📊 DAKT Key Takeaways
Is Daktronics Inc. /Sd/ (DAKT) a Good Investment?
Daktronics demonstrates solid fundamental strength with 10.9% revenue growth, exceptional financial health (0.03x debt/equity, $131.6M cash), and positive free cash flow generation of $34.3M. However, modest operating margins (7.3%) and disproportionate EPS growth (+538% vs. 10.9% revenue growth) suggest potential one-time benefits that may not be sustainable.
Daktronics shows solid underlying financial health, with strong liquidity, minimal leverage, and positive free cash flow generation supporting resilience. Profitability remains acceptable, but the recent revenue decline and sharp EPS deterioration point to uneven operating momentum, making the fundamentals more balanced than clearly accelerating.
Daktronics Inc. /Sd/ Key Strengths (DAKT)
- Strong revenue growth of 10.9% YoY demonstrates solid market demand and business traction
- Fortress balance sheet with minimal debt (9.6M), strong cash position (131.6M), and 0.03x debt-to-equity ratio provides strategic flexibility
- Robust free cash flow generation of 34.3M with positive operating cash flow despite capital investments
- Excellent liquidity position (2.31x current ratio, 1.74x quick ratio) provides financial stability
- Solid returns on capital (ROE 15.1%, ROA 8.2%) indicate efficient asset utilization
- Strong balance sheet with high cash reserves and very low long-term debt
- Healthy liquidity profile with current ratio of 2.22x and quick ratio of 1.68x
- Positive operating cash flow and free cash flow with 7.0% FCF margin
DAKT Stock Risks: Daktronics Inc. /Sd/ Investment Risks
- Modest operating margin of 7.3% and gross margin of 27.3% indicate limited pricing power or high cost structure typical of manufacturing
- Massive EPS growth (+538% YoY) significantly outpaces revenue growth, suggesting potential one-time items or unusually weak prior-year earnings that may not recur
- Manufacturing sector exposure to industrial demand cycles and economic downturns could pressure margins and growth
- Free cash flow margin of 4.1% is thin relative to revenue, leaving limited buffer for operational disruptions
- Revenue declined 7.5% year over year, indicating weak top-line momentum
- Net margin of 5.9% and operating margin of 7.4% leave limited room if demand softens further
- Diluted EPS fell sharply year over year, suggesting earnings volatility or margin pressure
Key Metrics to Watch
- Operating margin trend and gross margin sustainability
- Revenue growth persistence and organic vs. acquired growth breakdown
- Free cash flow conversion and capital expenditure requirements
- Working capital management and cash-to-earnings quality
- Revenue growth and order conversion trends
- Operating margin and free cash flow consistency
Daktronics Inc. /Sd/ (DAKT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.1% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.31x current ratio provides a solid financial cushion.
DAKT Profit Margin, ROE & Profitability Analysis
DAKT vs Market Sector: How Daktronics Inc. /Sd/ Compares
How Daktronics Inc. /Sd/ compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Daktronics Inc. /Sd/ Stock Overvalued? DAKT Valuation Analysis 2026
Based on fundamental analysis, Daktronics Inc. /Sd/ has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Daktronics Inc. /Sd/ Balance Sheet: DAKT Debt, Cash & Liquidity
DAKT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Daktronics Inc. /Sd/'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.74 reflects profitable operations.
DAKT Revenue Growth, EPS Growth & YoY Performance
DAKT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $149.5M | -$696.0K | $-0.01 |
| Q2 2025 | $199.4M | $2.2M | $0.05 |
| Q1 2025 | $219.0M | -$4.9M | $-0.11 |
| Q3 2024 | $170.3M | $2.2M | $0.08 |
| Q2 2024 | $187.4M | $2.2M | $0.05 |
| Q1 2024 | $171.9M | -$5.3M | $-0.12 |
| Q3 2023 | $139.6M | $1.7M | $0.04 |
| Q2 2023 | $164.5M | $2.4M | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Daktronics Inc. /Sd/ Dividends, Buybacks & Capital Allocation
DAKT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Daktronics Inc. /Sd/ (CIK: 0000915779)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DAKT
What is the AI rating for DAKT?
Daktronics Inc. /Sd/ (DAKT) has a Combined AI Grade of A from Claude (A) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAKT's key strengths?
Claude: Strong revenue growth of 10.9% YoY demonstrates solid market demand and business traction. Fortress balance sheet with minimal debt (9.6M), strong cash position (131.6M), and 0.03x debt-to-equity ratio provides strategic flexibility. ChatGPT: Strong balance sheet with high cash reserves and very low long-term debt. Healthy liquidity profile with current ratio of 2.22x and quick ratio of 1.68x.
What are the risks of investing in DAKT?
Claude: Modest operating margin of 7.3% and gross margin of 27.3% indicate limited pricing power or high cost structure typical of manufacturing. Massive EPS growth (+538% YoY) significantly outpaces revenue growth, suggesting potential one-time items or unusually weak prior-year earnings that may not recur. ChatGPT: Revenue declined 7.5% year over year, indicating weak top-line momentum. Net margin of 5.9% and operating margin of 7.4% leave limited room if demand softens further.
What is DAKT's revenue and growth?
Daktronics Inc. /Sd/ reported revenue of $838.7M.
Does DAKT pay dividends?
Daktronics Inc. /Sd/ does not currently pay dividends.
Where can I find DAKT SEC filings?
Official SEC filings for Daktronics Inc. /Sd/ (CIK: 0000915779) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DAKT's EPS?
Daktronics Inc. /Sd/ has a diluted EPS of $0.92.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DAKT's fundamental grade?
Based on our AI fundamental analysis in July 2026, Daktronics Inc. /Sd/ has a A grade with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DAKT stock overvalued or undervalued?
Valuation metrics for DAKT: ROE of 15.1% (sector avg: 15%), net margin of 5.4% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is DAKT's AI grade for 2026?
Our dual AI analysis gives Daktronics Inc. /Sd/ a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DAKT's free cash flow?
Daktronics Inc. /Sd/'s operating cash flow is $49.2M, with capital expenditures of $14.9M. FCF margin is 4.1%.
How does DAKT compare to other Market stocks?
Vs Default sector averages: Net margin 5.4% (avg: 12%), ROE 15.1% (avg: 15%), current ratio 2.31 (avg: 1.8).