DAKTDaktronics, Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.1×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DAKT?
Daktronics, Inc. earns 28% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 19 points above what the capital costs: growth creates value
- Operating margin
- 7.3%
Operating margin · Electronic Components median 8.4% · 12 months to Q1 2027
- Cash conversion
- 1.11×
Cash conversion · 4.43× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 3.5% |
| FY2022 | 0.66% |
| FY2023 | 2.8% |
| FY2024 | 11% |
| FY2025 | 4.4% |
| FY2026 | 7.2% |
Details›
- Gross margin12 months to Q1 2027
- 28%
- Operating margin12 months to Q1 2027
- 7.3%
- Net margin12 months to Q1 2027
- 5.7%
- Free cash flow margin
- 4.7%
- R&D as % of revenue
- 5.3%
- Revenue, trailing twelve months
- $854M
- Free cash flow, trailing twelve months
- $40M
- Net income, trailing twelve months
- $48M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 28%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Electronic Components
Ranks #2 of 25 by RyuScore