Is DAKT a high-quality business?

AlphaMadera's AlphaQuality grade scores Daktronics, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how DAKT compares to a Buffett-style quality bar.

What is Daktronics, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to DAKT based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes DAKT a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

DAKT - Daktronics, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $26.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C 51.8 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C+ 57.3

5yr Avg ROIC 6.9% 44/100
Operating Margin Trend +1.16 pp/yr 87/100

Capital Efficiency

Weight: 15%

D- 31.2

5yr Avg ROE 3.1% 26/100
5yr Share-Count CAGR 1.3% 41/100

Growth Quality

Weight: 15%

A- 85.2

5yr Revenue CAGR 11.9% 85/100
5yr EPS CAGR 45.5% 100/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

F 24.2

5yr FCF Margin 3.8% 44/100
5yr FCF/NI Conversion -18.73x 0/100

Balance Sheet

Weight: 20%

B 70.0

Net Debt / EBITDA -8.08x 100/100
Interest Coverage (EBIT/Int) -1.30x 0/100
Altman Z-Score 5.01 100/100

Stability

Weight: 15%

D 35.0

EPS Volatility (σ/μ) 1.07 0/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

4 of 4 gurus held; 1 new buy; 3 trimmed.

Holders: 4 +1
Avg Δ position: -31.9%
New buys: 1
Full exits: 0

Wood new
Cooperman decreased -42%
Druckenmiller decreased -34%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.