Daily Journal (DJCO) AI Stock Analysis

• Market Cap: $648.20M
• Dividend Yield: N/A
• Average Volume (3M): 205.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 10.54%
• EPS Growth: 115.36%
• Country: US
• Employees: 400
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -5.79
• 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: 1.01
• Enterprise Value/Revenue: 7.29
• Enterprise Value/Gross Profit: 18.53
• Enterprise Value/Ebitda: 4.77
• 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: 69 Neutral
• Price Target: $515.00 ▲(12.08% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial positioning (notably a zero-debt balance sheet) and a low P/E valuation, tempered by historically volatile earnings/cash-flow consistency and currently weak-to-mixed technical momentum. Corporate events add some governance positives but also introduce activist-related risk.

Positive Factors

Zero-debt balance sheet

TTM zero debt and a large equity base give the company low financial risk and high strategic flexibility. That capitalization supports sustained R&D and implementation spending, cushions earnings swings, enables opportunistic investments or buybacks, and preserves runway through downturns.

Accelerating revenue growth

A pronounced TTM revenue acceleration reflects improving product traction and successful monetization. Sustained top-line momentum can stabilize margins via scale, enable recurring-service upsells, and compound contract renewals, improving medium-term predictability if management sustains execution.

Sticky public-sector software contracts

Enterprise court and justice software is typically long-term, service-intensive, and public-sector tied, creating high switching costs and recurring maintenance revenue. This contract stickiness supports steady revenue backbones, multi-year visibility, and opportunities for contract extensions and professional services.

Negative Factors

Volatile historical earnings

Earnings and margins have swung materially across periods, including a large loss in 2022 and outsized margin variability. Such volatility reduces confidence in sustainable profitability, complicates multi-period planning, and increases the risk that one-off events could erode reported results or investor trust.

Inconsistent cash generation

Irregular operating and free cash flow, with negative years and a ~31% TTM FCF decline, undermines internal funding for development and services. Weaker cash conversion raises reliance on reserves, limits predictable capital allocation, and heightens vulnerability to contract timing or higher reinvestment needs.

Activist dispute and governance risk

An ongoing activist contest with accounting and governance allegations can divert senior management and board focus, trigger regulatory or legal costs, and increase oversight risk. Protracted disputes may disrupt strategic initiatives, harm stakeholder confidence, and create uncertainty around governance and reporting continuity.

Daily Journal Business Overview & Revenue Model

Company Description

Daily Journal Corporation publishes newspapers and websites covering in California, Arizona, and Utah. It operates in two segments, Traditional Business and Journal Technologies. The company publishes 10 newspapers of general circulation, including Los Angeles Daily Journal, San Francisco Daily Journal, Daily Commerce, The Daily Recorder, The Inter-City Express, San Jose Post-Record, Orange County Reporter, The Daily Transcript, Business Journal, and The Record Reporter. It also provides specialized information services; and serves as an advertising and newspaper representative for commercial and public notice advertising. In addition, the company offers case management software systems and related products, including eCourt, eProsecutor, eDefender, and eProbation, which are browser-based case processing systems; eFile, a browser-based interface that allows attorneys and the general public to electronically file documents with the court; and ePayIt, a service primarily for the online payment of traffic citations. It provides its software systems and related products for courts; prosecutor and public defender offices; probation departments; and other justice agencies, including administrative law organizations, city and county governments, and bar associations to manage cases and information electronically, to interface with other justice partners, and to extend electronic services to bar members and the public in 42 states and internationally. Daily Journal Corporation was incorporated in 1987 and is based in Los Angeles, California.

How the Company Makes Money

DJCO generates revenue primarily from two operating segments: (1) its Journal Technologies business, which earns money by selling and supporting enterprise software systems for courts and justice-related agencies. This revenue typically comes from software licensing or subscription arrangements (structure varies by contract), implementation and professional services for deployment and configuration, and ongoing maintenance/support and upgrades over the life of the system. (2) its Traditional Business segment, which earns revenue from publishing legal and business periodicals and related products. This segment generally monetizes through subscriptions, advertising sales, and sales of notices and other print/online publishing services. In addition to operating revenues, DJCO has historically reported investment income and gains/losses from its investment portfolio, which can materially affect overall earnings, but these are not operating segment revenues.

Daily Journal Financial Statement Overview

Summary

Financials are supported by a very strong balance sheet (zero debt, large equity base) and a sharp TTM rebound in revenue and reported profitability. The main offset is low predictability: earnings and cash flow have been volatile across recent years, with inconsistent operating/free cash flow and a notable TTM free-cash-flow decline.

Income Statement

TTM (Trailing-Twelve-Months) revenue accelerated meaningfully (about 209% growth), showing strong top-line momentum. Profitability also appears very strong on the surface, with an unusually high net profit margin in TTM and solid gross profit margin. That said, results have been volatile across prior annual periods, including a large loss in 2022 and outsized margin swings, which reduces confidence in the sustainability and repeatability of earnings.

Balance Sheet

The balance sheet is a clear strength: TTM shows zero debt and a large equity base relative to assets, indicating low financial risk and high flexibility. Leverage has also improved materially versus earlier years (debt-to-equity was meaningfully higher in 2022–2023). A watch item is that returns on equity have been volatile historically (negative in 2022, strong in recent periods), suggesting earnings quality and consistency still matter despite the strong capitalization.

Cash Flow

TTM operating cash flow and free cash flow are positive, and free cash flow is close to net income, which is supportive. However, cash generation has been inconsistent over time (negative operating/free cash flow in 2022 and 2024), and TTM free cash flow declined sharply (about -31% growth), pointing to weaker cash conversion and/or higher reinvestment needs versus the prior period.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	89.53M	87.70M	69.93M	67.71M	54.01M	49.39M
Gross Profit	35.22M	32.15M	14.18M	16.01M	11.67M	8.96M
EBITDA	136.91M	151.72M	107.63M	32.71M	-101.06M	4.46M
Net Income	93.27M	112.14M	78.11M	21.45M	-75.62M	112.90M
Balance Sheet
Total Assets	529.48M	548.12M	403.76M	354.86M	319.11M	390.58M
Cash, Cash Equivalents and Short-Term Investments	497.88M	513.56M	371.68M	324.17M	288.95M	360.17M
Total Debt	20.91M	22.96M	28.62M	76.28M	76.43M	33.58M
Total Liabilities	146.36M	157.06M	124.98M	154.39M	140.09M	135.94M
Stockholders Equity	383.12M	391.06M	278.78M	200.47M	179.02M	254.64M
Cash Flow
Free Cash Flow	9.18M	13.32M	-138.00K	15.00M	-5.30M	3.26M
Operating Cash Flow	9.19M	13.33M	-89.00K	15.08M	-5.26M	3.29M
Investing Cash Flow	-15.00K	-8.00K	40.53M	-7.26M	-36.76M	-19.99M
Financing Cash Flow	-7.66M	-5.66M	-47.66M	-153.00K	42.85M	2.38M

Daily Journal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 459.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 459.51 is below the 20-day moving average (MA) of 509.74, below the 50-day MA of 555.38, and below the 200-day MA of 467.55, indicating a neutral trend. The MACD of -16.59 indicates Positive momentum. The RSI at 39.08 is Neutral, neither overbought nor oversold. The STOCH value of 25.63 is Neutral, 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
DSP	75 Outperform	$720.96M	8.21	19.72%	―	22.97%	49.49%
RDVT	73 Outperform	$541.68M	60.77	13.47%	―	22.27%	117.93%
DJCO	69 Neutral	$648.20M	-21.04	25.60%	―	10.54%	115.36%
VTEX	69 Neutral	$638.35M	17.45	8.24%	―	3.62%	-20.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
APPS	52 Neutral	$374.09M	28.37	-25.84%	―	6.82%	75.26%
LAW	46 Neutral	$259.65M	-10.79	-32.94%	―	6.33%	-66.34%

Daily Journal Corporate Events

Daily Journal Shareholders Back Board, Pay and Auditor

On February 24, 2026, Daily Journal Corporation held its 2026 Annual Meeting of Shareholders, with 1,235,109 shares represented in person or by proxy. Shareholders elected four directors—Mary Conlin, John B. Frank, Steven Myhill-Jones, and Rasool Rayani—to serve until the next annual meeting, each receiving support from more than 95% of votes cast, excluding abstentions and broker non-votes.

Investors also ratified Baker Tilly US, LLP as the company’s independent registered public accounting firm for the fiscal year ending September 30, 2026, signaling continued confidence in its audit oversight. In addition, shareholders approved, on a non-binding advisory basis, the compensation of the company’s named executive officers, underscoring broad support for current governance, leadership, and pay practices among voting shareholders.

The most recent analyst rating on (DJCO) stock is a Hold with a $534.00 price target. To see the full list of analyst forecasts on Daily Journal stock, see the DJCO Stock Forecast page.

Daily Journal Forms New Independent Nominating Committee

On February 4, 2026, Daily Journal Corporation’s board of directors established a new Nominating Committee and adopted a charter to govern its operations, further formalizing the company’s director selection and governance processes. The committee, composed entirely of independent directors Mary Conlin, John Frank, and Rasool Rayani, with Rayani as chair, is tasked with developing criteria for director recruitment, vetting candidates, ensuring legal, independence and diversity requirements are met, and recommending nominees and board vacancy appointments, adding an additional layer of structured oversight alongside the company’s existing Audit and Compensation Committees.

The most recent analyst rating on (DJCO) stock is a Hold with a $642.00 price target. To see the full list of analyst forecasts on Daily Journal stock, see the DJCO Stock Forecast page.

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.