Stock fact sheet · data as of
Daily Journal Corporation (DJCO): fair value, margin of safety and Wheel Score
Technology · Software - Application · United States · Speculative / Distressed
Is DJCO undervalued?
At 638.60 (close of 16 Oct 2026), DJCO trades 88% over the GLS average fair value of 339.88, with 0 of 2 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
Only 2 of the nine models produced a value (DCF, 10 Cap); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files DJCO under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for DJCO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 515.79 | -19% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 163.96 | -74% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | 277.32 | -57% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: DJCO passes 4 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 5.9 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 27.1%, ROE 28.7%, ROA 20.5% - with debt at 0.06 times equity and a free-cash-flow yield of 2.0%.
Daily Journal Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from License and Maintenance 34%, Consulting Fees 27%, Service, Other 21% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 27.1% |
|---|---|---|---|
| GLS Moat | 5.9 / 10 | ROE | 28.7% |
| Debt / equity | 0.06 | ROA | 20.5% |
| Free-cash-flow yield | 2.0% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 26: No options
DJCO has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (26 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 34k shares a day on a market cap of $880M, with a beta of 0.83; the Stability part of the Wheel Score gives that 8 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -88% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 9 / 15 | moat 5.9/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 8 / 20 | 34k shares/day, $880M cap, beta 0.83 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for DJCO in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to Daily Journal Corporation by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| YALA Yalla Group Limited | 5.67 | 16.15 | +65% | 81Prime | $861M |
| UPBD Upbound Group, Inc. | 15.44 | 119.90 | +87% | 75Good | $900M |
| SVMB Jingbo Technology, Inc. | 1.54 | - | - | 28No options | $855M |
| DSP Viant Technology Inc. | 12.85 | 6.36 | -102% | 44Weak | $855M |
| PUBM PubMatic, Inc. | 17.64 | 18.61 | +5% | 45Weak | $804M |
| HKD AMTD Digital Inc. | 1.67 | 1.49 | -12% | 26No options | $798M |
| MNTN MNTN, Inc Class A | 10.49 | 25.83 | +59% | 75Good | $785M |
| MITK Mitek Systems, Inc. | 16.88 | 19.66 | +14% | 77Good | $762M |
| BKSY BlackSky Technology Inc. | 18.45 | - | - | 45Weak | $755M |
| LZ LegalZoom.com, Inc. | 6.20 | 5.46 | -14% | 60Fair | $1.1B |
| SMWB Similarweb Ltd. | 8.30 | 7.64 | -9% | 45Weak | $727M |
| RSKD Riskified Ltd. | 8.09 | 9.80 | +17% | 45Weak | $1.1B |
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Start free See the Sunday ScanQuestions about DJCO
Is DJCO undervalued right now?
No: at 638.60 the stock trades 88% above the GLS average fair value of 339.88 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of DJCO and what does it mean?
DJCO has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for DJCO?
339.88 per share as of 16 Oct 2026 - the simple average of the 2 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Daily Journal Corporation report earnings next?
No upcoming earnings date is recorded for DJCO in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does DJCO have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on DJCO, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.