Daily Journal (DJCO) AI Stock Analysis

• Market Cap: $601.45M
• Dividend Yield: N/A
• Average Volume (3M): 69.48K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.85
• Revenue Growth: 1.99%
• EPS Growth: 375.37%
• Country: US
• Employees: 400
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 32.43
• Shares Outstanding: 1,377,426
• 10 Day Avg. Volume: 81,618
• 30 Day Avg. Volume: 69,479
• PEG Ratio: <0.01
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 91.12
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 32.54
• Enterprise Value/Ebitda: 1.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $457.00 ▲(4.66%Upside)

Daily Journal's strong financial position and undervaluation are key strengths, with the low P/E ratio indicating potential for upside. However, technical indicators suggest caution in the short term, with a neutral to slightly bearish outlook. The absence of debt and strong balance sheet provide stability.

Daily Journal Business Overview & Revenue Model

Company Description

Daily Journal Corporation (DJCO) is a U.S.-based publishing and technology company that operates primarily in the sectors of newspaper publishing and software solutions. The company produces newspapers and websites covering California and Arizona, and offers a range of information services. Additionally, DJCO owns and operates Journal Technologies, which provides software and services to courts and other justice agencies to improve their operations.

How the Company Makes Money

Daily Journal Corporation generates revenue through two primary streams: traditional publishing and technology solutions. Its publishing segment brings in income from advertising, public notice advertising, and subscriptions to its various newspapers and websites. Meanwhile, its technology segment, through Journal Technologies, earns revenue by licensing software solutions and providing related services to government agencies, particularly in the justice system. The company benefits from its established reputation in the legal and public sectors, and its software solutions are designed to enhance efficiency in public administrations. Additionally, DJCO has a portfolio of investments in marketable securities, which can also contribute to its financial performance.

Daily Journal Financial Statement Overview

Summary

Daily Journal presents a strong financial position with growing revenues and solid profitability margins. The absence of debt enhances its financial stability, while consistent free cash flow generation supports its operations. However, fluctuations in profitability and cash flow highlight areas for improvement.

Income Statement

The company's revenue has shown consistent growth over the years, with a notable increase in the TTM period to $71.64 million from $67.71 million in 2023. The gross profit margin is strong, reflecting efficient cost management. However, the net profit margin is somewhat volatile, with a significant net income in TTM driven by one-time factors. EBIT and EBITDA margins are healthy, indicating good operational performance.

Balance Sheet

The balance sheet is robust with no debt in the TTM period, significantly reducing financial risk. The equity ratio is high, showcasing strong financial stability and a good buffer for liabilities. The return on equity is also solid, though it has seen fluctuations in past periods. The company's asset base has grown, supporting its expanding operations.

Cash Flow

The company's cash flow position is stable, with positive free cash flow in the TTM period. The operating cash flow to net income ratio indicates that earnings are well-supported by cash operations. However, the free cash flow has experienced variability, highlighting potential challenges in consistent cash generation.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	73.25M	69.93M	67.71M	54.01M	49.39M	49.94M
Gross Profit	18.17M	14.18M	16.01M	11.67M	8.96M	7.30M
EBITDA	145.97M	107.63M	8.87M	-101.06M	4.46M	634.00K
Net Income	105.65M	78.11M	21.45M	-75.62M	112.90M	4.04M
Balance Sheet
Total Assets	468.05M	403.76M	354.86M	319.11M	390.58M	238.57M
Cash, Cash Equivalents and Short-Term Investments	443.26M	371.68M	324.17M	288.95M	360.17M	206.29M
Total Debt	26.04M	28.62M	76.28M	76.43M	33.58M	31.20M
Total Liabilities	133.61M	124.98M	154.39M	140.09M	135.94M	96.83M
Stockholders Equity	334.44M	278.78M	200.47M	179.02M	254.64M	141.74M
Cash Flow
Free Cash Flow	6.33M	-138.00K	15.00M	-5.30M	3.26M	2.15M
Operating Cash Flow	6.36M	-89.00K	15.08M	-5.26M	3.29M	2.34M
Investing Cash Flow	-22.00K	40.53M	-7.26M	-36.76M	-19.99M	16.12M
Financing Cash Flow	-4.58M	-47.66M	-153.00K	42.85M	2.38M	-126.00K

Daily Journal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 436.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DJCO, the sentiment is Positive. The current price of 436.65 is above the 20-day moving average (MA) of 413.74, above the 50-day MA of 407.34, and below the 200-day MA of 458.40, indicating a neutral trend. The MACD of 5.62 indicates Negative momentum. The RSI at 63.94 is Neutral, neither overbought nor oversold. The STOCH value of 84.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DJCO.

Daily Journal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDVT	80 Outperform	$701.28M	83.03	9.86%	―	26.30%	-40.35%
PUBM	75 Outperform	$622.20M	151.18	1.94%	―	3.62%	-53.21%
DJCO	71 Outperform	$601.45M	5.69	37.53%	―	1.99%	375.37%
PRCH	67 Neutral	$1.27B	―	75.95%	―	-6.81%	85.11%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
BIGC	59 Neutral	$410.90M	―	-64.59%	―	5.33%	58.41%
BMBL	58 Neutral	$672.43M	―	-46.57%	―	-2.39%	-2961.26%