Daktronics: Stable CFO And Potential Internationalization Make The Stock A Buy

Jan. 22, 2022 3:24 AM ETDaktronics, Inc. (DAKT)3 Comments
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Alephbe Investments
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Summary

  • Daktronics, Inc. presents itself as the world's industry leader in designing and manufacturing electronic scoreboards, display systems, and screen video displays.
  • 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.
  • According to the most recent 10-K, the backlog increased significantly in 2021. We are talking about more than $300 million in orders for integrated electronic display systems.
  • If the company makes acquisitions abroad or opens new offices abroad, direct contact with clients may generate even more revenue.
  • I would also expect significant FCF growth from further standardization and commonality of parts, other lean manufacturing techniques, and automatization of processes.

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With stable cash flow from operations, Daktronics (NASDAQ:DAKT) is a leader in its industry. In my opinion, if the management opens new offices abroad, and signs more agreements with resellers, revenue would trend north. I am quite optimistic about the

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This article was written by

Alephbe Investments profile picture
387 Followers
From China, I am a financial consultant. I have worked 10 years in Europe for some big banks. I am into growth stocks. I do not guarantee or provide any warranties or representations as to the accuracy, timeliness, completeness, reliability or usefulness of any information I provide. Use of my comments is at User's sole risk. Under no circumstances, including, but not limited to, negligence, shall I be liable for any direct, indirect, incidental, special or consequential damages, even if they have been advised of the possibility of such damages. User specifically acknowledges and agrees that I am not liable for any conduct of any User. I also don't give financial advice.

Disclosure: I/we have a beneficial long position in the shares of DAKT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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