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DJCO

Daily Journal NasdaqCM:DJCO Stock Report

Last Price

US$262.60

Market Cap

US$362.6m

7D

0.8%

1Y

-18.8%

Updated

05 Oct, 2022

Data

Company Financials
DJCO fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends0/6

DJCO Stock Overview

Daily Journal Corporation publishes newspapers and websites covering in California, Arizona, and Utah.

Risk Analysis

No risks detected for DJCO from our risk checks.

Daily Journal Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Daily Journal
Historical stock prices
Current Share PriceUS$262.60
52 Week HighUS$415.66
52 Week LowUS$236.01
Beta0.80
1 Month Change-0.38%
3 Month Change-5.44%
1 Year Change-18.83%
3 Year Change-5.20%
5 Year Change19.69%
Change since IPO1,809.82%

Recent News & Updates

Sep 28

Charlie Munger's Daily Journal Corporation Is A Cohiba Cigar Butt

Summary According to Ben Graham's value investment classic "The Intelligent Investor," the definition of a net-net is a company trading below its net working capital value. Warren Buffett re-coined the term, cigar butt, for having one puff left. Daily Journal Corporation is by no means a one-puff pony, this is a well-managed holdings company with Charlie Munger's previous management and influence. Daily Journal is trading below its working-capital value Daily Journal Corporation (DJCO) is a business and legal news and advertising editorial in California. Until his recent step-down as chairman of the board in April, the marketable securities investment side of the business was run by Charlie Munger for the last 45 years. While the company likes to say that they are not a smaller version of Berkshire Hathaway (BRK.A, BRK.B), the operations have a resemblance. The company operates several small newspaper circulations throughout California, most focused on the legal and business communities. While the company does generate about $50 million a year in the news business, overhead and salaries amount to roughly $48 million of that, generating a net income of $2.15 million FY 2021. What the company has in common with the original Berkshire Hathaway is that it has built up a holding in marketable securities that makes up the vast majority of its assets, to the tune of $347 million worth for a company with a $326 million market cap. Over the years, whilst the news and advertising business had been dwindling, Charlie Munger as Chairman of the Board was overseeing the investment of retained earnings into stock holdings. At this point, dividends alone make up more net income than what is provided by the media part of the business, with unrealized gains of $244 million. Being that this is a business that is nearly self-sustainable at this point, the company also carries very little debt. It has put the company in a rare situation where they are now trading below net current asset value, with $372 million in total current assets and only $33.5 million in debt. We will further examine one of the original Benjamin Graham value metrics in this article, the net-net, or as Warren Buffett termed it, the cigar butt valuation. My thesis is this is a buy, especially in an economic downturn where the margin of safety is becoming ever more important. In this case, I like to call the Daily Journal a Cohiba butt, because it is certainly an elite version of a discounted dollar. What is a net-net ? This is a term you may have heard uttered by value investment gurus. Many value funds from the 1950s even up until now hunt for companies that are trading below liquidation value. Buffett and Graham were obsessed with these because, in poor economic times, they provide the highest margin of safety. Nick Sleep, who ran Nomad Partnership in the early 2000s, also started by looking for dollars selling for .50 cents. Nomad was so determined to find cigar butts at first that they even bought net-nets in Zimbabwe. You find these deals more often than not in smaller cap companies that don't require a lot of debt to sustain the business. Daily Journal Corporation is certainly in this category. The exercise in finding a net-net is both simple and unique. It is the only valuation metric I am aware of that solely relies on the balance sheet and disregards the income and cash flow statement. Many of you out there have a copy of Benjamin Graham's The Intelligent Investor. If you are so inclined, you can open your copy and flip to pages 390-391, where you will see a succinct description of how to perform the exercise: Technically, the working-capital value of a stock is the current assets per share, minus the current liabilities per share, divided by the number of shares outstanding. All three of these items are lined up right on the balance sheet. Let's examine the balance sheet of the Daily Journal and go through the exercise: Daily Journal Balance Sheet (yahoo finance) 1. Here we can see total current assets are $372 million FY 2021. 2. Subtracting out the total debt of $33 million, we get net current assets of $338 million. 3. Ordinary shares, (shares issued minus those in treasury from buybacks not yet retired), are only 1.38 million. Taking the net current assets of $338 million and dividing it by 1.38 million shares outstanding gets us $245 a share in net current assets. As the majority of these are marketable securities, with a tad over $12 million being held in just cash, let's take a look at their holdings next. Daily Journal Corporation 13 F DJCO holdings mrq (whalewisdom.com) Heavy focus on banks With large holdings in Bank of America (BAC), Wells Fargo (WFC), and U.S. Bancorp (USB), Buffett, Munger, and Graham have always been big proponents of bank stocks. Buffett likes them because they always trade at fair valuations to assets and earnings, but are also a great hedge against inflation. As the dollar value of homes, cars, and all other goods requiring consumer debt goes up, it doesn't take a larger workforce to generate higher dollar loans against those goods. All you have to do is move commas and decimal points. Banks are unique in that their revenue and income will grow with the economy without adding costs. The biggest costs to banks are normally defaults and bad loans. One of the larger holdings that was recently halved is Alibaba (BABA, BABAF). The Daily Journal took significant losses on this holding, as have other elite hedge funds that got too enthusiastic about the "Amazon of China" moniker. Rounding out the bottom of the list is POSCO (PKX), a Korean steel company that is trading at .32 price-to-book and 4.5 X forward earnings. The banks and POSCO are all trading well under their Graham number value (22.5 × (Earnings Per Share) × (Book Value Per Share), while Alibaba was a stock that discounted free cash flow practitioners had high hopes for, but continued to revise down. From the majority of the selections on the list, we can see that Munger's thought process is at least 80% centered around the original theses of The Intelligent Investor. Additionally, the company does not pay a dividend. This holds true to the Berkshire Hathaway model that tax efficiency and compounding are the main tenets of its business model. Daily Journal's other operations This is, in a nutshell, Charlie Munger's deferred tax vehicle brainchild, but let's see what else they do outside of the part Munger managed: Daily Journal Corporation (the "Company") publishes newspapers and websites reporting California and Arizona news and produces several specialized information services. It also serves as a newspaper representative specializing in public notice advertising. This is sometimes referred to as the Company's "Traditional Business." Journal Technologies, Inc. ("Journal Technologies"), a wholly-owned subsidiary of the Company, supplies case management software systems and related products to courts, prosecutor and public defender offices, probation departments and other justice agencies, including administrative law organizations, city and county governments and bar associations. These organizations use the Journal Technologies family of products to help manage cases and information electronically, to interface with other critical justice partners and to extend electronic services to the public, including e-filing and a website to pay traffic citations and fees online. These products are licensed in 42 states and internationally. Essentially all of the Company's U.S. operations are based in California, Arizona and Utah. The Company also has a presence in Australia where Journal Technologies is working on three software installation projects. Financial information of the Company, including information about each of the Company's reportable segments, is set forth in Item 8 ("Financial Statements and Supplementary Data").-Daily Journal 2021 10K

Sep 27
Is Daily Journal (NASDAQ:DJCO) A Risky Investment?

Is Daily Journal (NASDAQ:DJCO) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Aug 12

Daily Journal GAAP EPS of -$22.31, revenue of $34.8M

Daily Journal press release (NASDAQ:DJCO): 9M  GAAP EPS of -$22.31. Revenue of $34.8M (-8.3% Y/Y).

May 17

Daily Journal Corporation: Attractively Priced If Its Investments Pay Off

Daily Journal Corporation has done well to grow its new core business in recent years, creating real value for its investors. But the real value lies in the fact that the business has a significant portfolio of securities on its books. Factoring this into the equation, shares look quite cheap, but this could change based on investment performance.

Shareholder Returns

DJCOUS MediaUS Market
7D0.8%4.6%4.4%
1Y-18.8%-43.2%-18.2%

Return vs Industry: DJCO exceeded the US Media industry which returned -43.2% over the past year.

Return vs Market: DJCO matched the US Market which returned -18.2% over the past year.

Price Volatility

Is DJCO's price volatile compared to industry and market?
DJCO volatility
DJCO Average Weekly Movement5.7%
Media Industry Average Movement7.5%
Market Average Movement6.9%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: DJCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DJCO's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1987295Steven Myhill-Joneshttps://www.dailyjournal.com

Daily Journal Corporation publishes newspapers and websites covering in California, Arizona, and Utah. It operates in two segments, Traditional Business and Journal Technologies. The company publishes 10 newspapers of general circulation, including Los Angeles Daily Journal, San Francisco Daily Journal, Daily Commerce, The Daily Recorder, The Inter-City Express, San Jose Post-Record, Orange County Reporter, The Daily Transcript, Business Journal, and The Record Reporter.

Daily Journal Fundamentals Summary

How do Daily Journal's earnings and revenue compare to its market cap?
DJCO fundamental statistics
Market CapUS$362.58m
Earnings (TTM)-US$32.22m
Revenue (TTM)US$46.23m

7.8x

P/S Ratio

-11.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DJCO income statement (TTM)
RevenueUS$46.23m
Cost of RevenueUS$37.18m
Gross ProfitUS$9.06m
Other ExpensesUS$41.27m
Earnings-US$32.22m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-23.33
Gross Margin19.59%
Net Profit Margin-69.68%
Debt/Equity Ratio34.2%

How did DJCO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is DJCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DJCO?

Other financial metrics that can be useful for relative valuation.

DJCO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA311.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does DJCO's PS Ratio compare to its peers?

DJCO PS Ratio vs Peers
The above table shows the PS ratio for DJCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.5x
GCI Gannett
0.07x-2.3%US$230.6m
SCHL Scholastic
0.6xn/aUS$1.1b
LEE Lee Enterprises
0.1x1.3%US$109.4m
WLY John Wiley & Sons
1x3.8%US$2.2b
DJCO Daily Journal
7.8xn/aUS$362.6m

Price-To-Sales vs Peers: DJCO is expensive based on its Price-To-Sales Ratio (7.8x) compared to the peer average (0.5x).


Price to Earnings Ratio vs Industry

How does DJCO's PE Ratio compare vs other companies in the US Media Industry?

Price-To-Sales vs Industry: DJCO is expensive based on its Price-To-Sales Ratio (7.8x) compared to the US Media industry average (1x)


Price to Sales Ratio vs Fair Ratio

What is DJCO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DJCO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.8x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate DJCO's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of DJCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate DJCO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate DJCO's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Daily Journal forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.3%

Forecasted Media industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Daily Journal has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Take a look at our analysis of DJCO’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

Past Performance

How has Daily Journal performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DJCO is currently unprofitable.

Growing Profit Margin: DJCO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DJCO is unprofitable, but has reduced losses over the past 5 years at a rate of 36.2% per year.

Accelerating Growth: Unable to compare DJCO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DJCO is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (7.8%).


Return on Equity

High ROE: DJCO has a negative Return on Equity (-14.39%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Daily Journal's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DJCO's short term assets ($368.0M) exceed its short term liabilities ($30.2M).

Long Term Liabilities: DJCO's short term assets ($368.0M) exceed its long term liabilities ($130.5M).


Debt to Equity History and Analysis

Debt Level: DJCO has more cash than its total debt.

Reducing Debt: DJCO's debt to equity ratio has increased from 21.1% to 34.2% over the past 5 years.

Debt Coverage: DJCO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if DJCO's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is Daily Journal current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Daily Journal Dividend Yield vs Market
How does Daily Journal dividend yield compare to the market?
SegmentDividend Yield
Company (Daily Journal)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Media)3.2%
Analyst forecast in 3 Years (Daily Journal)n/a

Notable Dividend: Unable to evaluate DJCO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DJCO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DJCO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DJCO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DJCO has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Steven Myhill-Jones

0.58yr

Tenure

Mr. Steven Myhill-Jones serves as Chairman, Director and Interim Chief Executive Officer at Daily Journal Corporation since March 28 2022. He serves as the Chief Executive Officer of Latitude Geographics G...


Leadership Team

Experienced Management: DJCO's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: DJCO's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of DJCO?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders60,0124.3%
Institutions589,19642.7%
General Public731,53853.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 46.01% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
20.53%
RWWM, Inc.
283,496$74.4m12.6%10.88%
5.45%
BlackRock, Inc.
75,222$19.8m0.82%no data
3.35%
Charles Munger
46,280$12.2m-7.44%no data
3.18%
The Vanguard Group, Inc.
43,871$11.5m9.76%no data
2.99%
HighTower Advisors, LLC
41,338$10.9m0%0.03%
1.53%
State Street Global Advisors, Inc.
21,174$5.6m2.39%no data
1.37%
Geode Capital Management, LLC
18,945$5.0m-1.27%no data
1.13%
Dimensional Fund Advisors LP
15,609$4.1m28.32%no data
0.99%
Barbara Edmonds
13,732$3.6m0%no data
0.83%
Aquamarine Capital Management, LLC
11,500$3.0m0%1.59%
0.74%
Northern Trust Global Investments
10,216$2.7m-1.03%no data
0.62%
Goldman Sachs Asset Management, L.P.
8,513$2.2m-8.8%no data
0.43%
Merrill Lynch & Co. Inc., Banking Investments
5,937$1.6m0%no data
0.4%
The Caprock Group, LLC
5,585$1.5m0%0.15%
0.35%
Covington Capital Management
4,856$1.3m0%0.05%
0.32%
BNY Mellon Asset Management
4,450$1.2m-11.95%no data
0.29%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
4,020$1.1m-2.59%no data
0.29%
Jacobs Levy Equity Management Inc
3,981$1.0m0%0.01%
0.26%
Stansberry Asset Management, LLC
3,549$932.0k15.83%0.21%
0.24%
Russell Investment Management, LLC
3,364$883.4k-36.78%no data
0.21%
Charles Schwab Investment Management, Inc.
2,946$773.6k-2.55%no data
0.2%
Shayne & Co., LLC
2,702$709.5k0%0.44%
0.12%
Rhumbline Advisers Ltd Partnership
1,702$446.9k12.27%no data
0.087%
Morgan Stanley, Investment Banking and Brokerage Investments
1,203$315.9k-3.76%no data
0.08%
New York State Common Retirement Fund
1,108$291.0k-0.27%no data

Company Information

Daily Journal Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Daily Journal Corporation
  • Ticker: DJCO
  • Exchange: NasdaqCM
  • Founded: 1987
  • Industry: Publishing
  • Sector: Media
  • Implied Market Cap: US$362.584m
  • Shares outstanding: 1.38m
  • Website: https://www.dailyjournal.com

Number of Employees


Location

  • Daily Journal Corporation
  • 915 East First Street
  • Los Angeles
  • California
  • 90012
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DJCONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDApr 1986
DJ1MUN (Boerse Muenchen)YesCommon StockDEEURApr 1986

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.