Dialight (DIA) AI Stock Analysis

• Market Cap: £103.23M
• Dividend Yield: N/A
• Average Volume (3M): 36.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -3.32%
• EPS Growth: 10.13%
• Country: UK
• Employees: 948
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 40,205,456
• 10 Day Avg. Volume: 47,022
• 30 Day Avg. Volume: 36,074
• PEG Ratio: 0.06
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -475.03
• 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: 54 Neutral
• Price Target: 255.00p ▲(2.00% Upside)

Dialight's stock score is primarily influenced by strong technical indicators, suggesting positive market momentum. However, financial performance challenges, particularly in profitability and cash flow, weigh heavily on the score. The negative P/E ratio and lack of dividend yield further impact the valuation negatively.

Dialight Business Overview & Revenue Model

Company Description

Dialight (DIA) is a global leader in LED lighting technology, primarily serving industrial and hazardous location markets. The company specializes in designing, manufacturing, and selling energy-efficient LED lighting solutions that improve safety and sustainability across various applications, including transportation, oil and gas, and manufacturing sectors. Dialight's core products include high-performance LED fixtures, signal lights, and lighting management systems, all aimed at reducing energy consumption and maintenance costs while enhancing visibility and operational efficiency.

How the Company Makes Money

Dialight generates revenue primarily through the sale of its LED lighting products and solutions to industrial clients across different sectors. The company's revenue model is based on direct sales to customers, as well as through distribution partnerships that expand its market reach. Key revenue streams include the sale of high-performance LED fixtures, value-added services such as installation and maintenance, and innovative lighting management systems that help customers optimize their energy usage. Significant partnerships with industrial distributors and collaborations with technology companies further enhance Dialight's market penetration and contribute to its overall earnings. Additionally, the increasing shift towards energy-efficient solutions and regulatory mandates for sustainable practices in various industries are favorable trends that support Dialight's revenue growth.

Dialight Financial Statement Overview

Summary

Dialight shows strong revenue growth but struggles with profitability and cash flow. The income statement reveals significant revenue growth, but negative net profit and EBIT margins indicate operational challenges. The balance sheet is stable with manageable leverage, but negative return on equity suggests inefficiencies. Cash flow analysis highlights low operating cash flow and negative free cash flow, stressing the need for better cash management.

Income Statement

Dialight's income statement shows mixed performance. The company has experienced significant revenue growth of 28.2% in the latest period, indicating strong sales momentum. However, profitability remains a concern with negative net profit and EBIT margins, reflecting operational challenges. The gross profit margin has improved to 36.2%, but the negative EBITDA margin highlights ongoing cost pressures.

Balance Sheet

The balance sheet presents a moderate financial position. The debt-to-equity ratio of 0.76 suggests manageable leverage, but the negative return on equity indicates inefficiencies in generating returns for shareholders. The equity ratio of 35.6% provides a stable capital structure, but the company needs to improve its profitability to enhance shareholder value.

Cash Flow

Cash flow analysis reveals challenges in cash generation. Operating cash flow is positive but low relative to net income, with a ratio of 0.17. Free cash flow is negative, indicating cash outflows exceeding inflows, which could strain liquidity. The negative free cash flow growth rate further underscores the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.14M	183.50M	143.28M	169.70M	131.60M	119.00M
Gross Profit	47.49M	66.50M	42.86M	54.60M	47.00M	34.00M
EBITDA	3.01M	-3.00M	-9.49M	11.30M	10.80M	-800.00K
Net Income	-21.41M	-13.80M	-20.60M	400.00K	100.00K	-7.90M
Balance Sheet
Total Assets	99.55M	131.90M	111.26M	144.40M	125.60M	110.00M
Cash, Cash Equivalents and Short-Term Investments	5.53M	7.90M	9.11M	1.70M	1.20M	5.30M
Total Debt	24.91M	35.70M	30.11M	33.90M	28.90M	27.00M
Total Liabilities	65.37M	84.60M	60.62M	75.70M	65.40M	52.70M
Stockholders Equity	34.03M	36.30M	50.48M	68.50M	59.60M	56.90M
Cash Flow
Free Cash Flow	2.33M	-100.00K	3.30M	-3.20M	-1.60M	7.60M
Operating Cash Flow	5.27M	7.90M	4.18M	4.00M	4.00M	12.10M
Investing Cash Flow	-2.10M	-2.19M	-5.41M	-7.30M	-5.60M	-4.50M
Financing Cash Flow	2.81M	-6.82M	7.40M	2.20M	-2.20M	-2.00M

Dialight Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 250.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DIA, the sentiment is Positive. The current price of 250 is below the 20-day moving average (MA) of 253.95, above the 50-day MA of 233.44, and above the 200-day MA of 163.92, indicating a bullish trend. The MACD of 7.75 indicates Positive momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 55.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DIA.

Dialight Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFW	―	£326.93M	13.79	13.87%	2.50%	-0.33%	4.58%
LUCE	―	£204.98M	14.24	15.66%	3.83%	18.90%	-20.79%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DIA	―	£103.23M	-9.56	-21.17%	―	-3.32%	10.13%
LPA	―	£5.62M	-25.30	-1.39%	―	-10.88%	-122.05%

Dialight Corporate Events

Dialight Expects to Surpass Profit Expectations Despite Market Challenges

Dialight plc reports a slight decline in sales due to tariff uncertainties and a softer macro-economic climate affecting its hazardous end market sectors. Despite this, the company has seen improvements in margin, cost reduction, and cash generation, leading to a strong second quarter profit. The company expects to exceed market expectations for Adjusted Operating Profit for the year ending March 2026, excluding a one-time cash benefit from US Covid credits. Net debt has decreased significantly, indicating positive financial health.

The most recent analyst rating on (GB:DIA) stock is a Hold with a £189.00 price target. To see the full list of analyst forecasts on Dialight stock, see the GB:DIA Stock Forecast page.

Dialight PLC AGM Resolutions Passed Amid Shareholder Dissent

Dialight PLC recently held its Annual General Meeting where resolutions regarding political donations and share allotment were passed, despite more than 20% of votes being against them. The company acknowledges the dissent and plans to engage further with shareholders, in line with the UK Corporate Governance Code, to address concerns and provide updates within six months.

The most recent analyst rating on (GB:DIA) stock is a Hold with a £189.00 price target. To see the full list of analyst forecasts on Dialight stock, see the GB:DIA Stock Forecast page.

Dialight plc Secures Shareholder Approval for Key Resolutions at 2025 AGM

At its 2025 Annual General Meeting, Dialight plc announced that all resolutions were passed by shareholder vote. Key resolutions included the approval of the company’s report and accounts, remuneration report, reappointment of auditors, and several special resolutions regarding share allotment and pre-emption rights. The passing of these resolutions reflects strong shareholder support and positions Dialight to continue its strategic initiatives, potentially impacting its market operations and stakeholder interests positively.

The most recent analyst rating on (GB:DIA) stock is a Hold with a £189.00 price target. To see the full list of analyst forecasts on Dialight stock, see the GB:DIA Stock Forecast page.

Dialight Reports Mixed Trading Results Amid Economic Challenges

Dialight plc has reported a slight decline in sales for the five months ending August 2025 due to tariff uncertainties and a challenging macro-economic environment impacting its hazardous end market sectors. Despite this, the company remains optimistic about its profit and cash generation, citing improvements in margins, cost reductions, and foreign exchange gains. The company’s net debt has decreased, and it expects to meet market expectations for the fiscal year ending March 2026.

The most recent analyst rating on (GB:DIA) stock is a Hold with a £189.00 price target. To see the full list of analyst forecasts on Dialight stock, see the GB:DIA Stock Forecast page.