-0.04 | -0.37%
DAKTRONICS INC's gross profit margin for the third quarter of its fiscal year 2012 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. DAKTRONICS INC has average liquidity. Currently, the Quick Ratio is 1.14 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.47% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
| Income Statement | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Net Sales ($mil) | 111.05 | 122.93 |
| EBITDA ($mil) | 5.02 | 6.23 |
| EBIT ($mil) | 1.07 | 1.84 |
| Net Income ($mil) | 2.71 | 1.67 |
| Balance Sheet | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 50.09 | 50.58 |
| Total Assets ($mil) | 306.59 | 305.2 |
| Total Debt ($mil) | 0.0 | 3.18 |
| Equity ($mil) | 185.67 | 190.39 |
| Profitability | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Gross Profit Margin | 27.92 | 26.23 |
| EBITDA Margin | 4.52 | 5.06 |
| Operating Margin | 0.96 | 1.5 |
| Sales Turnover | 1.65 | 1.61 |
| Return on Assets | 6.66 | 3.91 |
| Return on Equity | 11.0 | 6.28 |
| Debt | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Current Ratio | 2.19 | 2.15 |
| Debt/Capital | 0.0 | 0.02 |
| Interest Expense | 0.03 | 0.06 |
| Interest Coverage | 38.18 | 30.72 |
| Share Data | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Shares outstanding (mil) | 42.35 | 41.89 |
| Div / share | 0.62 | 0.51 |
| EPS | 0.06 | 0.04 |
| Book value / share | 4.38 | 4.54 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 173699.0 | 180334.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 22.87 for the Electronic Equipment, Instruments & Components industry and a premium compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 2.43 indicates valuation on par with the S&P 500 average of 2.44 and a premium versus the industry average of 2.20. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, DAKTRONICS INC seems to be trading at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DAKT 22.21 | Peers 22.87 | DAKT 10.03 | Peers 13.91 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. DAKT is trading at a valuation on par with its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. DAKT is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| DAKT 17.19 | Peers 17.72 | DAKT 0.12 | Peers 3.25 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. DAKT is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. DAKT trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| DAKT 2.43 | Peers 2.20 | DAKT 71.42 | Peers 10.82 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. DAKT is trading at a premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. DAKT is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| DAKT 0.89 | Peers 8.79 | DAKT 2.82 | Peers 3.51 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. DAKT is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. DAKT trails its peers on the basis of sales growth |
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