Dicker Data shares fall to a 7-month low. Is this a bargain buy?

Shares in Dicker Data Ltd (ASX: DDR) tumbled on Tuesday as geopolitical tensions rattled the broader market.

The Dicker Data share price closed down 6.98% to $9.19, marking its lowest level since August 2025. The sell-off comes amid a wider risk-off move across the ASX following escalating conflict in the Middle East.

But with the stock now well below its recent highs, the key question is whether this pullback has created value.

Let’s unpack.

A solid FY25 result

The weakness in the Dicker Data share price comes only days after the company released its full-year results last Thursday.

For FY25, Dicker Data reported statutory revenue of $2.57 billion, up 12.5% year-on-year. Gross revenue rose 14.9% to $3.88 billion, while EBITDA increased 5.9% to $159.4 million.

Net profit after tax (NPAT) came in at $85.6 million, up 8.8% on the prior year. Earnings per share (EPS)lifted 8.6% to 47.4 cents.

In Australia, gross revenue climbed 17.2% to $3.28 billion, supported by strength in software and end point solutions. New Zealand revenue was more modest, up 3.6% to $581.2 million, though profit before tax in that segment jumped 37.2%.

The company declared a final dividend of 11.5 cents per share, bringing fully franked dividends for FY25 to 44 cents. Management also confirmed a revised payout range of 80% to 100% of NPAT.

What do the technical indicators show?

Technically, momentum has weakened in recent sessions.

At $9.19, the shares are trading below the lower Bollinger Band on the daily chart, which indicates short-term oversold conditions. The 14-day relative strength index (RSI) is sitting around 33, just above traditional oversold territory of 30.

Immediate support appears near the $9 mark, which previously acted as a base in mid-2025. A clear break below that level could see the share price drift into the high $8 range.

On the upside, resistance may now sit between $10 and $10.30, an area that has capped rallies in recent months.

Overall, momentum remains negative, but the stock is nearing levels where buyers have previously stepped in.

Is this a bargain buy?

Fundamentally, Dicker Data is still leveraged to ongoing growth in data centres, cyber security, and AI infrastructure. Management recently pointed to increasing exposure to AI solutions, including partnerships with Dell Technologies and Equinix.

Gartner expects Australian IT spending to reach $172.3 billion in 2026, up 8.9% year-on-year. If that forecast proves accurate, Dicker Data should be well placed as a major distributor across software, infrastructure, and end point hardware.

That said, the business operates on relatively tight margins and remains exposed to swings in IT spending and inventory cycles.

Even so, at a 7-month low, the share price may look more attractive to those confident in continued IT and AI growth.

The post Dicker Data shares fall to a 7-month low. Is this a bargain buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.