Daktronics, Inc.
Daktronics, Inc. Fundamental Analysis
Daktronics, Inc. (DAKT) shows weak financial fundamentals with a PE ratio of 181.97, profit margin of 0.96%, and ROE of 2.63%. The company generates $0.8B in annual revenue with moderate year-over-year growth of 8.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DAKT's fundamental strength across five key dimensions:
Efficiency Score
WeakDAKT struggles to generate sufficient returns from assets.
Valuation Score
WeakDAKT trades at a premium to fair value.
Growth Score
ModerateDAKT shows steady but slowing expansion.
Financial Health Score
ExcellentDAKT maintains a strong and stable balance sheet.
Profitability Score
ModerateDAKT maintains healthy but balanced margins.
Key Financial Metrics
Is DAKT Expensive or Cheap?
P/E Ratio
DAKT trades at 181.97 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DAKT's PEG of 3.97 indicates potential overvaluation.
Price to Book
The market values Daktronics, Inc. at 4.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 30.99 times EBITDA. This signals the market has high growth expectations.
How Well Does DAKT Make Money?
Net Profit Margin
For every $100 in sales, Daktronics, Inc. keeps $0.96 as profit after all expenses.
Operating Margin
Core operations generate 5.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.63 in profit for every $100 of shareholder equity.
ROA
Daktronics, Inc. generates $1.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Daktronics, Inc. produces operating cash flow of $77.47M, showing steady but balanced cash generation.
Free Cash Flow
Daktronics, Inc. produces free cash flow of $61.68M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.27 in free cash annually.
FCF Yield
DAKT converts 4.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
181.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How DAKT Stacks Against Its Sector Peers
| Metric | DAKT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 181.97 | 34.79 | Worse (Expensive) |
| ROE | 2.63% | 1185.00% | Weak |
| Net Margin | 0.96% | -133093.00% (disorted) | Weak |
| Debt/Equity | 0.10 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 2.23 | 4.90 | Strong Liquidity |
| ROA | 1.34% | -324805.00% (disorted) | Weak |
DAKT outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Daktronics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.55%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
3637.12%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
109.50%
Industry Style: Growth, Innovation, High Beta
High Growth