NasdaqGS:DAKT

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 50.5% per year

Risk Analysis

Dividend of 3.24% is not well covered by earnings

Profit margins (0.03%) are lower than last year (0.6%)

Significant insider selling over the past 3 months



Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Daktronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DAKT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

DAKT

-0.9%

US Electronic

0.5%

US Market


1 Year Return

-25.1%

DAKT

8.9%

US Electronic

20.3%

US Market

Return vs Industry: DAKT underperformed the US Electronic industry which returned 8.9% over the past year.

Return vs Market: DAKT underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

DAKTIndustryMarket
7 Day-1.3%-0.9%0.5%
30 Day0.5%-4.6%2.0%
90 Day-8.3%2.4%9.4%
1 Year-22.7%-25.1%10.0%8.9%22.8%20.3%
3 Year-30.2%-36.5%37.1%33.4%50.1%40.4%
5 Year-27.9%-39.7%69.1%60.8%73.1%54.1%

Price Volatility Vs. Market

How volatile is Daktronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Daktronics undervalued compared to its fair value and its price relative to the market?

1677.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DAKT ($6.17) is trading above our estimate of fair value ($4.8)

Significantly Below Fair Value: DAKT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DAKT is poor value based on its PE Ratio (1677.5x) compared to the Electronic industry average (19.8x).

PE vs Market: DAKT is poor value based on its PE Ratio (1677.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: DAKT is poor value based on its PEG Ratio (33.2x)


Price to Book Ratio

PB vs Industry: DAKT is good value based on its PB Ratio (1.4x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

How is Daktronics forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

50.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DAKT's forecast earnings growth (50.5% per year) is above the savings rate (1.7%).

Earnings vs Market: DAKT's earnings (50.5% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DAKT's revenue (3.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: DAKT's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DAKT's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Daktronics performed over the past 5 years?

-38.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DAKT has high quality earnings.

Growing Profit Margin: DAKT's current net profit margins (0.03%) are lower than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: DAKT's earnings have declined by -38.8% per year over the past 5 years.

Accelerating Growth: DAKT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DAKT had negative earnings growth (-95.1%) over the past year, making it difficult to compare to the Electronic industry average (14.6%).


Return on Equity

High ROE: DAKT's Return on Equity (0.08%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Daktronics's financial position?


Financial Position Analysis

Short Term Liabilities: DAKT's short term assets ($270.7M) exceed its short term liabilities ($144.1M).

Long Term Liabilities: DAKT's short term assets ($270.7M) exceed its long term liabilities ($36.3M).


Debt to Equity History and Analysis

Debt Level: DAKT is debt free.

Reducing Debt: DAKT has no debt compared to 5 years ago when its debt to equity ratio was 0.02%.

Debt Coverage: DAKT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DAKT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DAKT has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DAKT's debt is covered by short term assets.


Next Steps

Dividend

What is Daktronics's current dividend yield, its reliability and sustainability?

3.24%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DAKT's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: DAKT's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: DAKT's dividend payments have been volatile in the past 10 years.

Growing Dividend: DAKT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (5981.5%), DAKT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.7yrs

Average management tenure


CEO

Reece Kurtenbach (54yo)

6.4yrs

Tenure

US$516,234

Compensation

Mr. Reece A. Kurtenbach has been the Chief Executive Officer and President of Daktronics Inc. since September 1, 2013. Mr. Kurtenbach served as an Executive Vice President at Daktronics Inc., from June 15, ...


CEO Compensation Analysis

Compensation vs Market: Reece's total compensation ($USD516.23K) is below average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Reece's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Reece Kurtenbach
Chairman6.4yrsUS$516.23k0.95% $2.6m
Sheila Anderson
CFO & Treasurer7.4yrsUS$316.25k0.042% $115.9k
Carla Gatzke
VP of Human Resources & Corporate Secretary14.1yrsUS$254.13k1.59% $4.4m
Bradley Wiemann
Executive Vice President of Commercial & Transportation7.7yrsUS$308.98k0.22% $618.8k
Matthew Kurtenbach
Vice President of Manufacturing14.1yrsUS$296.02k0.59% $1.6m

7.7yrs

Average Tenure

54yo

Average Age

Experienced Management: DAKT's management team is seasoned and experienced (7.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Reece Kurtenbach
Chairman6.4yrsUS$516.23k0.95% $2.6m
Byron Anderson
Independent Director15.1yrsUS$110.99k0.11% $297.2k
Robert Dutcher
Independent Director18.1yrsUS$110.99k0.13% $351.6k
James Morgan
Independent Director36.1yrsUS$112.99k2.9% $8.1m
Nancy Frame
Lead Independent Director15.1yrsUS$115.99k0.18% $490.8k
John Friel
Independent Director4.4yrsUS$112.99k0.072% $199.4k
Kevin McDermott
Independent Director4.7yrsUS$112.99k0.082% $228.1k

15.1yrs

Average Tenure

72yo

Average Age

Experienced Board: DAKT's board of directors are seasoned and experienced ( 15.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: DAKT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Daktronics, Inc.'s company bio, 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
  • Market Cap: US$278.560m
  • Shares outstanding: 45.15m
  • 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

Biography

Daktronics, Inc. designs, manufactures, and sells electronic display systems and related products worldwide. It operates in 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 LED video displays; 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. It also provides control components for video displays in live event applications; message displays; ITS dynamic message signs, including LED displays for road management, mass transit, and aviation applications; digit and directional displays for use in parking facilities; and sound systems for outdoor sports venues. In addition, the company offers digital billboards for the out-of-home advertising industry; digital street furniture that engages people with advertising content at eye level as they walk through campuses, cityscapes, and outlet malls; DataTime product line that consists of outdoor time and temperature displays; and Fuelight digit displays designed for the petroleum industry. Further, it provides ADFLOW DMS systems that include indoor networked solutions for retailers, convenience stores, and other businesses; and Venus Control Suite, Show Control, Vanguard, and others, which offer control solutions to enable customers manage content on their displays, as well as maintenance and professional services related to its products. The company sells its products through direct sales and resellers. Daktronics, Inc. was founded in 1968 and is headquartered in Brookings, South Dakota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:40
End of Day Share Price2020/02/19 00:00
Earnings2019/11/02
Annual Earnings2019/04/27


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.