📊 DAKT Key Takeaways
Is Daktronics Inc. /Sd/ (DAKT) a Good Investment?
Daktronics demonstrates solid financial fundamentals with strong liquidity (2.22x current ratio), minimal leverage (0.03x debt/equity), and healthy free cash flow generation ($43.9M). However, revenue contraction (-7.5% YoY) combined with a significant EPS decline (-128.4% YoY) raises concerns about operational challenges and earnings quality that warrant caution despite balance sheet strength.
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.
Why Buy Daktronics Inc. /Sd/ Stock? DAKT Key Strengths
- Exceptional balance sheet with $144.4M cash, low debt ($9.9M), and strong debt/equity ratio of 0.03x
- Robust liquidity position with current ratio of 2.22x and quick ratio of 1.68x providing significant financial flexibility
- Solid free cash flow generation ($43.9M annually) with 7.0% FCF margin supporting capital allocation and financial resilience
- Strong interest coverage ratio of 16.3x indicating minimal financial distress risk
- 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
- Revenue declining 7.5% year-over-year signals weakening demand or market share loss in core manufacturing segments
- Severe EPS deterioration (-128.4% YoY) despite positive net income suggests significant non-operational charges, share dilution, or one-time items masking underlying profitability concerns
- Compressed profitability margins (27.1% gross, 7.4% operating, 5.9% net) on a declining revenue base indicates operational leverage working in reverse
- 12 insider Form 4 filings in 90 days warrants investigation into trading patterns and potential information asymmetries
- 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
- Quarterly revenue trend to confirm if -7.5% decline is stabilizing or accelerating
- Operating margin progression and cost structure flexibility in response to lower revenue volumes
- Free cash flow sustainability and working capital management as revenue contracts
- Order backlog and pipeline visibility to assess demand trajectory
- Net income quality analysis to understand drivers of EPS collapse relative to bottom-line earnings
- Revenue growth and order conversion trends
- Operating margin and free cash flow consistency
Daktronics Inc. /Sd/ (DAKT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.22x 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 34% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.15 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 Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAKT's key strengths?
Claude: Exceptional balance sheet with $144.4M cash, low debt ($9.9M), and strong debt/equity ratio of 0.03x. Robust liquidity position with current ratio of 2.22x and quick ratio of 1.68x providing significant financial 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: Revenue declining 7.5% year-over-year signals weakening demand or market share loss in core manufacturing segments. Severe EPS deterioration (-128.4% YoY) despite positive net income suggests significant non-operational charges, share dilution, or one-time items masking underlying profitability concerns. 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 $630.1M.
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 $0.75.
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 rating reflects both perspectives for balanced insights.
Is DAKT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Daktronics Inc. /Sd/ has a HOLD rating with 69% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DAKT stock overvalued or undervalued?
Valuation metrics for DAKT: ROE of 12.6% (sector avg: 15%), net margin of 5.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy DAKT stock in 2026?
Our dual AI analysis gives Daktronics Inc. /Sd/ a combined HOLD rating 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 $54.3M, with capital expenditures of $10.4M. FCF margin is 7.0%.
How does DAKT compare to other Market stocks?
Vs Default sector averages: Net margin 5.9% (avg: 12%), ROE 12.6% (avg: 15%), current ratio 2.22 (avg: 1.8).