About DAKTRONICS INC
Daktronics, Inc. designs, manufactures, markets, and sells electronic display systems and related products worldwide. It operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company offers video display systems, such as displays to show various levels of video, graphics, and animation; indoor and outdoor LED video displays, including centerhung, landmark, ribbon board, and corporate office entrance displays, as well as video walls and hanging banners; mobile and modular display systems; architectural lighting and display products; indoor and outdoor scoreboards for various sports, digit displays, scoring and timing controllers, statistics software, and other related products; and timing systems for sports events primarily aquatics and track competitions, as well as swimming touchpads, race start systems, and relay take-off platforms. It also provides control components for video displays in live event applications; message displays; ITS dynamic message signs, including LED displays for road management, mass transit, and aviation applications; digit and directional displays for use in parking facilities; and sound systems for outdoor sports venues.
In addition, the company offers out-of-home advertising displays comprising billboards and street furniture displays; DataTime product line that consists of outdoor time and temperature displays; and Fuelight digit displays designed for the petroleum industry. Further, it provides ADFLOW DMS systems that include indoor networked solutions for retailers, convenience stores, and other businesses; and Venus Control Suite, Show Control, Vanguard, and others, as well as maintenance and professional services related to its products. The company sells its products through direct sales and resellers. Daktronics, Inc. was founded in 1968 and is headquartered in Brookings, South Dakota.
DAKT operates in the Manufacturing | Misc. | headquartered in BROOKINGS, South Dakota | approximately 2,480 employees | led by CEO Reece A. Kurtenbach.
$802 million 3.0x P/B -11.0% ROE -12.0% rev. growth
DAKTRONICS INC earns a Buy rating from our quantitative model with a composite score of 73/100, ranking #46 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is quality at 90/100, which places DAKT in the top 10 percent of all stocks on this measure. value at 82/100 provides secondary support. Investors should note that investment efficiency scores a below-average 39/100, which tempers the overall profile.
Within the Manufacturing sector, DAKT ranks 25th out of 50 peers, placing it in the 50th percentile. At $802 million, the company is a small-cap stock with higher potential but also higher risk.
Quality Analysis
DAKTRONICS INC's quality score of 90/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of -11.0% trails the sector median of -2.0%. Gross margins of 25.0% suggest a commodity-like business with thin pricing power. Operating margins of -2.0% sit below the 3.0% sector average.
Net margins of -11.0% are negative, meaning the company is not yet consistently profitable.
Valuation Assessment
A value score of 82/100 puts DAKT in the top 18 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a price-to-book of 3.0x, a price-to-sales of 1.3x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 75/100 shows DAKT is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of -12.0% is declining, which makes the momentum signal more precarious. A beta of 1.75 means DAKTRONICS INC moves more aggressively than the market, amplifying both gains and losses.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Leverage risk. A debt-to-equity ratio of 16.00 indicates significant leverage. In a rising rate environment or economic downturn, high debt loads can amplify losses and strain cash flow. Investors should monitor the company's ability to service its obligations.
- Small-cap illiquidity. At $802 million, DAKT has lower trading volume and wider bid-ask spreads than large-cap peers. This can amplify short-term price volatility and make it harder for larger investors to build or exit positions without moving the stock.
- Thin margins. Operating margins of -2.0% leave little room for error. A modest revenue shortfall or cost increase could push the company into unprofitability.
- High market sensitivity. A beta of 1.75 means DAKT amplifies market moves by 75%. In a broad market sell-off, this stock would likely decline significantly more than the indices.
Bottom Line
DAKTRONICS INC earns a Buy rating with a composite score of 73/100 and 4 out of 5 stars, ranking #46 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position DAKT above the majority of the market.
Explore the full DAKT analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
