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]
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]
These are the D/E ratios:
2026 - 1.46
2025 - 1.46
2024 - 1.48
2023 - 1.25
2022 - 1.35
3. Return on Equity (ROE)
4. Dividends
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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ROIC Vs WACC
Dicker Data Limited (ASX:DDR) consistently maintains a Return on Invested Capital (ROIC) well above its Weighted Average Cost of Capital (WACC), historically indicating strong, sustained economic value creation. Current estimates place its ROIC around 18.09% against a WACC of roughly 6.84% to 8.95%. [1, 2, 3]
Capital Efficiency Trends
- ROIC Range: Typically tracks between 15% and 25% annually, driven by efficient execution in the IT hardware and software master distribution space. [1, 2]
- WACC Range: Generally hovers between 7% and 9%, reflecting a conservative capital structure with a low weighting of debt. [1, 2]
- Value Spread: The positive spread (ROIC > WACC) has persisted across the past decade, underscoring a durable economic moat rooted in scale and deep vendor relationships. [1]
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Dicker Data Limited's (ASX:DDR) trailing twelve months (TTM) EBITDA margin sits at 6.06%, reflecting its historically stable range of 5.5% to 6.5% over the past 10 years. As a high-volume IT hardware and software distributor, its low single-digit percentage margins are typical for the wholesale distribution industry. [1, 2, 3, 4]
Strategic Breakdown & Trend Analysis
- Consistent Operating Structure: The underlying business model relies on low gross margins (historically 9%–10%) optimized by very lean operating expenses, keeping the EBITDA percentage highly compressed but consistent. [1, 2]
- Recent Margin Compression: Over the last two financial years, a strategic shift toward large-scale, lower-margin enterprise infrastructure and AI data center contracts has placed minor downward pressure on the EBITDA percentage. [1, 2]
- Operating Leverage Stability: While the percentage margin remains narrow, absolute EBITDA has scaled consistently—growing from $150.4 million to over $159.4 million—as a direct result of aggressive revenue scaling
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