Daktronics Story

DAKT -- USA Stock

USD 5.02 0.10 1.95%

Macroaxis Story

Daktronics Invested Capital Average is comparatively stable at the moment as compared to the past year. Daktronics reported Invested Capital Average of 182.32 Million in 2019. Market Capitalization is likely to gain to about 306.9 M in 2020, whereas Receivables Turnover is likely to drop 6.99 in 2020. As many of us are excited about technology space, it is fair to review Daktronics. We will evaluate if Daktronics shares are reasonably priced going into January. In this post, I will also go over some essential variables affecting Daktronics' products, and show how it may impact Daktronics outlook for active traders this year.

Published over a month ago

View all stories for Daktronics | View All Stories

Is Daktronics (NASDAQ:DAKT) undervalued?

Daktronics has performance score of 5 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.5767, which means possible diversification benefits within a given portfolio. Let's try to break down what Daktronics's beta means in this case. As returns on the market increase, Daktronics returns are expected to increase less than the market. However, during the bear market, the loss on holding Daktronics will be expected to be smaller as well. Although it is extremely important to respect Daktronics historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Daktronics technical indicators, you can presently evaluate if the expected return of 0.19% will be sustainable into the future. Daktronics right now shows a risk of 2.42%. Please confirm Daktronics downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to decide if Daktronics will be following its price patterns.

And What about dividends?

A dividend is the distribution of a portion of Daktronics earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Daktronics dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Daktronics one year expected dividend income is about $0.09 per share.

Payment of Dividends and Other Cash Distributions is likely to drop to about (18.9 M) in 2021. Dividend Yield is likely to drop to 0.0424 in 2021.

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-17.6 M	-18.9 M
Dividend Yield	0.046	0.0424
Dividends per Basic Common Share	0.40	0.37

Investing in stocks that pay dividends, such as stock of Daktronics, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Daktronics must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Daktronics. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Daktronics's Liquidity

Daktronics financial leverage refers to using borrowed capital as a funding source to finance Daktronics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Daktronics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Daktronics's total debt and its cash.

How Daktronics utilizes its cash?

To perform a cash flow analysis of Daktronics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Daktronics is receiving and how much cash it distributes out in a given period. The Daktronics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Daktronics Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Daktronics reported Net Cash Flow from Operations of 13.28 Million in 2020

What did Daktronics file with SEC?

The SEC filings are financial statements or other formal documents of Daktronics that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.

Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Daktronics shareholders may or may not be submitted as SEC does not always require it.

2nd of December 2020

Financial Statements and Exhibits. Results of Operations and Financial Condition

View

8th of September 2020

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

View

A Deeper Perspective

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Daktronics has an asset utilization ratio of 160.0 percent. This implies that the company is making $1.6 for each dollar of assets. An increasing asset utilization means that Daktronics is more efficient with each dollar of assets it utilizes for everyday operations.

	2010	2011	2015	2020 (projected)
Receivables Turnover	4.55	5.03	8.33	6.99
PPandE Turnover	4.63	8.78	9.02	8.87

Receivables Turnover PPandE Turnover

Daktronics is expecting lower volatility in January

Newest skewness is at -0.6. Daktronics currently demonstrates below-verage downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.05. However, we do advice investors to further question Daktronics expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Perspective on Daktronics

Whereas some firms under the computer hardware industry are still a bit expensive, Daktronics may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Daktronics as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Daktronics.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Daktronics. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC