Daktronics Inc logo

Daktronics Inc(DAKT)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$17.05
09/28/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for DAKT

09/28/2026: DAKT (1-star) is currently NOT-A-BUY. Pass it for now.

Daktronics Inc is a specialized manufacturer and designer of large-format LED display systems, primarily serving the sports, commercial, and transportation sectors. The company has a leading position in the stadium market and is recognized for its vertical integration and robust service infrastructure. Its primary growth opportunity lies in transitioning toward higher-margin software and recurring maintenance services to mitigate the cyclical nature of its project-based business model. Investors must monitor risks related to international competition, raw material price volatility, and the lumpy nature of large contract wins. Daktronics may appeal to value-oriented investors interested in established industrial firms, though dividend predictability remains variable based on project capital needs.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitDaktronics offers growth potential linked to digital infrastructure trends but is subject to cyclical industry spending.
Momentum investorMixed fitThe stock can exhibit momentum during large project win cycles, but investors should monitor for a positive upturn signal.
Value investorStrong fitThe company is often evaluated for its tangible assets and manufacturing base, making it a potential fit for value-oriented strategies.
Dividend investorWeak fitDividend policy is variable and subject to capital expenditure needs, making it less predictable for pure income seekers.
Low-risk investorMixed fitWhile established, the company faces volatility related to project-based revenue and economic cycles.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highProject-based revenues can lead to significant quarter-over-quarter stock price swings.
Valuation riskMediumValuation is often tied to market cycles, making it susceptible to over-optimism during stadium building booms.
Competition risk (Global Electronics)HighGlobal giants can leverage scale to lower prices, pressuring Daktronics' margins.
Business qualityMediumThe company has a long operating history and strong reputation but faces margin pressure in competitive bidding.
Dividend incomeMediumPayouts are not consistent, limiting reliability for long-term income strategies.
Execution riskMediumComplex, large-scale project delays can directly impact the company's financial performance.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit 42.24%
Avg. Invested days 30
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 4.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/28/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
DAKT receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
DAKT has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and strong ownership. In FY2026 versus FY2025, strong earnings growth (+548.3%) and solid revenue growth (+10.9%) are partially offset by soft cash generation (FCF margin 4.1%), soft profitability (net margin 5.4%).

Financial Health Rating

★★★★★
DAKT's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 45.9%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is DAKT's strongest growth driver at +548.3% FY2026 versus FY2025 (strong, 5 stars). By comparison, revenue growth (+10.9%, solid) is also solid, while free-cash-flow growth (-56.1%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 75.8% and approximately 95.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 5.79% supports management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 6.71%
Earnest Partners LLC 6.63%
ALTA FOX CAPITAL MANAGEMENT, LLC 6.00%
Progeny 3, Inc. 5.71%
American Century Companies Inc 3.77%

Unit Economics (Per $1K Revenue)

★★★★★
DAKT generates approximately $273 of gross profit, $73 of operating income, and $41 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Soft margins explain the 2-star rating, with soft cash conversion and strong capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: 22.21%

Quantitative Style Profile

★★★★★
DAKT has a high-quality, liquid profile. Weak momentum is the primary drawback, while elevated volatility.

Style Classification

Quality Focused

Value-OrientedQuality TiltHigh VolatilitySmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 819.98M USD
Price to earnings Ratio 17.22
1Y Target Price 32
Price to earnings Ratio 17.22
1Y Target Price 32
Volume (30-day avg) 691.6K shares
Beta 1.68
52 Weeks Range 16.77 - 28.27
Updated Date 09/28/2026
52 Weeks Range 16.77 - 28.27
Updated Date 09/28/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.99

How Company Makes Money

Business areaWhat it includesRetail investor read
Product SalesManufacturing and installation of LED displays for sports, advertising, and transit.The company primarily generates revenue by building and selling large digital signs.
Service & MaintenancePost-installation repairs, software support, and project management services.They generate ongoing revenue by helping clients maintain and operate their complex systems.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Earnings Date

Report Date 2026-09-02
When Before Market
Estimate 0.35
Actual 0.4

Profitability

Profit Margin 5.66%
Operating Margin (TTM) 10.63%

Management Effectiveness

Return on Assets (TTM) 6.78%
Return on Equity (TTM) 16.18%

Valuation

Trailing PE 17.22
Forward PE 14.58
Enterprise Value 704.03M
Price to Sales(TTM) 0.96
Enterprise Value 704.03M
Price to Sales(TTM) 0.96
Enterprise Value to Revenue 0.82
Enterprise Value to EBITDA 8.73
Shares Outstanding 48.09M
Shares Floating 45.92M
Shares Outstanding 48.09M
Shares Floating 45.92M
Percent Insiders 5.79
Percent Institutions 75.75

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Daktronics Inc

Exchange NASDAQ
Headquarters Brookings, SD, United States
IPO Launch date 1994-02-10
CEO, President & Director Mr. Ramesh Jayaraman
Sector Technology
Industry Electronic Components
Full time employees 2423
Full time employees 2423

Daktronics, Inc. designs, manufactures, and sells electronic display systems and related solutions for sports, commercial, and transportation applications in the United States and internationally. It operates through Commercial, Live Events, High School Park and Recreation, Transportation, and International segments. The company offers video display and walls; sport scoreboard solutions; LED message displays and sings; intelligent transportation systems dynamic message signs; mass transit display; sound systems; and digital billboards and street furniture, and digit and price displays. It also provides indoor dynamic messaging systems; and software and controllers, which includes Venus, a control suite software to efficiently distribute and update content across single or multiple displays. The company serves out-of-home companies, retailers, quick-serve restaurants, casinos, shopping centers, cruise ships, commercial building owners, petroleum retailers, governmental transportation departments, transportation industry contractors, airlines, and sports and commercial business facilities. It sells its products through direct sales and resellers. Daktronics, Inc. was incorporated in 1968 and is headquartered in Brookings, South Dakota.