cloud capabilities, supporting both public and private cloud deployments, alongside modern data center infrastructure. Data#3 also specializes in contemporary workplace solutions, which include fostering collaboration, managing end-user devices, optimizing systems for efficiency, and streamlining printing services to enhance productivity. A significant focus for Data#3 is robust cybersecurity, with offerings that span cloud security, identity and access management, comprehensive data protection and privacy, infrastructure and endpoint defense, and continuous security monitoring and analytics to safeguard client assets. Furthermore, Data#3 provides deep expertise in data and analytics, assisting organizations in extracting valuable insights through business intelligence, customer relationship management (CRM) system integration, Internet of Things (IoT) integration, and location-based intelligence. Their connectivity solutions are designed to ensure seamless operations, addressing complex IT-OT networking, implementing Software-Defined Wide Area Networks (SD-WAN), and deploying advanced software-defined and wireless network environments. Beyond these core technology offerings, Data#3 extends its support through a range of professional services, including strategic consulting, technology procurement, meticulous project execution, ongoing managed services for continuous operational excellence, and flexible IT resourcing to meet fluctuating client demands. This broad and integrated service model underscores Data#3's established presence within the Australian IT sector, enabling it to cater to diverse enterprise technology needs.

What Products and Services Does DTATF Offer?

• Delivers comprehensive cloud capabilities, including public and private cloud deployments.
• Provides modern data center infrastructure solutions.
• Specializes in contemporary workplace solutions for collaboration, device management, and system optimization.
• Offers robust cybersecurity services, encompassing cloud security, identity management, and data protection.
• Provides expertise in data and analytics, including business intelligence, CRM, and IoT integration.
• Ensures seamless operations through connectivity solutions like IT-OT networking and SD-WAN.
• Extends support through professional services such as strategic consulting and project execution.
• Offers ongoing managed services and IT resourcing to clients.

How Does DTATF Make Money?

• Generates revenue through the sale and implementation of IT solutions, including hardware and software licenses.
• Earns income by providing professional services, such as strategic consulting, technology procurement, and project management.
• Secures recurring revenue from ongoing managed services, offering continuous support and monitoring for client IT environments.
• Provides IT resourcing services, supplying skilled personnel to meet client-specific project and operational needs.

What Industry Does DTATF Operate In?

Data#3 Limited operates within the dynamic Information Technology Services industry, a sector characterized by rapid technological advancements and increasing enterprise demand for digital solutions. The company is strategically positioned as a comprehensive provider in the Australian and Fijian markets, offering a wide array of services from cloud and data center infrastructure to advanced cybersecurity and data analytics. This market is currently experiencing significant growth driven by pervasive digital transformation initiatives, the escalating need for robust cybersecurity measures against evolving threats, and the widespread adoption of cloud-based solutions for scalability and efficiency. Data#3 competes by offering an integrated approach, differentiating itself through its long-standing regional presence and diverse service capabilities. The competitive landscape includes both global IT giants with local operations and specialized regional players. Data#3's ability to deliver end-to-end solutions positions it to capture market share from organizations seeking a single, trusted partner for their complex IT needs, navigating the evolving technology landscape.

Who Are DTATF's Key Customers?

• Organizations and enterprises located across Australia.
• Clients in Fiji seeking advanced information technology solutions.
• Businesses requiring comprehensive cloud, data center, and modern workplace technologies.
• Companies focused on enhancing cybersecurity, data analytics, and network connectivity.
• Enterprises looking for strategic IT consulting, project execution, and managed IT support services.

Wall Street analysts project Data#3 Limited revenue of about $3.03B for fiscal 2026, with EPS near $0.32.

DTATF Valuation & Market Position

With a $627M market cap, Data#3 Limited sits in the small-cap segment of the market.

Return on equity for Data#3 Limited stands at 58.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 11.5%, showing how much profit it generates from its asset base. DTATF trades at a trailing price-to-earnings ratio of 29.91, below the Technology sector average of ~34x. Its free cash flow yield is 3.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.19 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.3%, the inverse of the P/E and a quick read on earnings relative to price.

Data#3 Limited's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.00 places it in the safe zone, indicating low near-term bankruptcy risk.

Company Profile

Data#3 Limited operates in the Information Technology Services industry within the Technology sector. It is headquartered in Brisbane, AU. The company is led by CEO Laurence C. Baynham. DTATF has traded publicly since 2021.

DTATF Financials

DTATF Latest News

No recent news available for DTATF.

DTATF Analyst Consensus

DTATF MoonshotScore

What Investors Ask About Data#3 Limited (DTATF) — Technology

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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