DUCOMMUN INC (DCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DCO - US2641471097 - Common Stock
91.69 USD
+0.5 (+0.55%)
91.69 USD
0 (0%)
Taking everything into account, DCO scores 4 out of 10 in our fundamental rating. DCO was compared to 71 industry peers in the Aerospace & Defense industry. DCO has an average financial health and profitability rating. DCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DCO had positive earnings in the past year.
In the past year DCO had a positive cash flow from operations.
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's Return On Assets of -2.77% is on the low side compared to the rest of the industry. DCO is outperformed by 64.79% of its industry peers.
Looking at the Return On Equity, with a value of -5.33%, DCO is doing worse than 63.38% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.84%, DCO is doing good in the industry, outperforming 60.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DCO is below the industry average of 8.53%.
The 3 year average ROIC (5.06%) for DCO is below the current ROIC(6.84%), indicating increased profibility in the last year.
| 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 (8.50%) 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 (25.98%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DCO has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DCO is destroying value.
DCO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DCO has been increased compared to 5 years ago.
The debt/assets ratio for DCO has been reduced compared to a year ago.
2.2 Solvency
DCO has an Altman-Z score of 2.98. 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's Altman-Z score of 2.98 is in line compared to the rest of the industry. DCO outperforms 42.25% of 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's Debt to FCF ratio of 5.09 is fine compared to the rest 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.
DCO has a Debt to Equity ratio of 0.33. This is in the better half of the industry: DCO outperforms 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.67
WACC10.23%
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's Current ratio of 2.04 is in line compared to the rest of the industry. DCO outperforms 45.07% of its industry peers.
A Quick Ratio of 1.46 indicates that DCO should not have too much problems paying its short term obligations.
The Quick ratio of DCO (1.46) is comparable to the rest of the industry.
| 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.
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.
DCO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.16%.
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
DCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.00% yearly.
DCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.61% yearly.
EPS Next Y14.05%
EPS Next 2Y17.5%
EPS Next 3Y17%
EPS Next 5YN/A
Revenue Next Year5.38%
Revenue Next 2Y6.81%
Revenue Next 3Y6.61%
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 26.58, DCO can be considered very expensive at the moment.
DCO's Price/Earnings ratio is rather cheap when compared to the industry. DCO is cheaper than 80.28% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. DCO is around the same levels.
The Price/Forward Earnings ratio is 20.31, which indicates a rather expensive current valuation of DCO.
83.10% of the companies in the same industry are more expensive than DCO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.59. DCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 20.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued cheaper than 85.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DCO is valued cheaper than 80.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.61 | ||
| EV/EBITDA | 15.07 |
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 17.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
PEG (5Y)7.54
EPS Next 2Y17.5%
EPS Next 3Y17%
5. Dividend
5.1 Amount
DCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.69
+0.5 (+0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners90.86%
Inst Owner Change0.42%
Ins Owners8.17%
Ins Owner Change-1.02%
Market Cap1.37B
Revenue(TTM)806.22M
Net Income(TTM)-34.61M
Analysts80
Price Target110.16 (20.14%)
Short Float %2.77%
Short Ratio2.66
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)1.65%
PT rev (3m)1.65%
EPS NQ rev (1m)-2.92%
EPS NQ rev (3m)-5%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)1.41%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 20.31 | ||
| P/S | 1.7 | ||
| P/FCF | 30.61 | ||
| P/OCF | 22.91 | ||
| P/B | 2.11 | ||
| P/tB | 5.12 | ||
| EV/EBITDA | 15.07 |
EPS(TTM)3.45
EY3.76%
EPS(NY)4.51
Fwd EY4.92%
FCF(TTM)2.99
FCFY3.27%
OCF(TTM)4
OCFY4.36%
SpS54.04
BVpS43.5
TBVpS17.92
PEG (NY)1.89
PEG (5Y)7.54
Graham Number58.11
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 | 2.98 |
F-Score5
WACC10.23%
ROIC/WACC0.67
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 Y14.05%
EPS Next 2Y17.5%
EPS Next 3Y17%
EPS Next 5YN/A
Revenue 1Y (TTM)3.16%
Revenue growth 3Y6.81%
Revenue growth 5Y1.75%
Sales Q2Q%5.53%
Revenue Next Year5.38%
Revenue Next 2Y6.81%
Revenue Next 3Y6.61%
Revenue Next 5YN/A
EBIT growth 1Y19.73%
EBIT growth 3Y6.34%
EBIT growth 5Y1.24%
EBIT Next Year67.85%
EBIT Next 3Y28.98%
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%.