# Data 3 (DTL.AU)

Canonical: https://gigainvestors.com/s/DTL.AU

Analysis as of: 2026-10-16T07:42:29.544Z. Financial observations: FY1998–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 13.35 per share; close as of 2026-10-15.

Estimated value: low AUD 5.60 per share, central AUD 6.10 per share, high AUD 6.77 per share. Buy at or below the central value AUD 6.10 per share. Valuation as of 2026-10-16T07:42:29.544Z; scenarios are not confidence intervals.

Expected annual return: 5.5% at the stated quote. About 5.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.60×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.02×

- FY2018: 0.02×

- FY2019: 0.02×

- FY2020: 0.02×

- FY2021: 0.02×

- FY2022: 0.02×

- FY2023: 0.06×

- FY2024: 0.07×

- FY2025: 0.07×

- FY2026: 0.08×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 38.6%

- ROIC, second-lowest year: 32.7%

- Typical minus recent gross margin: -18.9 pp

- Typical gross margin (annual median): 14.0%

- Recent gross margin (lower of latest and 3-year median): 32.9%

- Years with nonpositive capital: 10

- Capital spending / revenue: 0.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 36.2%

- FY2018: 44.6%

- FY2019: 38.7%

- FY2020: 32.7%

- FY2021: 31.1%

- FY2022: 35.5%

- FY2023: 38.4%

- FY2024: 38.9%

- FY2025: 40.4%

- FY2026: 40.8%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 213M

- Net income, five-year total: AUD 213M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -2.2 pp

- Working capital / revenue, change between three-year averages: -15.3 pp

- Working capital / revenue, final three-year average: -20.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.91×

- FY2023: 1.04×

- FY2024: 1.05×

- FY2025: 1.01×

- FY2026: 0.96×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 38.7% vs 40.4%

- Per-share earnings: 0.09 to 0.31 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: AUD 1.3B

- Cumulative retained earnings: AUD 47M

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 16.5%

- Per-share value change: AUD 0.22

- Per-share value, starting three-year median: AUD 0.09

- Per-share value, ending three-year median: AUD 0.31

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.2%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 13M

- Cumulative net income, 10 years: AUD 310M

- ROIC, first three-year median: 38.7%

- ROIC, last three-year median: 40.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.10

- FY2018: AUD 0.09

- FY2019: AUD 0.12

- FY2020: AUD 0.15

- FY2021: AUD 0.16

- FY2022: AUD 0.20

- FY2023: AUD 0.24

- FY2024: AUD 0.28

- FY2025: AUD 0.31

- FY2026: AUD 0.35

### accounting: pass

- Sloan accruals: 2.8%

- Receivables to sales index (DSRI): 1.19×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.43×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.13×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -10.5%

- FY2018: 1.6%

- FY2019: 1.4%

- FY2020: -23.0%

- FY2021: 6.8%

- FY2022: 6.8%

- FY2023: -26.9%

- FY2024: 15.0%

- FY2025: -8.3%

- FY2026: 2.8%

## Holders

## Price story

Price needs cash profits to grow 13.7% a year for ten years · sales +6.4%

Story as of 2026-10-16T10:00:12.370Z; price observation 2026-10-15.

Price needs cash profits to grow 13.7% a year for ten years

### Sales · FY2025–2026

sales +6.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 1.1B 

- FY2018: AUD 1.2B 

- FY2019: AUD 1.4B 

- FY2020: AUD 1.6B 

- FY2021: AUD 2.0B 

- FY2022: AUD 2.2B 

- FY2023: AUD 809M 

- FY2024: AUD 806M 

- FY2025: AUD 853M 

- FY2026: AUD 907M 

### Gross margin · FY2026

gross margin 32.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 14.5% 

- FY2018: 13.6% 

- FY2019: 3.4% 

- FY2020: 3.3% 

- FY2021: 10.0% 

- FY2022: 10.0% 

- FY2023: 30.2% 

- FY2024: 33.6% 

- FY2025: 33.9% 

- FY2026: 32.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are AUD 907 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2026: revenue 906982000; grossProfit 298290000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DTL.AU: Data#3 Limited provides information technology services and solutions in Australia. The company operates through three segments: Software Solutions, Infrastructure Solutions, and Services. It offers hybrid cloud solutions, such as public cloud Azure and modern data centre; collaboration, Microsoft 365 Copilot, end user compute, and systems management solutions; and data security and privacy, cloud security, identity and access management, infrastructure endpoint security, security monitoring and analytics. The company also provides AI solutions, business analytics, customer management, IoT, location-based analytics, and technology intelligence; connectivity solutions, including IT-OT networking, software defined networks, wireless networks, and SD-WAN; consulting, procurement, resourcing, project services, and managed services; and hardware and accompanying software licensing, vendor branded maintenance services, and other services. It serves customers in healthcare, education, and government industries. Data#3 Limited was founded in 1977 and is headquartered in Brisbane, Australia.

### Why customers stay

Margins ranged from 32.9% to 33.9% during 2024–26; it earns 38.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2024: grossProfit / revenue = 33.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2025: grossProfit / revenue = 33.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2026: grossProfit / revenue = 32.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); 10-year return on capital observations [[2017,0.3618589407813954],[2018,0.4458555070055142],[2019,0.3866817160498018],[2020,0.3271883973244397],[2021,0.3113919393038435],[2022,0.35514429790263635],[2023,0.3844519034746627],[2024,0.3890108331722036],[2025,0.404396044961687],[2026,0.4082714463435625]]; median 0.38556680976223223. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2017: growth capex 0; upkeep 1729000; owner earnings 16711000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2018: growth capex 0; upkeep 1521000; owner earnings 15496000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2019: growth capex 0; upkeep 1125000; owner earnings 19507600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2020: growth capex 0; upkeep 3936000; owner earnings 20954400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2021: growth capex 0; upkeep 1922000; owner earnings 24165800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2022: growth capex 0; upkeep 3875000; owner earnings 27421000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2023: growth capex 0; upkeep 981000; owner earnings 38426400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2024: growth capex 0; upkeep 607000; owner earnings 45646000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2025: growth capex 0; upkeep 2169000; owner earnings 48801600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); FY2026: growth capex 0; upkeep 4134000; owner earnings 52420600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); Dividend observations: [[2017,13627000],[2018,11009000],[2019,15705000],[2020,18785000],[2021,22018000],[2022,25853000],[2023,31925000],[2024,37902000],[2025,40276000],[2026,44198000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 7.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DTL.AU SharesStats.PercentInsiders = 7.579 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 13.7% yearly over ten years; actual growth was 12.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:29.544Z); Ten-year compound average after fade. Initial solved rate 0.18522870618680398. Price 13.35; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.10770600699364333 → FY2026 0.336960015221522. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 1.58 per share

- 2016-11: AUD 1.65 per share

- 2016-12: AUD 1.54 per share

- 2017-01: AUD 1.80 per share

- 2017-02: AUD 1.62 per share

- 2017-03: AUD 1.64 per share

- 2017-04: AUD 1.72 per share

- 2017-05: AUD 1.64 per share

- 2017-06: AUD 1.73 per share

- 2017-07: AUD 1.78 per share

- 2017-08: AUD 1.83 per share

- 2017-09: AUD 1.72 per share

- 2017-10: AUD 1.89 per share

- 2017-11: AUD 1.92 per share

- 2017-12: AUD 1.82 per share

- 2018-01: AUD 1.62 per share

- 2018-02: AUD 1.66 per share

- 2018-03: AUD 1.59 per share

- 2018-04: AUD 1.70 per share

- 2018-05: AUD 1.63 per share

- 2018-06: AUD 1.60 per share

- 2018-07: AUD 1.53 per share

- 2018-08: AUD 1.64 per share

- 2018-09: AUD 1.48 per share

- 2018-10: AUD 1.50 per share

- 2018-11: AUD 1.53 per share

- 2018-12: AUD 1.50 per share

- 2019-01: AUD 1.60 per share

- 2019-02: AUD 1.64 per share

- 2019-03: AUD 1.77 per share

- 2019-04: AUD 1.78 per share

- 2019-05: AUD 1.87 per share

- 2019-06: AUD 2.12 per share

- 2019-07: AUD 2.54 per share

- 2019-08: AUD 2.46 per share

- 2019-09: AUD 2.97 per share

- 2019-10: AUD 3.44 per share

- 2019-11: AUD 3.72 per share

- 2019-12: AUD 3.71 per share

- 2020-01: AUD 4.56 per share

- 2020-02: AUD 4.12 per share

- 2020-03: AUD 3.44 per share

- 2020-04: AUD 3.90 per share

- 2020-05: AUD 5.34 per share

- 2020-06: AUD 4.54 per share

- 2020-07: AUD 5.65 per share

- 2020-08: AUD 6.26 per share

- 2020-09: AUD 6.56 per share

- 2020-10: AUD 6.23 per share

- 2020-11: AUD 5.72 per share

- 2020-12: AUD 5.61 per share

- 2021-01: AUD 5.67 per share

- 2021-02: AUD 5.06 per share

- 2021-03: AUD 5.19 per share

- 2021-04: AUD 6.22 per share

- 2021-05: AUD 5.93 per share

- 2021-06: AUD 5.61 per share

- 2021-07: AUD 4.67 per share

- 2021-08: AUD 5.35 per share

- 2021-09: AUD 4.79 per share

- 2021-10: AUD 5.67 per share

- 2021-11: AUD 5.68 per share

- 2021-12: AUD 5.88 per share

- 2022-01: AUD 5.51 per share

- 2022-02: AUD 5.38 per share

- 2022-03: AUD 5.90 per share

- 2022-04: AUD 5.82 per share

- 2022-05: AUD 4.86 per share

- 2022-06: AUD 4.66 per share

- 2022-07: AUD 6.21 per share

- 2022-08: AUD 6.14 per share

- 2022-09: AUD 6.25 per share

- 2022-10: AUD 6.90 per share

- 2022-11: AUD 6.85 per share

- 2022-12: AUD 6.77 per share

- 2023-01: AUD 7.32 per share

- 2023-02: AUD 7.41 per share

- 2023-03: AUD 7.28 per share

- 2023-04: AUD 7.59 per share

- 2023-05: AUD 7.08 per share

- 2023-06: AUD 7.20 per share

- 2023-07: AUD 7.51 per share

- 2023-08: AUD 7.41 per share

- 2023-09: AUD 7.08 per share

- 2023-10: AUD 6.77 per share

- 2023-11: AUD 7.85 per share

- 2023-12: AUD 8.44 per share

- 2024-01: AUD 9.78 per share

- 2024-02: AUD 8.41 per share

- 2024-03: AUD 8.28 per share

- 2024-04: AUD 7.65 per share

- 2024-05: AUD 7.97 per share

- 2024-06: AUD 8.37 per share

- 2024-07: AUD 8.82 per share

- 2024-08: AUD 7.70 per share

- 2024-09: AUD 7.58 per share

- 2024-10: AUD 7.33 per share

- 2024-11: AUD 7.79 per share

- 2024-12: AUD 6.39 per share

- 2025-01: AUD 6.96 per share

- 2025-02: AUD 7.73 per share

- 2025-03: AUD 7.25 per share

- 2025-04: AUD 7.28 per share

- 2025-05: AUD 7.43 per share

- 2025-06: AUD 7.61 per share

- 2025-07: AUD 7.54 per share

- 2025-08: AUD 9.21 per share

- 2025-09: AUD 9.18 per share

- 2025-10: AUD 8.82 per share

- 2025-11: AUD 9.08 per share

- 2025-12: AUD 9.01 per share

- 2026-01: AUD 9.78 per share

- 2026-02: AUD 6.97 per share

- 2026-03: AUD 6.65 per share

- 2026-04: AUD 8.03 per share

- 2026-05: AUD 9.02 per share

- 2026-06: AUD 9.85 per share

- 2026-07: AUD 9.76 per share

- 2026-08: AUD 11.02 per share

- 2026-09: AUD 11.11 per share

- 2026-10: AUD 13.47 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 1.81 per share, central AUD 1.96 per share, high AUD 2.16 per share

- FY2018: low AUD 1.83 per share, central AUD 1.99 per share, high AUD 2.20 per share

- FY2019: low AUD 1.98 per share, central AUD 2.17 per share, high AUD 2.43 per share

- FY2020: low AUD 3.03 per share, central AUD 3.24 per share, high AUD 3.53 per share

- FY2021: low AUD 2.88 per share, central AUD 3.13 per share, high AUD 3.46 per share

- FY2022: low AUD 2.68 per share, central AUD 2.95 per share, high AUD 3.32 per share

- FY2023: low AUD 3.24 per share, central AUD 3.34 per share, high AUD 3.47 per share

- FY2024: low AUD 2.41 per share, central AUD 2.51 per share, high AUD 2.64 per share

- FY2025: low AUD 5.04 per share, central AUD 5.43 per share, high AUD 5.95 per share

- FY2026: low AUD 5.59 per share, central AUD 6.09 per share, high AUD 6.75 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:48:06.527Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.