One-glance verdict
Within fair range
$1.86 our estimate vs market $2.50
Wall Street consensus: $5.50 (194.9% higher than our fair-value estimate)
34% above our estimate
Fundamentals snapshot
Data I/O Corporation
DAIO · NCM · Technology · Electronic Components
Current price
$2.50
52-week range
$2.16 - $4.49
Market cap
$25.94M
Balance sheet
Healthy
-39.35x Concerning
Net cash $2.88M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 5/10 years.
- Risk Return on equity was -61.2% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -3.1% to -14.1% over 3 years.
What this company does
Data I/O Corporation
Data I/O Corporation makes specialized machines that help electronic companies program chips and keep them secure, with their main customers being car makers and those who build electronic parts for other companies. This is important because their technology is crucial for ensuring these electronic devices work correctly and are protected from tampering, and their revenue (the money they bring in) primarily comes from selling these sophisticated machines.
How the company got here
Data I/O Corporation has been around since 1969, starting out by helping manufacturers program electronic devices. Over the decades, it has adapted to the ever-changing landscape of electronics, focusing on specialized programming and security solutions. This long history means the company has deep experience in a niche but critical part of the electronics manufacturing process.
What it actually does
Imagine you have a new electronic gadget, like a smart watch or a car's computer. Before it can work, it needs to be programmed with specific instructions. Data I/O makes the machines and software that do this programming for companies that build these electronic devices. They also provide services to ensure these programs are secure, preventing unauthorized access or tampering.
Programming and Security Systems
This is the core of Data I/O's business, where they design and sell automated machines that program electronic components. Think of these as highly specialized assembly lines for software. These systems are used by manufacturers in various industries, including automotive, medical devices, and consumer electronics, to load the necessary code onto chips. The company also offers non-automated systems for smaller-scale programming needs and provides essential security features to protect the programmed devices.
Services and Support
Beyond selling the machines, Data I/O also offers services to help their customers. This can include software updates, maintenance for their programming equipment, and expert support to ensure smooth operations. These services help manufacturers keep their programming processes efficient and up-to-date, which is crucial in the fast-paced electronics industry. This recurring revenue stream provides a stable part of the company's income.
What management is betting on now
Data I/O's management is focused on growing its business by serving industries that require advanced programming and security, such as automotive electronics and the Internet of Things (IoT). They are investing in developing new, more efficient programming systems to meet the increasing complexity of electronic devices. The company also aims to expand its global reach, particularly in key manufacturing regions, to capture more market share and provide better support to its international customers.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$724.00K
FY2024 Q4
$-1.74M
FY2025 Q1
$53.00K
FY2025 Q2
$-633.00K
FY2025 Q3
$-348.00K
FY2025 Q4
$-1.86M
FY2026 Q1
$-2.23M
FY2026 Q2
$-3.16M
Revenue
$5.15M
Net income
$-1.63M
Diluted EPS
-0.17
Operating cash flow
$-2.94M
Free cash flow
$-3.16M
Fetching…
Sources
Revenue
$3.25M
Net income
$-3.17M
Diluted EPS
-0.34
Operating cash flow
$-2.23M
Free cash flow
$-2.23M
Fetching…
Sources
Revenue
$3.98M
Net income
$-2.75M
Diluted EPS
-0.29
Operating cash flow
$-1.65M
Free cash flow
$-1.86M
Fetching…
Sources
Revenue
$5.39M
Net income
$-1.36M
Diluted EPS
-0.15
Operating cash flow
$-343.00K
Free cash flow
$-348.00K
Fetching…
Sources
Revenue
$5.95M
Net income
$-742.00K
Diluted EPS
-0.08
Operating cash flow
$-342.00K
Free cash flow
$-633.00K
Fetching…
Sources
Revenue
$6.18M
Net income
$-382.00K
Diluted EPS
-0.04
Operating cash flow
$109.00K
Free cash flow
$53.00K
Fetching…
Sources
Revenue
$5.18M
Net income
$-1.18M
Diluted EPS
-0.13
Operating cash flow
$-1.55M
Free cash flow
$-1.74M
Fetching…
Sources
Revenue
$5.42M
Net income
$-307.00K
Diluted EPS
-0.03
Operating cash flow
$839.00K
Free cash flow
$724.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $1.86 vs current price $2.50
Wall Street consensus is the average analyst price target: $5.50 (194.9% higher than our fair-value estimate).
Our most-likely fair value is $1.86 a share — about 25.3% away from today's price of $2.50, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $2.9M - more cash than debt. Interest coverage -39.4x.
Net debt
$-2.88M
Interest coverage
-39.35x
Data I/O Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
DAIO
BASELINE
Data I/O Corporation
Total debt $7.96M Interest coverage -39.35x This is the baseline the peer rows are being compared against.
Total debt $17.89M Interest coverage -177.58x Neither company has much profit cushion over interest right now.
Total debt $9.80M Interest coverage -10.39x Neither company has much profit cushion over interest right now.
Total debt $335.89M Interest coverage -29.03x Neither company has much profit cushion over interest right now.
Total debt $27.76M Interest coverage 115.35x This peer still has a real interest-payment cushion, while DAIO does not.
What you should know
The case for and against DAIO
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 5/10 years.
Risks
-
Return on equity was -61.2% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -3.1% to -14.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
16.63x
P/B
2.19x
P/S
1.46x
EV/EBITDA
-3.16x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
50.6%
Operating margin
-14.1%
Net margin
-50.1%
ROE
-61.2%
ROA
-19.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.67x
Current ratio
1.93x
Quick ratio
1.32x
Total debt
$7.96M
Total cash
$10.84M
Growth
How the business has been compounding
Revenue TTM
$17.77M
Revenue 5Y CAGR
-4.5%
EPS TTM
-0.95
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-7.16M
Free CF TTM
$-2.79M
FCF margin
-15.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
1989-03-09