Daily Journal Corporation (DJCO) - Stock Analysis
Last updated: Jan 19, 2026
Research Idea
Research content for general circulation. Not individualized advice.Ā Methodology & Disclosures
DJCO has improved profitability and free cash flow with strong liquidity and a +14% price gain over 21 days, benefiting from AI-driven software innovation and technical strength supporting further near-term appreciation.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ā¢ Strong balance-sheet ā¢ Investment-driven returns ā¢ Poor cash conversion DJOCO combines a very strong balance sheet and high reported returns driven largely by investment income, but weak core operating margins and modest operating cash flow create a material discrepancy that warrants scrutiny.
Price Behavior
Key Price Behavior Insights: ā¢ Strong uptrend ā¢ Rising momentum ā¢ Overbought risk Support Level: $630ā$620 Resistance Level: $657.15 DJCO has rallied strongly over the last month from about $501.82 to $657.15, showing sustained higher highs/lows and bullish momentum but risking a short-term pullback after a steep, possibly overbought advance.
Sentiment & News
Key News Insights: ā¢ Software-led growth ā¢ Share volatility ā¢ Valuation scrutiny Daily Journal's FY2025 results show strong software-driven growth (25% revenue, 44% EPS gain) but share volatility, valuation concerns, and a legal referral create near-term uncertainty.
AI Summary
DJCO is effectively a capital-rich holding company whose headline earnings and ROE are driven mainly by markātoāmarket investment incomeānot repeatable operating cash from Journal Technologiesāso valuation and downside risk depend as much on investment returns and capital allocation as on software growth. Investors should stressātest forecasts assuming normalized investment income, monitor Journal's operating cash flow and margin improvement, and track management's buyback/M&A cadence as the primary catalyst or risk.
Description
Daily Journal Corporation is a media and software company that publishes multiple regional legal and business newspapers in California, Arizona and Utah and provides advertising and public notice representation. Its operations are reported in two segmentsātraditional publishing and Journal Technologiesāwhich also supplies specialized information services and electronic case-management, e-filing, and online payment systems for courts and other justice-related agencies. The company was incorporated in 1987 and is headquartered in Los Angeles, with its software used by courts and justice partners in 42 states and abroad.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 22 | Dec 29 | DJCO | Daily Journal Corporation | DJCO has improved profitability and free cash flow with strong liquidity and a +14% price gain over 21 days, benefiting from AI-driven software innovation and technical strength supporting further near-term appreciation. | Closed | -5.2% |