Daktronics Intrinsic Value – DAKTRONICS Reports Strong Fiscal Year 2024 Q1 Earnings Results
September 8, 2023
☀️Earnings Overview
On July 31, 2023, DAKTRONICS ($NASDAQ:DAKT) released its financial report for the first quarter of FY2024, which concluded on September 6, 2023. This report showed that total revenue for the quarter was up 35.3% from the previous year, totaling USD 232.5 million. Additionally, net income for this period rose to USD 19.2 million, up significantly from the -5.3 million recorded the year before.
Market Price
On Wednesday, DAKTRONICS reported strong fiscal year 2024 Q1 earnings results. The company’s stock opened at $9.4 and closed at $8.9, a 6.1% increase from the prior closing price of 8.4. This marks an impressive performance in the quarter and demonstrates DAKTRONICS’ commitment to strong financial results. This impressive performance has investors optimistic about the company’s prospects for the remainder of fiscal year 2024 and beyond. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Daktronics. DAKTRONICS_Reports_Strong_Fiscal_Year_2024_Q1_Earnings_Results”>More…
| Total Revenues | Net Income | Net Margin |
| 814.81 | 31.32 | 4.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Daktronics. DAKTRONICS_Reports_Strong_Fiscal_Year_2024_Q1_Earnings_Results”>More…
| Operations | Investing | Financing |
| 57.09 | -20.72 | 9.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Daktronics. DAKTRONICS_Reports_Strong_Fiscal_Year_2024_Q1_Earnings_Results”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 508.02 | 286.97 | 4.84 |
Key Ratios Snapshot
Some of the financial key ratios for Daktronics are shown below. DAKTRONICS_Reports_Strong_Fiscal_Year_2024_Q1_Earnings_Results”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.5% | 243.6% | 7.8% |
| FCF Margin | ROE | ROA |
| 4.6% | 18.9% | 7.9% |
Analysis – Daktronics Intrinsic Value
At GoodWhale, we recently performed a financial analysis of DAKTRONICS, a leading manufacturer of electronic digital displays. Using our proprietary Valuation Line, we determined that the fair value of a share of DAKTRONICS is around $6.2. However, we found that the current trading price of the stock is $8.9, an overvaluation of 42.6%. This means that DAKTRONICS stock is significantly overvalued and could be at risk of a downward correction in the near future. As such, we advise investors to approach this stock cautiously, and to be mindful of the potential for a price correction. More…
Peers
In the world of electronic displays and control systems, there is intense competition between a handful of major companies. Daktronics Inc, a South Dakota-based company, is one of the leaders in the industry, with a comprehensive product line and a global reach. Its main competitors are Eastech Holding Ltd, ONO Sokki Co Ltd, and Zhejiang RuiYuan Intelligent Control Technology Co Ltd, all based in China. These companies are all vying for a share of the market, and each has its own strengths and weaknesses.
– Eastech Holding Ltd ($TWSE:5225)
Eastech Holding Ltd is a Singapore-based investment holding company. The Company, through its subsidiaries, is engaged in the design, manufacture and sale of plastic products and the provision of engineering services. The Company’s segments include Plastics, which is engaged in the design, manufacture and sale of plastic products; and Engineering, which is engaged in the provision of engineering services. The Company’s products include air coolers, air conditioners, plastic parts and components. The Company operates in Singapore, Malaysia, Thailand, the People’s Republic of China and the United States.
– ONO Sokki Co Ltd ($TSE:6858)
Nihon Sokki Co Ltd is a Japanese company that manufactures and sells scientific and industrial instruments. The company has a market cap of 3.98B as of 2022 and a return on equity of -1.71%. The company’s products include sensors, transducers, and measuring instruments. Nihon Sokki is a publicly traded company on the Tokyo Stock Exchange.
– Zhejiang RuiYuan Intelligent Control Technology Co Ltd ($SEHK:08249)
Zhejiang RuiYuan Intelligent Control Technology Co Ltd has a market cap of 42.5M as of 2022, a Return on Equity of -2.85%. The company provides intelligent control and automation solutions for a variety of industries, including the automotive, aerospace, and medical sectors. Its products are used in a variety of applications, such as engine management, vehicle stability control, and adaptive cruise control. The company has a strong research and development team that is constantly innovating new products and solutions to meet the ever-changing needs of its customers.
Summary
Investors in DAKTRONICS were rewarded for their trust on July 31 2023, with the company reporting strong earnings results for FY2024 Q1. Total revenue for the period was USD 232.5 million, a 35.3% increase from the same quarter last year. Net income for the period was an impressive USD 19.2 million, a turnaround from the previous year’s -5.3 million result.
This positive performance was reflected in the stock price, which rose on the same day. Overall, it seems that DAKTRONICS is well-positioned for continued success and is a profitable investment option.
