DAKT · sample dossier
Daktronics Inc
64/100
OutdatedGenerated Aug 29, 2026 · 10:00 AM UTC · 69 days ago
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EquityDaktronics Inc
Decision context
Recommendation
Driven by superior Safety (92/100) and Growth (81/100) scores.
More going for it than against it — worth a closer look.
AlphaDog Fair Value
Executive thesis & key metrics
Executive Investment Thesis
Daktronics Inc is an electronic display and video system manufacturer with a market capitalization of $932.30M, currently trading at a P/E of 20.98 and EV/EBITDA of 10.33. Operating momentum is evidenced by 20.9% YoY revenue growth and 189.5% YoY EPS expansion, supported by a conservative balance sheet showing a Debt/Equity ratio of 0.06 and an Altman Z-score of 5.37. The principal risk centers on thin cash generation and profitability buffers, with a net margin of 5.4% and FCF per share of just $0.09 against a 6-month price decline of -26.3%.
Key Metrics to Watch
What changed recently
No material changes found in the last 30 days.
Why this rating
Score 64 · Buy
Data through
OutdatedApr 30, 2026
Safety 92/100 — Debt/Equity 0.06.
Levels unavailable — AlphaDog quantitative valuation model did not produce an estimate from comps or DCF
Re-evaluate if
- Net margin falls below 4.3% (was 5.4%)
Trim / reconsider if
- ROA falls below 4.7% (was 7.2%)
- Debt to equity rises above 0.06.
Dollar levels aren’t available for this run — the view above still stands.
A Calmer Look · Devil's Advocate
The consensus 'Buy' verdict excessively anchors on balance sheet solvency (Debt/Equity of 0.06, Altman Z of 5.37) while ignoring severe operational fragility and poor cash conversion.
May be overlooked
Working capital drain
FCF per share stands at just $0.09 despite $208.61M in quarterly revenue, showing that reported profits fail to convert into tangible cash flow due to project inventory absorption.
Margin vulnerability
Net margin of only 5.4% provides minimal cushion against raw material inflation or tariff adjustments cited in the Form 10-K filed on 2026-06-24.
Extreme sequential earnings lumpiness
EPS fell precipitously from $0.35 on 2025-10-31 to $0.06 on 2026-01-31 before recovering modestly to $0.17 on 2026-04-30, showing a lack of baseline earnings stability.
Expectations look stretched
Valuing the company at a standard P/E of 21.0x masks extreme cash overvaluation, given the trailing FCF per share of $0.09 implies a Price/FCF ratio exceeding 214x.
Over-indexing on insider cluster buying when the total volume of 14,661 shares represents less than 0.03% of the $932.30M market cap.
Extrapolating 189.5% YoY EPS growth from an artificially low base while ignoring that quarterly profitability contracted sequentially in recent periods.
Revenue growth YoY drops below 20.9%.
Revenue growth YoY drops below 20.9%.
Monitor These Triggers
3 Checkpoints · Next PrintGross margin relative to the 27.3% baseline and revenue growth YoY relative to 20.9%.
Market context
Snapshot returns at report publication
1 month
+0.1%
3 months
-4.9%
6 months
-26.3%
1 year
—
At a Glance
A smaller company is in a pullback at fair pricing.
Top Holders
Go deeper
For learning and research only — not investment advice. AlphaDog doesn’t hold stocks and isn’t your financial advisor.
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