Daily Journal (DJCO) AI Stock Analysis

• Market Cap: $599.87M
• Dividend Yield: N/A
• Average Volume (3M): 14.07K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.80
• Revenue Growth: 1.99%
• EPS Growth: 375.37%
• Country: US
• Employees: 400
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): 32.43
• Shares Outstanding: 1,377,426
• 10 Day Avg. Volume: 28,197
• 30 Day Avg. Volume: 14,071
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 168.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $457.00 ▲( 4.94% Upside)

Daily Journal's strong financial performance, characterized by revenue growth and debt-free balance sheet, is a key strength. The stock's technical indicators show short-term bullish momentum, though caution is warranted due to overbought signals. Valuation metrics suggest the stock might be undervalued, providing potential upside. Together, these factors contribute to a solid investment profile, though attention to cash flow consistency and technical signals is advised.

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

Overall, 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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
71.64M	69.93M	67.71M	54.01M	49.39M	49.94M
	Gross Profit
15.49M	14.18M	16.01M	11.67M	8.96M	7.30M
	EBIT
4.19M	4.07M	6.65M	7.44M	5.13M	3.69M
	EBITDA
106.04M	107.63M	8.87M	-101.06M	4.46M	634.00K
	Net Income Common Stockholders
76.39M	78.11M	21.45M	-75.62M	112.90M	4.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
72.05M	371.68M	324.17M	288.95M	360.17M	206.29M
	Total Assets
93.75M	403.76M	354.86M	319.11M	390.58M	238.57M
	Total Debt
0.00	28.62M	76.28M	76.43M	33.58M	31.20M
	Net Debt
-3.05M	15.63M	55.24M	63.01M	20.98M	4.28M
	Total Liabilities
30.88M	124.98M	154.39M	140.09M	135.94M	96.83M
	Stockholders Equity
62.87M	278.78M	200.47M	179.02M	254.64M	141.74M
Cash Flow		Free Cash Flow
3.23M	-138.00K	15.00M	-5.30M	3.26M	2.15M
	Operating Cash Flow
3.28M	-89.00K	15.08M	-5.26M	3.29M	2.34M
	Investing Cash Flow
40.54M	40.53M	-7.26M	-36.76M	-19.99M	16.12M
	Financing Cash Flow
-42.66M	-47.66M	-153.00K	42.85M	2.38M	-126.00K

Daily Journal Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 435.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DJCO, the sentiment is Neutral. The current price of 435.5 is above the 20-day moving average (MA) of 399.37, above the 50-day MA of 392.59, and below the 200-day MA of 464.70, indicating a neutral trend. The MACD of 10.08 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 61.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DJCO.

Daily Journal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDVT	78 Outperform	$699.33M	82.80	9.86%	―	26.30%	-40.35%
DJCO	76 Outperform	$599.87M	5.68	37.53%	―	1.99%	375.37%
PUBM	70 Outperform	$554.74M	134.79	1.94%	―	3.62%	-53.21%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
PRCH	58 Neutral	$1.02B	―	75.95%	―	-6.81%	85.11%
BIGC	54 Neutral	$397.29M	―	-64.59%	―	5.33%	58.41%
BMBL	54 Neutral	$603.22M	―	-46.57%	―	-2.39%	-2961.26%