DUCOMMUN INC (DCO) Stock Fundamental Analysis
NYSE:DCO - New York Stock Exchange, Inc. - US2641471097 - Common Stock - Currency: USD
Taking everything into account, DCO scores 5 out of 10 in our fundamental rating. DCO was compared to 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DCO was profitable.
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
The Return On Assets of DCO (3.12%) is comparable to the rest of the industry.
DCO's Return On Equity of 5.07% is in line compared to the rest of the industry. DCO outperforms 52.31% of 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 8.36%.
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
Looking at the Profit Margin, with a value of 4.45%, DCO is in line with its industry, outperforming 50.77% of the companies in the same industry.
DCO's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.96%, DCO perfoms like the industry average, outperforming 55.38% of the companies in the same industry.
DCO's Operating Margin has been stable in the last couple of years.
DCO has a Gross Margin (25.72%) 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 | 7.96% | ||
| 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
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
The debt/assets ratio for DCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.40 indicates that DCO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.40, DCO is in line with its industry, outperforming 52.31% of the companies in the same industry.
The Debt to FCF ratio of DCO is 10.71, which is on the high side as it means it would take DCO, 10.71 years of fcf income to pay off all of its debts.
DCO has a Debt to FCF ratio (10.71) which is comparable to the rest of the 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 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 10.71 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.58
WACC10.28%
2.3 Liquidity
A Current Ratio of 3.34 indicates that DCO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.34, DCO is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
DCO has a Quick Ratio of 2.20. This indicates that DCO is financially healthy and has no problem in meeting 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
The Earnings Per Share has grown by an impressive 28.79% over the past year.
DCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.52% yearly.
The Revenue has been growing slightly by 3.02% in the past 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)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.
The Revenue is expected to grow by 6.37% on average over the next years.
EPS Next Y12.79%
EPS Next 2Y18.97%
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
A Price/Earnings ratio of 21.70 indicates a rather expensive valuation of DCO.
Compared to the rest of the industry, the Price/Earnings ratio of DCO indicates a rather cheap valuation: DCO is cheaper than 81.54% of the companies listed in the same industry.
DCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.52.
A Price/Forward Earnings ratio of 15.94 indicates a correct valuation of DCO.
Based on the Price/Forward Earnings ratio, DCO is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.25. DCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.7 | ||
| Fwd PE | 15.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DCO indicates a somewhat cheap valuation: DCO is cheaper than 64.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.51 | ||
| EV/EBITDA | 13.56 |
4.3 Compensation for Growth
DCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as DCO's earnings are expected to grow with 19.93% in the coming years.
PEG (NY)1.7
PEG (5Y)6.16
EPS Next 2Y18.97%
EPS Next 3Y19.93%
5. Dividend
5.1 Amount
DCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.77
+0.46 (+0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners87.79%
Inst Owner Change12.92%
Ins Owners7.98%
Ins Owner Change5.56%
Market Cap1.10B
Analysts82.22
Price Target83.03 (12.55%)
Short Float %1.05%
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)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)2.78%
PT rev (3m)-0.49%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-11.13%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-8.66%
Revenue NQ rev (1m)-1.23%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.7 | ||
| Fwd PE | 15.94 | ||
| P/S | 1.39 | ||
| P/FCF | 48.51 | ||
| P/OCF | 29.99 | ||
| P/B | 1.58 | ||
| P/tB | 3.62 | ||
| EV/EBITDA | 13.56 |
EPS(TTM)3.4
EY4.61%
EPS(NY)4.63
Fwd EY6.27%
FCF(TTM)1.52
FCFY2.06%
OCF(TTM)2.46
OCFY3.33%
SpS53.08
BVpS46.57
TBVpS20.36
PEG (NY)1.7
PEG (5Y)6.16
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 | 3.4 |
F-Score9
WACC10.28%
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 Y12.79%
EPS Next 2Y18.97%
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%