Data I/O (DAIO) AI Stock Analysis

• Market Cap: $28.26M
• Dividend Yield: N/A
• Average Volume (3M): 28.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -3.22%
• EPS Growth: -102.88%
• Country: US
• Employees: 88
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.15
• Shares Outstanding: 9,387,663
• 10 Day Avg. Volume: 25,124
• 30 Day Avg. Volume: 28,890
• PEG Ratio: 0.01
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 1.16
• P/FCF Ratio: -17.34
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: -6.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $2.50 ▼(-8.09% Downside)

Data I/O's overall stock score is primarily impacted by its challenging financial performance and bearish technical indicators. The company's negative earnings and lack of dividend yield further weigh on its valuation. While strategic initiatives and new product developments offer potential, they are overshadowed by current financial struggles.

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 generates revenue through the sale of its programming systems and software solutions, which are typically sold as capital equipment to manufacturers in various sectors. The company also earns revenue from recurring software maintenance contracts and support services that ensure the ongoing functionality of its systems. Additionally, Data I/O benefits from partnerships with major semiconductor manufacturers, which enhance its market reach and provide integrated solutions that appeal to a wider customer base. The company may also generate income from licensing its technology and intellectual property to other firms in the semiconductor industry.

Data I/O Financial Statement Overview

Summary

Data I/O's financial performance is challenged by negative profitability and cash flow issues, despite some revenue growth. The balance sheet is stable with low leverage, but improvements in cost structure and cash flow generation are needed.

Income Statement

Data I/O's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 4.06%, indicating some recovery. However, profitability metrics are concerning, with negative net profit and EBIT margins, suggesting ongoing operational challenges. The gross profit margin remains relatively stable, but the company needs to address its cost structure to improve overall profitability.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is low at 0.10, indicating conservative leverage. However, the return on equity is negative, highlighting profitability issues. The equity ratio is strong, suggesting a solid asset base relative to liabilities, but the company must improve its earnings to enhance shareholder returns.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM period. Despite a positive free cash flow growth rate, the operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The company needs to focus on improving cash generation to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.70M	21.77M	28.06M	24.22M	25.84M	20.33M
Gross Profit	11.59M	11.61M	16.19M	13.21M	14.72M	10.82M
EBITDA	-3.29M	-2.47M	1.06M	-189.00K	394.00K	-1.32M
Net Income	-3.67M	-3.09M	486.00K	-1.12M	-555.00K	-3.96M
Balance Sheet
Total Assets	22.69M	24.97M	27.40M	27.16M	29.06M	25.59M
Cash, Cash Equivalents and Short-Term Investments	9.66M	10.33M	12.34M	11.51M	14.19M	14.17M
Total Debt	1.58M	2.80M	1.57M	2.30M	2.28M	588.00K
Total Liabilities	6.68M	7.34M	7.08M	8.06M	9.20M	5.95M
Stockholders Equity	16.01M	17.63M	20.32M	19.11M	19.85M	19.64M
Cash Flow
Free Cash Flow	-2.67M	-1.46M	1.23M	-2.13M	787.00K	-229.00K
Operating Cash Flow	-2.13M	-995.00K	2.43M	-1.05M	1.41M	631.00K
Investing Cash Flow	-540.00K	-467.00K	-1.20M	-1.08M	-623.00K	-860.00K
Financing Cash Flow	-123.00K	-232.00K	-356.00K	-165.00K	-423.00K	-144.00K

Data I/O Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAIO, the sentiment is Negative. The current price of 2.72 is below the 20-day moving average (MA) of 2.96, below the 50-day MA of 3.16, and below the 200-day MA of 2.88, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 26.56 is Positive, neither overbought nor oversold. The STOCH value of 2.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAIO.

Data I/O Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELSE	67 Neutral	$16.24M	37.47	2.81%	―	5.36%	-8.88%
LGL	64 Neutral	$32.06M	148.55	2.33%	―	14.07%	153.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NSYS	46 Neutral	$26.97M	-8.24	-7.61%	―	-13.94%	-157.49%
DAIO	42 Neutral	$28.26M	-7.61	-20.84%	―	-3.22%	-102.88%
WATT	40 Underperform	$12.92M	-0.24	-175.08%	―	599.15%	82.47%

Data I/O Corporate Events

Data I/O Earnings Call: Growth Amid Challenges

Data I/O Corporation’s recent earnings call conveyed a mixed sentiment, with a focus on strategic growth initiatives and new product developments poised to drive future growth and diversification. However, the company is currently grappling with global challenges and a decline in net sales, impacting its financial performance. While margins are showing improvement, operational losses remain a concern.

Data I/O Reports Q3 2025 Results and Strategic Progress

Data I/O Corporation is a leading global provider of data programming and security provisioning solutions for microcontrollers, security ICs, and memory devices, primarily serving the automotive electronics sector.