Data#3 Downgraded To Hold (And H1 FY 2025 Results Analysis)
The results were fairly solid, but beneath the surface I’ve spotted a few mild warning signs that make me cautious.
Data#3 Limited (ASX: DTL) is an Australian IT services and solutions provider founded in 1977 and headquartered in Brisbane. The company offers a comprehensive range of technology solutions, including cloud computing, modern workplace, security, data and analytics, and connectivity services.
Data#3 serves clients across various sectors such as healthcare, education, government, and corporate enterprises in Australia, Fiji, and the Pacific Islands. The company listed on the ASX on 23 December 1997.
Data#3 partners with leading technology vendors like Microsoft, Cisco, and HP to deliver integrated solutions that help organisations achieve their business objectives. With a focus on innovation and customer success, Data#3 continues to evolve its offerings to meet the changing needs of the digital landscape.
The results were fairly solid, but beneath the surface I’ve spotted a few mild warning signs that make me cautious.
Factors outside the company’s control will have a negative influence on profit growth in FY 2025 and FY 2026
Looking beyond the share prices.
Although weak demand has weighed on the FY 2024 result, the long term thesis remains valid.
Data#3 remains attractive but its strong profit result is less attractive if you back out interest income.
Despite a stellar track record of growing earnings, cashflow, and dividends, this tailwind stock hasn’t yet joined the S&P ASX 200.
Data#3 (ASX: DTL) presented record results in H1 FY 2023. Can it match this performance in the second half, and is it still cheap?
The FY 2022 Data#3 (ASX: DTL) results showed strong revenue growth but gross profit margins heading in the wrong direction.
I use watchlists with target desired buy prices to help me take advantage of market volatility in a calm and measured way.