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Daily Journal Corp(DJCO)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
2-STAR RATING
Consider higher Upturn Star rating
BUY for 74 days
PROFIT SINCE LAST BUY
+17.25% ▲
LAST CLOSE
$656.86
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Advisory Performance History (Simulated)Advisory Performance History info

Upturn Advisory & Investor View for DJCO

09/25/2026: DJCO (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Daily Journal Corp operates as a dual-business entity, combining a legacy legal publishing business with a growing enterprise software division, Journal Technologies. Its strength lies in its long-term, conservative management and a significant investment portfolio that provides substantial liquidity. The primary growth story centers on the digital transformation of justice systems through its software platform. However, the company faces significant risks from the secular decline of print media, intense competition in the GovTech space, and uncertainty following the loss of its long-term leadership. It may suit patient, value-oriented investors who are comfortable with potential volatility and the company's unique, long-term capital allocation philosophy.

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 fitThe company's software segment provides growth, but overall revenue growth is muted by the legacy publishing business.
Momentum investorWeak fitThe stock does not typically exhibit short-term momentum trends and is often held for long-term value.
Value investorStrong fitThe company is often evaluated for its 'net-net' or sum-of-the-parts value including its investment portfolio.
Dividend investorWeak fitThe company does not pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorMixed fitThe portfolio volatility and business model transition introduce risks that may not suit the most conservative investors.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock price is often influenced by the volatility of the company's marketable securities portfolio.
Valuation riskMediumDetermining the intrinsic value is complex due to the interplay between operational assets and the investment portfolio.
Competition risk (GovTech)HighCompeting with larger, entrenched software providers creates significant hurdles for market share expansion.
Business qualityMediumThe software business has attractive recurring revenue traits, but the legacy business provides low-growth overhead.
Dividend incomeLow / noneInvestors should not expect income from dividends.
Execution riskMediumSuccessful scaling of the software segment remains contingent on long-term adoption by government agencies.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

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 -9.22%
Avg. Invested days 40
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

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

Company Fundamentals

★★★★★
DJCO has solid overall fundamentals (4 stars), with solid financial health, strong growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+43.6%) and strong cash generation (FCF margin 15.2%) are partially offset by modest insider ownership of 4.41%.

Financial Health Rating

★★★★★
DJCO's financial health is supported by solid profitability, including gross margin of 36.7% and operating margin of 12.9%. Operating efficiency is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is DJCO's strongest growth driver at +9755.8% FY2025 versus FY2024 (strong, 5 stars). Revenue growth (+25.4%, solid) and earnings growth (+43.6%, strong) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 78.8% and approximately 98.7% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 4.41% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

RWWM Inc 26.17%
BlackRock Inc 6.83%
AltraVue Capital, LLC 3.51%
Dimensional Fund Advisors, Inc. 3.02%
Advisory Research Inc 3.01%

Unit Economics (Per $1K Revenue)

★★★★★
DJCO generates approximately $367 of gross profit, $129 of operating income, and $152 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 25.29%

Quantitative Style Profile

★★★★★
DJCO has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Small / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 902.57M USD
Price to earnings Ratio -
1Y Target Price -
Price to earnings Ratio -
1Y Target Price -
Volume (30-day avg) 66.0K shares
Beta 0.84
52 Weeks Range 348.63 - 692.50
Updated Date 09/24/2026
52 Weeks Range 348.63 - 692.50
Updated Date 09/24/2026
Dividends yield (FY) -
Basic EPS (TTM) -8.24

How Company Makes Money

Business areaWhat it includesRetail investor read
PublishingLegal advertising, subscription fees for newspapers, and public notice placement.This is a stable but declining cash-flow business.
Journal TechnologiesLicensing fees, professional services, and maintenance for court management software.This is the core growth engine targeting the digital modernization of the justice system.
InvestmentsReturns and capital gains from a concentrated portfolio of equities.Investment results can significantly impact the bottom line regardless of operational performance.

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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Valuation

Trailing PE -
Forward PE 39.22
Enterprise Value 492.36M
Price to Sales(TTM) 9.24
Enterprise Value 492.36M
Price to Sales(TTM) 9.24
Enterprise Value to Revenue 5.04
Enterprise Value to EBITDA 21.96
Shares Outstanding 1.38M
Shares Floating 1.36M
Shares Outstanding 1.38M
Shares Floating 1.36M
Percent Insiders 4.41
Percent Institutions 78.77

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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 Daily Journal Corp

Exchange NASDAQ
Headquarters Los Angeles, CA, United States
IPO Launch date 1992-02-25
Chairman & CEO Mr. Steven Myhill-Jones
Sector Technology
Industry Software - Application
Full time employees 415
Full time employees 415

Daily Journal Corporation publishes newspapers and websites covering in California, Arizona, Utah, and Australia. It operates in two segments, Traditional Business and Journal Technologies. The company publishes 10 newspapers of general circulation, including Los Angeles Daily Journal, San Francisco Daily Journal, Daily Commerce, The Daily Recorder, The Inter-City Express, San Jose Post-Record, Orange County Reporter, Business Journal, The Daily Transcript, and The Record Reporter. It also provides specialized information services; and serves as a newspaper representative for public notice advertising. In addition, the company offers case management software systems and related products, including eCourt, eProsecutor, eDefender, and eSupervision, which are browser-based case processing systems; eFile-it, a browser-based interface that allows attorneys and the public to electronically file documents with the court; and ePay-it, a service primarily for the online payment of traffic citations. Further, it provides its software systems and related products to courts; prosecutor and public defender offices; probation departments; and other justice agencies, including administrative law organizations, city and county governments, and bar associations to manage cases and information electronically, to interface with other justice partners, and to extend electronic services to the public. Daily Journal Corporation was incorporated in 1987 and is based in Los Angeles, California.