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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
DaktronicsDAKT -0.38%70 Operating Margin % is 4.96% as of Apr. 2026, which is 100% above its 10-year median of 2.48. GuruFocus rates DAKT with a GF Score™ of 70/100 and a GF Value™ of $14.25 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,475 Hardware companies, Daktronics ranks better than 64.44% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Daktronics's Operating Income for the
three
months ended in Apr. 2026 was $10.3 Mil. Daktronics's Revenue for the
three
months ended in Apr. 2026 was $208.6 Mil. Therefore, Daktronics's Operating Margin % for the quarter that ended in Apr. 2026 was 4.96%.
Good Sign:
Daktronics Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Daktronics's Operating Margin % or its related term are showing as below:
DAKT'
s Operating Margin % Range Over the Past 10 Years
Min: -0.83 Med: 2.48 Max: 10.65
Current: 6.81
DAKT's Operating Margin % is ranked better than 64.44% of 2475
companies
in the Hardware industry
Industry Median: 3.89
vs DAKT: 6.81
Daktronics's 5-Year Average Operating Margin % Growth Rate was 26.30% per year.
Daktronics's Operating Income for the
three
months ended in Apr. 2026 was $10.3 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was $57.1 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Daktronics Operating Margin % Related Terms
Daktronics Operating Margin % Historical Data
* Premium members only.
The historical data trend for Daktronics's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DAKT vs LYTS, LPTH, KOPN: Operating Margin % Comparison
For the Electronic Components subindustry, Daktronics's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Daktronics Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Daktronics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Daktronics's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Daktronics's Operating Margin % for the fiscal year that ended in Apr. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Daktronics (DAKT) has a Operating Margin % of 4.96% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Daktronics and its competitors. This is 100% above median its historical median of 2.48. According to the industry distribution chart, Daktronics ranks #880 out of 2475 companies in the Hardware industry, placing it in the top 35.6%.
Is Daktronics' Operating Margin % too high?
Daktronics' current Operating Margin % of 4.96% is 100% above median its 10-year median of 2.48. The Hardware industry median Operating Margin % is 3.89. Daktronics' value of 4.96% is 27.5% above this industry median. Based on the distribution chart, Daktronics ranks #880 out of 2475 companies in the Hardware industry, which is above the industry midpoint. Overall, Daktronics has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daktronics' Operating Margin % compare to LYTS and LPTH?
According to the Hardware industry distribution chart, Daktronics ranks #880 out of 2475 companies for Operating Margin %. This puts Daktronics in the upper half of its industry. The industry median Operating Margin % is 3.89. Daktronics' value of 4.96% is 27.5% above this benchmark. While the company's 10-year median is 2.48 vs. the industry median of 3.89, Daktronics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.89, based on 2,475 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daktronics's current Operating Margin % of 4.96% is 27.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Daktronics and its competitors. For the Hardware industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daktronics's current Operating Margin % is 4.96%, which is 100% above median its own 10-year median of 2.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daktronics stock overvalued right now?
Based on GuruFocus' analysis, Daktronics (DAKT) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.25, compared to a current price of $21.20 — trading 48.8% above its estimated fair value. The current Operating Margin % is 4.96%, which is 100% above median its 10-year median of 2.48 and 27.5% above the Hardware industry median of 3.89. Daktronics' overall GF Score™ is 70/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Daktronics (DAKT), the current Operating Margin % is 4.96% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Daktronics (DAKT) Overvalued in 2026?
Based on GuruFocus' analysis, Daktronics stock appears to be overvalued.
The current stock price of $21.20 is trading 48.8% above its estimated GF Value™ of $14.25.
GuruFocus considers Daktronics to be Significantly Overvalued.
Key valuation signals for DAKT:
Operating Margin %: 4.96% (100% above median its 10-year median of 2.48)
GF Value™: $14.25 vs. price of $21.20 (48.8% above fair value)
Industry Position: 27.5% above the Hardware median (#880 of 2475)
No single metric tells the full story. See the DAKT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daktronics Inc designs and manufactures electronic scoreboards, programmable display systems, and large-screen video displays for sporting, commercial, and transportation applications. It is engaged in a full range of activities: marketing and sales, engineering and product design and development, manufacturing, technical contracting, professional services, and customer service and support. The company offers a complete line of products, from small scoreboards and electronic displays to large multimillion-dollar video display systems as well as related control, timing, and sound systems. The company has five reportable segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company makes the majority of its revenue from Live events.
70GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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