DTL had a long history of unspectacular but above average performance. Its in an industry with tailwinds and has consistently held a dominant position in Australia. Its not covered by many analysts but included in the ASX 300, so fits many criteria for my superfund; a consistent lower risk performer.

SP has been knocked down a fair bit recently, on no new commentry, other than recent chip supply issues. A few directors bought on market in Feb. 

Numbers:

See Edgescape's comprehensive DCF valuation

Forward PER of 27 - about right

PEG 1.3 - not spectacular

Dividend payout ratio 90% with yield of 3%, zero debt so sustainable. Dividends have broadly increased for 6 years

long history of increasing earnings per share (zero dilution over 10 years), ROE averaging >30% consistently for many years

Positives: apart from those above in intro, increasing revenue stream from cloud services should drive growth.

Negatives: low margin business, limited scope for significant increase in earnings, might be liable to disuption from newcomers, Supply chain issues may impact earnings for the medium term until chip manufacturing backlog has been overcome

Summary: if there are no surprises in report,  think this represents a good entry point for a quality low risk business