📊 DJCO Key Takeaways
Investment Thesis
Daily Journal Corp faces severe operational challenges with negative net income of -$8.0M despite 25.4% revenue growth, indicating deteriorating profitability and operational efficiency. The company is cash flow negative (-$1.9M operating cash flow) with a deeply unprofitable net margin of -40.8%, suggesting fundamental business model or cost structure issues that growth alone cannot overcome. While balance sheet liquidity appears strong, the persistent operational losses and negative returns on equity/assets indicate the core business is destroying shareholder value.
DJCO Strengths
- Strong balance sheet liquidity with 16.31x current ratio and minimal debt (Debt/Equity 0.00x)
- Substantial total assets of $529.5M providing financial cushion
- Revenue growth of 25.4% YoY showing top-line expansion
DJCO Risks
- Severe profitability crisis with -$40.8% net margin and -$8.0M net loss despite revenue growth
- Negative operating cash flow of -$1.9M indicating inability to generate cash from core operations
- Negative ROE (-2.1%) and ROA (-1.5%) demonstrating value destruction and asset inefficiency
- Long-term viability concerns in declining newspaper/publishing sector with poor unit economics
Key Metrics to Watch
- Operating cash flow trend - critical indicator of sustainability
- Net margin improvement - must return to profitability at operating level
- Revenue quality and composition - whether growth is sustainable or from one-time sources
DJCO Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 16.31x current ratio provides a solid financial cushion.
DJCO Profitability Ratios
DJCO vs Default Sector
How DAILY JOURNAL CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DJCO Balance Sheet & Liquidity
DJCO 5-Year Financial Trend
5-Year Trend Summary: DAILY JOURNAL CORP's revenue has grown significantly by 76% over the 5-year period, indicating strong business expansion. The most recent EPS of $56.73 reflects profitable operations.
DJCO Growth Metrics (YoY)
DJCO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $17.7M | -$8.0M | $-5.79 |
| Q3 2025 | $17.5M | $10.9M | N/A |
| Q2 2025 | $16.6M | $10.9M | N/A |
| Q1 2025 | $12.3M | $10.9M | N/A |
| Q3 2024 | $17.5M | $677.0K | N/A |
| Q2 2024 | $16.2M | $9.4M | N/A |
| Q3 2023 | $12.8M | $677.0K | N/A |
| Q2 2023 | $10.9M | $6.9M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DJCO Capital Allocation
DJCO SEC Filings
Access official SEC EDGAR filings for DAILY JOURNAL CORP (CIK: 0000783412)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DJCO
What is the AI rating for DJCO?
DAILY JOURNAL CORP (DJCO) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DJCO's key strengths?
Claude: Strong balance sheet liquidity with 16.31x current ratio and minimal debt (Debt/Equity 0.00x). Substantial total assets of $529.5M providing financial cushion.
What are the risks of investing in DJCO?
Claude: Severe profitability crisis with -$40.8% net margin and -$8.0M net loss despite revenue growth. Negative operating cash flow of -$1.9M indicating inability to generate cash from core operations.
What is DJCO's revenue and growth?
DAILY JOURNAL CORP reported revenue of $19.5M.
Does DJCO pay dividends?
DAILY JOURNAL CORP does not currently pay dividends.
Where can I find DJCO SEC filings?
Official SEC filings for DAILY JOURNAL CORP (CIK: 0000783412) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DJCO's EPS?
DAILY JOURNAL CORP has a diluted EPS of $-5.79.
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.