DUCOMMUN INC (DCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DCO - US2641471097 - Common Stock
89.44 USD
-0.6 (-0.67%)
89.44 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to DCO. DCO was compared to 72 industry peers in the Aerospace & Defense industry. DCO has only an average score on both its financial health and profitability. DCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DCO was profitable.
In the past year DCO had a positive cash flow from operations.
In the past 5 years DCO has always been profitable.
Of the past 5 years DCO 4 years had a positive operating cash flow.
1.2 Ratios
DCO has a worse Return On Assets (-2.77%) than 64.79% of its industry peers.
DCO's Return On Equity of -5.33% is on the low side compared to the rest of the industry. DCO is outperformed by 63.38% of its industry peers.
DCO has a better Return On Invested Capital (6.84%) than 60.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DCO is below the industry average of 8.58%.
The last Return On Invested Capital (6.84%) for DCO is above the 3 year average (5.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.77% | ||
| ROE | -5.33% | ||
| ROIC | 6.84% |
ROA(3y)2.35%
ROA(5y)4.87%
ROE(3y)4.2%
ROE(5y)10%
ROIC(3y)5.06%
ROIC(5y)5.43%
1.3 Margins
In the last couple of years the Profit Margin of DCO has declined.
DCO has a Operating Margin of 8.50%. This is comparable to the rest of the industry: DCO outperforms 57.75% of its industry peers.
In the last couple of years the Operating Margin of DCO has remained more or less at the same level.
DCO has a Gross Margin (25.98%) which is in line with its industry peers.
DCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.5% | ||
| PM (TTM) | N/A | ||
| GM | 25.98% |
OM growth 3Y-0.44%
OM growth 5Y-0.51%
PM growth 3Y-42.44%
PM growth 5Y-2.34%
GM growth 3Y4.56%
GM growth 5Y3.64%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DCO is destroying value.
Compared to 1 year ago, DCO has more shares outstanding
Compared to 5 years ago, DCO has more shares outstanding
DCO has a better debt/assets ratio than last year.
2.2 Solvency
DCO has an Altman-Z score of 2.96. This is not the best score and indicates that DCO is in the grey zone with still only limited risk for bankruptcy at the moment.
DCO has a Altman-Z score (2.96) which is in line with its industry peers.
DCO has a debt to FCF ratio of 5.09. This is a neutral value as DCO would need 5.09 years to pay back of all of its debts.
DCO has a Debt to FCF ratio of 5.09. This is in the better half of the industry: DCO outperforms 71.83% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that DCO is not too dependend on debt financing.
The Debt to Equity ratio of DCO (0.33) is better than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.7
WACC9.84%
2.3 Liquidity
DCO has a Current Ratio of 2.04. This indicates that DCO is financially healthy and has no problem in meeting its short term obligations.
DCO has a Current ratio (2.04) which is comparable to the rest of the industry.
A Quick Ratio of 1.46 indicates that DCO should not have too much problems paying its short term obligations.
DCO has a Quick ratio of 1.46. This is comparable to the rest of the industry: DCO outperforms 52.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.14% over the past year.
DCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.52% yearly.
Looking at the last year, DCO shows a small growth in Revenue. The Revenue has grown by 3.16% in the last year.
DCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.75% yearly.
EPS 1Y (TTM)7.14%
EPS 3Y3.61%
EPS 5Y3.52%
EPS Q2Q%0%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y6.81%
Revenue growth 5Y1.75%
Sales Q2Q%5.53%
3.2 Future
Based on estimates for the next years, DCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.51% on average per year.
DCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.00% yearly.
EPS Next Y14.13%
EPS Next 2Y16.25%
EPS Next 3Y17.51%
EPS Next 5YN/A
Revenue Next Year5.28%
Revenue Next 2Y6.7%
Revenue Next 3Y7%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
DCO is valuated quite expensively with a Price/Earnings ratio of 25.92.
DCO's Price/Earnings ratio is rather cheap when compared to the industry. DCO is cheaper than 81.69% of the companies in the same industry.
DCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.49.
DCO is valuated rather expensively with a Price/Forward Earnings ratio of 20.24.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DCO indicates a rather cheap valuation: DCO is cheaper than 85.92% of the companies listed in the same industry.
DCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued cheaply inside the industry as 85.92% of the companies are valued more expensively.
83.10% of the companies in the same industry are more expensive than DCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.92 | ||
| EV/EBITDA | 14.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DCO's earnings are expected to grow with 17.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.84
PEG (5Y)7.36
EPS Next 2Y16.25%
EPS Next 3Y17.51%
5. Dividend
5.1 Amount
No dividends for DCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
89.44
-0.6 (-0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners92.8%
Inst Owner Change0.43%
Ins Owners8.13%
Ins Owner Change-0.74%
Market Cap1.34B
Revenue(TTM)806.22M
Net Income(TTM)-34.61M
Analysts80
Price Target110.16 (23.17%)
Short Float %2.96%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.42%
Min EPS beat(2)2.91%
Max EPS beat(2)5.93%
EPS beat(4)3
Avg EPS beat(4)4.25%
Min EPS beat(4)-8.8%
Max EPS beat(4)16.96%
EPS beat(8)7
Avg EPS beat(8)14.9%
EPS beat(12)9
Avg EPS beat(12)10.82%
EPS beat(16)11
Avg EPS beat(16)9.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)0.35%
Revenue beat(4)1
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)0.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)0.47%
PT rev (3m)1.65%
EPS NQ rev (1m)-3.67%
EPS NQ rev (3m)-6.19%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 20.24 | ||
| P/S | 1.66 | ||
| P/FCF | 29.92 | ||
| P/OCF | 22.4 | ||
| P/B | 2.06 | ||
| P/tB | 5 | ||
| EV/EBITDA | 14.84 |
EPS(TTM)3.45
EY3.86%
EPS(NY)4.42
Fwd EY4.94%
FCF(TTM)2.99
FCFY3.34%
OCF(TTM)3.99
OCFY4.47%
SpS53.93
BVpS43.41
TBVpS17.89
PEG (NY)1.84
PEG (5Y)7.36
Graham Number58.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.77% | ||
| ROE | -5.33% | ||
| ROCE | 7.49% | ||
| ROIC | 6.84% | ||
| ROICexc | 7.24% | ||
| ROICexgc | 12.98% | ||
| OM | 8.5% | ||
| PM (TTM) | N/A | ||
| GM | 25.98% | ||
| FCFM | 5.54% |
ROA(3y)2.35%
ROA(5y)4.87%
ROE(3y)4.2%
ROE(5y)10%
ROIC(3y)5.06%
ROIC(5y)5.43%
ROICexc(3y)5.31%
ROICexc(5y)5.81%
ROICexgc(3y)9.44%
ROICexgc(5y)10.57%
ROCE(3y)5.54%
ROCE(5y)5.95%
ROICexgc growth 3Y-2.98%
ROICexgc growth 5Y-9.48%
ROICexc growth 3Y-0.87%
ROICexc growth 5Y-6.74%
OM growth 3Y-0.44%
OM growth 5Y-0.51%
PM growth 3Y-42.44%
PM growth 5Y-2.34%
GM growth 3Y4.56%
GM growth 5Y3.64%
F-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 5.09 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 44.83% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 6.07 | ||
| Cash Conversion | 58.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 2.96 |
F-Score5
WACC9.84%
ROIC/WACC0.7
Cap/Depr(3y)172.01%
Cap/Depr(5y)172.7%
Cap/Sales(3y)7.42%
Cap/Sales(5y)7.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.14%
EPS 3Y3.61%
EPS 5Y3.52%
EPS Q2Q%0%
EPS Next Y14.13%
EPS Next 2Y16.25%
EPS Next 3Y17.51%
EPS Next 5YN/A
Revenue 1Y (TTM)3.16%
Revenue growth 3Y6.81%
Revenue growth 5Y1.75%
Sales Q2Q%5.53%
Revenue Next Year5.28%
Revenue Next 2Y6.7%
Revenue Next 3Y7%
Revenue Next 5YN/A
EBIT growth 1Y19.73%
EBIT growth 3Y6.34%
EBIT growth 5Y1.24%
EBIT Next Year67.46%
EBIT Next 3Y29.23%
EBIT Next 5YN/A
FCF growth 1Y145.09%
FCF growth 3YN/A
FCF growth 5Y-9.34%
OCF growth 1Y63.04%
OCF growth 3YN/A
OCF growth 5Y-7.7%
DUCOMMUN INC / DCO FAQ
What is the ChartMill fundamental rating of DUCOMMUN INC (DCO) stock?
ChartMill assigns a fundamental rating of 4 / 10 to DCO.
Can you provide the valuation status for DUCOMMUN INC?
ChartMill assigns a valuation rating of 5 / 10 to DUCOMMUN INC (DCO). This can be considered as Fairly Valued.
What is the profitability of DCO stock?
DUCOMMUN INC (DCO) has a profitability rating of 4 / 10.
Can you provide the financial health for DCO stock?
The financial health rating of DUCOMMUN INC (DCO) is 5 / 10.
Can you provide the dividend sustainability for DCO stock?
The dividend rating of DUCOMMUN INC (DCO) is 0 / 10 and the dividend payout ratio is 0%.