Daktronics (DAKT) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 521.55K
• Price to Earnings (P/E): 190.1
• Beta (1Y): 1.45
• Revenue Growth: -6.13%
• EPS Growth: -76.92%
• Country: US
• Employees: 2,520
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.35
• Shares Outstanding: 48,747,818
• 10 Day Avg. Volume: 498,807
• 30 Day Avg. Volume: 521,546
• 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: 0.91
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: 24.15
• 1Y Price Target: $40.00
• Price Target Upside: 55.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.07
• Revenue Forecast (FY): $837.61M

• Rating: 66 Neutral
• Price Target: $30.00 ▲(16.37% Upside)
• Action: Downgraded Date: 02/15/26
• Date: Action: Downgraded 02/15/26

The score is primarily supported by financial resilience (low leverage and solid recent cash flow) and strong business momentum from the earnings update (order growth and a record backlog). Offsetting these positives are a very expensive valuation (P/E ~203) and technically overbought conditions that elevate near-term downside risk.

Positive Factors

Order backlog provides multi-quarter revenue visibility

A $321M backlog up 36% materially improves revenue visibility and production planning for multiple quarters. This backlog underpins predictable near-term revenue, supports capacity utilization and helps sustain margins via smoother factory loads and better fixed-cost absorption.

Conservative balance sheet and net cash position

Low debt-to-equity (~0.10 TTM) and a rising equity base provide financial flexibility for capex, buybacks, and acquisitions without stressing liquidity. A net cash position (~$138.3M reported) reduces refinancing risk and supports strategic investments during industry cycles.

Strategic MicroLED acquisition strengthens product edge

Owning MicroLED IP and hiring XDC engineers advances differentiation in narrow pixel pitch displays, a high-growth segment. This vertical capability can yield higher-margin, hard-to-replicate products, improving competitive positioning and long-term revenue mix as market demand expands.

Negative Factors

Volatile profitability and thin trailing margins

Earnings have swung from strong profitability to a FY2025 loss and TTM net margin near 1%, undermining predictability of returns. This earnings volatility limits retained earnings growth, makes long-term margin targets harder to rely on, and reduces buffer against cost shocks.

Historical cash-flow lumpiness despite recent improvement

While recent free cash flow improved, past years included negative operating and free cash flow, reflecting project timing and cyclical demand. This lumpiness complicates capital allocation, may force stop-start investment or repurchases, and weakens resilience during downturns.

Material tariff and input-cost exposure

Rising tariff expenses ($8.8M vs $1.5M prior year) directly compress gross margins on hardware sales. Given Daktronics' manufacturing and global supply chains, persistent trade-policy shifts or input-cost volatility can sustainably erode profitability unless offset by pricing or sourcing changes.

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 generates revenue primarily through the sale of its electronic display products, including LED displays and scoreboards, as well as through installation services. The company has several key revenue streams: product sales, service and maintenance contracts, and software solutions for display management. Additionally, Daktronics benefits from long-term partnerships with major sports leagues and organizations, which provide a consistent flow of business for stadium and arena installations. The company also earns revenue from advertising displays used in commercial settings. Factors contributing to its earnings include technological advancements in display systems, increasing demand for digital advertising, and expansion into international markets.

Daktronics Financial Statement Overview

Summary

Balance sheet strength (low leverage and growing equity) and recently solid operating/free cash flow support resilience. However, earnings quality is mixed: profitability has been volatile (FY2025 loss) and TTM net margins are very thin, which caps the score despite improved cash generation.

Income Statement

Revenue has expanded materially since 2021, and profitability improved sharply in FY2024 (strong operating and net margins). However, results have been volatile: FY2025 slipped to a net loss despite similar revenue levels, and TTM (Trailing-Twelve-Months) net margin is thin (~1%) with relatively modest operating profitability. Overall, the business shows scale and periodic strong profitability, but earnings consistency remains a key weakness.

Balance Sheet

Leverage is conservative with low debt relative to equity across periods (debt-to-equity remains modest, including ~0.10 in TTM (Trailing-Twelve-Months)), providing financial flexibility. Equity has also grown versus earlier years, supporting balance-sheet resilience. The main watch-out is that returns on equity swing meaningfully with earnings (strong in FY2024, negative in FY2025, low in TTM), highlighting performance sensitivity despite a solid capital structure.

Cash Flow

Cash generation is a clear positive: operating cash flow and free cash flow are strong in FY2024–FY2025 and remain solid in TTM (Trailing-Twelve-Months). That said, free cash flow growth turned negative in TTM after a strong FY2025, and cash flow has shown historical lumpiness (negative operating/free cash flow in FY2022 and negative free cash flow in FY2023). Overall, cash conversion is good lately, but durability through cycles is still being proven.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	770.28M	756.48M	818.08M	754.20M	610.97M	482.03M
Gross Profit	206.82M	195.49M	222.44M	151.35M	116.70M	120.58M
EBITDA	47.11M	13.70M	104.86M	42.96M	16.50M	34.19M
Net Income	7.37M	-10.12M	34.62M	6.80M	592.00K	10.93M
Balance Sheet
Total Assets	548.39M	502.89M	527.88M	468.10M	440.88M	375.16M
Cash, Cash Equivalents and Short-Term Investments	149.60M	127.51M	81.30M	24.52M	21.16M	77.59M
Total Debt	30.44M	16.80M	56.65M	17.75M	2.31M	1.88M
Total Liabilities	250.94M	230.96M	289.09M	267.23M	249.31M	181.61M
Stockholders Equity	297.45M	271.93M	238.79M	200.88M	191.56M	193.55M
Cash Flow
Free Cash Flow	61.71M	78.22M	46.26M	-10.36M	-47.41M	58.32M
Operating Cash Flow	77.50M	97.71M	63.24M	15.02M	-27.04M	66.21M
Investing Cash Flow	-20.86M	-23.78M	-21.31M	-25.39M	-31.38M	-10.22M
Financing Cash Flow	-40.72M	-27.45M	15.12M	17.57M	-3.58M	-15.59M

Daktronics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.78
• 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 Neutral. The current price of 25.78 is below the 20-day moving average (MA) of 26.04, above the 50-day MA of 22.69, and above the 200-day MA of 18.91, indicating a neutral trend. The MACD of 1.25 indicates Positive momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 32.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DAKT.

Daktronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALNT	72 Outperform	$1.12B	58.93	6.58%	0.22%	-2.88%	26.14%
LYTS	70 Outperform	$673.10M	26.39	11.03%	1.07%	22.35%	2.59%
CTS	68 Neutral	$1.51B	24.03	10.98%	0.36%	3.70%	1.68%
ROG	68 Neutral	$1.92B	-32.24	-5.34%	―	-4.87%	-235.48%
DAKT	66 Neutral	$1.26B	190.12	2.64%	―	-6.13%	-76.92%
BHE	66 Neutral	$2.06B	84.44	3.37%	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.

Daktronics Approves $20 Million Share Repurchase Plan

On December 9, 2025, Daktronics‘ Board of Directors approved an additional $20 million share repurchase authorization under its stock repurchase program, with $25.7 million still available for repurchases. The company reported strong fiscal 2026 second-quarter results, with a 36.7% year-over-year increase in operating profit and a 9.4% operating margin. Daktronics experienced double-digit growth in orders and sales, driven by significant orders in the Live Events and Transportation segments, and maintained a robust product backlog of $321 million, up 36% from the previous year. The company continues to focus on its business and digital transformation initiatives to drive growth and efficiency, with plans to open a new manufacturing facility in Mexico by the end of fiscal 2026.

The most recent analyst rating on (DAKT) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Daktronics stock, see the DAKT Stock Forecast page.

Daktronics Secures New Credit Facility Agreement

On November 26, 2025, Daktronics, Inc. refinanced its existing credit arrangements by replacing its prior $75 million senior credit facility with a new revolving credit facility. The new credit agreement includes a $60 million revolving credit facility and an $11.5 million term loan, both secured by first priority liens on personal property. This strategic move is aimed at refinancing existing debt and supporting general corporate purposes, with the new facility maturing on November 26, 2028.

The most recent analyst rating on (DAKT) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Daktronics stock, see the DAKT Stock Forecast page.

Daktronics Appoints Ramesh Jayaraman as New CEO

On December 2, 2025, Daktronics announced the appointment of Ramesh Jayaraman as President and CEO, effective February 1, 2026. Jayaraman, who brings over 25 years of global operations experience, will lead Daktronics’ ongoing business and digital transformation efforts aimed at driving growth and reducing costs. His appointment is expected to enhance the company’s strategic initiatives and operational performance, positioning Daktronics for long-term success.

The most recent analyst rating on (DAKT) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Daktronics stock, see the DAKT Stock Forecast page.