Daily Journal (DJCO) AI Stock Analysis

• Market Cap: $802.11M
• Dividend Yield: N/A
• Average Volume (3M): 205.07K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.86
• Revenue Growth: 10.54%
• EPS Growth: 115.36%
• Country: US
• Employees: 400
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 30.60
• Shares Outstanding: 1,377,722
• 10 Day Avg. Volume: 43,670
• 30 Day Avg. Volume: 205,068
• PEG Ratio: 0.13
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 7.31
• P/FCF Ratio: 48.08
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 7.44
• Enterprise Value/Gross Profit: 25.28
• Enterprise Value/Ebitda: 4.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $469.00 ▲(2.07% Upside)

The score is driven primarily by improving financial position (notably debt reduction to zero) and a constructive price trend, supported by an inexpensive P/E. These positives are tempered by volatile earnings/cash conversion and incremental legal/headline risk from the activist dispute.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term sustainability and expansion.

Balance Sheet Health

A debt-free balance sheet enhances financial stability, providing flexibility for future investments and shielding against economic downturns.

Profitability Margins

Strong profitability margins indicate efficient operations and cost management, contributing to sustained earnings and competitive advantage.

Negative Factors

Cash Flow Variability

Variability in free cash flow can impact the company's ability to fund operations and investments consistently, posing risks to financial planning.

Net Profit Margin Volatility

Volatile net profit margins may indicate reliance on non-recurring factors, affecting predictability of future earnings and financial performance.

Fluctuations in Profitability

Inconsistent profitability can hinder strategic planning and investment, potentially affecting long-term growth and shareholder value.

Daily Journal Business Overview & Revenue Model

Company Description

Daily Journal Corporation (DJCO) is a media company primarily focused on publishing and technology services. It operates in the newspaper and digital content sectors, producing and distributing news and information through its various publications, including the Los Angeles Daily Journal and the Utah-based Daily Journal. Additionally, DJCO has a stake in software development, providing technology solutions that facilitate the management of legal cases and financial data for clients in the legal and business sectors.

How the Company Makes Money

Daily Journal generates revenue through multiple streams, including subscription fees from its newspapers, advertising revenue, and technology services. The company's newspapers attract subscribers, and it earns income from both digital and print advertising. Furthermore, DJCO develops and sells software products tailored for law firms and other professional services, creating a significant revenue stream from licensing and service fees. Strategic partnerships with legal firms and technology providers also enhance its revenue potential, enabling increased distribution of its software solutions and expanding its customer base.

Daily Journal Financial Statement Overview

Summary

Fundamentals are improving with re-accelerating 2025 revenue growth and a materially stronger, now debt-free balance sheet. Offsetting this, earnings quality is less predictable due to large net income swings and uneven cash conversion (operating cash flow notably low versus net income), with cash flow turning negative as recently as 2024.

Income Statement

Revenue growth re-accelerated in 2025 (annual +10.79%) after modest growth in 2024, showing improving top-line momentum. Profitability is strong but highly volatile: net profit margin is exceptionally high in multiple years (e.g., 2025 and 2021) and swings to a large loss in 2022, suggesting earnings are meaningfully influenced by non-operating or one-time items. Operating profitability appears positive overall (2025 EBITDA margin ~10.9%), but the year-to-year variability reduces earnings quality and predictability.

Balance Sheet

The balance sheet strengthened materially: total debt declined from higher levels in 2022–2023 to zero in 2025, reducing financial risk. Equity and assets expanded meaningfully over time (equity up to $391.1M in 2025), and returns on equity are strong in recent years (2025 ~28.7%, 2024 ~28.0%). The key weakness is that returns have been volatile (including a negative year in 2022), indicating underlying performance can swing even with a now-conservative capital structure.

Cash Flow

Cash generation improved in 2025 with operating cash flow of ~$13.3M and free cash flow of ~$13.3M (free cash flow growth +12.0%). However, cash flow reliability is uneven: 2024 showed slightly negative operating and free cash flow, and 2022 was also negative. A notable risk is that operating cash flow has often been low relative to reported net income (e.g., 2025 operating cash flow to net income ~0.34), reinforcing that reported earnings can be less cash-backed in some periods.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	79.16M	87.70M	69.93M	67.71M	54.01M	49.39M
Gross Profit	23.29M	32.15M	14.18M	16.01M	11.67M	8.96M
EBITDA	132.25M	9.53M	107.63M	32.71M	-101.06M	4.46M
Net Income	96.71M	112.14M	78.11M	21.45M	-75.62M	112.90M
Balance Sheet
Total Assets	494.72M	548.12M	403.76M	354.86M	319.11M	390.58M
Cash, Cash Equivalents and Short-Term Investments	461.72M	20.57M	371.68M	324.17M	288.95M	360.17M
Total Debt	26.00M	0.00	28.62M	76.28M	76.43M	33.58M
Total Liabilities	145.84M	157.06M	124.98M	154.39M	140.09M	135.94M
Stockholders Equity	348.88M	391.06M	278.78M	200.47M	179.02M	254.64M
Cash Flow
Free Cash Flow	11.89M	13.32M	-138.00K	15.00M	-5.30M	3.26M
Operating Cash Flow	11.93M	13.33M	-89.00K	15.08M	-5.26M	3.29M
Investing Cash Flow	-34.00K	-8.00K	40.53M	-7.26M	-36.76M	-19.99M
Financing Cash Flow	-2.66M	-5.66M	-47.66M	-153.00K	42.85M	2.38M

Daily Journal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 459.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 459.51 is below the 20-day moving average (MA) of 523.60, below the 50-day MA of 463.00, and above the 200-day MA of 428.51, indicating a bullish trend. The MACD of 25.34 indicates Negative momentum. The RSI at 71.44 is Negative, neither overbought nor oversold. The STOCH value of 93.40 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	76 Outperform	$737.80M	68.00	11.58%	―	22.27%	117.93%
DJCO	72 Outperform	$802.11M	7.15	32.20%	―	10.54%	115.36%
VTEX	66 Neutral	$652.11M	98.73	6.53%	―	3.62%	-20.45%
DSP	65 Neutral	$725.48M	440.15	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LAW	54 Neutral	$463.69M	-7.39	-41.00%	―	6.33%	-66.34%
APPS	50 Neutral	$550.65M	-6.74	-46.87%	―	6.82%	75.26%

Daily Journal Corporate Events

Daily Journal Rebuts Activist Allegations, Defends Governance and Accounting

On December 26, 2025, Daily Journal Corporation publicly responded to a series of letters and emails sent since July 2025 by Buxton Helmsley USA and its CEO, Alexander Erwin Parker, accusing the company of improper software development cost accounting and governance failures, and seeking board seats and a lucrative consulting arrangement despite holding at most a token share position. The company detailed what it describes as a coercive campaign involving threats of disciplinary referrals against its directors, CFO, auditor, and management to force a cooperation agreement and potential control of the board, and said it has referred Buxton Helmsley and Parker to federal and state authorities for possible criminal prosecution and to the SEC for potential civil action. Daily Journal firmly rejected the accounting and disclosure allegations, emphasized that its treatment of software development costs under ASC 985-20 has been vetted by a third-party expert and its auditor, and reiterated that its leadership changes, including the retirement of its longtime CFO, are unrelated to Parker’s claims, signaling a strong defense of its financial reporting integrity and a willingness to confront what it views as activist overreach aimed at destabilizing the company’s governance.

The most recent analyst rating on (DJCO) stock is a Buy with a $469.00 price target. To see the full list of analyst forecasts on Daily Journal stock, see the DJCO Stock Forecast page.

Daily Journal Appoints Erik Nakamura as CFO

On December 12, 2025, Daily Journal Corporation appointed Erik Nakamura as its new Chief Financial Officer and Principal Financial Officer, succeeding Tu To, who will retire on January 15, 2026. Nakamura’s appointment aligns with the company’s ongoing efforts to strengthen its finance team and modernize its accounting systems, ensuring a smooth transition of responsibilities before Ms. To’s departure.

The most recent analyst rating on (DJCO) stock is a Buy with a $469.00 price target. To see the full list of analyst forecasts on Daily Journal stock, see the DJCO Stock Forecast page.

Daily Journal CFO Retirement Announcement

Daily Journal Corporation announced the retirement of its Chief Financial Officer, Ms. Tu To, effective January 15, 2026. Ms. To, who has been with the company for forty-two years, will step down after serving as Controller for thirty-one years and nearly four years as CFO. As part of her retirement, she will receive a lump-sum payment, a cash bonus, potential milestone bonuses, and continued insurance coverage. The company has entered into a Separation Agreement with Ms. To, which includes a general release and waiver of claims, as well as reaffirmation of her confidentiality and non-disparagement obligations.

The most recent analyst rating on (DJCO) stock is a Hold with a $404.00 price target. To see the full list of analyst forecasts on Daily Journal stock, see the DJCO Stock Forecast page.