Daily Journal Corp (NASDAQ: DJCO)

Sector: Technology Industry: Software - Application CIK: 0000783412
Market Cap 656.93 Mn
P/B 1.71
P/E 7.04
P/S 7.34
ROIC (Qtr) 1.79
Div Yield % 0.00
Rev 1y % (Qtr) 10.36
Total Debt (Qtr) 20.91 Mn
Debt/Equity (Qtr) 0.05
Add ratio to table...

About

Daily Journal Corporation (DJCO) operates in the publishing and case management software industry, with its main business activities divided into two segments: the Traditional Business and Journal Technologies. The Traditional Business segment focuses on publishing newspapers and specialized information publications, while the Journal Technologies segment provides case management software systems and related products to various justice agencies. In the Traditional Business segment, DJCO publishes 10 newspapers of general circulation, including...

Read more

Investment thesis

Bull case

  • Strong operating cash flow of 9.19M provides robust 0.44x coverage of total debt 20.91M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 18.85M provide 110.24x coverage of short-term debt 171000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 529.48M provides 25.32x coverage of total debt 20.91M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 9.19M provides strong 60.46x coverage of stock compensation 152000, indicating sustainable incentive practices.
  • Tangible assets of 529.48M provide exceptional 28.13x coverage of deferred revenue 18.82M, showing strong service capability backing.

Bear case

  • Operating cash flow of 9.19M barely covers its investment activities of (15000), with a coverage ratio of -612.67, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Short-term investments of 481.32M significantly exceed cash reserves of 18.85M, which is 25.53x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Operating cash flow of 9.19M provides insufficient coverage of deferred revenue obligations of 18.82M, which is 0.49x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 9.19M provides minimal 0.29x coverage of tax expenses of 31.83M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 9.18M represents just -1.20x of debt issuance (7.67M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 235.43 Bn 27.31 5.44 9.50 Bn
2 SHOP Shopify Inc. 147.12 Bn 119.52 12.73 0.19 Bn
3 UBER Uber Technologies, Inc 147.10 Bn 14.63 2.83 12.08 Bn
4 CRM Salesforce, Inc. 122.20 Bn 594.48 15.45 11.14 Bn
5 INTU Intuit Inc. 113.93 Bn 178.01 32.63 6.78 Bn
6 ADBE Adobe Inc. 111.00 Bn 15.57 4.67 6.65 Bn
7 NOW ServiceNow, Inc. 109.54 Bn 62.67 8.25 2.40 Bn
8 ADP Automatic Data Processing Inc 86.44 Bn 20.41 4.07 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.24 2.08
EV to Cash from Ops. EV/CFO 71.50 11.38
EV to Debt EV to Debt 31.42 47.67
EV to EBIT EV/EBIT 5.20 6.78
EV to EBITDA EV/EBITDA 69.07 7.15
EV to Free Cash Flow [EV/FCF] EV/FCF 71.61 14.44
EV to Market Cap EV to Market Cap 1.00 -8.88
EV to Revenue EV/Rev 7.34 4.04
Price to Book Value [P/B] P/B 1.71 3.65
Price to Earnings [P/E] P/E 7.04 -117.75
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.38
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.48
Interest Coverage Int. cover (Qtr) 101.72 -43.57
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 62.50 -222.46
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 9.24 281.53
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.78
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 20.58 -327.55
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 113.44 30.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 19.45 -213.00
EBT Growth (1y) % EBT 1y % (Qtr) 20.94 -86.84
EPS Growth (1y) % EPS 1y % (Qtr) 22.04 108.58
FCF Growth (1y) % FCF 1y % (Qtr) 183.35 6.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 26.28 94.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.17 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.59 3.78
Current Ratio Curr Ratio (Qtr) 16.31 8.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.14
Interest Cover Ratio Int Coverage (Qtr) 101.72 -43.57
Times Interest Earned Times Interest Earned (Qtr) 101.72 -43.57
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 141.40 -105.03
EBIT Margin % EBIT Margin % (Qtr) 141.11 -130.16
EBT Margin % EBT Margin % (Qtr) 139.72 -121.17
Gross Margin % Gross Margin % (Qtr) 87.10 58.37
Net Profit Margin % Net Margin % (Qtr) 104.20 -126.13