DatatecDTTLF 64 Net Margin % is 2.27% as of Feb. 2026, which is 141% above its 10-year median of 0.94. GuruFocus rates DTTLF with a GF Score™ of 64/100 and a GF Value™ of $2.09 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,825 Software companies, Datatec ranks worse than 50.19% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Datatec's Net Income for the
six
months ended in Feb. 2026 was $42 Mil. Datatec's Revenue for the
six
months ended in Feb. 2026 was $1,834 Mil. Therefore, Datatec's net margin for the quarter that ended in Feb. 2026 was 2.27%.
The historical rank and industry rank for Datatec's Net Margin % or its related term are showing as below:
DTTLF'
s Net Margin % Range Over the Past 10 Years
Min: 0.06 Med: 0.94 Max: 2.51
Current: 2.51
DTTLF's Net Margin % is ranked worse than 50.19% of 2825
companies
in the Software industry
Industry Median: 2.54
vs DTTLF: 2.51
Datatec (OTCPK:DTTLF) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Datatec Net Margin % Related Terms
Datatec Net Margin % Historical Data
* Premium members only.
The historical data trend for Datatec's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Datatec's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Datatec Net Margin % vs Software Industry
For the Software industry and Technology sector, Datatec's Net Margin % distribution charts can be found below:
* The bar in red indicates where Datatec's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Datatec (DTTLF) has a Net Margin % of 2.27% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on Datatec and its competitors. This is 141% above median its historical median of 0.94. Over the past decade, Datatec's Net Margin % has ranged from 0.06 to 2.51. According to the industry distribution chart, Datatec ranks #1418 out of 2825 companies in the Software industry, placing it in the top 50.2%.
Is Datatec's Net Margin % too high?
Datatec's current Net Margin % of 2.27% is 141% above median its 10-year median of 0.94. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 2.51. The Software industry median Net Margin % is 2.54. Datatec's value of 2.27% is 10.6% below this industry median. Based on the distribution chart, Datatec ranks #1418 out of 2825 companies in the Software industry, which is below the industry midpoint. Overall, Datatec has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Datatec's Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Datatec ranks #1418 out of 2825 companies for Net Margin %. This places Datatec in the lower half of its industry. The industry median Net Margin % is 2.54. Datatec's value of 2.27% is 10.6% below this benchmark. Historically, Datatec's own Net Margin % has ranged from 0.06 to 2.51 over the past decade. While the company's 10-year median is 0.94 vs. the industry median of 2.54, Datatec has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Datatec's current Net Margin % of 2.27% is 10.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Datatec and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Datatec's current Net Margin % is 2.27%, which is 141% above median its own 10-year median of 0.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Datatec stock overvalued right now?
Based on GuruFocus' analysis, Datatec (DTTLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.09, compared to a current price of $5.58 — trading 167% above its estimated fair value. The current Net Margin % is 2.27%, which is 141% above median its 10-year median of 0.94 and 10.6% below the Software industry median of 2.54. Datatec's overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Datatec (DTTLF), the current Net Margin % is 2.27% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Datatec (DTTLF) Overvalued in 2026?
Based on GuruFocus' analysis, Datatec stock appears to be overvalued.
The current stock price of $5.58 is trading 167% above its estimated GF Value™ of $2.09.
GuruFocus considers Datatec to be Significantly Overvalued.
Key valuation signals for DTTLF:
Net Margin %: 2.27% (141% above median its 10-year median of 0.94)
GF Value™: $2.09 vs. price of $5.58 (167% above fair value)
Industry Position: 10.6% below the Software median (#1418 of 2825)
No single metric tells the full story. See the DTTLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Datatec Ltd is an international ICT solutions and services group operating in more than 50 countries across North America, Latin America, Europe, Africa, the Middle East, and Asia-Pacific. The Group's service offering spans the technology distribution and integration sectors of the ICT market. Its principal activities include Westcon International, which generates the majority of revenue and operates as a value-added technology distributor of cyber security, network infrastructure, unified collaboration products, data centre solutions, channel support services, and financing and leasing solutions for ICT customers, and Logicalis International and Logicalis Latin America, which provide digital services. The Company generates the majority of its revenue from Europe.
64GF Score
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