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ZYBERNO

Stock Report

Updated Sep 1, 2026

DATA STORAGE CORPORATION (DTST)

Technology • NASDAQ

$3.00

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

47.0/100

WEAK BUSINESS

DATA STORAGE CORPORATION (DTST) scores 47/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full DTST quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full DTST valuation analysis · → View full DTST Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):EXCELLENT (74.6%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.18x)

Operating Margin (Operational Efficiency):CRITICAL (-251.6%)

Return on Capital (Capital Efficiency):CRITICAL (-34.8%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

DATA STORAGE CORPORATION (DTST) stock report — Zyberno Score 47/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

Over the trailing twelve months, DTST generated -$4.06M in Owner Earnings. Capital was deployed as follows: $16.02K invested in capital expenditures. Reinvestment rate: -0.3%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:3.00

Market Cap:$6.73M

Valuation Multiples (4)

P/E Ratio:

1.55x

📊 Click to view full DTST P/E analysis →

P/B Ratio:0.67x

P/S Ratio:3.22x

Peg Ratio:-999.00x

Enterprise Metrics (1)

Enterprise Value:$7.96M

Price Action & Momentum (3)

12-1 Momentum:

-32.9% (38th pctile)

📈 Click to view full DTST Momentum analysis →

Momentum Percentile:38 / 100

% of 52-Week High:58.3%

B. Profitability Assessment

Return Metrics (5)

ROE:

74.6%

📊 Click to view full DTST ROE analysis →

ROA:66.1%

Roic:

-34.8%

📊 Click to view full DTST ROIC analysis →

Reinvestment Rate:-0.3%

Fundamental Growth Rate (g):0.1%

Margin Analysis (3)

Operating Margin Ttm:-251.6%

Net Margin Ttm:899.4%

Ebitda Margin:-173.3%

TTM Performance (3)

Gross Margin Ttm:46.4%

Operating Margin Ttm:-251.6%

Net Margin Ttm:899.4%

Yield Metrics (2)

Earnings Yield:$63.40

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-1.08

📊 Click to view full DTST Earnings Surprise analysis →

EPS Surprise vs Expected:-980.0%

Latest Earnings Filed:2026-08-14

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-47.5%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):100.0%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-13.6%

Operating Cash Flow Growth Rate (Linear):-17.1%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):81.7%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:10.69x

Quick Ratio:10.69x

Cash Ratio:0.26x

Leverage Analysis (3)

Debt To Equity Ttm:0.18x

Debt-to-Equity Ratio:0.18x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-30.88x

Times Interest Earned:-30.88

Capital Structure (4)

Working Capital:9,968,799.00

Cash And Cash Equivalents:270,691.00

Long Term Debt:$468.43K

Net Debt:$1.23M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $2.09M

Linear Growth: -47.5%

📊 Click to view full DTST Revenue analysis & methodology →

Cost Of Revenue Ttm:$1.12M

Profitability Breakdown (2)

Gross profit TTM: $968.82K

Linear Growth: -45.9%

📊 Click to view full DTST Gross Profit analysis & methodology →

Operating income TTM: -$5.25M

Linear Growth: 81.7%

📊 Click to view full DTST Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $18.78M

Linear Growth: 100.0%

📊 Click to view full DTST Net Income analysis & methodology →

Income Before Tax:-$4.31M

Ebitda Ttm:-3,619,770.00

Operating Expenses (5)

Operating Expenses:11,223,204.00

R And D Expense:0.00

Sga Expense:7,110,690.00

Income Tax Expense:-$1.34M

Interest Expense:115,733.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:1,983.3%

Ebitda Margin:-173.3%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$11.13M

Current Assets:$11.00M

Ppe Net:15,432.00

Goodwill:4,238,671.00

Intangible Assets:$1.29M

Liability Structure (4)

Total Liabilities:1,029,023.00

Current Liabilities:1,029,023.00

Long Term Debt:$468.43K

Short Term Debt:$1.03M

Equity & Capital (3)

Equity:$10.10M

Retained Earnings:-$1.63M

Common Stock:250,000,000.00

Working Capital Items (3)

Accounts Receivable:45,929.00

Inventory:0.00

Accounts Payable:736,516.00

Special Items (2)

Contract Liabilities:227,204.00

Stock Based Compensation:561,408.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: -$3.84M

Linear Growth: -17.1%

Free cash flow TTM: -$3.86M

Linear Growth: -13.6%

📊 Click to view full DTST Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:$29.43M

Capital Expenditures Ttm:16,024.00

Financing Activities (3)

Financing Cash Flow:-$29.53M

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:1,633,920.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):1.94

Eps diluted TTM: $1.94

Linear Growth: 100.0%

📊 Click to view full DTST EPS analysis & methodology →

Earnings Per Share Ttm:$8.37

Revenue & Cash Per Share (2)

Sales Per Share Ttm:0.93

Operating Cash Flow Per Share:-$1.41

Book Value & Capital (2)

Book Value Per Share:$4.50

Cash Per Share:0.12

Dividend Policy (1)

Dividend Payout Ratio:0.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.07x

Working Capital Turnover Ttm:0.21x

Receivables Management (2)

Receivables Turnover Ttm:45.47x

Days Sales Outstanding Ttm:8.03

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:240.17

Cash Conversion Cycle:-1,231.14

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:70.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$4.06M

Damodaran Growth Analysis (2)

Reinvestment Rate:-0.3%

Fundamental Growth Rate (g):0.1%

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-47.5%

Net Income Growth Rate (Linear):100.0%

Operating Income Growth Rate (Linear):81.7%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-13.6%

Operating Cash Flow Growth Rate (Linear):-17.1%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):-45.9%

Book Value Growth Rate (Linear):-3.2%

C. Company Profile & Context

Corporate Information (6)

Symbol:DTST

Company Name:DATA STORAGE CORPORATION

Sector:Technology

Industry:Data Services

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:2.24M

Shares Outstanding Basic:2.24M

Shares Outstanding Diluted:2.24M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-01 17:26:46 UTC

Data Timestamp:2026-08-22T00:13:11.865348