The Data#3 Limited (ASX: DTL) share price hit a record high this afternoon despite the company providing no update to the market since last February.
Data#3 provides IT services such as cloud, consulting, security or contracting work and is benefiting from the growing demand small to medium-sized enterprises have for computing and online technologies.
For the six-month period ending December 31 2016 it posted a net profit of $5.7 million on revenues of $506 million, with a slender gross profit margin of 14.6%. The company paid 3.35 cents per share in dividends for the period on 3.7 cents in earnings per share and forecast that the full year financials should deliver solid earnings growth.
At this afternoon’s record high price of $1.90 the stock changes hands for 25x annualised earnings with an attractive trailing 4.9% dividend yield plus the tax effective benefits of full franking credits.
Another company benefiting from the growing demand for IT capabilities is hardware distributor Dicker Data Ltd (ASX: DDR), although IT demand is not necessarily a tide that lifts all boats as demonstrated by the struggles of IT consulting group Bulletproof Group Ltd (ASX: BPF).
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