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Daily Journal Corp. [S.C.] (DJCO)
NASDAQ:DJCO

Daily Journal (DJCO) AI Stock Analysis

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DJ

Daily Journal

(NASDAQ:DJCO)

74Outperform
Daily Journal's stock score reflects its strong financial health characterized by growth in revenues and profitability, along with a solid balance sheet free of debt. The valuation suggests the stock is undervalued, offering an attractive opportunity. However, technical indicators show a bearish trend, which could pose short-term challenges.

Daily Journal (DJCO) vs. S&P 500 (SPY)

Daily Journal Business Overview & Revenue Model

Company DescriptionDaily Journal Corporation publishes newspapers and websites covering in California, Arizona, and Utah. 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, The Daily Transcript, Business Journal, and The Record Reporter. It also provides specialized information services; and serves as an advertising and newspaper representative for commercial and public notice advertising. In addition, the company offers case management software systems and related products, including eCourt, eProsecutor, eDefender, and eProbation, which are browser-based case processing systems; eFile, a browser-based interface that allows attorneys and the general public to electronically file documents with the court; and ePayIt, a service primarily for the online payment of traffic citations. It provides its software systems and related products for 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 bar members and the public in 42 states and internationally. Daily Journal Corporation was incorporated in 1987 and is based in Los Angeles, California.
How the Company Makes MoneyDaily Journal Corporation generates revenue through two primary streams: traditional publishing and technology solutions. Its publishing segment brings in income from advertising, public notice advertising, and subscriptions to its various newspapers and websites. Meanwhile, its technology segment, through Journal Technologies, earns revenue by licensing software solutions and providing related services to government agencies, particularly in the justice system. The company benefits from its established reputation in the legal and public sectors, and its software solutions are designed to enhance efficiency in public administrations. Additionally, DJCO has a portfolio of investments in marketable securities, which can also contribute to its financial performance.

Daily Journal Financial Statement Overview

Summary
Overall, Daily Journal presents a strong financial position with growing revenues and solid profitability margins. The absence of debt enhances its financial stability, while consistent free cash flow generation supports its operations. However, fluctuations in profitability and cash flow highlight areas for improvement in maintaining steady financial performance.
Income Statement
75
Positive
The company's revenue has shown consistent growth over the years, with a notable increase in the TTM period to $71.64 million from $67.71 million in 2023. The gross profit margin is strong, reflecting efficient cost management. However, the net profit margin is somewhat volatile, with a significant net income in TTM driven by one-time factors. EBIT and EBITDA margins are healthy, indicating good operational performance.
Balance Sheet
80
Positive
The balance sheet is robust with no debt in the TTM period, significantly reducing financial risk. The equity ratio is high, showcasing strong financial stability and a good buffer for liabilities. The return on equity is also solid, though it has seen fluctuations in past periods. The company's asset base has grown, supporting its expanding operations.
Cash Flow
70
Positive
The company's cash flow position is stable, with positive free cash flow in the TTM period. The operating cash flow to net income ratio indicates that earnings are well-supported by cash operations. However, the free cash flow has experienced variability, highlighting potential challenges in consistent cash generation.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
71.64M69.93M67.71M54.01M49.39M49.94M
Gross Profit
15.49M14.18M16.01M11.67M8.96M7.30M
EBIT
4.19M4.07M6.65M7.44M5.13M3.69M
EBITDA
106.04M107.63M8.87M-101.06M4.46M634.00K
Net Income Common Stockholders
76.39M78.11M21.45M-75.62M112.90M4.04M
Balance SheetCash, Cash Equivalents and Short-Term Investments
72.05M371.68M324.17M288.95M360.17M206.29M
Total Assets
93.75M403.76M354.86M319.11M390.58M238.57M
Total Debt
0.0028.62M76.28M76.43M33.58M31.20M
Net Debt
-3.05M15.63M55.24M63.01M20.98M4.28M
Total Liabilities
30.88M124.98M154.39M140.09M135.94M96.83M
Stockholders Equity
62.87M278.78M200.47M179.02M254.64M141.74M
Cash FlowFree Cash Flow
3.23M-138.00K15.00M-5.30M3.26M2.15M
Operating Cash Flow
3.28M-89.00K15.08M-5.26M3.29M2.34M
Investing Cash Flow
40.54M40.53M-7.26M-36.76M-19.99M16.12M
Financing Cash Flow
-42.66M-47.66M-153.00K42.85M2.38M-126.00K

Daily Journal Technical Analysis

Technical Analysis Sentiment
Negative
Last Price370.98
Price Trends
50DMA
393.41
Negative
100DMA
459.23
Negative
200DMA
468.76
Negative
Market Momentum
MACD
-6.15
Negative
RSI
46.62
Neutral
STOCH
28.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DJCO, the sentiment is Negative. The current price of 370.98 is below the 20-day moving average (MA) of 385.73, below the 50-day MA of 393.41, and below the 200-day MA of 468.76, indicating a bearish trend. The MACD of -6.15 indicates Negative momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 28.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DJCO.

Daily Journal Risk Analysis

Daily Journal disclosed 19 risk factors in its most recent earnings report. Daily Journal reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Daily Journal Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$511.13M74.268.11%24.89%-47.85%
74
Outperform
$509.55M6.6730.39%0.34%370.41%
68
Neutral
$463.92M41.214.36%9.08%43.58%
61
Neutral
$453.85M-44.89%1.88%-11430.00%
58
Neutral
$9.99B10.12-6.46%3.10%7.47%-11.60%
54
Neutral
$388.63M-91.78%7.61%59.62%
45
Neutral
$496.50M75.95%1.75%72.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DJCO
Daily Journal
379.63
26.63
7.54%
RDVT
Red Violet
37.28
20.41
120.98%
PRCH
Porch Group
5.11
1.82
55.32%
BIGC
BigCommerce Holdings
5.04
-0.79
-13.55%
PUBM
PubMatic
9.56
-13.78
-59.04%
BMBL
Bumble
4.43
-6.01
-57.57%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.