DUCOMMUN INC (DCO) Stock Fundamental Analysis
NYSE:DCO - New York Stock Exchange, Inc. - US2641471097 - Common Stock - Currency: USD
DCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 66 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of DCO get a neutral evaluation. Nothing too spectacular is happening here. DCO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DCO had positive earnings in the past year.
DCO had a positive operating cash flow in the past year.
DCO had positive earnings in each of the past 5 years.
Of the past 5 years DCO 4 years had a positive operating cash flow.
1.2 Ratios
DCO has a Return On Assets (2.64%) which is comparable to the rest of the industry.
DCO has a Return On Equity of 4.48%. This is comparable to the rest of the industry: DCO outperforms 50.00% of its industry peers.
DCO has a Return On Invested Capital (4.75%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DCO is below the industry average of 7.98%.
The 3 year average ROIC (4.32%) for DCO is below the current ROIC(4.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 4.48% | ||
| ROIC | 4.75% |
ROA(3y)6.03%
ROA(5y)5.14%
ROE(3y)12.18%
ROE(5y)11.3%
ROIC(3y)4.32%
ROIC(5y)5.08%
1.3 Margins
The Profit Margin of DCO (3.82%) is comparable to the rest of the industry.
DCO's Profit Margin has improved in the last couple of years.
DCO has a Operating Margin (7.32%) which is in line with its industry peers.
DCO's Operating Margin has been stable in the last couple of years.
DCO has a Gross Margin (24.66%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.32% | ||
| PM (TTM) | 3.82% | ||
| GM | 24.66% |
OM growth 3Y-9.28%
OM growth 5Y-1.17%
PM growth 3Y-23.19%
PM growth 5Y8.03%
GM growth 3Y-0.45%
GM growth 5Y2.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DCO is destroying value.
DCO has more shares outstanding than it did 1 year ago.
DCO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.02 indicates that DCO is not in any danger for bankruptcy at the moment.
DCO has a Altman-Z score of 3.02. This is comparable to the rest of the industry: DCO outperforms 50.00% of its industry peers.
The Debt to FCF ratio of DCO is 9.02, which is on the high side as it means it would take DCO, 9.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DCO (9.02) is better than 62.50% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that DCO is not too dependend on debt financing.
The Debt to Equity ratio of DCO (0.37) is better than 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 9.02 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.5
WACC9.41%
2.3 Liquidity
DCO has a Current Ratio of 3.21. This indicates that DCO is financially healthy and has no problem in meeting its short term obligations.
DCO's Current ratio of 3.21 is fine compared to the rest of the industry. DCO outperforms 76.56% of its industry peers.
A Quick Ratio of 2.16 indicates that DCO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.16, DCO is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.38% over the past year.
The Earnings Per Share has been growing by 22.28% on average over the past years. This is a very strong growth
DCO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.78%.
Measured over the past years, DCO shows a small growth in Revenue. The Revenue has been growing by 3.76% on average per year.
EPS 1Y (TTM)18.38%
EPS 3Y0.66%
EPS 5Y22.28%
EPS Q2Q%41.43%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y6.37%
Revenue growth 5Y3.76%
Sales Q2Q%2.63%
3.2 Future
DCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.24% yearly.
Based on estimates for the next years, DCO will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
EPS Next Y30.95%
EPS Next 2Y25.35%
EPS Next 3Y23.24%
EPS Next 5YN/A
Revenue Next Year3.21%
Revenue Next 2Y4.35%
Revenue Next 3Y5.06%
Revenue Next 5Y4.01%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.02, the valuation of DCO can be described as rather expensive.
Based on the Price/Earnings ratio, DCO is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, DCO is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.17 indicates a correct valuation of DCO.
90.63% of the companies in the same industry are more expensive than DCO, based on the Price/Forward Earnings ratio.
DCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 15.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued cheaper than 84.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DCO is valued a bit cheaper than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.79 | ||
| EV/EBITDA | 12.65 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DCO's earnings are expected to grow with 23.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)0.85
EPS Next 2Y25.35%
EPS Next 3Y23.24%
5. Dividend
5.1 Amount
DCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.26
-1.34 (-2.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners87.79%
Inst Owner Change9.89%
Ins Owners7.98%
Ins Owner Change-0.08%
Market Cap905.42M
Analysts82.22
Price Target84.05 (37.2%)
Short Float %0.99%
Short Ratio1.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.08
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)34.88%
Min EPS beat(2)32.68%
Max EPS beat(2)37.08%
EPS beat(4)4
Avg EPS beat(4)25.54%
Min EPS beat(4)10.89%
Max EPS beat(4)37.08%
EPS beat(8)6
Avg EPS beat(8)14.1%
EPS beat(12)8
Avg EPS beat(12)11.73%
EPS beat(16)11
Avg EPS beat(16)9.93%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)0.25%
Max Revenue beat(2)2.74%
Revenue beat(4)2
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)2.74%
Revenue beat(8)4
Avg Revenue beat(8)-0.01%
Revenue beat(12)6
Avg Revenue beat(12)-0.19%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)-2.49%
PT rev (3m)13.5%
EPS NQ rev (1m)-6.71%
EPS NQ rev (3m)-8.8%
EPS NY rev (1m)-0.91%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)-1.7%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 15.17 | ||
| P/S | 1.16 | ||
| P/FCF | 31.79 | ||
| P/OCF | 21.43 | ||
| P/B | 1.36 | ||
| P/tB | 3.39 | ||
| EV/EBITDA | 12.65 |
EPS(TTM)3.22
EY5.26%
EPS(NY)4.04
Fwd EY6.59%
FCF(TTM)1.93
FCFY3.15%
OCF(TTM)2.86
OCFY4.67%
SpS52.87
BVpS45.03
TBVpS18.08
PEG (NY)0.61
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 4.48% | ||
| ROCE | 6.01% | ||
| ROIC | 4.75% | ||
| ROICexc | 4.94% | ||
| ROICexgc | 8.75% | ||
| OM | 7.32% | ||
| PM (TTM) | 3.82% | ||
| GM | 24.66% | ||
| FCFM | 3.64% |
ROA(3y)6.03%
ROA(5y)5.14%
ROE(3y)12.18%
ROE(5y)11.3%
ROIC(3y)4.32%
ROIC(5y)5.08%
ROICexc(3y)4.64%
ROICexc(5y)5.46%
ROICexgc(3y)8.46%
ROICexgc(5y)10.32%
ROCE(3y)5.47%
ROCE(5y)6.43%
ROICexcg growth 3Y-13.97%
ROICexcg growth 5Y-9.44%
ROICexc growth 3Y-13.77%
ROICexc growth 5Y-8.43%
OM growth 3Y-9.28%
OM growth 5Y-1.17%
PM growth 3Y-23.19%
PM growth 5Y8.03%
GM growth 3Y-0.45%
GM growth 5Y2.08%
F-Score9
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 9.02 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 41.38% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 3.87 | ||
| Cash Conversion | 46.69% | ||
| Profit Quality | 95.48% | ||
| Current Ratio | 3.21 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 3.02 |
F-Score9
WACC9.41%
ROIC/WACC0.5
Cap/Depr(3y)259.3%
Cap/Depr(5y)177.17%
Cap/Sales(3y)11.28%
Cap/Sales(5y)7.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.38%
EPS 3Y0.66%
EPS 5Y22.28%
EPS Q2Q%41.43%
EPS Next Y30.95%
EPS Next 2Y25.35%
EPS Next 3Y23.24%
EPS Next 5YN/A
Revenue 1Y (TTM)3.78%
Revenue growth 3Y6.37%
Revenue growth 5Y3.76%
Sales Q2Q%2.63%
Revenue Next Year3.21%
Revenue Next 2Y4.35%
Revenue Next 3Y5.06%
Revenue Next 5Y4.01%
EBIT growth 1Y25.72%
EBIT growth 3Y-3.49%
EBIT growth 5Y2.55%
EBIT Next Year88.38%
EBIT Next 3Y33.16%
EBIT Next 5YN/A
FCF growth 1Y136.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y242.51%
OCF growth 3Y35.06%
OCF growth 5Y-7.65%