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 65 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 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.
In the past year DCO had a positive cash flow from operations.
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's Return On Assets of 2.80% is in line compared to the rest of the industry. DCO outperforms 52.31% of its industry peers.
DCO has a Return On Equity of 4.61%. This is comparable to the rest of the industry: DCO outperforms 52.31% of its industry peers.
The Return On Invested Capital of DCO (5.75%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DCO is below the industry average of 7.87%.
The 3 year average ROIC (5.06%) for DCO is below the current ROIC(5.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 4.61% | ||
| ROIC | 5.75% |
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 (4.00%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DCO has declined.
With a Operating Margin value of 7.61%, DCO perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
In the last couple of years the Operating Margin of DCO has remained more or less at the same level.
Looking at the Gross Margin, with a value of 25.23%, DCO is in line with its industry, outperforming 50.77% of the companies in the same industry.
DCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.61% | ||
| PM (TTM) | 4% | ||
| GM | 25.23% |
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.
Compared to 1 year ago, DCO has more shares outstanding
DCO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DCO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.97 indicates that DCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.97, DCO is in line with its industry, outperforming 52.31% of the companies in the same industry.
DCO has a debt to FCF ratio of 12.09. This is a negative value and a sign of low solvency as DCO would need 12.09 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.09, DCO is in line with its industry, outperforming 58.46% of the companies in the same industry.
DCO has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
DCO has a Debt to Equity ratio of 0.34. This is in the better half of the industry: DCO outperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 12.09 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.58
WACC9.84%
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.
With a decent Current ratio value of 3.24, DCO is doing good in the industry, outperforming 73.85% of the companies in the same industry.
DCO has a Quick Ratio of 2.12. This indicates that DCO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.12, DCO is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.24 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.24% 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 3.90% in the last year.
Measured over the past years, DCO shows a small growth in Revenue. The Revenue has been growing by 1.75% on average per year.
EPS 1Y (TTM)27.24%
EPS 3Y3.61%
EPS 5Y3.52%
EPS Q2Q%7.14%
Revenue 1Y (TTM)3.9%
Revenue growth 3Y6.81%
Revenue growth 5Y1.75%
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 22.44% yearly.
The Revenue is expected to grow by 6.23% on average over the next years.
EPS Next Y13.07%
EPS Next 2Y18.9%
EPS Next 3Y22.44%
EPS Next 5YN/A
Revenue Next Year5.01%
Revenue Next 2Y5.67%
Revenue Next 3Y6.23%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
DCO is valuated correctly with a Price/Earnings ratio of 16.91.
86.15% of the companies in the same industry are more expensive than DCO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DCO to the average of the S&P500 Index (27.63), we can say DCO is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.95 indicates a correct valuation of DCO.
93.85% of the companies in the same industry are more expensive than DCO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DCO to the average of the S&P500 Index (20.85), we can say DCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 14.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued cheaper than 87.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DCO is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.97 | ||
| EV/EBITDA | 11 |
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 22.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)4.8
EPS Next 2Y18.9%
EPS Next 3Y22.44%
5. Dividend
5.1 Amount
No dividends for DCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
55.28
-1.32 (-2.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners87.79%
Inst Owner Change0.1%
Ins Owners7.98%
Ins Owner Change5.72%
Market Cap821.46M
Analysts82.22
Price Target83.84 (51.66%)
Short Float %1.12%
Short Ratio1.88
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)11.94%
Min EPS beat(2)-8.8%
Max EPS beat(2)32.68%
EPS beat(4)3
Avg EPS beat(4)20.62%
Min EPS beat(4)-8.8%
Max EPS beat(4)37.08%
EPS beat(8)6
Avg EPS beat(8)13.17%
EPS beat(12)8
Avg EPS beat(12)11.08%
EPS beat(16)10
Avg EPS beat(16)9.23%
Revenue beat(2)1
Avg Revenue beat(2)1.31%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)2.74%
Revenue beat(4)2
Avg Revenue beat(4)0.68%
Min Revenue beat(4)-0.14%
Max Revenue beat(4)2.74%
Revenue beat(8)3
Avg Revenue beat(8)-0.11%
Revenue beat(12)6
Avg Revenue beat(12)0.11%
Revenue beat(16)6
Avg Revenue beat(16)-0.3%
PT rev (1m)0.49%
PT rev (3m)-2.72%
EPS NQ rev (1m)-4.62%
EPS NQ rev (3m)-19.68%
EPS NY rev (1m)-8.43%
EPS NY rev (3m)-10.05%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-3.5%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 14.95 | ||
| P/S | 1.04 | ||
| P/FCF | 40.97 | ||
| P/OCF | 24.03 | ||
| P/B | 1.2 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 11 |
EPS(TTM)3.27
EY5.92%
EPS(NY)3.7
Fwd EY6.69%
FCF(TTM)1.35
FCFY2.44%
OCF(TTM)2.3
OCFY4.16%
SpS52.93
BVpS45.93
TBVpS19.4
PEG (NY)1.29
PEG (5Y)4.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 4.61% | ||
| ROCE | 6.3% | ||
| ROIC | 5.75% | ||
| ROICexc | 5.98% | ||
| ROICexgc | 10.52% | ||
| OM | 7.61% | ||
| PM (TTM) | 4% | ||
| GM | 25.23% | ||
| FCFM | 2.55% |
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 | 0.34 | ||
| Debt/FCF | 12.09 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 42.25% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 4.27 | ||
| Cash Conversion | 36.63% | ||
| Profit Quality | 63.66% | ||
| Current Ratio | 3.24 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 2.97 |
F-Score9
WACC9.84%
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)27.24%
EPS 3Y3.61%
EPS 5Y3.52%
EPS Q2Q%7.14%
EPS Next Y13.07%
EPS Next 2Y18.9%
EPS Next 3Y22.44%
EPS Next 5YN/A
Revenue 1Y (TTM)3.9%
Revenue growth 3Y6.81%
Revenue growth 5Y1.75%
Sales Q2Q%2.63%
Revenue Next Year5.01%
Revenue Next 2Y5.67%
Revenue Next 3Y6.23%
Revenue Next 5YN/A
EBIT growth 1Y36.77%
EBIT growth 3Y6.34%
EBIT growth 5Y1.24%
EBIT Next Year62.87%
EBIT Next 3Y28.97%
EBIT Next 5YN/A
FCF growth 1Y119.5%
FCF growth 3YN/A
FCF growth 5Y-9.34%
OCF growth 1Y10.02%
OCF growth 3YN/A
OCF growth 5Y-7.7%