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Daktronics
(NASDAQ:DAKT)
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Rating:70Outperform
Price Target:
$22.00
▲(11.85% Upside)
Action:Upgraded
Date:06/24/26
The score is driven primarily by improving fundamentals and a strong balance sheet, reinforced by a constructive earnings call highlighting record results, backlog strength, and clear multi-year targets. Offsetting factors include uneven cash-flow momentum (sharp recent FCF growth decline), a valuation that is not clearly cheap (P/E ~26), and only neutral-to-mixed technical signals.
Positive Factors
Balance sheet strength
Very low leverage and a sizable equity base provide durable financial flexibility to fund the Mexico capacity ramp, absorb working-capital swings, support buybacks, and withstand cyclical downturns without depending on external financing, strengthening long-term resilience.
Negative Factors
Cash-flow volatility
Free cash flow contraction and swingy operating cash reflect project timing and working-capital sensitivity. Persistent uneven cash conversion can constrain capital allocation, lengthen payback on capacity investments, and reduce runway for buybacks or growth without guardrails.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and a sizable equity base provide durable financial flexibility to fund the Mexico capacity ramp, absorb working-capital swings, support buybacks, and withstand cyclical downturns without depending on external financing, strengthening long-term resilience.
Read all positive factors
Daktronics Key Performance Indicators (KPIs)
Any
Net Sales By Segment
Reveals the revenue generated from different business segments, highlighting which areas are driving growth and where there may be challenges or opportunities for expansion.
Reveals the revenue generated from different business segments, highlighting which areas are driving growth and where there may be challenges or opportunities for expansion.
Data provided by:
The Fly
The FlyDaktronics (DAKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$943.00M
Dividend YieldN/A
Average Volume (3M)324.56K
Price to Earnings (P/E)21.0
Beta (1Y)1.47
Revenue Growth10.87%
EPS GrowthN/A
CountryUS
Employees2,520
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.93
Shares Outstanding48,284,843
10 Day Avg. Volume398,112
30 Day Avg. Volume324,561
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)3.18
Price to Sales (P/S)1.14
P/FCF Ratio27.89
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit3.74
Enterprise Value/Ebitda11.20
Forecast
1Y Price Target
$29.00Price Target Upside47.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.25
Revenue Forecast (FY)$911.18M
Daktronics Business Overview & Revenue Model
Company Description
Daktronics, Inc. is a global leader specializing in the design, manufacture, marketing, and sale of advanced electronic display systems and associated products. Its operations are organized into five distinct segments: Commercial, Live Events, Hig...
How the Company Makes Money
Daktronics primarily makes money by selling and installing electronic display systems—most notably LED video boards, scoreboards, message displays, and digital billboard products—into end markets such as sports (professional, collegiate, and high ...
Daktronics Earnings Call Summary
Earnings Call Date:Jun 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial momentum: record revenue and orders, double-digit segment growth across most businesses, material improvement in profitability and EPS, a strengthened backlog, major project wins, product launches (Camino 8) and 100% services-platform adoption. Management also laid out a clear path to fiscal 2028 targets and is investing in manufacturing capacity and automation. Key risks discussed were lower operating cash generation in FY26 due to timing, a $3.8M credit-loss provision, tariff/input-cost uncertainty, some commercial order stagnation and expected near-term start-up/depreciation costs tied to the Mexico ramp. Overall the positives (record growth, margin and backlog strength, product and capacity initiatives and shareholder returns) outweigh the near-term operational and macro challenges.Positive Updates
Record Revenue and Orders
Delivered record annual revenue of $839.0M, up 10.9% year-over-year, and record annual orders with bookings growth of ~10% (management cited '10+%' and averaged more than $215M of order bookings per quarter).
Negative Updates
Reduced Operating Cash Generation and Working Capital Timing
Cash from operations declined to $49.2M in fiscal 26 from $97.7M in fiscal 25 (driven in part by timing between project completion, revenue recognition and final billing), with working capital consumption in Q4 expected to reverse early in fiscal 27 but creating short-term cash flow pressure.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Orders
Delivered record annual revenue of $839.0M, up 10.9% year-over-year, and record annual orders with bookings growth of ~10% (management cited '10+%' and averaged more than $215M of order bookings per quarter).
Read all positive updates
Company Guidance
Daktronics reaffirmed its fiscal 28 targets and provided clear fiscal 27 context: management is targeting a 10% revenue CAGR to fiscal 28, a 10–12% operating margin range and a 17–20% ROIC, and it enters fiscal 27 with a $356 million backlog (up 4% year‑over‑year) with roughly 52% of that backlog expected to convert to revenue in Q1 (note Q1 fiscal 27 has 13 weeks vs. 14 in the prior year). Those targets build on fiscal 26 results of $839 million in revenue (up 10.9% YoY), record orders averaging >$215 million per quarter, operating income of $61.0 million (vs. $33.1M prior year) and adjusted operating margin of 7.3%, adjusted EPS of $1.05 (up ~25%) and Q4 adjusted EPS of $0.27 (up 50% YoY); gross profit was up 17% for the year (Q4 gross profit +36%), cash from operations was $49.2M, average quarter‑end cash ~$141M, and the company repurchased about $25.5M of stock in fiscal 26 (VWAP $17.80), while bringing new capacity online (110k+ sq ft Saltillo, Mexico facility with production planned to begin July 2026 and first shipments in Q2).Daktronics Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
63
Positive
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 838.71M | 756.48M | 818.08M | 754.20M | 610.97M |
| Gross Profit | 229.01M | 195.49M | 222.44M | 151.35M | 116.70M |
| EBITDA | 76.44M | 13.70M | 104.86M | 42.96M | 16.50M |
| Net Income | 45.38M | -10.12M | 34.62M | 6.80M | 592.00K |
Balance Sheet | |||||
| Total Assets | 554.41M | 502.89M | 527.88M | 468.10M | 440.88M |
| Cash, Cash Equivalents and Short-Term Investments | 131.64M | 127.51M | 81.30M | 24.52M | 21.16M |
| Total Debt | 18.13M | 16.80M | 56.65M | 20.00M | 2.31M |
| Total Liabilities | 253.66M | 230.96M | 289.09M | 267.23M | 249.31M |
| Stockholders Equity | 300.75M | 271.93M | 238.79M | 200.88M | 191.56M |
Cash Flow | |||||
| Free Cash Flow | 34.30M | 78.22M | 46.26M | -10.36M | -47.41M |
| Operating Cash Flow | 49.22M | 97.71M | 63.24M | 15.02M | -27.04M |
| Investing Cash Flow | -19.64M | -23.78M | -21.31M | -25.39M | -31.38M |
| Financing Cash Flow | -26.24M | -27.45M | 15.12M | 17.57M | -3.58M |
Daktronics Technical Analysis
Negative
19.67
Price Trends
19.84
Negative
21.29
Negative
20.68
Negative
Market Momentum
-0.03
Positive
45.69
Neutral
17.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAKT, the sentiment is Negative. The current price of 19.67 is below the 20-day moving average (MA) of 19.98, below the 50-day MA of 19.84, and below the 200-day MA of 20.68, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 17.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAKT.
Daktronics Risk Analysis
Daktronics disclosed 39 risk factors in its most recent earnings report. Daktronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Daktronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.86B | 27.43 | 12.53% | 0.36% | 7.80% | 18.75% | |
70 Outperform | $943.00M | 20.95 | 9.64% | ― | 10.87% | ― | |
68 Neutral | $975.08M | 34.35 | 8.90% | 1.07% | 11.42% | 5.37% | |
67 Neutral | $1.66B | 68.27 | 8.01% | 0.22% | 8.63% | 141.02% | |
64 Neutral | $3.30B | 96.19 | 3.10% | 1.44% | 3.53% | -34.92% | |
64 Neutral | $2.87B | -52.98 | -4.66% | ― | 1.68% | -431.99% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DAKT
Daktronics
19.53
4.41
29.17%
ALNT
Allient
97.63
61.41
169.53%
BHE
Benchmark Electronics
92.05
53.67
139.82%
CTS
CTS
65.00
22.53
53.06%
LYTS
Lsi Industries
26.56
9.71
57.60%
ROG
Rogers
160.53
92.05
134.42%
Daktronics Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Daktronics Delivers Record Fiscal 2026 Results, Boosts Buyback
Positive
Jun 24, 2026
Daktronics reported record fiscal 2026 results on June 24, 2026, with net sales rising 10.9% year over year to $838.7 million and orders climbing 10.2% to $860.8 million for the 53‑week year ended May 2, 2026. The company returned to solid p...
Business Operations and StrategyExecutive/Board Changes
Daktronics Updates Consulting Agreement in Executive Transition Shift
Neutral
May 22, 2026
Daktronics, Inc. has amended its consulting agreement with former named executive officer Carla Gatzke, who had been providing transition services under a deal that paid her $30,000 per month through April 30, 2026. On May 18, 2026, the board appr...
Business Operations and Strategy
Daktronics Outlines Three-Year Growth and Efficiency Strategy
Positive
Apr 9, 2026
Daktronics held an Investor Day on April 9, 2026, where management outlined the company’s strategic focus on accelerating organic growth in core LED display markets, expanding into new high‑resolution indoor verticals, and boosting int...
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.