Ducommun Incorporated

Ducommun Incorporated

DCOยทNYSE

$146.92

-1.1%
IndustrialsAerospace & Defense

Ducommun Incorporated provides engineering and manufacturing products and services primarily to the aerospace and defense, industrial, medical, and other industries in the United States. It operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; higher-level electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. It also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, engine components, ammunition handling systems, and magnetic seals. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. The company was founded in 1849 and is headquartered in Santa Ana, California.

At a Glance

Live Snapshot
Market Cap$2.22B
EPS-2.2700
P/E Ratio-64.72
Earnings Date08/06/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -64.7).

Valuation inputs: P/E -64.7, earnings yield N/A, momentum -1.1%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -5.1%, ROIC -2.5%).

Profitability stack: net margin -4.1%, ROE -5.1%, ROIC -2.5%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +44.2%, momentum -1.1%, net margin -4.1%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Ducommun Incorporated Market vs Earnings Trajectory

DCO ยท NYSE
Current Price
$146.92
EPS (TTM)
$-2.32

Performance Analysis

EPS Growth

-185.9%

Declining earnings warrant investigation into business challenges and competitive position.

Price-EPS Relationship

Divergent

Price is rising despite declining earningsโ€”caution advised as valuation may be stretched.

Stock Price Change

+103.1%

Over the 1Y period, stock price has increased by 103.1%.

P/E Ratio (TTM)

-64.7x

Relatively low P/E may indicate undervaluation or lower growth expectations.

Key Insight

Despite declining earnings (-185.9%), the stock price has risen (+103.1%). This disconnect suggests investors may be optimistic about future turnaround, but earnings recovery is critical to sustain the valuation.

Ducommun Incorporated

Ducommun Incorporated Fair Value Envelope

DCO ยท NYSE

Our analysis suggests that DCO has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $146.92, this represents a potential HIDDEN relative to our calculated worth for Ducommun Incorporated.

Intrinsic Value
Current Price: $146.92
3Y-195.0%
5Y-191.0%
10Y-200.0%
3Y+16.0%
5Y+31.0%
10Y+50.0%
3Y-218.0%
5Y-216.0%
10Y-234.0%
3Y-202.0%
5Y-365.0%
10Y-177.0%
3Y-474.0%
5Y-48261.0%
10Y-285.0%
3Y+16.0%
5Y+42.0%
10Y+130.0%
Ducommun Incorporated

Ducommun Incorporated Profit Bridge

DCO ยท NYSE
Revenue824.73M
Cost of Goods Sold (603.12M)
Gross Profit221.62M
Operating Expenses (253.92M)
Operating Income-32.30M
Interest Expense (12.68M)
Other Income/Expense-11.51M
Pretax Income-43.81M
Income Tax (-9.88M)
Net Income-33.94M
Net Income
-33.94M

Profitability Analysis

Gross Margin

26.9%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

-3.9%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-4.1%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

26.87%
Gross Profit Margin
7%
3Y+33.0%
5Y+23.0%
10Y+39.0%
-3.92%
Operating Profit Margin
-159%
3Y-170.0%
5Y-154.0%
10Y-175.0%
-4.12%
Net Profit Margin
-203%
3Y-202.0%
5Y-189.0%
10Y-190.0%
-5.13%
Return on Equity
-211%
3Y-194.0%
5Y-158.0%
10Y-143.0%
-2.86%
Return on Assets
-202%
3Y-202.0%
5Y-182.0%
10Y-158.0%
-2.45%
Return on Invested Capital
-154%
3Y-160.0%
5Y-142.0%
10Y-156.0%
DCO

Ducommun Incorporated Cash Conversion Engine

DCO ยท NYSE
Net Income-33.94M
Depreciation & Amortization33.66M
Stock-Based Compensation24.52M
Change in Working Capital-58.38M
Others12.36M
Capital Expenditures-15.24M
Free Cash Flow-48.64M

Cash Flow Quality Analysis

FCF Conversion Rate

143.3%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

-45.6%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-342.6%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$58.38M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extensionโ€”monitor closely.

Cash Flow Quality Insight

Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.

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Ducommun Incorporated Funding & Solvency Profile

DCO ยท NYSE
Cash & Cash Equivalents39.10M
Net Receivables137.03M
Inventory186.27M
Other Current Assets271.46M
Total Current Assets634 M
Property, Plant & Equipment143.64M
Goodwill & Intangible Assets373.26M
Long-Term Investments0.00
Other Non-Current Assets20.40M
Total Non-Current Assets164 M
Total Assets
1.19B

Financial Health Analysis

Current Ratio

3.67x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.77x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

461 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

53% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Ducommun Incorporated Street Expectations Map

DCO ยท NYSE

Wall Street analysts project that DCO stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 144.00, with estimates ranging from a low of 132.00 to a high of 150.00.

Lowest Target
132.00
-10.16%
Consensus Target
144.00
-1.99%
Highest Target
150.00
2.10%

The consensus 1-year price target stands at 144.00, with estimates ranging from a low of 132.00 to a high of 150.00.

Analyst Consensus Analysis

Upside Potential

-2.0%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

12.5% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Risk-Reward Profile

0.21x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.

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Ducommun Incorporated Insider Positioning

DCO ยท NYSE

During the last 12 months, insiders have sold $6.35M worth of DCO shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

27.6K

3.81M

Net Activity

-3.8M

-$3.81M

3-6 Months

Bought

0

0.00

Sold

16.7K

2.16M

Net Activity

-2.2M

-$2.16M

6-9 Months

Bought

0

0.00

Sold

1.6K

149.56K

Net Activity

-150K

-$150K

9-12 Months

Bought

0

0.00

Sold

2.8K

231.43K

Net Activity

-231K

-$231K

Top Buyers

No buying activity

Top Sellers

1
MSB

Mookerji Suman B.

Officer: Sr. V.P., C.F.O.

25.2K sharesโ€ข5 transactions

$3.32M

2
BRA

Baldridge Richard A

Director

10.4K sharesโ€ข1 transactions

$1.37M

3
RJL

Redondo Jerry L

Officer: S.V.P., Elec. & Struc. Systems

10.2K sharesโ€ข4 transactions

$1.28M

4
TRA

Tata Rajiv A.

Officer: V.P., G.C. & Corp. Secretary

2.3K sharesโ€ข2 transactions

$293K

5
GLS

Gonzalez Laureen S.

Officer: V.P., Chro

589 sharesโ€ข1 transactions

$90K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $6.35M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$3.81M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

No Dividend Yield Data

DCO has not reported any dividend yield values in the available annual periods.

ย 

dco Dividend History

DCO
10Y CAGR +0%
Latest $0.075
Annual $0.375
Stable dividend payments
Last Period: +0%