Daily Journal (DJCO) AI Stock Analysis

• Market Cap: $558.85M
• Dividend Yield: N/A
• Average Volume (3M): 52.90K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.91
• Revenue Growth: 1.99%
• EPS Growth: 375.37%
• Country: US
• Employees: 400
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 32.43
• Shares Outstanding: 1,377,426
• 10 Day Avg. Volume: 44,614
• 30 Day Avg. Volume: 52,903
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.23
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 7.06
• Enterprise Value/Ebitda: 0.88
• 1Y Price Target: $458.00
• Price Target Upside: 15.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $450.00 ▲(13.26% Upside)

Daily Journal's strong financial performance and attractive valuation are the primary drivers of its stock score. However, technical indicators suggest caution due to bearish momentum. The recent corporate event involving an SEC report introduces additional risk, but its impact is mitigated by the company's proactive response.

Daily Journal Business Overview & Revenue Model

Company Description

Daily Journal Corporation (DJCO) is a diversified media company primarily operating in the United States. It engages in the publishing of newspapers and websites, as well as providing software solutions for courts and other justice agencies. The company's core products include newspapers like the Los Angeles Daily Journal, and it also offers case management software and services for the legal and justice sectors.

How the Company Makes Money

Daily Journal Corporation makes money through two main revenue streams: traditional publishing and software services. In the publishing sector, revenue is generated from subscriptions and advertising sales in its newspapers and online platforms. In the software services sector, the company earns revenue by providing case management software and related services to courts and justice agencies, including licensing fees, maintenance fees, and consulting services. Additionally, the company has investment income from its portfolio of marketable securities, which contributes to its earnings.

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 in maintaining steady financial performance.

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

Daily Journal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 397.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DJCO, the sentiment is Negative. The current price of 397.33 is below the 20-day moving average (MA) of 398.71, below the 50-day MA of 409.38, and below the 200-day MA of 449.64, indicating a bearish trend. The MACD of -2.66 indicates Positive momentum. The RSI at 46.73 is Neutral, neither overbought nor oversold. The STOCH value of 18.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DJCO.

Daily Journal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDVT	74 Outperform	$614.20M	71.83	9.86%	―	26.30%	-40.35%
DJCO	72 Outperform	$558.85M	5.41	37.53%	―	1.99%	375.37%
PRCH	69 Neutral	$1.36B	―	75.95%	―	-7.41%	―
PUBM	67 Neutral	$565.42M	136.20	1.94%	―	3.62%	-53.21%
Sector *	62 Neutral	£517.04M	24.54	-6.45%	2.79%	3.08%	-16.36%
CMRC	61 Neutral	$356.04M	―	-55.85%	―	4.06%	57.50%
BMBL	59 Neutral	$779.85M	―	-46.57%	―	-2.39%	-2961.26%

Daily Journal Corporate Events

Daily Journal Faces SEC Report Amid Accounting Dispute

Daily Journal Corporation recently faced a proposal from Alexander E. Parker of Buxton Helmsley USA, Inc., suggesting the company capitalize software development costs to unlock significant equity value for shareholders. Despite Parker’s demands for a consulting engagement and board seats, the company, which has consistently disclosed its accounting practices, chose to engage an independent accounting consultant to review its methods. This decision led to Parker reporting the company to the SEC and calling for the resignation of its CEO and CFO, actions the company views as unwarranted.