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DAKT

Daktronics NasdaqGS:DAKT Stock Report

Last Price

US$2.85

Market Cap

US$128.3m

7D

3.3%

1Y

-48.0%

Updated

05 Oct, 2022

Data

Company Financials
DAKT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends0/6

DAKT Stock Overview

Daktronics, Inc. designs, manufactures, markets, and sells electronic display systems and related products worldwide.

Daktronics Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Daktronics
Historical stock prices
Current Share PriceUS$2.85
52 Week HighUS$6.00
52 Week LowUS$2.65
Beta0.84
1 Month Change-7.17%
3 Month Change-5.32%
1 Year Change-47.99%
3 Year Change-59.02%
5 Year Change-73.34%
Change since IPO146.49%

Recent News & Updates

Aug 04

Daktronics: A Unique Business With Some Upside Potential

Daktronics has an interesting line of business that focuses on scoreboards and types of digital displays and systems. Performance has largely been stuck in a fairly narrow range for most of the past few years. This alone is an issue, but shares are cheap, and the outlook for investors should be promising. Digital displays and other similar technologies are borderline ubiquitous throughout modern society. The ability to easily display information in various circumstances can be incredibly valuable. And one company that operates in this space that has a rather interesting operating history is Daktronics (DAKT). In recent years, the financial picture of the company has been a bit volatile. But this doesn't mean that the company represents a bad opportunity for long-term investors. Given how cheap shares are today, both on an absolute basis and relative to other similar firms, it could very well offer some decent upside for investors moving forward. Because of this, I have decided to rate the enterprise a soft 'buy', reflecting my belief that it will likely outperform the broader market for the foreseeable future. A sign to invest in? According to the management team at Daktronics, the company designs and produces electronic scoreboards, programmable display systems, and large screen video displays that are used for sporting, commercial, and transportation applications. The company's line of offerings is fairly robust, with scoreboards for instance ranging from small ones all the way up to large ones. Some of the electronic displays it produces cost millions of dollars, and the company's display systems also include control, timing, and sound system applications to them. In addition to producing and selling these systems, the company also engages in other activities. For instance, it also participates in what it refers to as technical contracting. In these kinds of arrangements, it operates as a technical contractor for larger display system installations that require custom designs and innovative product solutions. The firm also offers professional services such as event support, content creation, product maintenance, marketing assistance, hardware and software training, control room design, and even continuing Technical Support training for operators. Some of the company's revenue also comes from the offering of limited warranties for its products, with some of these extending up to 10 years. The full range of the company's products includes video displays and even video walls, scoreboards and timing systems, message displays, intelligent transportation systems dynamic message signs, mass transit signs, sound systems, digital billboards, digital street furniture, digit and price displays, indoor dynamic messaging systems and indoor LCD signs, and software and controllers associated with its other technologies. The most obscure of these product lines must be the digital street furniture. According to management, these are LED displays that can be placed on sidewalks and in other areas aimed at helping relay valuable information to those passing by. Author - SEC EDGAR Data Over the past five years, the financial picture for the company has been rather interesting. Between 2018 and 2022, sales largely were within a fairly narrow range of between $569.7 million and $611 million. The only exception was in 2021 when sales dropped to $482 million because of the COVID-19 pandemic. For context, the high year was in 2021. The increase in revenue from 2020 to 2021 was driven by strength across the board. But undoubtedly the bright spot for the company involved products and services that fell under the Live Events category. Sales there jumped by 39.2% year over year, accounting for 43.5% of the total increase in revenue year over year. It just so happens that total orders for the Live Events category also experienced the greatest growth, with the year-over-year increase totaling 99.7%. For that year, this category accounted for 47.5% of the year-over-year improvement in orders for the company. Management attributed much of this upside to increase order volume caused by strong demand for the company's products. What's more, they expect the demand to continue from across the board, with 2023 looking particularly bullish. Unfortunately, the company has not provided specific guidance for what that year might look like. But with backlog at a multi-year high of $471.6 million, it's likely that the 2023 fiscal year will prove to be a good year for investors. Author - SEC EDGAR Data Just like revenue, profitability has not really shown any clear trend. Over the past five years, net income has ranged from a low point of negative $1 million to a high point of $10.9 million. Operating cash flow had shown similar uncertainty, with a range of between negative $27 million and positive $66.2 million. If we adjust for changes in working capital, that range changes to between $17.7 million and $34.5 million. Meanwhile, EBITDA should be between $10.9 million and $33.1 million. Author - SEC EDGAR Data No guidance has been provided when it comes to the 2023 fiscal year. But for the purpose of this article, I've decided to value the company based on 2022 results in two different ways. The first is to compare the data to the results from 2022. And the second is to average out results for the past five years. Taking the first approach, the firm is trading at a price to adjusted operating cash flow multiple of 9.3. This compares to the 7.2 reading that we get if we rely on the five-year average. Meanwhile, the EV to EBITDA multiple should be 7.6. That compares to the 6.4 reading that we get if we rely on average results for the past five years.

Shareholder Returns

DAKTUS ElectronicUS Market
7D3.3%3.3%1.9%
1Y-48.0%-17.5%-18.8%

Return vs Industry: DAKT underperformed the US Electronic industry which returned -18% over the past year.

Return vs Market: DAKT underperformed the US Market which returned -18.2% over the past year.

Price Volatility

Is DAKT's price volatile compared to industry and market?
DAKT volatility
DAKT Average Weekly Movement8.0%
Electronic Industry Average Movement6.8%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: DAKT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: DAKT's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19682,362Reece Kurtenbachhttps://www.daktronics.com

Daktronics, Inc. designs, manufactures, markets, and sells electronic display systems and related products worldwide. It operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company offers video display systems, such as displays to show various levels of video, graphics, and animation; indoor and outdoor light emitting diodes (LED) video displays, including centerhung, landmark, ribbon board, and corporate office entrance displays, as well as video walls and hanging banners; mobile and modular display systems; architectural lighting and display products; indoor and outdoor scoreboards for various sports, digit displays, scoring and timing controllers, statistics software, and other related products; and timing systems for sports events primarily aquatics and track competitions, as well as swimming touchpads, race start systems, and relay take-off platforms.

Daktronics Fundamentals Summary

How do Daktronics's earnings and revenue compare to its market cap?
DAKT fundamental statistics
Market CapUS$128.35m
Earnings (TTM)-US$8.42m
Revenue (TTM)US$638.16m

0.2x

P/S Ratio

-15.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DAKT income statement (TTM)
RevenueUS$638.16m
Cost of RevenueUS$527.86m
Gross ProfitUS$110.30m
Other ExpensesUS$118.72m
Earnings-US$8.42m

Last Reported Earnings

Jul 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.19
Gross Margin17.28%
Net Profit Margin-1.32%
Debt/Equity Ratio12.9%

How did DAKT perform over the long term?

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

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 DAKT?

Other financial metrics that can be useful for relative valuation.

DAKT 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/Revenue0.2x
Enterprise Value/EBITDA17.1x
PEG Ration/a

Price to Sales Ratio vs Peers

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

DAKT PS Ratio vs Peers
The above table shows the PS ratio for DAKT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average15.7x
ITI Iteris
0.9x11.0%US$119.6m
SOTK Sono-Tek
6.3x3.4%US$111.2m
OUST Ouster
5x54.5%US$192.6m
LIDR AEye
50.6x72.1%US$188.1m
DAKT Daktronics
0.2xn/aUS$128.3m

Price-To-Sales vs Peers: DAKT is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (15.7x).


Price to Earnings Ratio vs Industry

How does DAKT's PE Ratio compare vs other companies in the US Electronic Industry?

Price-To-Sales vs Industry: DAKT is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Electronic industry average (1.6x)


Price to Sales Ratio vs Fair Ratio

What is DAKT'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.

DAKT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ration/a

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


Share Price vs Fair Value

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

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

Significantly Below Fair Value: Insufficient data to calculate DAKT'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 Daktronics 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


13.6%

Forecasted Tech 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 Daktronics 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 DAKT’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 Daktronics 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


-28.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DAKT is currently unprofitable.

Growing Profit Margin: DAKT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DAKT is unprofitable, and losses have increased over the past 5 years at a rate of 28.8% per year.

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

Earnings vs Industry: DAKT is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (19.9%).


Return on Equity

High ROE: DAKT has a negative Return on Equity (-4.51%), as it is currently unprofitable.


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Financial Health

How is Daktronics'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: DAKT's short term assets ($343.1M) exceed its short term liabilities ($224.6M).

Long Term Liabilities: DAKT's short term assets ($343.1M) exceed its long term liabilities ($62.0M).


Debt to Equity History and Analysis

Debt Level: DAKT's net debt to equity ratio (6.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DAKT's debt to equity ratio has reduced over the past 5 years.

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

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


Balance Sheet


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Dividend

What is Daktronics's 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

Daktronics Dividend Yield vs Market
How does Daktronics dividend yield compare to the market?
SegmentDividend Yield
Company (Daktronics)0%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Electronic)1.6%
Analyst forecast in 3 Years (Daktronics)n/a

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

High Dividend: Unable to evaluate DAKT'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 DAKT's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: DAKT is not paying a notable dividend for the US market.


Cash Payout to Shareholders

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


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Management

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

10.3yrs

Average management tenure


CEO

Reece Kurtenbach (57 yo)

9.08yrs

Tenure

US$538,673

Compensation

Mr. Reece A. Kurtenbach has been the Chief Executive Officer and President of Daktronics Inc. since September 1, 2013. He has been the Chairman of Daktronics Inc. since September 3, 2014 and has been its D...


CEO Compensation Analysis

Reece Kurtenbach's Compensation vs Daktronics Earnings
How has Reece Kurtenbach's remuneration changed compared to Daktronics's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 30 2022n/an/a

-US$8m

Apr 30 2022US$539kUS$470k

US$592k

Jan 29 2022n/an/a

US$2m

Oct 30 2021n/an/a

US$6m

Jul 31 2021n/an/a

US$7m

May 01 2021US$450kUS$387k

US$11m

Jan 30 2021n/an/a

US$10m

Oct 31 2020n/an/a

-US$3m

Aug 01 2020n/an/a

US$928k

May 02 2020US$519kUS$451k

US$491k

Feb 01 2020n/an/a

-US$9m

Nov 02 2019n/an/a

US$166k

Aug 03 2019n/an/a

US$1m

Apr 27 2019US$516kUS$444k

-US$958k

Jan 26 2019n/an/a

US$6m

Oct 27 2018n/an/a

US$3m

Jul 28 2018n/an/a

US$2m

Apr 28 2018US$527kUS$428k

US$6m

Jan 27 2018n/an/a

US$10m

Oct 28 2017n/an/a

US$11m

Jul 29 2017n/an/a

US$13m

Apr 29 2017US$512kUS$408k

US$10m

Jan 28 2017n/an/a

US$7m

Oct 29 2016n/an/a

US$10m

Jul 30 2016n/an/a

US$4m

Apr 30 2016US$461kUS$367k

US$2m

Compensation vs Market: Reece's total compensation ($USD538.67K) is below average for companies of similar size in the US market ($USD771.97K).

Compensation vs Earnings: Reece's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: DAKT's management team is seasoned and experienced (10.3 years average tenure).


Board Members

Experienced Board: DAKT's board of directors are not considered experienced ( 2.1 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: DAKT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqGS:DAKT Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
20 Sep 22BuyUS$67,717Andrew SiegelIndividual23,217US$2.94
06 Sep 22BuyUS$29,800Reece KurtenbachIndividual10,000US$2.98
13 Jun 22BuyUS$44,844Reece KurtenbachIndividual15,000US$2.99
16 Mar 22BuyUS$40,200Reece KurtenbachIndividual10,000US$4.02
06 Dec 21BuyUS$13,821Sheila AndersonIndividual3,000US$4.61
06 Dec 21BuyUS$47,151Reece KurtenbachIndividual10,000US$4.72

Ownership Breakdown

What is the ownership structure of DAKT?
Owner TypeNumber of SharesOwnership Percentage
Private Companies681,6751.5%
Employee Share Scheme2,162,2814.8%
Individual Insiders6,510,52514.5%
General Public14,084,57631.3%
Institutions21,594,78248.0%

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


Top Shareholders

Top 25 shareholders own 56.35% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
5.58%
Dimensional Fund Advisors LP
2,514,209$7.2m6.4%no data
4.8%
Daktronics Inc., Retirement And Savings Plan
2,162,281$6.2m0.01%no data
4.3%
Aelred Kurtenbach
1,935,543$5.5m3.42%no data
4.12%
The Vanguard Group, Inc.
1,856,875$5.3m-14.79%no data
3.82%
Acadian Asset Management LLC
1,721,422$4.9m-3.05%0.02%
3.14%
Renaissance Technologies LLC
1,413,214$4.0m3.88%no data
2.94%
James Morgan
1,323,207$3.8m-0.76%no data
2.88%
BlackRock, Inc.
1,297,815$3.7m-56.31%no data
2.85%
Andrew Siegel
1,285,659$3.7m0%no data
2.68%
First Bank & Trust, Asset Management Arm
1,205,988$3.4m0%1.17%
2.34%
Kovack Advisors, Inc., Asset Management Arm
1,054,700$3.0m31.62%0.41%
1.89%
D. E. Shaw & Co., L.P.
849,826$2.4m-5.41%no data
1.68%
Carla Gatzke
756,474$2.2m0.65%no data
1.65%
Private Advisor Group, LLC
743,350$2.1m21.45%0.02%
1.51%
Medary Creek LLLP
681,675$1.9m13.3%no data
1.44%
Penn Capital Management Company, LLC
648,288$1.8m36.83%0.2%
1.4%
Franklin Resources, Inc.
630,758$1.8m-0.11%no data
1.22%
Reece Kurtenbach
548,348$1.6m1.83%no data
1.14%
Millennium Management LLC
511,380$1.5m191.23%no data
0.99%
Jacobs Levy Equity Management Inc
444,468$1.3m-6.46%0.01%
0.86%
Fuller & Thaler Asset Management, Inc.
389,447$1.1m0.66%0.01%
0.83%
Geode Capital Management, LLC
372,598$1.1m-41.11%no data
0.83%
Lesa Sroufe & Company, Inc.
371,875$1.1m0%1.15%
0.75%
First Personal Financial Services Inc.
335,921$957.4k-0.65%0.27%
0.72%
Bridgeway Capital Management, LLC
323,355$921.6k0%0.02%

Company Information

Daktronics, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Daktronics, Inc.
  • Ticker: DAKT
  • Exchange: NasdaqGS
  • Founded: 1968
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Implied Market Cap: US$128.346m
  • Shares outstanding: 45.03m
  • Website: https://www.daktronics.com

Number of Employees


Location

  • Daktronics, Inc.
  • 201 Daktronics Drive
  • Brookings
  • South Dakota
  • 57006
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DAKTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1994
DA3DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1994

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
Earnings2022/07/30
Annual Earnings2022/04/30


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.