Owner Scorecard


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DJCO, Daily Journal Corp. (S.C.)

Publishing diversified Cyclical

These organizations use the Journal Technologies family of products to help manage cases and information electronically, to interface with other critical justice partners and to extend electronic services to the public, including e-filing and a website to pay traffic citations and fees online.

Products and Services Traditional Business Newspapers and related online publications.

Latest annual: FY2025 10-K
DJCO · Daily Journal Corp. (S.C.)
I

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025
$88M
+25.4% YoY · 12% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $94M 5-yr avg $66M
Operating margin 12.0% 5-yr avg 6.9%
ROIC 3% 5-yr avg 2%
Owner-earnings margin 15% 5-yr avg 7%
Free cash flow margin 15% 5-yr avg 7%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is
Revenue is led by License and Maintenance (36%) and Consulting Fees (26%), with 4 more lines behind.
Situation
Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle
Operating margin has reached 11% at its best but run negative through the cycle (median −2.6%) — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. On its own account, the filing leans hardest on regulation & policy, set against the numbers in what the filing emphasizes, below.
Is it a good business?
Return on capital has rarely cleared the cost of capital (median −0%, above 15% in 0 of 10 years). Owner earnings, the cash-based check, have been thin too. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 6 lines, the largest License and Maintenance at 36%.

Revenue by product line, FY2025
  • License and Maintenance36%$32M
  • Consulting Fees26%$23M
  • Service, Other18%$15M
  • Advertising11%$10M
  • Subscription and Circulation5%$4M
  • Advertising Service Fees and Other4%$3M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

II

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left
2016’162017’172018’182019’192020’202021’212022’222023’232024’242025’25TTMTTMMar 2026
Income statement
$42M$41M$41M$49M$50M$50M$54M$68M$70M$88M$94MRevenueRevenue
($7M)($13M)($14M)($18M)($1M)$2M$2M$7M$4M$10M$11MOperating incomeOp. inc.
−16.0%−31.8%−34.5%−37.5%−2.6%4.3%3.7%9.8%5.8%10.9%12.0%Operating marginOp. mgn
($1M)($918K)$8M($25M)$4M$113M($21M)$21M$78M$112M$14MNet incomeNet inc.
4%26%24%25%25%17%Effective tax rateTax rate
Cash flow & returns
$1M($3M)($2M)$2M$2M$3M($5M)$15M($89K)$13M$14MOperating cash flowOp. cash
$6M$6M$4M$589K$524K$480K$379K$279K$267K$257K$223KDepreciationDeprec.
($3M)($7M)($14M)$26M($2M)($110M)$16M($7M)($79M)($99M)($456K)Working capital & otherWC & other
$4M$253K$212K$165K$184K$29K$36K$86K$49K$8K$22KCapexCapex
9.1%0.6%0.5%0.3%0.4%0.1%0.1%0.1%0.1%0.0%0.0%Capex / revenueCapex/rev
($3M)($3M)($2M)$1M$2M$3M($5M)$15M($138K)$13M$14MOwner earningsOwner earn.
−6.1%−7.0%−5.1%3.0%4.3%6.5%−9.8%22.2%−0.2%15.2%14.7%Owner earnings marginOE mgn
($3M)($3M)($2M)$1M$2M$3M($5M)$15M($138K)$13M$14MFree cash flowFCF
−6.1%−7.0%−5.1%3.0%4.3%6.5%−9.8%22.2%−0.2%15.2%14.7%Free cash flow marginFCF mgn
-5%-7%-7%-11%-1%1%1%3%1%2%3%ROICROIC
-1%-1%5%-18%3%44%-12%11%28%29%4%Return on equityROE
−1%−1%5%−18%3%44%−12%11%28%29%4%Retained to equityRetained/eq
Balance sheet
$11M$233M$222M$203M$206M$360M$289M$324M$372M$514M$451MCash & investmentsCash+inv
$5M$5M$5M$7M$7M$10M$17M$19M$19M$21M$14MReceivablesReceiv.
$41K$40K$46K$40K$36K$43K$56K$72K$15K$37KInventoryInvent.
$3M$3M$3M$5M$4M$4M$5M$7M$6M$7M$8MAccounts payablePayables
$2M$2M$2M$3M$3M$5M$12M$12M$13M$14M$6MOperating working capitalOper. WC
$184M$240M$227M$213M$216M$372M$309M$345M$394M$539M$472MCurrent assetsCur. assets
$65M$24M$27M$31M$28M$34M$34M$42M$38M$39M$31MCurrent liabilitiesCur. liab.
2.8×10.0×8.3×6.9×7.7×10.9×9.2×8.2×10.3×13.9×15.4×Current ratioCurr. ratio
$13M$13M$13M$13MGoodwillGoodwill
$225M$281M$264M$237M$239M$383M$319M$355M$404M$548M$480MTotal assetsAssets
$125M$160M$163M$138M$142M$255M$179M$200M$279M$391M$349MShareholders’ equityEquity
0.3%0.2%0.1%Stock comp / revenueSBC/rev
Per share
1.4M1.4M1.4M1.4M1.4M1.4M1.4M1.4M1.4M1.4M1.4MShares out (diluted)Shares
$30.14$29.97$29.48$35.24$36.17$36.16$39.15$49.17$50.78$63.67$68.28Revenue / shareRev/sh
$-0.76$-0.66$5.94$-18.26$2.93$81.77$-15.55$15.58$56.73$81.41$10.13EPS (diluted)EPS
$-1.85$-2.10$-1.52$1.05$1.56$2.36$-3.84$10.89$-0.10$9.67$10.04Owner earnings / shareOE/sh
$-1.85$-2.10$-1.52$1.05$1.56$2.36$-3.84$10.89$-0.10$9.67$10.04Free cash flow / shareFCF/sh
$2.74$0.18$0.15$0.12$0.13$0.02$0.03$0.06$0.04$0.01$0.02Cap. spending / shareCapex/sh
$90.78$115.69$117.99$99.73$102.66$184.42$129.75$145.58$202.45$283.89$252.97Book value / shareBVPS
Per-share growththe realized rate an owner's share compounded
9-yr5-yr
Revenue / share+8.7%/yr+12.0%/yr
Owner earnings / share+44.1%/yr
EPS+94.5%/yr
Capital spending / share−49.5%/yr−46.6%/yr
Book value / share+13.5%/yr+22.6%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

  • Advertising+8.1%
    “Advertising revenues increased by $0.8 million (8%) to $10.1 million from $9.3 million, primarily resulting from increased commercial advertising revenues of $0.5 million, legal notice advertising revenues of $0.2 million, and trustee sale notice advertising revenues of $0.1 million.”
    ✓ figure matches the filed record

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count
1Mpeak FY2016
ROIC
2%low FY2019

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$13Mowner earningsvs.$112Mnet incomelow FY2022

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2025

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $112M of profit but $13M of owner earnings: $99M less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$112M
Owner earnings$13M · 15% of revenue
FY2025FY2024FY2023FY2022FY2021
Reported net income$112M$78M$21M($21M)$113M
Depreciation & amortizationnon-cash charge added back+$257K+$267K+$279K+$379K+$480K
Stock-based compensationreal costnon-cash, but a real cost+$140K+$202K
Working capital & othertiming of cash in and out, other non-cash items−$99M−$79M−$7M+$16M−$110M
Cash from operations$13M($89K)$15M($5M)$3M
Capital expenditurecash put back in to keep running and to grow−$8K−$49K−$86K−$36K−$29K
Owner earnings$13M($138K)$15M($5M)$3M
Owner-earnings marginowner earnings ÷ revenue15%0%22%-10%7%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $140K), owner earnings is nearer $13M.

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →
Material weakness in financial controls
“Risks Related to Our Internal Control Over Financial Reporting The Company has identified a material weakness in its internal control over financial reporting related primarily to segregation of duties and access controls that originated in prior periods.”

The figures below are only as sound as the controls that produced them. read the note →

Will it survive?

  • Comfortable
    Operating income $10M ÷ interest expense $97K
    What this means

    Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.

  • Net cash
    Cash $21M + ST investments $493M − debt $47K
    What this means

    Cash and short-term investments exceed every dollar of debt by $514M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.

  • Not enough data
    What this means

    The filing data didn't include the inputs for this check.

Is it a good business?

  • Below average through the cycle
    10-yr median, range -11%–3%; 2% latest = NOPAT $7M ÷ invested capital $371M
    Industry peers: median 2%
    What this means

    The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 2% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.

  • Positive this year, negative across the cycle
    latest $13M = operating cash $13M − maintenance capex $8K (positive this year), after an earlier loss stretch (10-yr median -0%)
    Industry peers: median 7%
    What this means

    What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 15% of revenue this year, a -0% median across 10 years. Treating stock comp as the real expense it is (less $140K of SBC) leaves $13M.

  • Thinly cash-backed
    Cash from ops $13M ÷ net income $112M

    In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.

    What this means

    How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

  • Not enough data
    What this means

    The filing data didn't include the inputs for this check.

  • Investing or harvesting? 0.03×
    Harvesting
    Capex $8K ÷ depreciation $257K
    What this means

    Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

  • Adequate size Miss
    Revenue ≥ $2B · $88M
    What this means

    Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.

  • Strong liquidity Pass
    Current ratio ≥ 2× · 13.89×
    What this means

    Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.

  • Conservative debt Pass
    Debt ≤ working capital · $47K vs $500M WC
    What this means

    Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.

  • Earnings stability Miss
    A profit every year (10-yr record) · 4 loss years
    What this means

    Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.

  • Dividend record Miss
    Uninterrupted dividends · none paid
    What this means

    An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.

  • Earnings growth Pass
    Earnings +33% over the record · +3293%
    What this means

    At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.

  • Moderate price
    P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
    What this means

    Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $51.22/share (latest year $81.39), the averaged base the calculator's gate runs on, and book value is $283.85/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

  • Profitable years 6 of 10
    What this means

    Lost money in 4 year(s), look at what happened there before trusting the average.

  • Operating margin −27% → 9% (3-yr avg ends)
    What this means

    Through the cycle the operating margin widened — about −27% early to 9% lately, median −3% — pricing power intact or improving.

  • Worst year 2019 · −37.5% op. margin
    What this means

    Operations went underwater in 2019, understand why before trusting the good years.

  • Share count −0.0%/yr
    What this means

    Roughly flat share count, little dilution, little buyback.

Does AI threaten the moat?

Elevated contestability

The product is software or information, the very thing capable AI now produces more cheaply, so the moat is more contestable than the record alone implies.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“Risks Associated with the Maturation of Artificial Intelligence (AI) Technologies The Company ' s business may be materially affected--either positively or negatively--by the emergence of disruptive new technologies or approaches enabled by the rapid pace of innovation unfolding in the artificial intelligence space.…”

The product is the kind capable AI most directly contests: when a substitute can be built cheaply, the incumbent's pricing power is the first thing at risk. The record cannot say whether the moat outlasts that; past durability is a starting point, not a promise.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$472M
  • Cash & short-term investments$451M
  • Receivables$14M
  • Inventory$37K
  • Other current assets$8M
Current liabilities$31M
  • Accounts payable$8M
  • Other current liabilities$23M
Current ratio15.42×all current assets ÷ what's due · Graham looked for 2×
Quick ratio15.42×stricter: inventory excluded
Cash ratio14.72×strictest: cash alone against what's due
Working capital$442Mthe cushion left after near-term bills
Revenue, latest quarter vs. a year ago+25.0%the freshest read on whether the business is still growing
Current ratio, recent quarters8.6× → 15.4×
Deeper floors
Tangible book value$335Mequity stripped of goodwill & intangibles
Net current asset value$341MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$124K$77K of it operating leases
Deferred revenue$17Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $27M of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

  • Reinvested$5M · 18%
  • Retained (debt / cash)$22M · 82%
  • Source of fundingOperating cash

    Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $439M.

  • Net change in share count−0.2%

    The diluted count barely moved (1M to 1M): buybacks roughly offset the stock issued to staff.

  • Dividend record

    No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

  • Return on what it retained4%

    Of the earnings it kept rather than paid out ($288M over the span), annual owner earnings (first three years vs last three) grew $12M, so each retained $1 added about 0.04 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

From the proxy: how much of the business the people running it own, and how they are paid.

  • Stock-based compensation$140K

    The slice of the business handed to employees in shares this year, 0% of revenue, equal to 1% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Daily Journal Corp. (S.C.) is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 5 tests turned up something to look into; the other 3 came back clean.

  • Look hereDid reported profit become cash?0.09×

    Across the record the business reported $288M of net income but generated $27M of operating cash, a 0.09-to-one conversion. Profit that does not turn into cash over many years is the classic mark of earnings that are softer than they look. Ask where the gap sits, receivables, inventory, or costs being capitalized rather than expensed.

  • Look hereDid receivables and inventory outpace sales?11% → 15% of sales

    Receivables and inventory grew from $5M to $14M while revenue grew 126%: working capital is climbing faster than sales (11% of revenue then, 15% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean
  • Is it less profitable than it was?
  • Did the share count rise anyway?
  • Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →
  • Which reported numbers are a judgment call?
    Management names Revenue recognition, Income taxes as critical estimates

    each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Publishing

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

CompanyRevenueGross marginOp. marginROICOwner earn. margin
NWSNews Corporation$8.5B3.3%2%7%
CMPRCimpress plc Ordinary Shares (Ireland)$3.4B49%4.6%8%7%
TDAYUSA TODAY Co. Inc.$2.3B40%2.9%-2%2%
MHMcGraw Hill Inc.$2.1B13.2%7%12%
WBTNWEBTOON Entertainment Inc.$1.4B24%-6.0%-8%0%
DJCODaily Journal Corp. (S.C.)$88M0.6%-0%1%
Group median3.1%1%5%
IV

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Daily Journal Corp. (S.C.) has delivered.

Daily Journal Corp. (S.C.)’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

$

Through the cycle, Daily Journal Corp. (S.C.) earns about $1M on its 1.4% median owner-earnings margin. This year’s 15.2% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base

The assumptions

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price
Owner-earnings growth, delivered
Owner-earnings yield
P/E (3-yr earnings ’23–’25)
P/B
Graham’s price gate

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $14M on 1M shares outstanding, per the 10-Q cover, as of 2026-05-08; net cash $451M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($22K) runs well above depreciation ($223K), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $14M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Cite: Owner Scorecard, "Daily Journal Corp. (S.C.) (DJCO), the owner's record," https://ownerscorecard.com/c/DJCO, data as of 2026-07-09.

Manual order: ← DIS its page in the Manual DJT →

Industry order: ← 9468 the Publishing chapter MH →