Data Storage Corporation Common Stock (DTST)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

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

I approach this as a Graham-and-Buffett exercise: seek a durable business at a sensible price, and insist on financial strength. Data Storage Corporation is a tiny technology services firm with 7 employees, selling cloud voice, data transport, internet access, and SD-WAN. The market cap is only $7.6 million at the close on 2026-10-13, and FairStock calculates price-to-book at 0.74, so Mr. Market is pricing it below accounting book. But the filings show a fragile operation. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $358,530 and net income was -$1.2 million, for a -341.82% margin. In fiscal Q1 2026, ended 2026-03-31, revenue was $346,707 and net income was -$619,267. Those losses matter, especially with trailing free cash flow of -$5.1 million and a -67.1% FCF yield, both FairStock calculations. The Piotroski F-Score of 2/9 screams weak. There is a strange history: FY2023 revenue was $25.0 million, but FY2024 revenue was only $1.2 million and FY2025 revenue was $1.4 million, though FY2025 net income was $19.2 million and diluted EPS was $2.64, as filed. The Lynch category is TURNAROUND because it returned to profit after a loss within three years. Yet the current quarters are again losing money, and the Altman Z-Score of 4.95 is the lone reassuring calculation. Without a moat, consistent profits, or positive cash flow, the low price alone is not enough. I would need evidence the FY2025 profit is repeatable and the cash burn has stopped.

In plain English: Data Storage Corporation sells cloud phone, internet, and network services to businesses. The business looks weak right now because it lost money in the latest quarter and is using cash, even though revenue was a little higher than a year earlier. The stock price is low compared with the value of its assets on paper, but because the company is losing money and cash is shrinking, it does not look like a clear bargain.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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