The Razor's Edge

2-Year Price History

Ockham's Rating

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DTSI Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at DTSI through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 7 years are 8.28x and 4.66x respectively.

Utilizing this range we can see that DTSI’s current Price to Sales per share ratio of 4.60x is significantly below its average levels historically. In fact, with a current price of $18.73, DTSI is a full 29% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for DTSI.

DTSI Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. DTSI is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 7 years of cash earnings levels for DTSI to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 49.95 and a 28.30 low over the same period.

Now that DTSI’s current price is $18.73 and its Price to Cash Earnings ratio is 20.36, we are very positive on its outlook from the cash earnings perspective. In fact, DTSI is now trading a full 48% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why DTSI has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.

DTSI Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely. DTSI is not paying a dividend at this time, nor do they have a history of paying a dividend for the last 10 years plus. Therefore, we are not utilizing the dividends portion in our study. If DTSI initiates paying a dividend, we will begin to factor this into the Ockham approach.