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Daktronics (DAKT)
NASDAQ:DAKT
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Daktronics
(NASDAQ:DAKT)
59Neutral
Daktronics (DAKT) vs. S&P 500 (SPY)
Market Cap
$642.63M
Dividend YieldN/A
Average Volume (3M)589.03K
Price to Earnings (P/E)32.0
Beta (1Y)1.38
Revenue Growth-1.51%
EPS Growth-96.07%
CountryUS
Employees2,520
SectorTechnology
Sector Strength42
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.19
Shares Outstanding49,893,290
10 Day Avg. Volume589,979
30 Day Avg. Volume589,027
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.78
Price to Cash Flow (P/CF)13.00
P/FCF Ratio13.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.00Price Target Upside81.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Daktronics Business Overview & Revenue Model
Company DescriptionDaktronics, Inc. is a leading American company specializing in designing and manufacturing electronic scoreboards, large-format LED video displays, message displays, and related products. Founded in 1968 and headquartered in Brookings, South Dakota, the company serves various sectors, including sports, transportation, and commercial markets, providing custom and standard display solutions to enhance communication and fan engagement.
How the Company Makes MoneyDaktronics generates revenue primarily through the sale of its electronic display products and related services. The company's key revenue streams include the design, manufacture, and installation of digital display systems for sports venues, commercial businesses, and transportation agencies. Additionally, Daktronics offers maintenance and support services, which provide a recurring revenue stream. The company also engages in partnerships and collaborations with sports franchises, advertising agencies, and commercial clients to expand its market reach and secure long-term contracts, contributing significantly to its earnings.
Daktronics Financial Statement Overview
Summary
Daktronics shows strong revenue growth with a 31% increase from 2022 to 2023 and a further 8.5% increase to 2024. Gross profit margin remains healthy at 25.9% TTM. However, net profit margin has declined significantly to 0.23% TTM from 4.23% in 2024, indicating pressure on bottom-line profitability. EBIT and EBITDA margins are positive, reflecting operational efficiency, though EBIT margin has decreased in the TTM period. The balance sheet remains strong with low leverage, and cash flows are robust, enhancing liquidity, though historical volatility in free cash flow growth poses a risk.Income Statement
Daktronics shows strong revenue growth with a 31% increase from 2022 to 2023 and a further 8.5% increase to 2024. Gross profit margin remains healthy at 25.9% TTM. However, net profit margin has declined significantly to 0.23% TTM from 4.23% in 2024, indicating pressure on bottom-line profitability. EBIT and EBITDA margins are positive, reflecting operational efficiency, though EBIT margin has decreased in the TTM period.72
Positive
Balance Sheet
The company maintains a strong equity position with a debt-to-equity ratio of 0.12 TTM, suggesting low leverage. Stockholders' equity has grown, enhancing financial stability. However, the equity ratio cannot be assessed due to missing total assets data for TTM, limiting a full analysis of asset financing.68
Positive
Cash Flow
Operating cash flow has improved significantly, with a robust cash flow to net income ratio of 46.27 TTM, indicating strong cash generation capability. Free cash flow is positive and shows significant growth, contributing to liquidity and financial flexibility. However, historical volatility in free cash flow growth indicates potential fluctuations in future cash generation.75
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 799.81M | 818.08M | 754.20M | 610.97M | 482.03M | 608.93M | Gross Profit |
| 207.72M | 222.44M | 151.35M | 116.70M | 120.58M | 138.70M | EBIT |
| 54.28M | 87.11M | 30.54M | 4.05M | 17.11M | 97.00K | EBITDA |
| 67.45M | 104.86M | 42.96M | 19.44M | 34.19M | -167.00K | Net Income Common Stockholders |
| 1.82M | 34.62M | 6.80M | 592.00K | 10.93M | 491.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 65.19M | 81.30M | 24.52M | 21.16M | 77.59M | 41.63M | Total Assets |
| 309.62M | 527.88M | 468.10M | 440.88M | 375.16M | 372.65M | Total Debt |
| 19.30M | 56.65M | 17.75M | 2.31M | 1.88M | 2.42M | Net Debt |
| -45.89M | -24.65M | -6.23M | -14.83M | -75.71M | -37.98M | Total Liabilities |
| 114.76M | 289.09M | 267.23M | 249.31M | 181.61M | 195.67M | Stockholders Equity |
| 194.86M | 238.79M | 200.88M | 191.56M | 193.55M | 176.98M |
| Cash Flow | Free Cash Flow | ||||
| 66.27M | 46.26M | -10.36M | -47.41M | 58.32M | -7.28M | Operating Cash Flow |
| 84.29M | 63.24M | 15.02M | -27.04M | 66.21M | 10.81M | Investing Cash Flow |
| -22.03M | -21.31M | -25.39M | -31.38M | -10.22M | -4.27M | Financing Cash Flow |
| -7.16M | 15.12M | 17.57M | -3.58M | -15.59M | -1.98M |
Daktronics Technical Analysis
Negative
13.25
Price Trends
14.55
Negative
15.50
Negative
14.50
Negative
Market Momentum
-0.60
Negative
45.21
Neutral
39.22
Neutral
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 13.25 is above the 20-day moving average (MA) of 12.55, below the 50-day MA of 14.55, and below the 200-day MA of 14.50, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 39.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAKT.
Daktronics Risk Analysis
Daktronics disclosed 40 risk factors in its most recent earnings report. Daktronics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Daktronics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.72B | 13.23 | 13.99% | ― | -5.01% | 24.50% | |
73 Outperform | $6.59B | 29.87 | 14.46% | 1.19% | 12.36% | 9.70% | |
71 Outperform | $17.83B | 23.15 | 25.26% | 1.53% | 4.76% | 2.27% | |
66 Neutral | $8.15B | 19.38 | 18.94% | 0.23% | -0.80% | 17.61% | |
66 Neutral | $631.55M | 11.46 | 5.92% | ― | 28.76% | -9.56% | |
59 Neutral | $642.63M | 32.01 | 0.72% | ― | -1.51% | -96.07% | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% |
* Technology Sector Average
Performance Comparison
DAKT
Daktronics
13.25
3.21
31.97%
AYI
Acuity Brands
266.40
2.48
0.94%
AMRC
Ameresco
11.23
-11.56
-50.72%
ROCK
Gibraltar Industries
53.51
-24.01
-30.97%
HUBB
Hubbell B
341.62
-65.74
-16.14%
OLED
Universal Display
138.90
-22.24
-13.80%
Daktronics Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -7.54% | Next Earnings Date: Jun 4, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed view. While there are significant initiatives underway for digital transformation and operational efficiency, and optimism about long-term growth, the company faces challenges with declining orders, decreased sales volume, and an operating loss. The highlights and lowlights are balanced, with notable achievements mitigated by current operational challenges.Highlights
Sequential Order Growth
The company reported sequential order growth in the third quarter, with significant order increases in the commercial segment and a rebound in international markets.
Major NFL Stadium Project
The company secured a major project for a new NFL stadium, which is expected to convert to revenue in late fiscal 2026 and into fiscal 2027.
Optimism in End Markets
Despite macroeconomic uncertainties, the company remains optimistic about long-term demand in its end markets, driven by digital display growth and strategic initiatives.
Digital Transformation and Operational Efficiency
The company is making strides in digital transformation, aiming for 10% to 12% operating margins and 17% to 20% return on capital by fiscal 2028, with cost savings and efficiency plans underway.
Stable Gross Profit Margin
Gross profit margin was maintained at 24.6% despite a 12% decrease in sales volume, indicating effective cost management.
Lowlights
Decline in Orders
Orders for the third quarter of fiscal 2025 decreased by 2.7% compared to the third quarter of fiscal 2024, primarily due to reduced orders in live events, high school park and recreation, and transportation business units.
Sales Volume Decrease
Net sales for the third quarter decreased by 12.2% compared to the third quarter of fiscal 2024, driven by lower volumes in live events.
Operating Loss
The company reported an operating loss of 2.4% of sales in Q3, impacted by lower gross margin dollars and additional costs for business transformation and corporate governance.
Delayed Project Bookings
There are delays in U.S.-based project bookings, likely due to recent government actions, impacting near-term timing of expected orders, especially in the transportation business.
Company Guidance
During the third quarter fiscal year 2025 earnings call, Daktronics provided guidance indicating a focus on strategic transformation and growth. The company reported a 12.2% decrease in net sales compared to the same quarter in fiscal 2024, while maintaining a steady gross profit margin of 24.6% despite the sales decline. Orders decreased by 2.7% year-over-year, with a backlog of $273 million. Daktronics aims to achieve a return on invested capital (ROIC) of 17% to 20% and operating margins of 10% to 12% by fiscal 2028. The company is investing in digital transformation initiatives and expects $18 million in cost savings by 2028. Daktronics also highlighted strong quoting activity in their international segment and a growing shift towards digital displays in the high school market. The company plans to invest approximately $40 million annually in product development to support long-term profitable growth.Daktronics Corporate Events
Stock Buyback
Daktronics Expands Stock Buyback Program by $10 Million
Neutral
Mar 13, 2025
On March 4, 2025, Daktronics, Inc. announced that its Board of Directors authorized an additional $10 million for its stock buyback program, bringing the total available for repurchase to approximately $20 million. The company plans to repurchase shares through various transactions, with the timing and volume dependent on market conditions and other factors, though no specific number of shares is guaranteed to be repurchased.
Executive/Board ChangesLegal ProceedingsBusiness Operations and Strategy
Daktronics and Alta Fox Capital Sign Cooperation Agreement
Positive
Mar 3, 2025
On March 3, 2025, Daktronics entered into a Cooperation Agreement with its largest shareholder, Alta Fox Capital Management. As part of the agreement, Daktronics will appoint Peter Feigin, recommended by Alta Fox, to its Board of Directors and the Transformation Committee. Alta Fox agreed to withdraw litigation against Daktronics and support its reincorporation to Delaware. The agreement includes standstill restrictions and voting commitments through the 2027 annual meeting of shareholders. Additionally, Daktronics will host an Investor Day in 2025 to discuss its strategy and financial outlook.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.