MeritValue

Data Storage Corp

DTSTdata completeness 88%16 fiscal years on file
The thesis, from the filings

Data Storage Corp earns about -7% on invested capital, below its ~9% cost of capital, but has diluted owners by 15% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $0.54 and $14.53 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$14.9M1$23.9M2$25M3$1.22M4$1.38M4
Net income$267,8445−$4.36M6$381,5757$523,2147$19.2M8
Operating cash flow−$360,6909$663,80110$3.87M11$1.74M12−$3.16M12
Capital expenditure$455,83513$127,25714$1.55M15$2,14916$16,02416
Free cash flow (derived)−$816,5259$536,54410$2.33M11$1.74M12−$3.18M12
Total debt—————
Cash & equivalents$12.1M17$2.29M18$1.43M19$1.07M20$1.99M20
Diluted shares6.3M6.8M7.4M6.9M7.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$56.27
your share of equity
Profit it earned you last year
$26.42
Free cash flow it threw off
−$4.37
Debt you’d be carrying
—

10 shares is a claim on $56.27 of net worth that earned you $26.42 and generated −$4.37 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-7% avg · 5y
FY21 -0%FY22 -20%FY23 2%FY24 -10%FY25 -6%

It earned about -7% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+15% shares · 5y

Share count is up 15% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $0.54 and $14.53 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$14.53
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$1.74M
DCF · Growth Exit 5Y
$8.06
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$1.74M
Earnings Power Value
$0.54
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$381,575
  • growthAssumed0.0%
Graham Number
$18.28
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $8.06
The three cases
Bear0.0%$3.69
Base20.0%$8.06
Bull20.0%$8.06

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001731122-23-000536 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001731122-24-000526 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001731122-25-000484 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001731122-26-000564 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001731122-23-000536 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001731122-24-000526 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001731122-25-000484 (NetIncomeLoss)
  8. 10-K · period ending 2025-12-31 · accession 0001731122-26-000564 (ProfitLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001731122-23-000536 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001731122-24-000526 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001731122-25-000484 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001731122-26-000564 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001731122-23-000536 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001731122-24-000526 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001731122-25-000484 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001731122-26-000564 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001731122-23-000536 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001731122-24-000526 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001731122-25-000484 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001731122-26-000564 (CashAndCashEquivalentsAtCarryingValue)