Data#3
Hi guys What’s your opinion of Data#3 as a part of your Active Growth or Active Income portfolios? Thanks, Roger
The Latest Q&A
Answer
Hi Roger,
We wrote about DTL in detail in mid-September and not a great deal has changed since with the stock drifting a few percent.
While DTL does currently pay a reasonable yield its forecast to remain sub-4% over the coming years hence we wouldn’t consider it for our Income Portfolio when we consider the growth/high valuation and subsequent risks around of this software and infrastructure products reseller:
- DTL’s earnings profile in FY25 looks at risk as government’s look to improve efficiencies led by QLD e.g. ~20% of their revenue comes from the QLD Govt. alone before we consider the other states.
We think DTL is ok value around $7.50, on 24.5x for FY25 but its not exciting.
