Data I/O (DAIO) AI Stock Analysis

• Market Cap: $29.94M
• Dividend Yield: N/A
• Average Volume (3M): 33.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -18.88%
• EPS Growth: -534.79%
• Country: US
• Employees: 88
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.08
• Shares Outstanding: 9,239,731
• 10 Day Avg. Volume: 23,588
• 30 Day Avg. Volume: 33,748
• PEG Ratio: -0.73
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.72
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 1.74
• Enterprise Value/Ebitda: -5.39
• 1Y Price Target: $3.00
• Price Target Upside: -12.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: $3.50 ▲(2.04%Upside)

Data I/O's overall stock score reflects a mix of financial difficulties and technical strengths. The company's technical indicators are currently strong, suggesting positive market momentum. However, financial performance issues such as declining profitability and liquidity concerns weigh heavily. Positive earnings call guidance provides some optimism, though external economic pressures remain a risk.

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 primarily through the sale of its programming systems and related software solutions. The company's flagship products include automated programming systems and manual programmers, which are sold to original equipment manufacturers (OEMs), electronics manufacturing services (EMS) providers, and contract manufacturers worldwide. Additionally, Data I/O offers a range of value-added services, including system integration, technical support, and maintenance contracts, which contribute to its revenue streams. Partnerships with semiconductor manufacturers and technology providers enhance the functionality and compatibility of its products, further driving demand. Data I/O's focus on innovation and addressing the evolving needs of the electronics industry positions it to capitalize on growth opportunities in sectors such as automotive, IoT, and industrial automation.

Data I/O Financial Statement Overview

Summary

Data I/O faces significant challenges across its financial statements, including declining revenues and profitability, diminishing equity, and potential liquidity constraints. While the company maintains a low level of debt, the overall financial performance raises concerns about operational sustainability.

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
EBITDA	-2.47M	1.06M	-189.00K	394.00K	-1.32M
Net Income	-3.09M	486.00K	-1.12M	-555.00K	-3.96M
Balance Sheet
Total Assets	24.97M	27.40M	27.16M	29.06M	25.59M
Cash, Cash Equivalents and Short-Term Investments	10.33M	12.34M	11.51M	14.19M	14.17M
Total Debt	2.16M	1.50M	2.30M	2.28M	588.00K
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: 3.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3.43 is above the 20-day moving average (MA) of 3.15, above the 50-day MA of 2.90, and above the 200-day MA of 2.69, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 73.98 is Negative, neither overbought nor oversold. The STOCH value of 83.76 is Negative, 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
MIND	67 Neutral	$62.56M	39.93	12.53%	―	22.59%	―
LGL	64 Neutral	$40.58M	101.07	1.04%	―	28.82%	60.24%
Sector *	63 Neutral	$34.70B	4.89	-11.39%	1.66%	5.53%	-19.00%
CPSH	61 Neutral	$37.04M	―	-18.07%	―	-13.83%	-476.23%
DAIO	58 Neutral	$29.94M	―	-14.35%	―	-18.88%	-534.79%
REFR	51 Neutral	$60.65M	―	-37.98%	―	62.28%	44.68%
NSYS	48 Neutral	$24.05M	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.