Buffett Brain · Research note
Score updated 5 Oct 2026 · analysis from 19 Sept 2026
023590.KS· Technology
Daou Technology
Daou Technology's low ROIC and negative owner earnings yield indicate a weak moat and poor capital efficiency.
Buffett fit
Weak fit
Owner
10
Durability
73
Management
23
Price
49
Score updated 5 Oct 2026 · analysis from 19 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Daou Technology, the next 10 years would be challenging due to its low of 3.18% and negative yield of -4.01%.
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The 10-year test reveals concerns, particularly with the company's low profitability and high .
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Daou Technology's share count CAGR of -0.46% indicates minimal , and without a dividend yield or buyback yield, shareholder returns are unclear.
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With a of 3.3 and an earnings yield of 30.41%, the stock appears cheap.
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- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Interest coverage of 89.9 indicates the company can comfortably meet interest obligations.
- 2Revenue CAGR of 23.84% over 5 years shows robust top-line growth.
- 3EPS CAGR of 11.2% over 5 years suggests some earnings growth potential.
- 4Company has been profitable in each of the last 5 years.
Concerns
7- 1 of 3.18% is well below the sector's top quintile cutoff of 13.4%, indicating poor capital efficiency.
- 2 of 14.2% is significantly below the sector's top quintile of 60.6%, suggesting weak .
- 3High debt/equity ratio of 10.44 raises concerns about financial and risk.
- 4Negative yield of -4.01% highlights poor cash flow generation.
Price history
$37,950+57.8%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Daou Technology provides IT and finance services, including marketing communication, online commerce solutions, and biz infra services. The company has a wide range of offerings, but its of 14.2% and net margin of 2.89% are significantly below the sector's top quintile. The unit economics suggest low profitability despite a diverse revenue stream.
How this analysis has moved
The call has held across 2 reviews.
Sep 27, 2026 → Oct 4, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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