Daktronics (DAKT) AI Stock Analysis

• Market Cap: $784.83M
• Dividend Yield: N/A
• Average Volume (3M): 452.86K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.10
• Revenue Growth: -7.53%
• EPS Growth: -126.35%
• Country: US
• Employees: 2,520
• Sector: Technology
• Sector Strength: 94
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.18
• Shares Outstanding: 49,113,280
• 10 Day Avg. Volume: 345,229
• 30 Day Avg. Volume: 452,863
• PEG Ratio: 3.22
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.11
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 3.46
• Enterprise Value/Ebitda: 2.38
• 1Y Price Target: $22.00
• Price Target Upside: 36.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $16.50 ▲(2.23%Upside)

Daktronics' strong liquidity and balance sheet, coupled with promising earnings call insights and strategic corporate actions, support a relatively positive outlook. However, the negative P/E ratio and profitability concerns weigh down the score, reflecting challenges in current valuation and income generation potential.

Daktronics Business Overview & Revenue Model

Company Description

Daktronics, Inc. (NASDAQ: DAKT) is a leading designer and manufacturer of electronic scoreboards, programmable display systems, and large-screen video displays. Founded in 1968 and headquartered in Brookings, South Dakota, the company operates in the display technology sector, providing innovative display solutions for sports venues, commercial and transportation applications, and digital billboards. Daktronics is known for its high-quality products that enhance customer engagement and communication through dynamic and interactive visual displays.

How the Company Makes Money

Daktronics generates revenue primarily through the sale of its electronic display systems and related products. The company's key revenue streams include the design, manufacturing, and installation of custom display solutions for sports facilities, commercial businesses, and transportation systems. Additionally, Daktronics provides ongoing support services, including maintenance and content management, which contribute to its recurring revenue. The company also collaborates with partners and engages in direct sales to expand its market presence and drive sales. Significant factors contributing to Daktronics' earnings include its reputation for quality and innovation, a broad product portfolio, and strong customer relationships across various industries.

Daktronics Financial Statement Overview

Summary

Daktronics demonstrates strong liquidity and a solid balance sheet with low leverage. However, profitability is a concern with recent net losses and declining revenue. The company shows resilience in cash flow management, which could support future growth if profitability improves.

Income Statement

The company has shown fluctuating revenue growth with a recent decline in total revenue from $818 million to $756 million. Gross profit margin stands at 25.8%, which is decent but slightly declining. Net profit margin has turned negative, indicating profitability issues. The company needs to address this to improve future earnings.

Balance Sheet

Daktronics maintains a solid equity position with a debt-to-equity ratio of 0.07, highlighting low leverage. Return on equity is currently negative due to net losses, but equity ratio is strong at 54.1%, indicating financial stability. The balance sheet is robust, but profitability needs attention.

Cash Flow

The company has improved its free cash flow significantly, with a robust free cash flow of $78 million. Operating cash flow is strong relative to net income, providing a cushion despite recent losses. Cash reserves have increased, enhancing liquidity. Overall, cash flow management is a strong point.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	756.48M	818.08M	754.20M	610.97M	482.03M
Gross Profit	195.49M	222.44M	151.35M	116.70M	120.58M
EBITDA	13.70M	104.86M	42.96M	19.44M	34.19M
Net Income	-10.12M	34.62M	6.80M	592.00K	10.93M
Balance Sheet
Total Assets	502.89M	527.88M	468.10M	440.88M	375.16M
Cash, Cash Equivalents and Short-Term Investments	127.51M	81.30M	24.52M	21.16M	77.59M
Total Debt	18.83M	56.65M	17.75M	2.31M	1.88M
Total Liabilities	230.96M	289.09M	267.23M	249.31M	181.61M
Stockholders Equity	271.93M	238.79M	200.88M	191.56M	193.55M
Cash Flow
Free Cash Flow	78.22M	46.26M	-10.36M	-47.41M	58.32M
Operating Cash Flow	97.71M	63.24M	15.02M	-27.04M	66.21M
Investing Cash Flow	-23.78M	-21.31M	-25.39M	-31.38M	-10.22M
Financing Cash Flow	-27.45M	15.12M	17.57M	-3.58M	-15.59M

Daktronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAKT, the sentiment is Positive. The current price of 16.14 is above the 20-day moving average (MA) of 15.58, above the 50-day MA of 14.92, and above the 200-day MA of 14.70, indicating a bullish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 58.05 is Neutral, neither overbought nor oversold. The STOCH value of 42.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAKT.

Daktronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYTS	75 Outperform	$521.18M	24.31	10.42%	1.15%	17.89%	-23.37%
BELFA	73 Outperform	$1.23B	25.50	11.87%	0.27%	-6.15%	-42.24%
DAKT	69 Neutral	$784.83M	32.01	-3.96%	―	-7.53%	-126.35%
OUST	64 Neutral	$1.33B	―	-56.81%	―	28.04%	64.81%
Sector *	63 Neutral	$34.16B	5.47	-11.67%	1.85%	5.30%	-18.30%
FARO	61 Neutral	$848.01M	―	-0.34%	―	-4.76%	97.93%
MLAB	47 Neutral	$426.75M	―	-1.29%	0.83%	11.47%	99.25%

Daktronics Corporate Events

Daktronics Approves Executive Compensation and Share Buyback

On June 23, 2025, Daktronics‘ Board approved an executive compensation program for fiscal year 2026, aiming to recruit and retain high-performing executives and align their interests with company performance and stockholder value. The program includes annual and long-term incentive awards based on performance measures. Additionally, the Board authorized an additional $10 million for share repurchases under its stock repurchase program. Daktronics reported fiscal year 2025 results with an operating profit of $33 million and a net loss of $10.1 million, attributing the financial performance to business transformation efforts and market conditions. The company is focusing on a business transformation plan to enhance growth and profitability, with initiatives like product repricing and improved inventory efficiency. Despite uncertainties in the tariff environment, Daktronics is implementing measures to mitigate impacts and is optimistic about its market positioning and future growth prospects.

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

Daktronics Amends Credit Agreement with JPMorgan Chase

On June 10, 2025, Daktronics, Inc. entered into a Consent and Amendment No. 4 to its Credit Agreement, effective June 6, 2025, with JPMorgan Chase Bank and other parties. This amendment allows Daktronics to secure Letters of Credit with terms extending beyond the Credit Agreement’s maturity date of May 11, 2026, under specific conditions. The amendment also outlines financial obligations and maturity dates for the company’s repayment commitments, ensuring that funds are set aside to cover any unreimbursed amounts owed to lenders. As of the report date, Daktronics had no outstanding borrowings under the Credit Agreement, with approximately $3.4 million in outstanding Letters of Credit.

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