DUCOMMUN INC (DCO) Stock Fundamental Analysis
NYSE:DCO - New York Stock Exchange, Inc. - US2641471097 - Common Stock - Currency: USD
Overall DCO gets a fundamental rating of 5 out of 10. We evaluated DCO against 65 industry peers in the Aerospace & Defense industry. DCO has an average financial health and profitability rating. DCO has a correct valuation and a medium 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.
DCO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DCO has a Return On Assets (3.12%) which is in line with its industry peers.
DCO has a Return On Equity (5.07%) which is in line with its industry peers.
DCO has a Return On Invested Capital (6.01%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DCO is below the industry average of 8.44%.
The 3 year average ROIC (5.06%) for DCO is below the current ROIC(6.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 5.07% | ||
| ROIC | 6.01% |
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 of 4.45%. This is comparable to the rest of the industry: DCO outperforms 50.77% of its industry peers.
DCO's Profit Margin has declined in the last couple of years.
The Operating Margin of DCO (7.96%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DCO has remained more or less at the same level.
With a Gross Margin value of 25.72%, DCO perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Gross Margin of DCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.96% | ||
| PM (TTM) | 4.45% | ||
| GM | 25.72% |
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
DCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DCO has more shares outstanding
The number of shares outstanding for DCO has been increased compared to 5 years ago.
Compared to 1 year ago, DCO has an improved debt to assets ratio.
2.2 Solvency
DCO has an Altman-Z score of 3.61. This indicates that DCO is financially healthy and has little risk of bankruptcy at the moment.
DCO's Altman-Z score of 3.61 is in line compared to the rest of the industry. DCO outperforms 53.85% of its industry peers.
DCO has a debt to FCF ratio of 10.71. This is a negative value and a sign of low solvency as DCO would need 10.71 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.71, DCO perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that DCO is not too dependend on debt financing.
DCO's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. DCO outperforms 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 10.71 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.58
WACC10.4%
2.3 Liquidity
DCO has a Current Ratio of 3.34. This indicates that DCO is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.34, DCO is doing good in the industry, outperforming 69.23% of the companies in the same industry.
A Quick Ratio of 2.20 indicates that DCO has no problem at all paying its short term obligations.
DCO's Quick ratio of 2.20 is fine compared to the rest of the industry. DCO outperforms 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.34 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
DCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.79%, which is quite impressive.
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 3.02% in the past year.
The Revenue has been growing slightly by 1.75% on average over the past years.
EPS 1Y (TTM)28.79%
EPS 3Y3.61%
EPS 5Y3.52%
EPS Q2Q%18.57%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y6.81%
Revenue growth 5Y1.75%
Sales Q2Q%1.71%
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 19.93% on average per year.
Based on estimates for the next years, DCO will show a small growth in Revenue. The Revenue will grow by 6.37% on average per year.
EPS Next Y15.94%
EPS Next 2Y18.6%
EPS Next 3Y19.93%
EPS Next 5YN/A
Revenue Next Year5.15%
Revenue Next 2Y5.87%
Revenue Next 3Y6.37%
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
With a Price/Earnings ratio of 25.21, DCO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of DCO indicates a somewhat cheap valuation: DCO is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, DCO is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.63, the valuation of DCO can be described as rather expensive.
86.15% of the companies in the same industry are more expensive than DCO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, DCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 18.63 |
4.2 Price Multiples
DCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DCO is cheaper than 83.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DCO is valued a bit cheaper than 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.36 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
DCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DCO's earnings are expected to grow with 19.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)7.15
EPS Next 2Y18.6%
EPS Next 3Y19.93%
5. Dividend
5.1 Amount
DCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
85.71
+1.78 (+2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.49%
Inst Owner Change0%
Ins Owners8.24%
Ins Owner Change5.24%
Market Cap1.28B
Analysts82.22
Price Target85.27 (-0.51%)
Short Float %1.2%
Short Ratio1.58
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)1
Avg EPS beat(2)4.08%
Min EPS beat(2)-8.8%
Max EPS beat(2)16.96%
EPS beat(4)3
Avg EPS beat(4)19.48%
Min EPS beat(4)-8.8%
Max EPS beat(4)37.08%
EPS beat(8)6
Avg EPS beat(8)14.72%
EPS beat(12)8
Avg EPS beat(12)10.3%
EPS beat(16)11
Avg EPS beat(16)10.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)-0.06%
Revenue beat(4)2
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)2.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.44%
Revenue beat(12)6
Avg Revenue beat(12)0.17%
Revenue beat(16)6
Avg Revenue beat(16)-0.27%
PT rev (1m)5.56%
PT rev (3m)1.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.6%
EPS NY rev (1m)2.79%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 18.63 | ||
| P/S | 1.61 | ||
| P/FCF | 56.36 | ||
| P/OCF | 34.85 | ||
| P/B | 1.84 | ||
| P/tB | 4.21 | ||
| EV/EBITDA | 15.13 |
EPS(TTM)3.4
EY3.97%
EPS(NY)4.6
Fwd EY5.37%
FCF(TTM)1.52
FCFY1.77%
OCF(TTM)2.46
OCFY2.87%
SpS53.08
BVpS46.57
TBVpS20.36
PEG (NY)1.58
PEG (5Y)7.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 5.07% | ||
| ROCE | 6.58% | ||
| ROIC | 6.01% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 10.74% | ||
| OM | 7.96% | ||
| PM (TTM) | 4.45% | ||
| GM | 25.72% | ||
| FCFM | 2.87% |
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 | 0.33 | ||
| Debt/FCF | 10.71 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 41.49% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 4.95 | ||
| Cash Conversion | 37.91% | ||
| Profit Quality | 64.37% | ||
| Current Ratio | 3.34 | ||
| Quick Ratio | 2.2 | ||
| Altman-Z | 3.61 |
F-Score9
WACC10.4%
ROIC/WACC0.58
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)28.79%
EPS 3Y3.61%
EPS 5Y3.52%
EPS Q2Q%18.57%
EPS Next Y15.94%
EPS Next 2Y18.6%
EPS Next 3Y19.93%
EPS Next 5YN/A
Revenue 1Y (TTM)3.02%
Revenue growth 3Y6.81%
Revenue growth 5Y1.75%
Sales Q2Q%1.71%
Revenue Next Year5.15%
Revenue Next 2Y5.87%
Revenue Next 3Y6.37%
Revenue Next 5YN/A
EBIT growth 1Y33.15%
EBIT growth 3Y6.34%
EBIT growth 5Y1.24%
EBIT Next Year66.3%
EBIT Next 3Y29.15%
EBIT Next 5YN/A
FCF growth 1Y82.83%
FCF growth 3YN/A
FCF growth 5Y-9.34%
OCF growth 1Y12.26%
OCF growth 3YN/A
OCF growth 5Y-7.7%