Company Overview
Daktronics, Inc. operates as a specialized manufacturer within the Technology sector, specifically focusing on the Electronic Components industry where it designs, produces, and sells electronic scoreboards, programmable display systems, and large screen video displays for sporting, commercial, and transportation applications across the United States and international markets. The company's operational scale is defined by a market capitalization of $1.05B and an annual revenue of $802.65M, supported by a workforce of 2,422 employees who facilitate these complex manufacturing and distribution operations. These financial figures, particularly the revenue exceeding eight hundred million dollars, indicate that Daktronics maintains a significant footprint in the niche market for specialized display technology, distinguishing it from mass-market electronics providers. The market cap of $1.05B reflects the valuation investors place on this specific set of capabilities and geographic reach, while the employee count of 2,422 suggests a substantial organizational structure required to support global supply chains and diverse client applications.
Financial Health
Daktronics generated revenue of $802.65M over the trailing twelve months, with a net income of $27.54M and an EBITDA of $79.48M, revealing a cost structure where operational expenses and taxes absorb a significant portion of top-line growth to arrive at final profitability. The company reports a free cash flow of $55.31M, which indicates a robust ability to generate liquidity from operations, providing financial flexibility for capital expenditures, debt repayment, or strategic acquisitions without relying on external financing. Margin analysis shows a gross margin of 26.6%, an operating margin of 1.1%, and a profit margin of 3.4%; the low operating margin relative to the gross margin highlights the high volume of selling, general, and administrative costs required to manage the business. On the balance sheet, the company holds $144.42M in cash against $11.05M in debt, resulting in a debt-to-equity ratio of 3.76, which presents a mixed picture of high leverage relative to equity but strong absolute liquidity due to the substantial cash reserve. The current ratio stands at 2.22, indicating that the company possesses more than double the current assets necessary to cover its short-term liabilities, suggesting a conservative approach to immediate liquidity management. Return on Equity is 9.7% and Return on Assets is 7.2%, metrics that reveal management's effectiveness in generating returns on the capital invested by shareholders and the broader asset base, respectively.
Valuation Assessment
Valuation multiples for Daktronics include a trailing twelve-month P/E ratio of 39.25 and a forward P/E of 17.77, where the substantial difference between these figures implies that the market expects a significant acceleration in earnings or a shift in profitability that would bring the current price in line with future expectations. The price-to-book ratio is 3.55, indicating that the stock trades at a substantial premium over its book value, which often reflects intangible assets, brand strength, or growth expectations not captured on the balance sheet. Alternative valuation metrics such as the price-to-sales ratio of 1.31 and an EV/EBITDA of 11.44 provide context that the company is valued slightly above one dollar of sales for every dollar of revenue and at a multiple that is moderate for a technology component manufacturer. The stock has a 52-week high of $28.27 and a 52-week low of $10.92, and without the current share price explicitly listed in the provided facts, the precise percentage distance from the high cannot be calculated, but the range demonstrates significant volatility within the year. The beta is 1.68, which signifies that the stock's price volatility is higher than the broader market, moving approximately 68% more than the market index during periods of fluctuation.
Growth & Income
The company reports a revenue growth rate of 21.6% year-over-year, while earnings growth is listed as N/A, suggesting that current profitability metrics may be suppressed by one-time costs or a specific accounting transition that prevents a year-over-year comparison. Since the dividend yield is N/A and the payout ratio is 0.0%, the company does not currently distribute dividends to shareholders, implying that earnings are retained to fund operations, reduce debt, or invest in research and development for new display technologies. This non-dividend status combined with the strong revenue expansion indicates a growth-oriented profile where capital is prioritized for reinvestment rather than income distribution to investors. The overall financial picture presents a high-growth revenue trajectory supported by a conservative liquidity position, though the absence of earnings growth data and dividends creates a profile dependent on future operational scaling and margin expansion to satisfy equity holders.