DDR - Dicker Data

 DDR - Dicker Data

14-07-26

Official Reports: Access full historical earnings files on the Dicker Data Annual Reports page

Buy around $8 

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They are one of two distributors of NVIDA chips in Australia. (Multimedia technology is the other one)

ASX:DDR (Dicker Data Limited) has demonstrated strong and consistent profitability, though its debt has increased significantly over the last 5 years as it funded strategic acquisitions. It maintains a stellar Return on Equity (ROE) above \(33\%\) and is renowned for its generous—albeit high-payout—dividend policies. [1, 2, 3, 4]

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Key Financial Metrics (5-Year Overview)

1. Profitability & Revenue

• Net Income: Grew from \(\$57.2M\) five years ago to \(\$85.6M\) for the full year 2025.
• Revenue: Expanded to \(\$2.57B\) in 2025, driven by enterprise deals, AI infrastructure, and cloud software solutions.
• Margins: Dicker Data consistently operates with thin but stable profit margins; Net profit margin has hovered between \(3.3\%\) and \(3.7\%\) recently. [1, 2, 3, 4, 5]

2. Debt & Financial Health

• Debt Load: The company's total debt has increased notably as it funded strategic expansions (such as the Exeed Group and Hills IT acquisitions). Debt-to-equity ratios have risen over the period, with net debt sitting at roughly $359M to $369M.    The debt is actually working capital. They give credit to small businesses .[1, 2, 3]
• Coverage: Despite the heavy debt load, the balance sheet remains sound. Operations and EBIT well-cover both the cash outflows and interest payments. [1, 2]

3. Return on Equity (ROE)

• Efficiency: The company is highly efficient with shareholder funds. It boasts a trailing twelve-month (TTM) ROE of approximately \(33.78\%\). Management heavily leverages debt to secure these impressive returns. [1, 2]

4. Dividends

• Payout Ratio: Dicker Data operates with a high dividend payout ratio (routinely between \(90\%\) and \(100\%\)), and a trailing dividend yield consistently hovering around \(3.5\%\) to \(5\%\). [1, 2, 3, 4, 5]

Analyst & Tracker References

Detailed financial reports, balance sheets, and executive summaries tracking their 5-year trajectory can be evaluated via: [1]

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