Data Storage Corp (NASDAQ: DTST)

Sector: Technology Industry: Information Technology Services CIK: 0001419951
Market Cap 37.00 Mn
P/B 0.94
P/E 2.26
P/S 1.84
ROIC (Qtr) -5.91
Div Yield % 0.00
Rev 1y % (Qtr) 28.18
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Data Storage Corp (DTST), a technology industry player, specializes in providing data storage solutions to clients. The company generates revenue through the sale of primary products, including data storage systems, cloud infrastructure, and managed services. Its customer base spans various industries, such as finance, healthcare, and government. Data Storage Corp's subsidiary, CloudFirst Technologies Corporation, offers cloud-based infrastructure and managed services. CloudFirst's product and service suite encompasses cloud storage, computing,...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 631676 provides exceptional 109.78x coverage of minority interest expenses 5754, showing strong core operations.
  • Short-term investments of 45.47M provide solid 5.90x coverage of other current liabilities 7.71M, indicating strong liquidity.
  • Cash position of 284714 provides exceptional 49.48x coverage of minority interest expenses 5754, indicating strong liquidity.
  • Tangible assets of 47.68M provide robust 6.19x coverage of other current liabilities 7.71M, indicating strong asset backing.
  • Short-term investments of 45.47M provide healthy 1.16x coverage of working capital 39.04M, indicating strong liquidity.

Bear case

  • Cash reserves of 284714 provide limited coverage of acquisition spending of 35.63M, which is 0.01x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 45.47M significantly exceed cash reserves of 284714, which is 159.71x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of 631676 shows concerning coverage of stock compensation expenses of 1.24M, with a 0.51 ratio indicating potential earnings quality issues.
  • Free cash flow of (52808) provides weak coverage of capital expenditures of 684484, with a -0.08 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 631676 provides minimal -0.63x coverage of tax expenses of (995652), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 279.99 Bn 35.41 4.28 66.57 Bn
2 ACN Accenture plc 168.17 Bn 22.09 2.38 8.20 Bn
3 INFY Infosys Ltd 74.96 Bn 23.74 3.89 -
4 CTSH Cognizant Technology Solutions Corp 41.45 Bn 19.48 1.99 1.17 Bn
5 FIS Fidelity National Information Services, Inc. 35.21 Bn 231.62 3.36 13.00 Bn
6 WIT Wipro Ltd 29.93 Bn 19.70 2.97 1.95 Bn
7 BR Broadridge Financial Solutions, Inc. 26.38 Bn 28.51 3.74 3.28 Bn
8 LDOS Leidos Holdings, Inc. 23.72 Bn 16.88 1.37 5.23 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.78 1.44
EV to Cash from Ops. EV/CFO 58.52 5.63
EV to Debt EV to Debt 0.00 8.06
EV to EBIT EV/EBIT 2.39 -4.05
EV to EBITDA EV/EBITDA -27.47 -0.52
EV to Free Cash Flow [EV/FCF] EV/FCF -700.02 -1.66
EV to Market Cap EV to Market Cap 1.00 1.35
EV to Revenue EV/Rev 1.84 57.14
Price to Book Value [P/B] P/B 0.94 3.34
Price to Earnings [P/E] P/E 2.26 -5.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.83
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.66
Dividend per Basic Share Div per Share (Qtr) 0.00 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.24
Interest Coverage Int. cover (Qtr) 146.03 -319.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -128.03 -253.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -44.58 114.15
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 35.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 8,161.00 -22.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -51.51 -25.03
EBIT Growth (1y) % EBIT 1y % (Qtr) 7,658.16 -82.44
EBT Growth (1y) % EBT 1y % (Qtr) 9,481.00 97.07
EPS Growth (1y) % EPS 1y % (Qtr) 7,400.00 147.29
FCF Growth (1y) % FCF 1y % (Qtr) -102.69 -8,638.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.85 -8.24
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.42 0.78
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.03 0.66
Current Ratio Curr Ratio (Qtr) 5.64 2.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.88
Interest Cover Ratio Int Coverage (Qtr) 146.03 -319.17
Times Interest Earned Times Interest Earned (Qtr) 146.03 -319.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 78.90 -550.76
EBIT Margin % EBIT Margin % (Qtr) 77.09 -775.74
EBT Margin % EBT Margin % (Qtr) 76.56 -827.89
Gross Margin % Gross Margin % (Qtr) 43.90 24.07
Net Profit Margin % Net Margin % (Qtr) 81.50 -830.34