Daktronics (DAKT) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: N/A
• Average Volume (3M): 532.88K
• Price to Earnings (P/E): 4815.9
• Beta (1Y): 1.32
• Revenue Growth: -7.67%
• EPS Growth: 7.66%
• Country: US
• Employees: 2,520
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.33
• Shares Outstanding: 48,530,240
• 10 Day Avg. Volume: 1,003,808
• 30 Day Avg. Volume: 532,879
• PEG Ratio: 0.46
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 7.64
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 18.59
• 1Y Price Target: $31.00
• Price Target Upside: 46.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $23.00 ▲(9.06% Upside)

Daktronics' strong liquidity and order growth, particularly in live events, are key strengths. However, high P/E ratio and overbought technical indicators suggest caution. Profitability issues and sector challenges also weigh on the score.

Daktronics Business Overview & Revenue Model

Company Description

Daktronics, Inc. designs, manufactures, markets, and sells electronic display systems and related products worldwide. It operates through 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 light emitting diodes (LED) video displays, including centerhung, landmark, ribbon board, and corporate office entrance displays, as well as video walls and hanging banners; 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 displays; and sound systems for indoor and outdoor sports venues. In addition, the company offers out-of-home advertising displays comprising digital billboards and street furniture displays; 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, 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.

How the Company Makes Money

Daktronics generates revenue primarily through the sale of its electronic display products, including LED displays and scoreboards, as well as through installation services. The company has several key revenue streams: product sales, service and maintenance contracts, and software solutions for display management. Additionally, Daktronics benefits from long-term partnerships with major sports leagues and organizations, which provide a consistent flow of business for stadium and arena installations. The company also earns revenue from advertising displays used in commercial settings. Factors contributing to its earnings include technological advancements in display systems, increasing demand for digital advertising, and expansion into international markets.

Daktronics Financial Statement Overview

Summary

Daktronics demonstrates strong liquidity and a solid balance sheet with low leverage. However, profitability is a concern with recent net losses and declining revenue. The company shows resilience in cash flow management, which could support future growth if profitability improves.

Income Statement

The company has shown fluctuating revenue growth with a recent decline in total revenue from $818 million to $756 million. Gross profit margin stands at 25.8%, which is decent but slightly declining. Net profit margin has turned negative, indicating profitability issues. The company needs to address this to improve future earnings.

Balance Sheet

Daktronics maintains a solid equity position with a debt-to-equity ratio of 0.07, highlighting low leverage. Return on equity is currently negative due to net losses, but equity ratio is strong at 54.1%, indicating financial stability. The balance sheet is robust, but profitability needs attention.

Cash Flow

The company has improved its free cash flow significantly, with a robust free cash flow of $78 million. Operating cash flow is strong relative to net income, providing a cushion despite recent losses. Cash reserves have increased, enhancing liquidity. Overall, cash flow management is a strong point.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	749.36M	756.48M	818.08M	754.20M	610.97M	482.03M
Gross Profit	200.86M	195.49M	222.44M	151.35M	116.70M	120.58M
EBITDA	36.63M	13.70M	104.86M	42.96M	19.44M	34.19M
Net Income	11.29M	-10.12M	34.62M	6.80M	592.00K	10.93M
Balance Sheet
Total Assets	0.00	502.89M	527.88M	468.10M	440.88M	375.16M
Cash, Cash Equivalents and Short-Term Investments	0.00	127.51M	81.30M	24.52M	21.16M	77.59M
Total Debt	31.13M	16.80M	56.65M	17.75M	2.31M	1.88M
Total Liabilities	58.29M	230.96M	289.09M	267.23M	249.31M	181.61M
Stockholders Equity	279.75M	271.93M	238.79M	200.88M	191.56M	193.55M
Cash Flow
Free Cash Flow	85.63M	78.22M	46.26M	-10.36M	-47.41M	58.32M
Operating Cash Flow	104.33M	97.71M	63.24M	15.02M	-27.04M	66.21M
Investing Cash Flow	-23.43M	-23.78M	-21.31M	-25.39M	-31.38M	-10.22M
Financing Cash Flow	-40.64M	-27.45M	15.12M	17.57M	-3.58M	-15.59M

Daktronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAKT, the sentiment is Positive. The current price of 21.09 is above the 20-day moving average (MA) of 20.17, above the 50-day MA of 18.04, and above the 200-day MA of 15.70, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 31.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAKT.

Daktronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYTS	77 Outperform	714.07M	29.54	10.57%	0.84%	22.09%	-5.26%
BELFA	76 Outperform	1.75B	29.28	12.60%	0.20%	6.08%	-23.93%
DAKT	68 Neutral	$1.03B	4,815.91	4.36%	―	-7.67%	7.66%
OUST	58 Neutral	1.71B	-15.84	-41.60%	―	26.37%	38.13%
MLAB	49 Neutral	365.35M	-471.27	-0.36%	1.00%	8.33%	99.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Daktronics Corporate Events

Daktronics Approves 2025 Stock Incentive Plan at Meeting

On September 3, 2025, Daktronics, Inc. held its Annual Meeting of Stockholders, where the 2025 Stock Incentive Plan was approved, replacing the 2020 Plan. The meeting also saw the election of directors, approval of executive compensation, and ratification of Deloitte & Touche, LLP as the independent registered public accounting firm for the 2026 fiscal year. The approval of the 2025 Plan is expected to facilitate future equity grants, impacting the company’s operational flexibility and stakeholder engagement.

The most recent analyst rating on (DAKT) stock is a Buy with a $18.50 price target. To see the full list of analyst forecasts on Daktronics stock, see the DAKT Stock Forecast page.