DST
TechnologyValuation Breakdown
Technology companies combine high growth potential with the risk of overvaluation. This model blends DCF (60% weight, capturing long-duration growth) with a P/E sanity check (40% weight, capping speculative excess). The DCF uses the slowest growth decay (0.05) recognizing that tech companies can sustain competitive advantages longer. The P/E component applies a dynamic ceiling: max P/E = min(growth% x 1.5, 30), preventing runaway valuations.
Valuation Track Record
Retroactive intrinsic value vs actual close price — DST
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2024
DST exhibits a Beneish M-Score of -2.7545, indicating a low likelihood of earnings manipulation. However, the elevated GMI of 2.2590 and low equity margin raise concerns about earnings quality and potential revenue recognition issues.
- GMI of 2.2590 suggests potential issues with gross margin, indicating possible revenue manipulation or declining profitability.
- Equity margin score of 0.0/100 indicates a significant risk in the company's ability to maintain profitability.
- Earnings Quality Score of 67.0/100, with perfect scores in cash conversion and receivables, indicates strong cash flow management.
- Low DSRI of 0.0146 suggests that inventory levels are well managed relative to sales, reducing the risk of overproduction.
The ownership structure is fragmented, with no single shareholder holding a significant stake, which may dilute accountability and oversight. However, the presence of individual shareholders may provide some level of engagement.
Investors should closely monitor DST's earnings quality metrics and consider a deeper analysis of revenue recognition practices. Maintaining a cautious approach is advisable given the mixed signals from the financial metrics.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for DST — hover nodes for intel, click to navigate