📊 DTSTW Key Takeaways
Is Data Storage Corp (DTSTW) a Good Investment?
Data Storage Corp exhibits severe operational distress with negative operating income of -$2.8M on minimal revenue of $1.1M, creating an unsustainable business model. The extraordinarily high net margin of 1519.7% and net income of $16.1M on negligible revenue suggests non-operating gains (likely one-time items or accounting anomalies) masking fundamental operational failure. Negative operating cash flow of -$556K and negative free cash flow indicate the company is burning cash operationally despite appearing profitable on paper.
Data Storage Corp shows a strong balance sheet with high liquidity, no long-term debt, and solid reported equity levels, but core operating fundamentals are weak. Revenue growth is modest, operating margin is deeply negative, and free cash flow is negative, while net income appears heavily supported by non-operating items rather than recurring business performance. Until operating losses narrow and cash generation improves, the fundamental profile looks low quality.
Why Buy Data Storage Corp Stock? DTSTW Key Strengths
- Strong balance sheet with $39.5M equity and minimal debt ($0)
- Excellent liquidity position with 5.64x current ratio and $284.7K cash reserves
- Zero long-term debt provides financial flexibility
- Strong liquidity with current and quick ratios above 5x
- Debt-free balance sheet reduces financial risk
- Healthy gross margin indicates the business can generate value before overhead and other operating costs
DTSTW Stock Risks: Data Storage Corp Investment Risks
- Massive operating loss of -$2.8M on $1.1M revenue indicates broken core business model
- Negative operating cash flow (-$556K) and negative free cash flow (-$556K) show unsustainable operations
- Abnormal net income of $16.1M on minimal revenue suggests one-time gains masking operational collapse; net margin of 1519.7% is not economically sustainable
- Negative interest coverage ratio of -1376.5x confirms inability to service any debt from operations
- Anemic revenue growth of only 1.6% YoY insufficient to support operations or justify equity value
- 21 insider Form 4 filings in 90 days suggests potential distress or significant organizational changes
- Operating losses are extremely large relative to revenue, pointing to poor cost absorption
- Net income quality looks weak because profits diverge sharply from operating income and cash flow
- Low cash balance combined with negative operating cash flow could pressure flexibility if losses persist
Key Metrics to Watch
- Operating cash flow trend - critical indicator of business viability
- Operating margin improvement - must return to positive territory
- Revenue growth acceleration - current 1.6% is insufficient
- Source and sustainability of reported net income - verify non-operating items
- Cash burn rate and runway - cash reserves may deplete rapidly
- Insider transaction patterns - continued selling would indicate loss of confidence
- Operating income and operating cash flow for evidence of sustainable earnings improvement
- Revenue growth relative to selling, general, and administrative expense to assess operating leverage
Data Storage Corp (DTSTW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.64x current ratio provides a solid financial cushion.
DTSTW Profit Margin, ROE & Profitability Analysis
DTSTW vs Technology Sector: How Data Storage Corp Compares
How Data Storage Corp compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Data Storage Corp Stock Overvalued? DTSTW Valuation Analysis 2026
Based on fundamental analysis, Data Storage Corp appears fundamentally strong relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Data Storage Corp Balance Sheet: DTSTW Debt, Cash & Liquidity
DTSTW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Data Storage Corp's revenue has declined by 91% over the 5-year period, indicating business contraction. The most recent EPS of $0.08 reflects profitable operations.
DTSTW Revenue Growth, EPS Growth & YoY Performance
DTSTW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $325.3K | $123.5K | $0.02 |
| Q2 2025 | $4.9M | $99.3K | $0.02 |
| Q1 2025 | $8.1M | $24.1K | $0.05 |
| Q3 2024 | $5.8M | $122.4K | $0.02 |
| Q2 2024 | $4.9M | $112.9K | $0.02 |
| Q1 2024 | $6.9M | $50.7K | $0.01 |
| Q3 2023 | $4.4M | $179.0K | $0.02 |
| Q2 2023 | $4.8M | $226.8K | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Data Storage Corp Dividends, Buybacks & Capital Allocation
DTSTW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Data Storage Corp (CIK: 0001419951)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DTSTW
What is the AI rating for DTSTW?
Data Storage Corp (DTSTW) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DTSTW's key strengths?
Claude: Strong balance sheet with $39.5M equity and minimal debt ($0). Excellent liquidity position with 5.64x current ratio and $284.7K cash reserves. ChatGPT: Strong liquidity with current and quick ratios above 5x. Debt-free balance sheet reduces financial risk.
What are the risks of investing in DTSTW?
Claude: Massive operating loss of -$2.8M on $1.1M revenue indicates broken core business model. Negative operating cash flow (-$556K) and negative free cash flow (-$556K) show unsustainable operations. ChatGPT: Operating losses are extremely large relative to revenue, pointing to poor cost absorption. Net income quality looks weak because profits diverge sharply from operating income and cash flow.
What is DTSTW's revenue and growth?
Data Storage Corp reported revenue of $1.1M.
Does DTSTW pay dividends?
Data Storage Corp does not currently pay dividends.
Where can I find DTSTW SEC filings?
Official SEC filings for Data Storage Corp (CIK: 0001419951) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DTSTW's EPS?
Data Storage Corp has a diluted EPS of $2.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DTSTW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Data Storage Corp has a SELL rating with 86% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DTSTW stock overvalued or undervalued?
Valuation metrics for DTSTW: ROE of 40.7% (sector avg: 22%), net margin of 1,519.7% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy DTSTW stock in 2026?
Our dual AI analysis gives Data Storage Corp a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DTSTW's free cash flow?
Data Storage Corp's operating cash flow is $-555.8K, with capital expenditures of $128.0. FCF margin is -52.6%.
How does DTSTW compare to other Technology stocks?
Vs Technology sector averages: Net margin 1,519.7% (avg: 18%), ROE 40.7% (avg: 22%), current ratio 5.64 (avg: 2.5).
Why is DTSTW's return on equity (ROE) so high?
Data Storage Corp has a return on equity of 40.7%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 1,519.7% net margin.