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 ▼(-15.82% 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.

Positive Factors

Strategic Expansion

Expanding into new markets can diversify revenue streams and reduce reliance on the automotive sector, enhancing long-term growth potential.

Improved Gross Margins

Improved gross margins indicate better cost management and product mix, which can lead to enhanced profitability over time.

New Product Development

New product launches and innovations can drive future growth and market competitiveness, supporting long-term business sustainability.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in market demand or competitive positioning, impacting long-term financial health.

Operating Loss

Sustained operating losses can strain resources and hinder investment in growth initiatives, affecting long-term viability.

Cash Flow Challenges

Negative cash flows indicate difficulties in generating sufficient cash from operations, potentially limiting financial flexibility.

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 and production systems, which includes both hardware and software components. The company earns money from direct product sales, maintenance contracts, and software licensing fees. Key revenue streams are driven by the demand for automated programming solutions in various industries, particularly as the adoption of advanced electronics grows. Additionally, Data I/O benefits from long-term relationships with major semiconductor manufacturers and partners in the electronics supply chain, which contribute to its recurring revenue from service agreements and software updates. The company's ability to innovate and offer tailored solutions further enhances its market position and revenue potential.

Data I/O Financial Statement Overview

Summary

Data I/O is facing significant financial challenges, with declining revenues, negative profitability, and cash flow difficulties. The balance sheet shows low leverage, but negative return on equity and cash flow issues indicate operational inefficiencies and financial strain.

Income Statement

Data I/O's income statement reveals a challenging financial environment. The company has experienced declining revenue growth, with a negative growth rate of -13.2% in the TTM period. Profitability metrics are concerning, with negative net profit and EBIT margins, indicating operational inefficiencies. The gross profit margin remains relatively stable at around 52%, but the overall trajectory suggests financial strain.

Balance Sheet

The balance sheet shows moderate stability with a low debt-to-equity ratio of 0.14, suggesting manageable leverage. However, the return on equity is negative, reflecting losses and inefficient use of equity. The equity ratio is reasonable, indicating a solid asset base relative to equity, but the negative ROE highlights profitability challenges.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating and free cash flows. Despite a positive free cash flow growth rate, the operating cash flow to net income ratio is negative, highlighting cash generation issues. The free cash flow to net income ratio is above 1, suggesting cash flow is less negative than net income, but overall cash flow health is weak.

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	-1.61M
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	2.88M	1.26M
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	-2.32M	-1.46M	1.23M	-2.13M	787.00K	-229.00K
Operating Cash Flow	-1.78M	-995.00K	2.43M	-1.05M	1.41M	631.00K
Investing Cash Flow	-535.00K	-467.00K	-1.20M	-1.08M	-623.00K	-860.00K
Financing Cash Flow	-111.00K	-232.00K	-356.00K	-165.00K	-423.00K	-144.00K

Data I/O Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 2.97 is above the 20-day moving average (MA) of 2.77, below the 50-day MA of 2.99, and above the 200-day MA of 2.86, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 78.35 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
ELSE	67 Neutral	$16.24M	37.47	2.81%	―	5.36%	-8.88%
LGL	64 Neutral	$31.75M	35.09	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	41 Neutral	$13.22M	―	-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.