Is Daily Journal Corporation's (NASDAQ:DJCO) Recent Price Movement Underpinned By Its Weak Fundamentals?

Simply Wall St.06-06

With its stock down 4.2% over the past three months, it is easy to disregard Daily Journal (NASDAQ:DJCO). It seems that the market might have completely ignored the positive aspects of the company's ...

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It seems that the market might have completely ignored the positive aspects of the company's ...</p>\n\n<a href=\"https://finance.yahoo.com/news/daily-journal-corporations-nasdaq-djco-115553834.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/daily-journal-corporations-nasdaq-djco-115553834.html","article_id":"2441715677","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/pf0EMe6xPTl3mfT3rrcvzw--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/46d63f861174685d9a6bcebf459c180a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2441715677","pubTimestamp":1717674953,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"With its stock down 4.2% over the past three months, it is easy to disregard Daily Journal . It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention. In this article, we decided to focus on Daily Journal's  ROE.Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.Return on Equity = Net Profit  ÷ Shareholders' Equity. Daily Journal doesn't pay any regular dividends, meaning that potentially all","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股",".IXIC":"NASDAQ Composite","QID":"纳指两倍做空ETF","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","NDAQ":"纳斯达克OMX交易所","SQQQ":"纳指三倍做空ETF","BK4112":"金融交易所和数据","BK4111":"出版","DJCO":"每日期刊","QLD":"纳指两倍做多ETF","BK4023":"应用软件","TQQQ":"纳指三倍做多ETF","PSQ":"纳指反向ETF","BK4585":"ETF&股票定投概念","QQQ":"纳指100ETF"},"translate_title":"Daily Journal Corporation（纳斯达克股票代码：DJCO）最近的价格走势是否受到其疲软基本面的支撑？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DJCO":1,"NDAQ":1,".IXIC":1,"TQQQ":0.6,"SQQQ":0.6,"QQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"With its stock down 4.2% over the past three months, it is easy to disregard Daily Journal (NASDAQ:DJCO). It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention. In this article, we decided to focus on Daily Journal's  ROE. \n Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. \n Check out our latest analysis for Daily Journal \n How Is ROE Calculated? \n The formula for return on equity is: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for Daily Journal is:\n9.7% = US$22m ÷ US$228m (Based on the trailing twelve months to March 2024).\n The 'return' is the yearly profit. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.10. \n What Has ROE Got To Do With Earnings Growth? \n Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or \"retains\" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. \n A Side By Side comparison of Daily Journal's Earnings Growth And 9.7% ROE \n On the face of it, Daily Journal's ROE is not much to talk about. However, its ROE is similar to the industry average of 11%, so we won't completely dismiss the company. However, Daily Journal has seen a flattish net income growth over the past five years, which is not saying much. Remember, the company's ROE is not particularly great to begin with. Hence, this provides some context to the flat earnings growth seen by the company. \n Next, on comparing with the industry net income growth, we found that Daily Journal's reported growth was lower than the industry growth of 15% over the last few years, which is not something we like to see. \n\n\n\n  NasdaqCM:DJCO Past Earnings Growth June 6th 2024\n \n\n The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is Daily Journal fairly valued compared to other companies? These 3 valuation measures might help you decide. \n Is Daily Journal Making Efficient Use Of Its Profits? \n Daily Journal doesn't pay any regular dividends, meaning that potentially all of its profits are being reinvested in the business. However, this doesn't explain why the company hasn't seen any growth. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating. \n Conclusion \n Overall, we have mixed feelings about Daily Journal. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. So far, we've only made a quick discussion around the company's earnings growth. So it may be worth checking this free detailed graph of Daily Journal's past earnings, as well as revenue and cash flows  to get a deeper insight into the company's performance. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2441715677"}