Daktronics Inc /Sd/ (NASDAQ: DAKT)

Sector: Technology Industry: Electronic Components CIK: 0000915779
Market Cap 1.45 Bn
P/B 4.87
P/E 196.50
P/S 1.88
ROIC (Qtr) 10.52
Div Yield % 0.00
Rev 1y % (Qtr) 10.04
Total Debt (Qtr) 11.30 Mn
Debt/Equity (Qtr) 0.04
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About

Daktronics Inc., a company with the ticker symbol DAKT, operates in the electronic scoreboards, programmable display systems, and large screen video displays industry. Founded in 1968 by Drs. Aelred Kurtenbach and Duane Sander, professors of electrical engineering at South Dakota State University, Daktronics has established itself as a leading manufacturer in its field. Daktronics' main business activities revolve around the design, manufacturing, and sale of a variety of display systems. These include video displays, scoreboards, timing systems,...

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Investment thesis

Bull case

  • Strong operating cash flow of 77.50M provides robust 6.86x coverage of total debt 11.30M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 149.60M provide 99.74x coverage of short-term debt 1.50M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 544.79M provides 48.22x coverage of total debt 11.30M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 77.50M provides strong 20.12x coverage of stock compensation 3.85M, indicating sustainable incentive practices.
  • Robust free cash flow of 62.16M exceeds capital expenditure of 15.34M by 4.05x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 77.50M barely covers its investment activities of (20.86M), with a coverage ratio of -3.72, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (20.86M) provide weak support for R&D spending of 40.51M, which is -0.51x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 77.50M provides insufficient coverage of deferred revenue obligations of 88.49M, which is 0.88x, raising concerns about future service delivery capabilities.
  • Operating earnings of 10.23M show weak coverage of depreciation charges of 19.34M, with a 0.53 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 62.16M represents just -115.32x of debt issuance (539000), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Geographical Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Electronic Components
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 APH Amphenol Corp /De/ 180.75 Bn 42.33 7.83 15.50 Bn
2 GLW Corning Inc /Ny 111.40 Bn 69.80 7.13 8.43 Bn
3 TEL TE Connectivity plc 69.66 Bn 33.75 3.85 5.71 Bn
4 CLS Celestica Inc 33.17 Bn 47.38 2.94 0.78 Bn
5 JBL Jabil Inc 27.80 Bn 39.54 0.89 3.37 Bn
6 FLEX Flex Ltd. 24.18 Bn 28.38 0.90 5.02 Bn
7 FN Fabrinet 17.82 Bn 47.27 4.58 0.06 Bn
8 TTMI Ttm Technologies Inc 9.30 Bn 70.47 3.34 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.41 3.02
EV to Cash from Ops. EV/CFO 17.07 -590.38
EV to Debt EV to Debt 117.08 107.94
EV to EBIT EV/EBIT 129.26 20.68
EV to EBITDA EV/EBITDA 22.50 -27.60
EV to Free Cash Flow [EV/FCF] EV/FCF 21.28 -537.03
EV to Market Cap EV to Market Cap 0.91 -1.14
EV to Revenue EV/Rev 1.72 96.65
Price to Book Value [P/B] P/B 4.87 6.99
Price to Earnings [P/E] P/E 196.50 -8.83
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.07
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 20.91
Dividend per Basic Share Div per Share (Qtr) 0.00 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.42
Interest Coverage Int. cover (Qtr) -3.94 14.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 14.67 -43.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11.35 125.88
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -0.04
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -80.65 -176.07
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -31.25 14.38
EBIT Growth (1y) % EBIT 1y % (Qtr) -77.85 15.28
EBT Growth (1y) % EBT 1y % (Qtr) -71.61 7.50
EPS Growth (1y) % EPS 1y % (Qtr) -77.78 2.30
FCF Growth (1y) % FCF 1y % (Qtr) -2.53 9.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.74 15.57
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.40 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.78 1.48
Current Ratio Curr Ratio (Qtr) 2.23 3.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.68
Interest Cover Ratio Int Coverage (Qtr) -3.94 14.05
Times Interest Earned Times Interest Earned (Qtr) -3.94 14.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.80 21.48
EBIT Margin % EBIT Margin % (Qtr) 1.33 -42.60
EBT Margin % EBT Margin % (Qtr) 1.67 -10.39
Gross Margin % Gross Margin % (Qtr) 26.90 31.37
Net Profit Margin % Net Margin % (Qtr) 1.00 -11.50