Daktronics (DAKT) AI Stock Analysis

• Market Cap: $989.15M
• Dividend Yield: N/A
• Average Volume (3M): 666.84K
• Price to Earnings (P/E): 93.6
• Beta (1Y): 1.54
• Revenue Growth: -6.13%
• EPS Growth: -76.92%
• Country: US
• Employees: 2,520
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.09
• Shares Outstanding: 48,298,110
• 10 Day Avg. Volume: 783,228
• 30 Day Avg. Volume: 666,839
• PEG Ratio: 0.47
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 7.72
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: 16.47
• 1Y Price Target: $33.00
• Price Target Upside: 61.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.07
• Revenue Forecast (FY): $843.71M

• Rating: 68 Neutral
• Price Target: $22.00 ▲(7.42% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is supported primarily by improving fundamentals and strong current cash generation alongside an upbeat earnings call with strong order/backlog momentum and positive FY26 finish guidance. Offsetting these positives are a stretched valuation (very high P/E) and a mixed near-term technical picture, plus margin headwinds from tariffs and a backlog mix weighted to lower-margin Live Events work.

Positive Factors

Strong cash generation

Sustained, sizable operating and free cash flow provides durable internal funding for capex, R&D, share repurchases and working-capital swings. Robust FCF growth increases financial flexibility to invest in product roadmap and weather cyclical project timing over the next several quarters.

Large, growing backlog and order momentum

A sizable, expanding backlog and multi-quarter order run-rate give revenue visibility and manufacturing cadence. This reduces near-term top-line volatility, supports capacity planning and helps convert booked work into revenue across Q4 and into early FY27, underpinning stable operations.

Strategic MicroLED and tech investments

Owning mass-transfer and MicroLED fabrication tech strengthens product differentiation in narrow-pixel displays. This capability addresses a growing addressable market and supports higher-margin, specialized offerings over time, improving competitive positioning and product pipeline durability.

Negative Factors

Backlog mix weighted to lower-margin Live Events

A sizable portion of backlog is engineered Live Events work with higher indirect installation and fixed-cost absorption, which compresses gross margins as it converts. Persisting mix risk undermines margin sustainability and could limit operating-leverage benefits over coming quarters.

Tariff expense and uncertainty

Material tariff charges create cost volatility and unpredictability in gross margins and cash flow. Ongoing uncertainty about potential refunds complicates forecasting and could force price or margin adjustments, reducing the predictability of multi-quarter profitability trends.

Executive transition and HR turnover

Leadership changes and executive departures introduce execution risk during integration of acquisitions and new product rollouts. Transition-related distraction or differing strategic priorities may slow implementation of margin improvements and product commercialization over the medium term.

Daktronics Business Overview & Revenue Model

Company Description

Daktronics, Inc. designs, manufactures, markets, and sells electronic display systems and related products worldwide. It operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company offers video display systems, such as displays to show various levels of video, graphics, and animation; indoor and outdoor light emitting diodes (LED) video displays, including centerhung, landmark, ribbon board, and corporate office entrance displays, as well as video walls and hanging banners; mobile and modular display systems; architectural lighting and display products; indoor and outdoor scoreboards for various sports, digit displays, scoring and timing controllers, statistics software, and other related products; and timing systems for sports events primarily aquatics and track competitions, as well as swimming touchpads, race start systems, and relay take-off platforms. It also provides control components for video displays in live event applications; message displays; ITS dynamic message signs, including LED displays for road management; mass transit displays; and sound systems for indoor and outdoor sports venues. In addition, the company offers out-of-home advertising displays comprising digital billboards and street furniture displays; DataTime product line that consists of outdoor time and temperature displays; and Fuelight digit displays designed for the petroleum industry. Further, it provides ADFLOW DMS systems that include indoor networked solutions for retailers, convenience stores, and other businesses; and Venus Control Suite, Show Control, Vanguard, and others, as well as maintenance and professional services related to its products. The company sells its products through direct sales and resellers. Daktronics, Inc. was founded in 1968 and is headquartered in Brookings, South Dakota.

How the Company Makes Money

Daktronics primarily makes money by selling and installing electronic display systems (notably LED video displays and scoreboards) and by providing related services and control/software that enable customers to operate those systems. Key revenue streams include: - Display and scoreboard system sales: Revenue is generated from designing and manufacturing LED video displays, scoreboards, digital billboards, and messaging displays, typically sold as project-based systems to venues and organizations (e.g., stadiums/arenas, schools, advertisers, and transportation/public-infrastructure customers). These projects often include hardware (displays and structural components) plus system integration. - Installation and project services: Many deployments require on-site installation, integration, and commissioning; Daktronics earns service revenue from these project activities that accompany hardware sales. - Software, control systems, and content management: The company sells controllers and software used to schedule, manage, and deliver content to displays (including game-day production/control workflows for sports and content management for signage), which can contribute as part of system sales and, where applicable, ongoing software-related revenue. Specific breakdown between one-time licenses vs. recurring subscriptions is null. - Maintenance, repair, and after-sales support: Daktronics provides parts, repairs, and service agreements to keep displays operational over their life cycles. These services can provide recurring revenue tied to the installed base. - Upgrades and replacements: As display technology advances or as venues refresh infrastructure, Daktronics can earn additional revenue from retrofits, module replacements, and system upgrades. Other factors that can contribute to earnings: - Long customer relationships and installed base: Large venues, school districts, and billboard operators often buy multiple systems over time and require ongoing service, which can support repeat business. - Financing, advertising/revenue-sharing, or media-rights style arrangements: Whether Daktronics materially participates in such arrangements for earnings is null.

Daktronics Financial Statement Overview

Summary

Financials are improving but not fully consistent: TTM profitability has recovered (net margin ~3.4%) and top-line growth is modest (~4.2%), supported by conservative leverage (debt-to-equity ~0.11) and improving ROE (~9.6% TTM). Cash generation is a key strength with strong TTM operating cash flow (~$77.2M) and free cash flow (~$62.0M) plus strong FCF growth (~43%), though margins and earnings have been volatile across recent periods.

Income Statement

TTM (Trailing-Twelve-Months) shows a return to solid profitability (net profit margin ~3.4%) and modest top-line growth (~4.2%). Gross margin has been fairly steady in the mid‑20% range across recent periods, but operating profitability has been volatile: EBIT margin was strong in FY2024 (~10.6%), fell sharply into a loss in FY2025, then recovered to ~3.9% TTM. Overall, the earnings recovery is a positive, but consistency remains a key watch item.

Balance Sheet

Leverage looks conservative with low debt relative to equity (debt-to-equity ~0.11 TTM), which supports financial flexibility. Return on equity improved meaningfully to ~9.6% TTM after a negative FY2025, highlighting improving profitability. A limitation in the data is that total assets are not available for TTM, but the overall picture is a relatively strong balance sheet with low leverage and improving returns, tempered by recent profitability swings.

Cash Flow

Cash generation is strong: TTM operating cash flow (~$77.2M) and free cash flow (~$62.0M) are both healthy, with free cash flow growth ~43% TTM. Free cash flow is well-supported by earnings (free cash flow is ~0.80x net income TTM), and the company has shown the ability to generate cash even through uneven earnings periods (e.g., strong cash flow in FY2025 despite a net loss). The main risk is variability—earlier periods included negative free cash flow (FY2022–FY2023), indicating cash conversion can swing.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	802.65M	756.48M	818.08M	754.20M	610.97M	482.03M
Gross Profit	213.67M	195.49M	222.44M	151.35M	116.70M	120.58M
EBITDA	52.90M	13.70M	104.86M	42.96M	16.50M	34.19M
Net Income	27.54M	-10.12M	34.62M	6.80M	592.00K	10.93M
Balance Sheet
Total Assets	546.38M	502.89M	527.88M	468.10M	440.88M	375.16M
Cash, Cash Equivalents and Short-Term Investments	144.42M	127.51M	81.30M	24.52M	21.16M	77.59M
Total Debt	17.28M	16.80M	56.65M	17.75M	2.31M	1.88M
Total Liabilities	252.64M	230.96M	289.09M	267.23M	249.31M	181.61M
Stockholders Equity	293.74M	271.93M	238.79M	200.88M	191.56M	193.55M
Cash Flow
Free Cash Flow	61.98M	78.22M	46.26M	-10.36M	-47.41M	58.32M
Operating Cash Flow	77.20M	97.71M	63.24M	15.02M	-27.04M	66.21M
Investing Cash Flow	-20.95M	-23.78M	-21.31M	-25.39M	-31.38M	-10.22M
Financing Cash Flow	-44.04M	-27.45M	15.12M	17.57M	-3.58M	-15.59M

Daktronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAKT, the sentiment is Negative. The current price of 20.48 is below the 20-day moving average (MA) of 23.70, below the 50-day MA of 23.40, and above the 200-day MA of 19.34, indicating a neutral trend. The MACD of -1.18 indicates Positive momentum. The RSI at 32.48 is Neutral, neither overbought nor oversold. The STOCH value of 15.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAKT.

Daktronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYTS	70 Outperform	$608.97M	22.22	10.90%	1.07%	22.35%	2.59%
DAKT	68 Neutral	$989.15M	93.63	9.64%	―	-6.13%	-76.92%
CTS	68 Neutral	$1.35B	19.37	11.94%	0.36%	3.70%	1.68%
ROG	68 Neutral	$1.83B	-27.26	-5.07%	―	-4.87%	-235.48%
ALNT	64 Neutral	$1.04B	40.66	7.61%	0.22%	-2.88%	26.14%
BHE	62 Neutral	$2.00B	61.39	2.25%	1.44%	-2.93%	-40.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Daktronics Corporate Events

Daktronics Refines Executive Transition Agreement with Former CEO

On February 16, 2026, Daktronics’ board approved an Amended and Restated Termination Agreement and General Release of Claims with former Interim President and CEO Bradley T. Wiemann, effective February 1, 2026, formalizing his transition to Executive Vice President – Advisor to the CEO through no later than September 5, 2026. The revised agreement clarifies his at‑will advisory role, provides for accelerated vesting and cash settlement of prior restricted stock units with a minimum transition payment of $300,000, and sets detailed conditions for potential retirement or termination that govern COBRA premium reimbursements and accelerated vesting of remaining equity, while confirming he will not receive future bonuses, new equity awards, or other severance beyond the specified terms, thereby tightening the company’s executive compensation obligations during this leadership transition.

Under the amended terms, Wiemann may retire after March 15, 2026 with 30 days’ notice, and depending on the timing and cause of his departure, he could receive 12 to 18 months of COBRA-related benefits and accelerated vesting of unvested stock options and restricted stock units. All other key elements of his compensation under the original August 1, 2025 agreement, including base salary and standard employee benefits, remain in place, signaling that Daktronics is managing leadership change with defined and contained financial commitments, which may provide clarity and predictability for shareholders and other stakeholders regarding executive transition costs.

The most recent analyst rating on (DAKT) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Daktronics stock, see the DAKT Stock Forecast page.

Daktronics Appoints New CEO Amid Leadership Transition

Daktronics has initiated a leadership and board transition centered on the appointment of Ramesh Jayaraman as President and Chief Executive Officer and as a member of the Board of Directors, effective February 1, 2026, for a term running until the 2027 annual meeting of stockholders. On January 29–30, 2026, the company’s board also formalized related governance moves: interim CEO Bradley T. Wiemann will step down from his interim role on February 1, 2026 but remain as an advisor to support Jayaraman’s onboarding for a transition period to be finalized later, while former CEO Reece A. Kurtenbach resigned from the board effective February 1, 2026 in accordance with a prior separation agreement; Kurtenbach’s consulting arrangement, initially set to end January 31, 2026, was extended on January 30, 2026 through May 2, 2026 to maintain continuity, with no change to the total number of directors and no indication of disputes related to his departure.

The most recent analyst rating on (DAKT) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Daktronics stock, see the DAKT Stock Forecast page.

Daktronics Announces Executive HR Leadership Transition Agreement

On January 20, 2026, Daktronics’ board approved a Separation and Release Agreement under which Carla S. Gatzke will step down as Corporate Secretary and Vice President of Human Resources effective January 31, 2026, receiving severance pay, accelerated vesting of unvested stock options and time-based restricted stock units, prorated eligibility for certain performance share units, and up to 12 months of COBRA-related reimbursement, all in line with the company’s existing post-termination compensation plan for executive officers. The board also authorized a Consulting Agreement under which Gatzke will serve as a consultant to the CEO from January 31, 2026 through April 30, 2026 for a monthly fee of $30,000 to support the transition of human resources, corporate secretarial, and community relations matters, with both agreements subject to restrictive covenants on confidentiality, non-competition, non-disparagement, and non-solicitation, signaling a managed leadership transition in key administrative functions.

The most recent analyst rating on (DAKT) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Daktronics stock, see the DAKT Stock Forecast page.

Daktronics Expands MicroLED Capabilities With Strategic Acquisition

On December 22, 2025, Daktronics acquired from X Display Company Technology Limited substantially all assets of its display business, including intellectual property, equipment, technical expertise and related contract rights, while assuming certain liabilities and cancelling a portion of debt owed under promissory notes; concurrently, X-Celeprint Limited acquired XDC’s machine business. Daktronics hired 15 key XDC employees and now owns proprietary mass-transfer and MicroLED fabrication technologies within the display field of use, strengthening its capabilities in MicroLED and MicroIC development for ultra-fine pixel pitch video walls and medium-sized commercial displays. Management characterizes the deal as a strategic step in its product innovation strategy aimed at differentiating Daktronics across its business segments and enhancing its competitive position in the fast-growing narrow pixel pitch display market, which industry research estimates could reach $12 billion by 2029.

The most recent analyst rating on (DAKT) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Daktronics stock, see the DAKT Stock Forecast page.