DUCOMMUN INC (DCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DCO - US2641471097 - Common Stock
107.75 USD
+2.17 (+2.06%)
107.75 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 is not valued too expensively and it also shows a decent 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.
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
The Return On Assets of DCO (-2.77%) is worse than 64.79% of its industry peers.
DCO has a worse Return On Equity (-5.33%) than 64.79% of its industry peers.
DCO's Return On Invested Capital of 6.84% is in line compared to the rest of the industry. DCO outperforms 59.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DCO is below the industry average of 8.54%.
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.
Looking at the Operating Margin, with a value of 8.50%, DCO is in line with its industry, outperforming 56.34% of the companies in the same industry.
DCO's Operating Margin has been stable in the last couple of years.
DCO's Gross Margin of 25.98% is in line compared to the rest of the industry. DCO outperforms 53.52% of 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.
Compared to 1 year ago, DCO has more shares outstanding
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 3.23. This indicates that DCO is financially healthy and has little risk of bankruptcy at the moment.
DCO's Altman-Z score of 3.23 is in line compared to the rest of the industry. DCO outperforms 45.07% 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 70.42% of its industry peers.
DCO has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
DCO has a better Debt to Equity ratio (0.33) than 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.67
WACC10.21%
2.3 Liquidity
A Current Ratio of 2.04 indicates that DCO has no problem at all paying its short term obligations.
DCO has a Current ratio of 2.04. This is in the lower half of the industry: DCO underperforms 60.56% of its industry peers.
DCO has a Quick Ratio of 1.46. This is a normal value and indicates that DCO is financially healthy and should not expect problems in meeting 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.
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
DCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.12% yearly.
Based on estimates for the next years, DCO will show a small growth in Revenue. The Revenue will grow by 7.02% on average per year.
EPS Next Y14.13%
EPS Next 2Y17.02%
EPS Next 3Y18.12%
EPS Next 5YN/A
Revenue Next Year5.28%
Revenue Next 2Y6.65%
Revenue Next 3Y7.02%
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
Based on the Price/Earnings ratio of 31.23, the valuation of DCO can be described as expensive.
77.46% of the companies in the same industry are more expensive than DCO, based on the Price/Earnings ratio.
DCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 24.06, which indicates a rather expensive current valuation of DCO.
Based on the Price/Forward Earnings ratio, DCO is valued cheaper than 88.73% of the companies in the same industry.
DCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.23 | ||
| Fwd PE | 24.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued cheaper than 83.10% of the companies in the same industry.
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 | 36.05 | ||
| EV/EBITDA | 17.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as DCO's earnings are expected to grow with 18.12% in the coming years.
PEG (NY)2.21
PEG (5Y)8.86
EPS Next 2Y17.02%
EPS Next 3Y18.12%
5. Dividend
5.1 Amount
No dividends for DCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
107.75
+2.17 (+2.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners94.1%
Inst Owner Change0.17%
Ins Owners8.11%
Ins Owner Change-0.61%
Market Cap1.61B
Revenue(TTM)806.22M
Net Income(TTM)-34.61M
Analysts82.22
Price Target110.57 (2.62%)
Short Float %2.95%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
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)0.37%
PT rev (3m)2.02%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-6.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.23 | ||
| Fwd PE | 24.06 | ||
| P/S | 2 | ||
| P/FCF | 36.05 | ||
| P/OCF | 26.98 | ||
| P/B | 2.48 | ||
| P/tB | 6.02 | ||
| EV/EBITDA | 17.52 |
EPS(TTM)3.45
EY3.2%
EPS(NY)4.48
Fwd EY4.16%
FCF(TTM)2.99
FCFY2.77%
OCF(TTM)3.99
OCFY3.71%
SpS53.93
BVpS43.41
TBVpS17.89
PEG (NY)2.21
PEG (5Y)8.86
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 | 3.23 |
F-Score5
WACC10.21%
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 Y14.13%
EPS Next 2Y17.02%
EPS Next 3Y18.12%
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 2Y6.65%
Revenue Next 3Y7.02%
Revenue Next 5YN/A
EBIT growth 1Y19.73%
EBIT growth 3Y6.34%
EBIT growth 5Y1.24%
EBIT Next Year67.17%
EBIT Next 3Y29.18%
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.
What is the valuation status for DCO stock?
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.
What is the valuation of DUCOMMUN INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DUCOMMUN INC (DCO) is 31.23 and the Price/Book (PB) ratio is 2.48.
What is the financial health of DUCOMMUN INC (DCO) stock?
The financial health rating of DUCOMMUN INC (DCO) is 5 / 10.