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

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Generates $2 million in annual free cash flow (0.2% yield on market cap)
• High return on equity of 27.7% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.05, providing financial flexibility
• Altman Z-Score of 5.1 confirms minimal bankruptcy risk and strong solvency

Concerns

• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Daily Journal Corp. (S.C.) Common Stock is a micro-cap technology company valued at $708 million. Revenue stands at $90 million. From a quality standpoint, Daily shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 5.1 confirms fortress-level solvency. On valuation, the stock is deeply undervalued on a P/E basis at 7.8x, with a modest 21% margin of safety vs Graham Number. Growth dynamics show revenue growing at 10.4% and profit growth of -173.2%. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Daily's consistent 28% ROE at just 8x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $2 million in annual free cash flow (0.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer