Daily Journal Corp. (S.C.) — Earnings Quality Grade F
DJCO · Technology
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 87 days, change -13 days YoY
AR growth 9.3% vs revenue growth 25.4%
Revenue 25.4%, CFFO 15080.9%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -83.7% vs revenue 25.4%. Normal
SG&A/Gross Profit = 21.8%, excellent (<30%)
Gross margin 36.7%, change +4.1pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF < 50% of Net Income for 2 years
Accruals ratio = 18.0%. Exceeds 10%
Cash $0.5B covers debt $0.0B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 0.2x. Healthy
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions positive
No goodwill
Manipulation Score
M-Score = -1.46 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25