Datasea Intelligent Technology Ltd. Class A Ordinary Shares (DTSS)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses whose assets produce durable earnings and whose price offers a margin of safety. Datasea is a tiny acoustic-products company with a $10.3 million market cap and a $0.58 close on 2026-10-13. FairStock calculates P/B at 0.96, so the price is near book value. That can attract a Graham-style investor, but book value only matters if the assets earn. Here they do not: FairStock shows P/E -2.62, ROE -41.57%, and ROCE -13.02%. The latest filed quarter, fiscal Q4 2025, had $13.0 million of revenue and a net loss of $538,759, a -4.15% margin. The company also burns cash: trailing free cash flow is -$2.2 million, and FairStock's FCF yield is -21.5%. Financial quality is poor, with a Piotroski F-Score of 3/9 and an Altman Z-Score of -5.11. The supplied revenue growth is -36.47% (period not specified in the data), so the top line is shrinking; the supplied profit growth is 52.59%, but that is not enough to create owner earnings. The Lynch category is none because there are only zero years of filed results and three are needed, so there is no proven record. With 42 employees and a microcap balance sheet, I see no clear moat. At 0.96 times book, it looks statistically cheap, but negative returns and cash burn can erode that book value. I would need evidence of stable positive cash flow before trusting the discount.

In plain English: Datasea sells acoustic products and services, including air purification and sleep and head-care devices. It is losing money, sales have been shrinking, and it uses more cash than it brings in, so the business looks weak. At $0.58, the price is close to the value of its net assets on the books, but without profits or positive cash flow, it does not look clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer