Daily Journal Corp. (S.C.) Common Stock (DJCO)

Turnaround

FairStock Score: 59/100 — STEADY

Key Financials

Current Price$607.82
Market Cap$838M
P/E Ratio-74.03
ROE-3.31%
Dividend Yield—%
SectorTechnology

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Daily Journal as a Graham-style bargain hunter: I want a durable business, honest financials, and a price that leaves a margin of safety. The company publishes legal and business newspapers and operates Journal Technologies, but the numbers tell a volatile story. FairStock's revenue-growth measure is 24.98%, and filed revenue rose from $67.7M in fiscal year 2023, ended 2023-09-30, to $87.7M in fiscal year 2025, ended 2025-09-30. In fiscal year 2025, ended 2025-09-30, net income was $112.1M, or $81.41 per diluted share. Yet the recent trend is poor: in fiscal Q1 2026, ended 2025-12-31, net income was -$8.0M; in fiscal Q2 2026, ended 2026-03-31, it was -$34.6M; and in fiscal Q3 2026, ended 2026-06-30, it was -$10.9M on $27.0M of revenue. That swing is not the steady compounding I prefer. The balance sheet is a genuine strength: debt-to-equity is only 0.06 and the Altman Z-Score is 6.14, both FairStock calculations. But returns are weak, with ROE -3.31% and ROCE 2.06%. Free cash flow is positive at $17.3M, yet the FCF yield is just 1.9% against an $888.2M market cap. At the 2026-10-13 close of $644.56, P/B is 2.63 and the P/E is -78.51 because EPS is -$8.21. FairStock scores it 59/100 and classifies it as a TURNAROUND, returned to profit after a loss within the last three years. I see low leverage and a possible turnaround, but no clear moat in these figures, and the price already reflects a lot of hope. I would need more consistent earnings before calling it a bargain.

In plain English: Daily Journal publishes legal and business newspapers and also has a software/technology business. The business looks mixed: sales have been growing and debt is low, but it has lost money in each of the last three reported quarters. At $644.56, the stock looks expensive compared with its recent profits and the cash it generates.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer