Data I/O (DAIO) AI Stock Analysis

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Data I/O

(NASDAQ:DAIO)

47Neutral

Data I/O's stock score is impacted by significant financial challenges, including declining revenues, reduced profitability, and potential liquidity issues. Technical analysis indicates a bearish trend, and valuation metrics suggest the stock may be overvalued. Although the earnings call revealed some positive initiatives, such as growth in Asia and operational improvements, these are insufficient to offset the overall financial declines.

Data I/O (DAIO) vs. S&P 500 (SPY)

Market Cap

$21.25M

Dividend YieldN/A

Average Volume (3M)24.70K

Price to Earnings (P/E)―

Beta (1Y)0.77

Revenue Growth-18.88%

EPS Growth-534.79%

CountryUS

Employees88

SectorTechnology

Sector Strength63

IndustryHardware, Equipment & Parts

Share Statistics

EPS (TTM)-0.29

Shares Outstanding9,239,731

10 Day Avg. Volume41,397

30 Day Avg. Volume24,703

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.98

Price to Cash Flow (P/CF)6.90

P/FCF Ratio8.00

Enterprise Value/Market Cap0.85

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit1.56

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Data I/O Business Overview & Revenue Model

Company DescriptionData I/O Corporation (DAIO) is a leading provider in the programmable device solutions sector. The company specializes in designing, developing, and selling programming systems used by electronics manufacturers to program integrated circuits and semiconductor devices. Data I/O's products and services cater to a range of industries, including automotive, consumer electronics, and industrial electronics, offering solutions that enhance efficiency, flexibility, and security in the programming process.

How the Company Makes MoneyData I/O Corporation generates revenue primarily through the sale of its programming systems and associated software solutions. The company offers both capital equipment sales and recurring revenue from software and service contracts. Key revenue streams include the sale of automated programming systems, manual programming systems, and software updates and support services. Partnerships with semiconductor manufacturers and electronics contract manufacturers also play a significant role in driving sales, providing Data I/O with access to a broader customer base and new market opportunities. Additionally, the company may generate income through licensing agreements and custom programming solutions tailored to specific customer requirements.

Data I/O Financial Statement Overview

Summary

Data I/O's financial performance is weak, with declining revenues, negative profitability, and potential liquidity issues. The income statement shows a significant decline in revenue and profit margins. The balance sheet reflects moderate stability with low debt but diminishing equity. Cash flow concerns are highlighted by the absence of operating and free cash flows in 2024.

Income Statement

Neutral

Data I/O's income statement reveals significant challenges, with a declining revenue trend and negative profitability metrics. The gross profit margin has decreased from 57.7% in 2023 to 53.3% in 2024. The net profit margin has also worsened from 1.7% in 2023 to -14.2% in 2024. Additionally, EBIT and EBITDA margins are negative, indicating operational inefficiencies. The revenue growth rate is also negative, showing a decline of 22.4% from 2023 to 2024, further highlighting the company's struggles in generating sales and managing costs efficiently.

Balance Sheet

Neutral

The balance sheet of Data I/O indicates moderate financial stability. The debt-to-equity ratio is low at 0.12, suggesting conservative leverage. However, the return on equity (ROE) is negative at -17.5%, reflecting poor profitability relative to equity base. The equity ratio stands at 70.6%, which is strong and indicates a solid equity foundation. Despite these strengths, the declining stockholders' equity from $20.3 million in 2023 to $17.6 million in 2024 is a concern.

Cash Flow

Negative

Data I/O's cash flow statement is concerning due to the absence of operating, investing, and free cash flows in 2024. The operating cash flow to net income ratio was not calculable due to zero operating cash flow, and the free cash flow to net income ratio is also zero. The company showed a drastic reduction in free cash flow from $1.23 million in 2023 to zero in 2024, indicating potential liquidity issues.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
21.77M	28.06M	24.22M	25.84M	20.33M
	Gross Profit
11.61M	16.19M	13.21M	14.72M	10.82M
	EBIT
-3.04M	448.00K	-749.00K	-273.00K	-2.43M
	EBITDA
-2.44M	1.06M	-189.00K	394.00K	-1.32M
	Net Income Common Stockholders
-3.09M	486.00K	-1.12M	-555.00K	-3.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.33M	12.34M	11.51M	14.19M	14.17M
	Total Assets
24.97M	27.40M	27.16M	29.06M	25.59M
	Total Debt
2.16M	1.50M	2.30M	2.28M	588.00K
	Net Debt
-8.17M	-10.84M	-9.21M	-11.91M	-13.58M
	Total Liabilities
7.34M	7.08M	8.06M	9.20M	5.95M
	Stockholders Equity
17.63M	20.32M	19.11M	19.85M	19.64M
Cash Flow		Free Cash Flow
0.00	1.23M	-2.13M	787.00K	-229.00K
	Operating Cash Flow
0.00	2.43M	-1.05M	1.41M	631.00K
	Investing Cash Flow
0.00	-1.20M	-1.08M	-623.00K	-860.00K
	Financing Cash Flow
0.00	-356.00K	-165.00K	-423.00K	-144.00K

Data I/O Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price2.30

Price Trends

50DMA

2.47

Negative

100DMA

2.67

Negative

200DMA

2.61

Negative

Market Momentum

MACD

-0.11

Negative

RSI

53.23

Neutral

STOCH

67.20

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAIO, the sentiment is Neutral. The current price of 2.3 is above the 20-day moving average (MA) of 2.20, below the 50-day MA of 2.47, and below the 200-day MA of 2.61, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 53.23 is Neutral, neither overbought nor oversold. The STOCH value of 67.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DAIO.

Data I/O Risk Analysis

Data I/O disclosed 21 risk factors in its most recent earnings report. Data I/O reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Data I/O Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MIND	68 Neutral	$52.04M	20.20	20.31%	―	18.08%	―
LGL	64 Neutral	$36.15M	84.74	1.11%	―	28.82%	60.24%
Sector *	59 Neutral	$10.73B	10.11	-6.65%	3.02%	7.41%	-11.17%
CPSH	52 Neutral	$22.08M	―	-19.70%	―	-23.33%	-328.22%
DAIO	47 Neutral	$21.25M	―	-14.35%	―	-18.88%	-534.79%
NSYS	47 Neutral	$23.33M	6.41	-3.73%	―	-8.04%	-118.60%
REFR	33 Underperform	$35.52M	―	-42.84%	―	46.83%	31.40%

* Technology Sector Average

Performance Comparison

DAIO

Data I/O

2.30

-0.71

-23.59%

LGL

LGL Group

6.73

1.12

19.96%

MIND

MIND Technology

6.53

1.80

38.05%

NSYS

Nortech Systems

8.45

-9.46

-52.82%

REFR

Research Frontiers

1.06

-0.52

-32.91%

CPSH

CPS Technologies

1.52

-0.28

-15.56%

Data I/O Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: 9.00%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Neutral

Data I/O's Q1 2025 earnings call highlighted significant revenue growth and operating expense reductions, indicating a positive shift from previous trends. However, challenges remain with a notable decline in Asian revenue and reduced bookings due to economic uncertainties driven by tariffs and trade issues. While improvements were seen in the Americas and Europe, the overall sentiment is cautious given the external pressures.

Q1-2025 Updates

Positive Updates

Revenue Growth

Data I/O reported revenue of $6.2 million for Q1 2025, a 19% increase over the previous quarter and a slight increase from $6.1 million in Q1 2024.

Strong Performance in Americas and Europe

Revenue in the Americas and Europe grew by 32% and 44% respectively compared to the prior period.

Trade Show Success

The company reported its best trade show performance at APEX since 2013 with qualified leads up 39% and new contacts up 18% compared to 2024.

Operating Expense Reduction

Operating expenses decreased by $427,000 or 11% from Q4 2024 and by $515,000 or 12% from the prior year period.

Improved Net Loss

Net loss reduced to $382,000 in Q1 2025, compared to a loss of $1.2 million in Q4 2024 and $807,000 in the prior year period.

Stable Cash Position

Data I/O ended Q1 with $10.5 million in cash, up $159,000 from the end of 2024, and continues to have no debt.

Negative Updates

Decline in Asia Revenue

Revenue in Asia declined by 40% due to strong prior year performance and current quarter business push-out from evolving trade tariffs and economic uncertainties.

Decrease in New Bookings

First quarter 2025 bookings were $4.6 million, down from $8 million in Q1 2024 due to a large contract in the prior year.

Impact of Tariffs and Trade Uncertainty

Economic headwinds created by tariffs and trade uncertainties have impacted business performance, particularly in Asia.

Cautious Outlook

Company remains cautious for Q2 due to ongoing economic, trade, and tariff concerns.

Company Guidance

In the Data I/O Corporation's First Quarter 2025 Financial Results Conference Call, the company provided guidance indicating a 19% increase in revenue to $6.2 million compared to the previous quarter, driven by recovery and backlog deliveries in the Americas and Europe, with growth from the prior period of 32% and 44%, respectively. Bookings increased by 11% to $4.6 million from the fourth quarter of 2024 but were down from $8 million in the first quarter of 2024 due to a significant contract from the previous year. Gross margins were reported at 52%, with operating expenses reduced by 11% from the prior quarter. The company ended the quarter with $10.5 million in cash, maintaining a strong financial position with no debt. Despite challenges from tariffs and trade uncertainties, the company is optimistic about growth, particularly in the automotive electronics sector, which comprised 66% of first-quarter bookings, and is focusing on strategic investments and partnerships in the semiconductor industry.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.