Dialight (DIA) AI Stock Analysis

• Market Cap: £84.03M
• Dividend Yield: N/A
• Average Volume (3M): 230.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -3.32%
• EPS Growth: 9.83%
• 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: 21,357
• 30 Day Avg. Volume: 230,682
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £204.50
• Price Target Upside: -5.32% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: 189.00p ▼(-12.50% Downside)

Dialight's overall stock score reflects a combination of strong revenue growth and positive corporate events, offset by profitability challenges and a concerning valuation. The technical analysis provides mixed signals, with short-term bullish momentum but potential oversold conditions. The company's return to profitability and strategic initiatives are positive, but operational inefficiencies and cash flow issues remain significant risks.

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	300.00K	-7.80M
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	46.90M	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	-2.80M	-4.31M	-7.30M	-5.60M	-4.50M
Financing Cash Flow	2.81M	-8.70M	5.90M	2.20M	-2.20M	-2.00M

Dialight Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 216.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 216 is above the 20-day moving average (MA) of 211.93, above the 50-day MA of 206.29, and above the 200-day MA of 140.96, indicating a neutral trend. The MACD of 5.56 indicates Positive momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 is Positive, 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	78 Outperform	348.79M	14.71	0.00%	1.42%	-0.29%	11.71%
LUCE	69 Neutral	195.74M	13.50	15.24%	4.02%	18.90%	-20.79%
LPA	54 Neutral	6.14M	-27.68	-2.00%	―	-10.88%	-122.05%
DIA	51 Neutral	£84.03M	―	-21.17%	―	-3.32%	9.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Dialight Corporate Events

Dialight Releases Annual Report and Announces AGM Details

Dialight has published its audited Annual Report and Accounts for the year ending March 31, 2025, and announced the details of its upcoming Annual General Meeting (AGM) scheduled for September 1, 2025, in London. This announcement underscores Dialight’s commitment to transparency and engagement with its shareholders, providing them with necessary documents and information ahead of the AGM, which could influence future company strategies and stakeholder relations.

Dialight Publishes 2024/25 Audited Annual Report Ahead of AGM

Dialight has released its audited Annual Report and Accounts for the fiscal year ending March 31, 2025, which is now available on their website. This release precedes the company’s annual general meeting scheduled for September 1, 2025, where shareholders will receive the necessary documents. The publication of these accounts is a significant step in maintaining transparency with stakeholders and aligns with the company’s commitment to sustainable industrial LED lighting solutions.

Dialight PLC Grants Units Under 2024 Value Creation Plan

Dialight PLC announced the grant of 170 units under its 2024 Value Creation Plan (VCP) to Mark Fryer, the CFO, with a share hurdle price set at 350p per share. This initiative, approved at the 2024 AGM, aims to align executive incentives with company performance, potentially impacting the company’s financial strategies and stakeholder interests by linking share options to performance metrics over specified periods.

Dialight CEO Increases Stake with Share Purchase

Dialight plc announced that its CEO, Steve Blair, has purchased 15,631 ordinary shares of the company at a price of 190 pence each. This transaction increases Blair’s total shareholding to 104,114 shares, representing 0.26% of the company’s issued share capital. This move might indicate confidence in the company’s future prospects and could positively impact stakeholder perception.

Dialight CFO Increases Stake in Company

Dialight plc announced that its CFO, Mark Fryer, has purchased 13,751 ordinary shares in the company, representing 0.03% of its issued share capital. This transaction, conducted on the London Stock Exchange, underscores a potential vote of confidence in the company’s future prospects and may impact stakeholder perceptions positively.

Dialight Returns to Profitability with Strategic Growth Initiatives

Dialight plc has announced a return to profitability for the 12-month period ending March 31, 2025, with a revenue increase to $183.5 million and an underlying operating profit of $4.2 million. The company has seen significant improvements in its gross margin and has successfully executed its transformation plan, despite facing challenges such as US tariffs and a legal settlement with Sanmina. The positive financial results and strategic initiatives, including the formation of a new Strategy and Innovation Committee, position Dialight for future growth and stability in the competitive LED lighting industry.