Data I/O (DAIO) AI Stock Analysis

• Market Cap: $22.82M
• Dividend Yield: N/A
• Average Volume (3M): 32.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -18.88%
• EPS Growth: -534.79%
• Country: US
• Employees: 88
• Sector: Technology
• Sector Strength: 76
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.04
• Shares Outstanding: 9,239,731
• 10 Day Avg. Volume: 33,361
• 30 Day Avg. Volume: 32,375
• PEG Ratio: -0.58
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.67
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: -3.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $2.50 ▲( 0.00% Upside)

Data I/O's overall stock score is impacted by significant financial challenges, particularly in profitability and cash flow, despite some positive technical signals and recent revenue growth. The valuation remains a concern with negative profitability metrics and no dividend yield. Earnings call insights were mixed, showing growth in certain regions but highlighting risks in others. Corporate events provided a positive outlook on leadership's strategic direction, yet the overall environment remains cautious.

Data I/O Business Overview & Revenue Model

Company Description

Data I/O Corporation engages in the design, manufacture, and sale of programming and security deployment systems and services for electronic device manufacturers in the United States, Europe, and internationally. The company's programming system products are used to program integrated circuits (ICs) with the specific data necessary for the ICs. It offers PSV handlers offline automated programming systems; SentriX, a security deployment system; RoadRunner and RoadRunner3 series handlers, an in-line automated programming systems; LumenX Programmer; and non-automated FlashPAK III programming systems. The company also provides hardware support, system installation and repair, and device programming services. It markets and sells its products to original equipment manufacturers in automotive and consumer electronics, Internet of Things and their programming center partners, and electronic manufacturing service contract manufacturers through direct sales, and indirect sales representatives and distributors. Data I/O Corporation was incorporated in 1969 and is headquartered in Redmond, Washington.

How the Company Makes Money

Data 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 faces significant challenges across its financial statements. The income statement shows declining revenues and profitability, the balance sheet reveals diminishing equity, and the cash flow statement indicates potential liquidity constraints. While the company maintains a low level of debt, the declining financial performance raises concerns about its ability to sustain operations and grow in the competitive Hardware & Equipment industry.

Income Statement

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
-2.47M	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
-1.46M	1.23M	-2.13M	787.00K	-229.00K
	Operating Cash Flow
-995.00K	2.43M	-1.05M	1.41M	631.00K
	Investing Cash Flow
-467.00K	-1.20M	-1.08M	-623.00K	-860.00K
	Financing Cash Flow
-232.00K	-356.00K	-165.00K	-423.00K	-144.00K

Data I/O Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAIO, the sentiment is Positive. The current price of 2.5 is above the 20-day moving average (MA) of 2.40, above the 50-day MA of 2.34, and below the 200-day MA of 2.58, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 41.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAIO.

Data I/O Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPSH	71 Outperform	$30.80M	―	-18.07%	―	-13.83%	-476.23%
MIND	71 Outperform	$52.20M	19.89	20.31%	―	18.08%	―
LGL	64 Neutral	$36.65M	87.79	1.04%	―	28.82%	60.24%
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%
REFR	57 Neutral	$53.61M	―	-37.98%	―	62.28%	44.68%
DAIO	52 Neutral	$22.82M	―	-14.35%	―	-18.88%	-534.79%
NSYS	47 Neutral	$24.97M	6.41	-9.81%	―	-12.87%	-148.14%

Data I/O Corporate Events

Data I/O Shareholders Approve Key Proposals at Meeting

On May 15, 2025, Data I/O Corporation held its Annual Meeting of Shareholders at its headquarters in Redmond, Washington. During the meeting, shareholders elected five directors, ratified the appointment of Grant Thornton LLP as independent auditors, and approved the compensation of the company’s executive officers. The meeting saw a quorum with 76.44% of shares represented, and all proposals received strong approval, indicating shareholder support for the company’s current leadership and strategic direction.