DUCOMMUN INC (DCO) Stock Fundamental Analysis
USA - NYSE:DCO - US2641471097 - Common Stock
93.97 USD
-2.03 (-2.11%)
93.97 USD
0 (0%)
Overall DCO gets a fundamental rating of 5 out of 10. We evaluated DCO against 69 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.
DCO had a positive operating cash flow in the past year.
Each year in the past 5 years DCO has been profitable.
DCO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DCO has a Return On Assets (3.50%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.65%, DCO is in line with its industry, outperforming 53.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.25%, DCO is in line with its industry, outperforming 57.97% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DCO is below the industry average of 8.29%.
The 3 year average ROIC (5.06%) for DCO is below the current ROIC(6.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 5.65% | ||
| ROIC | 6.25% |
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
DCO has a Profit Margin (5.03%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DCO has declined.
DCO's Operating Margin of 8.24% is in line compared to the rest of the industry. DCO outperforms 55.07% 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 of 25.86%. This is comparable to the rest of the industry: DCO outperforms 55.07% of its industry peers.
DCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.24% | ||
| PM (TTM) | 5.03% | ||
| GM | 25.86% |
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.
The number of shares outstanding for DCO has been increased compared to 1 year ago.
Compared to 5 years ago, DCO has more shares outstanding
Compared to 1 year ago, DCO has an improved debt to assets ratio.
2.2 Solvency
DCO has an Altman-Z score of 3.89. This indicates that DCO is financially healthy and has little risk of bankruptcy at the moment.
DCO has a Altman-Z score (3.89) which is comparable to the rest of the industry.
DCO has a debt to FCF ratio of 5.68. This is a neutral value as DCO would need 5.68 years to pay back of all of its debts.
DCO's Debt to FCF ratio of 5.68 is fine compared to the rest of the industry. DCO outperforms 68.12% of its industry peers.
DCO has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
DCO has a Debt to Equity ratio of 0.31. This is in the better half of the industry: DCO outperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 5.68 | ||
| Altman-Z | 3.89 |
ROIC/WACC0.64
WACC9.78%
2.3 Liquidity
DCO has a Current Ratio of 3.24. This indicates that DCO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.24, DCO is in the better half of the industry, outperforming 68.12% of the companies in the same industry.
DCO has a Quick Ratio of 2.17. This indicates that DCO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of DCO (2.17) is better than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.24 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.75% over the past year.
Measured over the past 5 years, DCO shows a small growth in Earnings Per Share. The EPS has been growing by 3.52% on average per year.
The Revenue has been growing slightly by 2.42% in the past year.
The Revenue has been growing slightly by 1.75% on average over the past years.
EPS 1Y (TTM)17.75%
EPS 3Y3.61%
EPS 5Y3.52%
EPS Q2Q%6.02%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.81%
Revenue growth 5Y1.75%
Sales Q2Q%2.67%
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 16.92% on average per year.
The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y15.21%
EPS Next 2Y17.96%
EPS Next 3Y16.92%
EPS Next 5YN/A
Revenue Next Year5.32%
Revenue Next 2Y6.66%
Revenue Next 3Y6.57%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.24, which means the current valuation is very expensive for DCO.
78.26% of the companies in the same industry are more expensive than DCO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. DCO is around the same levels.
A Price/Forward Earnings ratio of 20.65 indicates a rather expensive valuation of DCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DCO indicates a somewhat cheap valuation: DCO is cheaper than 76.81% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. DCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.24 | ||
| Fwd PE | 20.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DCO indicates a somewhat cheap valuation: DCO is cheaper than 79.71% of the companies listed in the same industry.
79.71% 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 | 34.51 | ||
| EV/EBITDA | 16.39 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as DCO's earnings are expected to grow with 16.92% in the coming years.
PEG (NY)1.79
PEG (5Y)7.73
EPS Next 2Y17.96%
EPS Next 3Y16.92%
5. Dividend
5.1 Amount
DCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
93.97
-2.03 (-2.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.4%
Inst Owner Change1.31%
Ins Owners8.2%
Ins Owner Change-0.5%
Market Cap1.40B
Analysts80
Price Target108.38 (15.33%)
Short Float %1.54%
Short Ratio1.64
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)11.45%
Min EPS beat(2)5.93%
Max EPS beat(2)16.96%
EPS beat(4)3
Avg EPS beat(4)11.7%
Min EPS beat(4)-8.8%
Max EPS beat(4)32.68%
EPS beat(8)7
Avg EPS beat(8)16.34%
EPS beat(12)9
Avg EPS beat(12)11.52%
EPS beat(16)11
Avg EPS beat(16)10.01%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)0.35%
Revenue beat(4)2
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)2.74%
Revenue beat(8)3
Avg Revenue beat(8)-0.05%
Revenue beat(12)6
Avg Revenue beat(12)0.19%
Revenue beat(16)7
Avg Revenue beat(16)-0.22%
PT rev (1m)7.05%
PT rev (3m)30.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.24 | ||
| Fwd PE | 20.65 | ||
| P/S | 1.76 | ||
| P/FCF | 34.51 | ||
| P/OCF | 25.24 | ||
| P/B | 1.98 | ||
| P/tB | 4.35 | ||
| EV/EBITDA | 16.39 |
EPS(TTM)3.45
EY3.67%
EPS(NY)4.55
Fwd EY4.84%
FCF(TTM)2.72
FCFY2.9%
OCF(TTM)3.72
OCFY3.96%
SpS53.29
BVpS47.44
TBVpS21.58
PEG (NY)1.79
PEG (5Y)7.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 5.65% | ||
| ROCE | 6.85% | ||
| ROIC | 6.25% | ||
| ROICexc | 6.5% | ||
| ROICexgc | 11.21% | ||
| OM | 8.24% | ||
| PM (TTM) | 5.03% | ||
| GM | 25.86% | ||
| FCFM | 5.11% |
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%
ROICexcg growth 3Y-2.98%
ROICexcg 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-Score9
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 5.68 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 44.27% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 6.05 | ||
| Cash Conversion | 56.01% | ||
| Profit Quality | 101.61% | ||
| Current Ratio | 3.24 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 3.89 |
F-Score9
WACC9.78%
ROIC/WACC0.64
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)17.75%
EPS 3Y3.61%
EPS 5Y3.52%
EPS Q2Q%6.02%
EPS Next Y15.21%
EPS Next 2Y17.96%
EPS Next 3Y16.92%
EPS Next 5YN/A
Revenue 1Y (TTM)2.42%
Revenue growth 3Y6.81%
Revenue growth 5Y1.75%
Sales Q2Q%2.67%
Revenue Next Year5.32%
Revenue Next 2Y6.66%
Revenue Next 3Y6.57%
Revenue Next 5YN/A
EBIT growth 1Y24.42%
EBIT growth 3Y6.34%
EBIT growth 5Y1.24%
EBIT Next Year66.35%
EBIT Next 3Y28.78%
EBIT Next 5YN/A
FCF growth 1Y134.12%
FCF growth 3YN/A
FCF growth 5Y-9.34%
OCF growth 1Y230.34%
OCF growth 3YN/A
OCF growth 5Y-7.7%