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Daily Journal (DJCO) AI Stock Analysis

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DJCO

Daily Journal

(NASDAQ:DJCO)

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Rating:60Neutral
Price Target:$661.00â–²(5.07% Upside)
Action:reiterated
Date:10/16/26

Overall score reflects solid underlying financial footing (low leverage and positive recent free cash flow) but is capped by inconsistent profitability and volatile earnings quality. Technicals are mixed with subdued momentum, and valuation is challenged by a negative P/E with no dividend yield data. Corporate events provide a small positive offset via strategic expansion and a buyback framework, though the acquisition is not expected to be material.

Positive Factors
Conservative balance sheetVery low leverage gives Daily Journal substantial financial flexibility and reduces exposure to interest costs or refinancing pressure. The sizable equity base can support continued investment in its technology operations and help the company withstand periods of uneven profitability without relying heavily on new borrowing.
Negative Factors
Current net loss and negative returnsCurrent losses show that Daily Journal’s strong gross profitability and positive operating profit are not consistently translating into bottom-line earnings. Negative net margin and return on equity weaken the reliability of shareholder returns and could limit the company’s ability to compound value unless profitability improves.

Daily Journal Key Performance Indicators (KPIs)

Operating Income by SegmentShows profitability across different business segments, indicating which areas are driving earnings and where there might be challenges or opportunities for improvement.

-$4.00M-$2.00M$0.00$2.00M$4.00MMar 21Jun 21Sep 21Dec 21Mar 22Jun 22Sep 22Dec 22Mar 23Jun 23Sep 23Dec 23Mar 24Jun 24Sep 24Dec 24Mar 25Jun 25
Chart Insights

Daily Journal's Traditional Business segment shows volatility with recent negative swings, reflecting potential operational challenges or market pressures. Meanwhile, Journal Technologies is gaining traction, with a notable surge in operating income in mid-2025, suggesting successful strategic initiatives or product adoption. The contrasting trends highlight the company's need to stabilize its traditional operations while capitalizing on the growth momentum in its technology segment to drive overall profitability.

Data provided by:The Fly

Daily Journal (DJCO) vs. SPDR S&P 500 ETF (SPY)

-20%0%20%40%60%80%DJCO+58.03%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$866.88M
Dividend Yield
―
Average Volume (3M)
59.37K
Price to Earnings (P/E)
-76.4
Beta (1Y)
0.69
Revenue Growth
23.35%
EPS Growth
-111.73%
Country
US
Employees
420
Sector
Technology
Sector Strength
61
Industry
Software - Application

Daily Journal Business Overview & Revenue Model

Company Description

Headquartered in Los Angeles, California, Daily Journal Corporation, established in 1987, operates through two distinct divisions. Its Traditional Business segment is dedicated to publishing newspapers and affiliated online content across California,...

Daily Journal Financial Statement Overview

Summary

Financials are supported by a strong balance sheet (very low leverage; debt-to-equity ~0.06) and solid recent cash generation (TTM operating cash flow ~$17.5M; free cash flow ~$17.3M). The key drag is earnings quality and consistency: TTM net loss (net margin about -11.6%) and large historical profit/loss swings, reinforced by KPI insights showing lumpy segment profitability and corporate/one-off driven volatility.

Income Statement

56Neutral

Balance Sheet

78Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue97.64M87.70M69.93M67.71M54.01M49.92M
Gross Profit36.40M32.15M14.18M16.01M8.36M7.19M
EBITDA43.90M151.72M107.63M32.71M2.37M2.63M
Net Income-11.36M112.14M78.11M21.45M-75.62M112.90M
Balance Sheet
Total Assets471.83M548.12M403.76M354.86M319.11M382.56M
Cash, Cash Equivalents and Short-Term Investments437.10M513.56M371.68M324.17M288.95M360.17M
Total Debt20.83M22.96M28.62M76.28M76.43M33.58M
Total Liabilities134.18M157.06M124.98M154.39M140.09M127.92M
Stockholders Equity337.65M391.06M278.78M200.47M179.02M254.64M
Cash Flow
Free Cash Flow17.29M13.32M-138.00K15.00M-5.30M3.26M
Operating Cash Flow17.45M13.33M-89.00K15.08M-5.26M3.29M
Investing Cash Flow-159.00K-8,00040.53M-7.26M-36.76M-19.99M
Financing Cash Flow-5.17M-5.66M-47.66M-153.00K42.85M2.38M

Daily Journal Technical Analysis

Technical Analysis SentimentPositive
Last Price629.11

Price Trends

50DMA633.31Negative
100DMA604.92Positive
200DMA565.45Positive

Market Momentum

MACD-6.65Negative
RSI53.57Neutral
STOCH83.92Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DJCO, the sentiment is Positive. The current price of 629.11 is above the 20-day moving average (MA) of 616.96, below the 50-day MA of 633.31, and above the 200-day MA of 565.45, indicating a neutral trend. The MACD of -6.65 indicates Negative momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 83.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DJCO.

Daily Journal Risk Analysis

Daily Journal disclosed 17 risk factors in its most recent earnings report. Daily Journal reported the most risks in the "Ability to Sell" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Ability to Sell - Risks related to the company’s ability to sell goods and services

Latest Risks Added

0 New Risks

Daily Journal Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

DJCO against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
LZLZ79Outperform$1.15B70.4410.41%―12.26%-41.84%
DFINDFIN70Outperform$1.63B17.3725.10%―4.85%247.42%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
DJCODJCO60Neutral$866.88M-76.44-3.11%―23.35%-111.73%
LAWLAW54Neutral$340.18M-8.19-32.17%―12.90%31.66%
INLXINLX46Neutral$18.16M-6.30-26.38%―-5.53%-56.77%
UPLDUPLD40Underperform$11.77M-0.28-668.04%―-21.48%17.84%

* Technology Sector Average

Performance Comparison

-50%0%50%DJCOUPLDDFININLXLZLAWDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
DJCO and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
DJCODaily Journal Corp.629.11220.8454.09%
UPLDUpland Software3.98-16.52-80.59%
DFINDonnelley Financial Solutions, Inc.66.8920.4944.16%
INLXIntellinetics, Inc.4.04-5.30-56.75%
LZLegalzoom.Com, Inc.6.72-3.37-33.40%
LAWCs Disco, Inc.5.24-0.92-14.94%

Daily Journal Corporate Events

Business Operations and StrategyM&A Transactions

Daily Journal expands justice technology with Revir acquisition

Positive
Oct 15, 2026

On October 13, 2026, Daily Journal Corporation completed the cash-funded acquisition of Revir Technologies, an Austin-based software firm whose Scout platform helps law enforcement, prosecutors, corrections and other public safety agencies manage and...

Business Operations and StrategyStock BuybackRegulatory Filings and ComplianceShareholder Meetings

Daily Journal shareholders approve major governance overhaul

Positive
Sep 11, 2026

On September 10, 2026, Daily Journal Corporation shareholders approved an amendment to the Articles of Incorporation eliminating cumulative voting in director elections, with the change becoming effective on September 11, 2026. The board concurrently...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 15, 2026