Daktronics (DAKT)
NASDAQ:DAKT
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Daktronics
(NASDAQ:DAKT)
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Rating:66Neutral
Price Target:
$22.00
▲(10.66% Upside)
Action:ReiteratedDate:04/10/26
The score is primarily supported by strong cash flow, low leverage, and improving (but still volatile) profitability. This is partly offset by weak-to-mixed technical momentum and an expensive valuation (high P/E, no dividend support), while the latest earnings commentary and strategy update add confidence in demand/backlog conversion but acknowledge near-term margin and tariff headwinds.
Positive Factors
Strong cash generation
Consistent, sizable operating cash flow and accelerating free cash flow provide durable internal funding for capex, product R&D, M&A, and share repurchases. Strong cash conversion (FCF ~0.8x net income TTM) supports weathering cyclical demand and sustaining strategic investments over months.
Negative Factors
Gross margin pressure and tariffs
A backlog mix skewed to engineered Live Events work plus identifiable tariff costs compress gross margins as orders are fulfilled. Since backlog conversion is the near-term revenue driver, margin headwinds are likely to persist across the conversion window and could limit operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, sizable operating cash flow and accelerating free cash flow provide durable internal funding for capex, product R&D, M&A, and share repurchases. Strong cash conversion (FCF ~0.8x net income TTM) supports weathering cyclical demand and sustaining strategic investments over months.
Read all positive factors
Daktronics (DAKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$961.13M
Dividend YieldN/A
Average Volume (3M)578.17K
Price to Earnings (P/E)93.6
Beta (1Y)1.50
Revenue Growth-6.13%
EPS Growth-76.92%
CountryUS
Employees2,520
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.09
Shares Outstanding48,298,110
10 Day Avg. Volume325,068
30 Day Avg. Volume578,172
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)2.22
Price to Sales (P/S)0.80
P/FCF Ratio7.72
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit3.94
Enterprise Value/Ebitda15.92
Forecast
1Y Price Target
$33.00Price Target Upside66.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.07
Revenue Forecast (FY)$837.58M
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. T...
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 ...
Daktronics Key Performance Indicators (KPIs)
Any
Net Sales By Segment
Reveals the revenue generated from different business segments, highlighting which areas are driving growth and where there may be challenges or opportunities for expansion.
Reveals the revenue generated from different business segments, highlighting which areas are driving growth and where there may be challenges or opportunities for expansion.
Data provided by:
The Fly
The FlyDaktronics Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line growth, a sizable and growing backlog, record gains in the Transportation segment, successful new product introductions, and improved adjusted profitability and cash position. Headwinds include tariff-related expenses (~$6M) and a sequential gross margin decline (27% to 24%) driven by a backlog mix concentrated in lower-margin Live Events, plus some international and Out-of-Home softness and one-time integration costs. On balance, the company's operational execution, backlog momentum, cash strength, and improving adjusted earnings outweigh the near-term margin pressures and tariff uncertainties.Positive Updates
Strong Revenue Growth
Revenue for Q3 FY2026 was $182,000,000, up 21.6% year over year, driven by efficient order conversion and manufacturing execution.
Negative Updates
Gross Margin Pressure and Sequential Decline
Gross profit margin was 24% in Q3 (essentially flat year over year) but declined sequentially from 27% to 24%, driven by fixed-cost dynamics and a revenue mix skewed to lower-margin Live Events fulfillment.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue for Q3 FY2026 was $182,000,000, up 21.6% year over year, driven by efficient order conversion and manufacturing execution.
Read all positive updates
Company Guidance
Management guided to a strong finish to fiscal 2026, driven by backlog conversion and continued order momentum: Q3 revenue was $182.0M (up 21.6% YoY) with orders running at or above $200M for the fifth straight quarter and new order growth of ~7.6–8%; product and services backlog stood at $342.0M, up 25% year-over-year, which the company expects to convert into revenue across Q4 and into early 2027. They reiterated sector strength (Live Events six-for-six MLB wins, Transportation orders up a record 130% YoY, high school orders +13.4% YoY) and the timing of recoveries (a Commercial key account delay expected to normalize in Q4), and noted margin drivers and headwinds: Q3 gross margin was 24% (down from 27% sequentially) with an incremental ~$6.0M of tariff expense; Q3 GAAP net income was $3.0M ($0.06/diluted) and adjusted net income was $4.6M after $1.6M of nonrecurring items, with pretax operating income of $1.9M versus a $3.6M operating loss a year ago. Balance-sheet and operational guidance included continued inventory discipline, cash of $144.0M (up 13% YoY), ongoing share repurchases (1.3M shares repurchased in the first nine months at a $17.60 VWAP; 3.36M total at $15.15 VWAP; ~$17.0M repurchase authorization remaining), a Mexico facility slated to be operational in Q1 FY‑27 (fully by Q2), and continued focus on SaaS, product launches, and productivity initiatives to drive sustainable margin improvement.Daktronics Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
| 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
Negative
19.88
Price Trends
22.92
Negative
21.30
Negative
19.84
Positive
Market Momentum
-0.75
Negative
42.16
Neutral
54.00
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 19.88 is below the 20-day moving average (MA) of 20.07, below the 50-day MA of 22.92, and above the 200-day MA of 19.84, indicating a neutral trend. The MACD of -0.75 indicates Negative momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 54.00 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 39 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.58B | 19.37 | 11.94% | 0.36% | 3.70% | 1.68% | |
68 Neutral | $593.71M | 22.22 | 10.90% | 1.07% | 22.35% | 2.59% | |
68 Neutral | $2.10B | -27.26 | -5.07% | ― | -4.87% | -235.48% | |
66 Neutral | $961.13M | 93.63 | 9.64% | ― | -6.13% | -76.92% | |
64 Neutral | $1.24B | 40.66 | 7.61% | 0.22% | -2.88% | 26.14% | |
62 Neutral | $2.25B | 63.85 | 2.25% | 1.44% | -2.93% | -40.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DAKT
Daktronics
19.88
7.53
60.97%
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70.24
49.11
232.40%
BHE
Benchmark Electronics
64.88
29.78
84.86%
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CTS
55.57
18.61
50.34%
LYTS
Lsi Industries
19.48
3.46
21.58%
ROG
Rogers
119.05
63.35
113.73%
Daktronics Corporate Events
Business Operations and Strategy
Daktronics Outlines Three-Year Growth and Efficiency Strategy
Positive
Apr 9, 2026
Daktronics held an Investor Day on April 9, 2026, where management outlined the company’s strategic focus on accelerating organic growth in core LED display markets, expanding into new high‑resolution indoor verticals, and boosting int...
Business Operations and StrategyExecutive/Board Changes
Daktronics Refines Executive Transition Agreement with Former CEO
Neutral
Feb 20, 2026
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/Board Changes
Daktronics Appoints New CEO Amid Leadership Transition
Neutral
Feb 2, 2026
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...
Executive/Board Changes
Daktronics Announces Executive HR Leadership Transition Agreement
Neutral
Jan 21, 2026
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, a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.