DATA STORAGE CORP (DTST) Stock Fundamental Analysis
NASDAQ:DTST - Nasdaq - US23786R2013 - Common Stock - Currency: USD
Overall DTST gets a fundamental rating of 5 out of 10. We evaluated DTST against 82 industry peers in the IT Services industry. No worries on liquidiy or solvency for DTST as it has an excellent financial health rating, but there are worries on the profitability. DTST is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
DTST had positive earnings in the past year.
In the past year DTST had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DTST reported negative net income in multiple years.
DTST had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of DTST (0.62%) is comparable to the rest of the industry.
With a Return On Equity value of 0.78%, DTST perfoms like the industry average, outperforming 55.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 0.78% | ||
| ROIC | N/A |
ROA(3y)-5.23%
ROA(5y)-3.12%
ROE(3y)-6.68%
ROE(5y)-3.97%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DTST (0.64%) is comparable to the rest of the industry.
DTST's Profit Margin has declined in the last couple of years.
DTST's Gross Margin of 41.61% is fine compared to the rest of the industry. DTST outperforms 65.38% of its industry peers.
In the last couple of years the Gross Margin of DTST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 0.64% | ||
| GM | 41.61% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y33.41%
PM growth 5Y-1.95%
GM growth 3Y-2.85%
GM growth 5Y-0.29%
2. Health
2.1 Basic Checks
DTST does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, DTST has more shares outstanding
The number of shares outstanding for DTST has been increased compared to 5 years ago.
Compared to 1 year ago, DTST has an improved debt to assets ratio.
2.2 Solvency
DTST has an Altman-Z score of 3.38. This indicates that DTST is financially healthy and has little risk of bankruptcy at the moment.
DTST has a Altman-Z score (3.38) which is comparable to the rest of the industry.
DTST has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 3.38 |
ROIC/WACCN/A
WACC10.59%
2.3 Liquidity
A Current Ratio of 3.06 indicates that DTST has no problem at all paying its short term obligations.
DTST has a better Current ratio (3.06) than 84.62% of its industry peers.
DTST has a Quick Ratio of 3.06. This indicates that DTST is financially healthy and has no problem in meeting its short term obligations.
DTST has a Quick ratio of 3.06. This is amongst the best in the industry. DTST outperforms 85.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 3.06 |
3. Growth
3.1 Past
DTST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 150.00%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.75% on average over the past years.
DTST shows a small growth in Revenue. In the last year, the Revenue has grown by 1.65%.
DTST shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.93% yearly.
EPS 1Y (TTM)150%
EPS 3Y38.29%
EPS 5Y5.75%
EPS Q2Q%0%
Revenue 1Y (TTM)1.65%
Revenue growth 3Y38.87%
Revenue growth 5Y22.93%
Sales Q2Q%-3.02%
3.2 Future
DTST is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 125.83% yearly.
The Revenue is expected to grow by 9.19% on average over the next years. This is quite good.
EPS Next Y246.8%
EPS Next 2Y125.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.26%
Revenue Next 2Y9.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 187.50, which means the current valuation is very expensive for DTST.
Based on the Price/Earnings ratio, DTST is valued a bit more expensive than 60.26% of the companies in the same industry.
DTST is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.71 indicates a correct valuation of DTST.
80.77% of the companies in the same industry are more expensive than DTST, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DTST to the average of the S&P500 Index (22.68), we can say DTST is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 187.5 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
DTST's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DTST is cheaper than 94.87% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DTST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.92 | ||
| EV/EBITDA | 3.81 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DTST's earnings are expected to grow with 125.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)32.63
EPS Next 2Y125.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DTST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.75
-0.21 (-5.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners11.6%
Inst Owner Change-95.87%
Ins Owners38%
Ins Owner Change1.52%
Market Cap26.29M
Analysts82.86
Price Target9.18 (144.8%)
Short Float %8.3%
Short Ratio5.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-145.75%
Min EPS beat(2)-230.72%
Max EPS beat(2)-60.78%
EPS beat(4)1
Avg EPS beat(4)-90.2%
Min EPS beat(4)-230.72%
Max EPS beat(4)63.4%
EPS beat(8)2
Avg EPS beat(8)-74.18%
EPS beat(12)5
Avg EPS beat(12)-20.24%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-18.58%
Min Revenue beat(2)-24.78%
Max Revenue beat(2)-12.38%
Revenue beat(4)1
Avg Revenue beat(4)-7.56%
Min Revenue beat(4)-24.78%
Max Revenue beat(4)10.61%
Revenue beat(8)5
Avg Revenue beat(8)0.26%
Revenue beat(12)7
Avg Revenue beat(12)1.65%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 187.5 | ||
| Fwd PE | 14.71 | ||
| P/S | 1.05 | ||
| P/FCF | 30.92 | ||
| P/OCF | 11.61 | ||
| P/B | 1.28 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 3.81 |
EPS(TTM)0.02
EY0.53%
EPS(NY)0.26
Fwd EY6.8%
FCF(TTM)0.12
FCFY3.23%
OCF(TTM)0.32
OCFY8.61%
SpS3.59
BVpS2.93
TBVpS2.09
PEG (NY)0.76
PEG (5Y)32.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 0.78% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 0.64% | ||
| GM | 41.61% | ||
| FCFM | 3.38% |
ROA(3y)-5.23%
ROA(5y)-3.12%
ROE(3y)-6.68%
ROE(5y)-3.97%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y33.41%
PM growth 5Y-1.95%
GM growth 3Y-2.85%
GM growth 5Y-0.29%
F-Score6
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 103.58% | ||
| Cap/Sales | 5.62% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 247.16% | ||
| Profit Quality | 530.28% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 3.06 | ||
| Altman-Z | 3.38 |
F-Score6
WACC10.59%
ROIC/WACCN/A
Cap/Depr(3y)55.07%
Cap/Depr(5y)37.43%
Cap/Sales(3y)3.28%
Cap/Sales(5y)2.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)150%
EPS 3Y38.29%
EPS 5Y5.75%
EPS Q2Q%0%
EPS Next Y246.8%
EPS Next 2Y125.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.65%
Revenue growth 3Y38.87%
Revenue growth 5Y22.93%
Sales Q2Q%-3.02%
Revenue Next Year7.26%
Revenue Next 2Y9.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year533.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y284.82%
FCF growth 3Y35.78%
FCF growth 5Y37.71%
OCF growth 1Y728.95%
OCF growth 3Y51.67%
OCF growth 5Y48.3%