📊 DAKT Key Takeaways
Investment Thesis
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.
DAKT 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
DAKT 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
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
DAKT Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.22x current ratio provides a solid financial cushion.
DAKT Profitability Ratios
DAKT vs Default Sector
How DAKTRONICS INC /SD/ compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DAKT Balance Sheet & Liquidity
DAKT 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 Growth Metrics (YoY)
DAKT Quarterly 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.
DAKT Capital Allocation
DAKT SEC Filings
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 an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAKT's 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.
What are the risks of investing in DAKT?
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.
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?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.