![]() The majority of our products sold by resellers in North America are standard catalog products. We utilize resellers outside North America for large integrated system sales where we do not have a direct sales presence. If the company makes acquisitions abroad or opens new offices abroad, direct contact with clients may generate even more revenue: In my view, if management successfully signs agreements with more resellers in Europe, Asia, and Latin America, revenue will most likely trend north. The D&A has been always close to $14-$17 million: The company's CFO was also positive, and grew from $20 million in 2012 to $67 million in 2021. The company's EPS remained almost positive and close to $0.05-$0.23: Source: 10-K With Previous FCF Growth, More Resellers, And Automatization Of Processes, I Expect A Target Price Of $9.3įor those who don't know Daktronics' financial statements, let me mention that in the last five years, the company reported an average sales growth of -2%, EBITDA margin of 4%, operating margin close to 1%-2%, and average tax close to 37%. We expect to fulfill the backlog as of May 1, 2021, within the next 24 months. ![]() Our backlog as of May 1, 2021, was $304 million as compared to $268 million as of May 2, 2020. We are talking about more than $300 million in orders for integrated electronic display systems, which management expects to recognize in net sales in the future: According to the most recent 10-K, the backlog increased significantly in 2021. There is another clear fact that indicates future sales growth. With know-how accumulated in the U.S., I believe that the company will most likely see a steady increase in its international sales in the coming years: In my view, there is significant room for improvement outside the United States. Interestingly, the company's international sales represent only 13% of the total amount of revenue. Management obtained most of its revenue from live events, commercials, and transportation. I believe that the company's activities are well diversified. Readers may have seen the company's display systems while driving, watching a basketball match, or ordering food in a restaurant: presents itself as the world's industry leader in designing and manufacturing electronic scoreboards, display systems, and screen video displays. Daktronics: Diversified Business Model, International Sales, And Growing Backlogįounded in 1968, Daktronics, Inc. My DCF model indicated a target price close to $9.3, whereas the current market price is close to $4.1-$5.7. ![]() With a significant amount of cash to finance these initiatives, Daktronics appears somewhat undervalued. I am quite optimistic about the new automatization and improvement in the manufacturing processes announced recently. In my opinion, if the management opens new offices abroad, and signs more agreements with resellers, revenue would trend north. With stable cash flow from operations, Daktronics ( NASDAQ: DAKT) is a leader in its industry.
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