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Daktronics
(NASDAQ:DAKT)
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Rating:72Outperform
Price Target:
$24.00
▲(23.20% Upside)
Action:Reiterated
Date:07/18/26
DAKT scores as a moderately attractive setup driven primarily by improved financial performance (profitability rebound and very low leverage) and a strong earnings-call outlook (record results, growing backlog, and reaffirmed multi-year margin/ROIC targets). These positives are tempered by weak current technical momentum (price below key moving averages, negative MACD) and mixed cash-flow momentum (sharp decline in FCF growth and historical variability). Valuation is neutral with a mid-range P/E and no dividend yield data.
Positive Factors
Record revenue and backlog growth
Sustained top-line growth and a larger backlog demonstrate durable demand across venues and geographies. A record order cadence and a backlog with meaningful near-term conversion underpin multi-quarter revenue visibility, supporting steady capacity utilization and investment planning.
Negative Factors
Cash-flow variability
Sharp swings in free cash flow and historical unevenness reflect project timing and working-capital sensitivity. This variability can constrain reinvestment and make planned capex or buybacks harder to sustain if large projects or billing schedules slip, raising funding risk during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Record revenue and backlog growth
Sustained top-line growth and a larger backlog demonstrate durable demand across venues and geographies. A record order cadence and a backlog with meaningful near-term conversion underpin multi-quarter revenue visibility, supporting steady capacity utilization and investment planning.
Read all positive factors
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 (DAKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$955.01M
Dividend YieldN/A
Average Volume (3M)579.75K
Price to Earnings (P/E)21.2
Beta (1Y)1.56
Revenue Growth10.87%
EPS GrowthN/A
CountryUS
Employees2,693
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.93
Shares Outstanding48,305,824
10 Day Avg. Volume468,218
30 Day Avg. Volume579,745
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)3.18
Price to Sales (P/S)1.14
P/FCF Ratio27.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.50Price Target Upside56.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.25
Revenue Forecast (FY)$905.81M
Daktronics Business Overview & Revenue Model
Company Description
Daktronics, Inc. is a global leader specializing in the design, manufacture, marketing, and sale of advanced electronic display systems and associated products. Its operations are organized into five distinct segments: Commercial, Live Events, Hig...
How the Company Makes Money
Daktronics primarily makes money by selling and installing electronic display systems—most notably LED video boards, scoreboards, message displays, and digital billboard products—into end markets such as sports (professional, collegiate, and high ...
Daktronics Earnings Call Summary
Earnings Call Date:Jun 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial momentum: record revenue and orders, double-digit segment growth across most businesses, material improvement in profitability and EPS, a strengthened backlog, major project wins, product launches (Camino 8) and 100% services-platform adoption. Management also laid out a clear path to fiscal 2028 targets and is investing in manufacturing capacity and automation. Key risks discussed were lower operating cash generation in FY26 due to timing, a $3.8M credit-loss provision, tariff/input-cost uncertainty, some commercial order stagnation and expected near-term start-up/depreciation costs tied to the Mexico ramp. Overall the positives (record growth, margin and backlog strength, product and capacity initiatives and shareholder returns) outweigh the near-term operational and macro challenges.Positive Updates
Record Revenue and Orders
Delivered record annual revenue of $839.0M, up 10.9% year-over-year, and record annual orders with bookings growth of ~10% (management cited '10+%' and averaged more than $215M of order bookings per quarter).
Negative Updates
Reduced Operating Cash Generation and Working Capital Timing
Cash from operations declined to $49.2M in fiscal 26 from $97.7M in fiscal 25 (driven in part by timing between project completion, revenue recognition and final billing), with working capital consumption in Q4 expected to reverse early in fiscal 27 but creating short-term cash flow pressure.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Orders
Delivered record annual revenue of $839.0M, up 10.9% year-over-year, and record annual orders with bookings growth of ~10% (management cited '10+%' and averaged more than $215M of order bookings per quarter).
Read all positive updates
Company Guidance
Daktronics reaffirmed its fiscal 28 targets and provided clear fiscal 27 context: management is targeting a 10% revenue CAGR to fiscal 28, a 10–12% operating margin range and a 17–20% ROIC, and it enters fiscal 27 with a $356 million backlog (up 4% year‑over‑year) with roughly 52% of that backlog expected to convert to revenue in Q1 (note Q1 fiscal 27 has 13 weeks vs. 14 in the prior year). Those targets build on fiscal 26 results of $839 million in revenue (up 10.9% YoY), record orders averaging >$215 million per quarter, operating income of $61.0 million (vs. $33.1M prior year) and adjusted operating margin of 7.3%, adjusted EPS of $1.05 (up ~25%) and Q4 adjusted EPS of $0.27 (up 50% YoY); gross profit was up 17% for the year (Q4 gross profit +36%), cash from operations was $49.2M, average quarter‑end cash ~$141M, and the company repurchased about $25.5M of stock in fiscal 26 (VWAP $17.80), while bringing new capacity online (110k+ sq ft Saltillo, Mexico facility with production planned to begin July 2026 and first shipments in Q2).Daktronics Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
63
Positive
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 838.71M | 756.48M | 818.08M | 754.20M | 610.97M |
| Gross Profit | 229.01M | 195.49M | 222.44M | 151.35M | 116.70M |
| EBITDA | 76.44M | 13.70M | 104.86M | 42.96M | 16.50M |
| Net Income | 45.38M | -10.12M | 34.62M | 6.80M | 592.00K |
Balance Sheet | |||||
| Total Assets | 554.41M | 502.89M | 527.88M | 468.10M | 440.88M |
| Cash, Cash Equivalents and Short-Term Investments | 131.64M | 127.51M | 81.30M | 24.52M | 21.16M |
| Total Debt | 18.13M | 16.80M | 56.65M | 20.00M | 2.31M |
| Total Liabilities | 253.66M | 230.96M | 289.09M | 267.23M | 249.31M |
| Stockholders Equity | 300.75M | 271.93M | 238.79M | 200.88M | 191.56M |
Cash Flow | |||||
| Free Cash Flow | 34.30M | 78.22M | 46.26M | -10.36M | -47.41M |
| Operating Cash Flow | 49.22M | 97.71M | 63.24M | 15.02M | -27.04M |
| Investing Cash Flow | -19.64M | -23.78M | -21.31M | -25.39M | -31.38M |
| Financing Cash Flow | -26.24M | -27.45M | 15.12M | 17.57M | -3.58M |
Daktronics Technical Analysis
Positive
19.48
Price Trends
20.03
Positive
19.92
Positive
20.54
Positive
Market Momentum
0.37
Negative
66.11
Neutral
88.59
Negative
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 19.48 is below the 20-day moving average (MA) of 20.01, below the 50-day MA of 20.03, and below the 200-day MA of 20.54, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 66.11 is Neutral, neither overbought nor oversold. The STOCH value of 88.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAKT.
Daktronics Risk Analysis
Daktronics disclosed 41 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.21B | 71.37 | 2.61% | ― | 4.90% | ― | |
73 Outperform | $1.83B | 26.50 | 12.52% | 0.27% | 8.48% | 13.14% | |
72 Outperform | $955.01M | 21.21 | 15.49% | ― | 10.87% | ― | |
68 Neutral | $1.49B | 61.16 | 8.01% | 0.15% | 8.63% | 141.02% | |
68 Neutral | $2.87B | 53.90 | 3.85% | 0.84% | 8.87% | 39.10% | |
68 Neutral | $858.70M | 30.25 | 8.90% | 0.86% | 11.42% | 5.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DAKT
Daktronics
21.74
4.89
29.02%
ALNT
Allient
111.21
69.03
163.64%
BHE
Benchmark Electronics
82.37
44.56
117.85%
CTS
CTS
66.26
27.82
72.37%
LYTS
Lsi Industries
24.86
6.79
37.57%
ROG
Rogers
133.73
61.54
85.25%
Daktronics Corporate Events
Business Operations and StrategyExecutive/Board Changes
Daktronics Board Adopts 2027 Executive Incentive Program
Positive
Jul 17, 2026
On July 14, 2026, Daktronics’ board approved a fiscal 2027 executive compensation program that links annual cash incentives for key officers to operating income and revenue, with payouts ranging from 50% to 150% of target and a possible 20% ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Daktronics Delivers Record Fiscal 2026 Results, Boosts Buyback
Positive
Jun 24, 2026
Daktronics reported record fiscal 2026 results on June 24, 2026, with net sales rising 10.9% year over year to $838.7 million and orders climbing 10.2% to $860.8 million for the 53‑week year ended May 2, 2026. The company returned to solid p...
Business Operations and StrategyExecutive/Board Changes
Daktronics Updates Consulting Agreement in Executive Transition Shift
Neutral
May 22, 2026
Daktronics, Inc. has amended its consulting agreement with former named executive officer Carla Gatzke, who had been providing transition services under a deal that paid her $30,000 per month through April 30, 2026. On May 18, 2026, the board appr...
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.