Datasea Inc. (NASDAQ: DTSS)

Sector: Technology Industry: Software - Infrastructure CIK: 0001631282
Market Cap 6.65 Mn
P/B 2.20
P/E -2.00
P/S 0.10
ROIC (Qtr) -56.50
Div Yield % 0.00
Rev 1y % (Qtr) -34.47
Total Debt (Qtr) 3.44 Mn
Debt/Equity (Qtr) 1.14

About

Datasea Inc., a technology company based in Nevada, USA, with operations in Delaware, USA, and China, is a leading player in the field of intelligent acoustics and 5G messaging. The company's primary business activities include the development and sale of products and services related to ultrasound, infrasound, directional sound, and Schumann resonance, as well as 5G messaging. Datasea generates revenue through the sale of its products and services, with the Chinese market being its primary source of income. The company's main offerings include...

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Price action

Investment thesis

Bull case

  • Operating cash flow of (762726) provides exceptional 5734.78x coverage of minority interest expenses (133), showing strong core operations.
  • Tangible assets of 3.08M provide exceptional 17.08x coverage of deferred revenue 180195, showing strong service capability backing.
  • Operating cash flow of (762726) fully covers other non-current liabilities (180195) by 4.23x, showing strong long-term stability.
  • R&D investment of 1.32M represents healthy 7.35x of deferred revenue 180195, indicating strong future innovation pipeline.
  • Cash position of 745264 provides strong 4.14x coverage of deferred revenue 180195, ensuring service delivery capability.

Bear case

  • Operating cash flow of (762726) barely covers its investment activities of (5.59M), with a coverage ratio of 0.14, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (5.59M) provide weak support for R&D spending of 1.32M, which is -4.22x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (762726) provides insufficient coverage of deferred revenue obligations of 180195, which is -4.23x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (762726) shows concerning coverage of stock compensation expenses of 1.77M, with a -0.43 ratio indicating potential earnings quality issues.
  • High receivables of 1.17M relative to inventory of 200534 (5.84 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.13 2.69
EV to Cash from Ops. EV/CFO -11.40 28.91
EV to Debt EV to Debt 2.53 19.83
EV to EBIT EV/EBIT -2.62 -9.95
EV to EBITDA EV/EBITDA -4.95 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF -11.32 26.09
EV to Market Cap EV to Market Cap 1.31 0.36
EV to Revenue EV/Rev 0.14 -9.34
Price to Book Value [P/B] P/B 2.20 3.88
Price to Earnings [P/E] P/E -2.00 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 0.00 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 42.12 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -20.51 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 75.03 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 86.19 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 75.08 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 75.08 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 91.40 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -93.76 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 472.83 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 8.37 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.18 1.22
Current Ratio Curr Ratio (Qtr) 0.67 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 1.14 -0.96
Interest Cover Ratio Int Coverage (Qtr) 0.00 -14.20
Times Interest Earned Times Interest Earned (Qtr) 0.00 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2.60 -548.16
EBIT Margin % EBIT Margin % (Qtr) -5.16 -199.84
EBT Margin % EBT Margin % (Qtr) -5.16 -607.20
Gross Margin % Gross Margin % (Qtr) 5.30 51.88
Net Profit Margin % Net Margin % (Qtr) -5.20 -610.00