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Ducommun

NYSE:DCO
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DCO
NYSE
$494M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Ducommun Incorporated provides engineering and manufacturing products and services primarily to the aerospace, defense, industrial, natural resources, medical, and other industries in the United States. The last earnings update was 12 days ago. More info.


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DCO Share Price and Events
7 Day Returns
-2.2%
NYSE:DCO
-1.4%
US Aerospace & Defense
-1%
US Market
1 Year Returns
8.8%
NYSE:DCO
4.4%
US Aerospace & Defense
-0.4%
US Market
DCO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ducommun (DCO) -2.2% 0.9% -14.8% 8.8% 90.4% 42.5%
US Aerospace & Defense -1.4% 2.2% 6.2% 4.4% 41.9% 71.5%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • DCO outperformed the Aerospace & Defense industry which returned 4.4% over the past year.
  • DCO outperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
DCO
Industry
5yr Volatility vs Market

Value

 Is Ducommun undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ducommun to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ducommun.

NYSE:DCO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:DCO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.866 (1 + (1- 21%) (50.32%))
1.141
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.141 * 5.96%)
9.53%

Discounted Cash Flow Calculation for NYSE:DCO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ducommun is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:DCO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.53%)
2020 43.24 Analyst x4 39.48
2021 54.00 Est @ 24.89% 45.01
2022 63.85 Est @ 18.24% 48.59
2023 72.52 Est @ 13.59% 50.39
2024 80.01 Est @ 10.33% 50.76
2025 86.46 Est @ 8.05% 50.07
2026 92.04 Est @ 6.45% 48.67
2027 96.95 Est @ 5.34% 46.81
2028 101.36 Est @ 4.55% 44.68
2029 105.43 Est @ 4.01% 42.43
Present value of next 10 years cash flows $466.89
NYSE:DCO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $105.43 × (1 + 2.73%) ÷ (9.53% – 2.73%)
$1,592.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,592.87 ÷ (1 + 9.53%)10
$641.03
NYSE:DCO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $466.89 + $641.03
$1,107.92
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,107.92 / 11.53
$96.07
NYSE:DCO Discount to Share Price
Calculation Result
Value per share (USD) From above. $96.07
Current discount Discount to share price of $42.85
= -1 x ($42.85 - $96.07) / $96.07
55.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ducommun is available for.
Intrinsic value
>50%
Share price is $42.85 vs Future cash flow value of $96.07
Current Discount Checks
For Ducommun to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ducommun's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ducommun's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ducommun's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ducommun's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:DCO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-29) in USD $1.76
NYSE:DCO Share Price ** NYSE (2019-08-16) in USD $42.85
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 40 Publicly-Listed Aerospace & Defense Companies 23.06x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ducommun.

NYSE:DCO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DCO Share Price ÷ EPS (both in USD)

= 42.85 ÷ 1.76

24.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ducommun is overvalued based on earnings compared to the US Aerospace & Defense industry average.
  • Ducommun is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Ducommun's expected growth come at a high price?
Raw Data
NYSE:DCO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
21.8%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 33 Publicly-Listed Aerospace & Defense Companies 2.03x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NYSE:DCO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.36x ÷ 21.8%

1.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ducommun is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ducommun's assets?
Raw Data
NYSE:DCO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-29) in USD $23.62
NYSE:DCO Share Price * NYSE (2019-08-16) in USD $42.85
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 55 Publicly-Listed Aerospace & Defense Companies 2.47x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NYSE:DCO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DCO Share Price ÷ Book Value per Share (both in USD)

= 42.85 ÷ 23.62

1.81x

* Primary Listing of Ducommun.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ducommun is good value based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Ducommun's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Ducommun has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ducommun expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ducommun expected to grow at an attractive rate?
  • Ducommun's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Ducommun's earnings growth is expected to exceed the United States of America market average.
  • Ducommun's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:DCO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:DCO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 21.8%
NYSE:DCO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 3.7%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:DCO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:DCO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 725 60 34 5
2019-12-31 703 43 30 5
NYSE:DCO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-29 677 28 20
2019-03-30 651 34 14
2018-12-31 629 46 9
2018-09-29 607 41 18
2018-06-30 586 45 18
2018-03-31 572 33 21
2017-12-31 558 35 20
2017-09-30 558 43 13
2017-07-01 552 47 14
2017-04-01 545 51 14
2016-12-31 551 43 25
2016-10-01 565 39 -43
2016-07-02 594 18 -57

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ducommun's earnings are expected to grow significantly at over 20% yearly.
  • Ducommun's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:DCO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Ducommun Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DCO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.86 3.20 2.39 5.00
2019-12-31 2.56 2.70 2.44 5.00
NYSE:DCO Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-29 1.76
2019-03-30 1.22
2018-12-31 0.79
2018-09-29 1.57
2018-06-30 1.62
2018-03-31 1.82
2017-12-31 1.78
2017-09-30 1.19
2017-07-01 1.23
2017-04-01 1.24
2016-12-31 2.27
2016-10-01 -3.84
2016-07-02 -5.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ducommun will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ducommun's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ducommun has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ducommun performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ducommun's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ducommun has delivered over 20% year on year earnings growth in the past 5 years.
  • Ducommun's 1-year earnings growth is less than its 5-year average (9.7% vs 22.4%)
  • Ducommun's earnings growth has not exceeded the US Aerospace & Defense industry average in the past year (9.7% vs 15.8%).
Earnings and Revenue History
Ducommun's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ducommun Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DCO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-29 677.09 20.13 88.49
2019-03-30 651.42 13.91 86.93
2018-12-31 629.31 9.04 83.41
2018-09-29 607.38 17.85 81.54
2018-06-30 586.23 18.33 79.26
2018-03-31 572.34 20.56 77.71
2017-12-31 558.18 20.08 79.14
2017-09-30 558.41 13.43 77.02
2017-07-01 552.29 13.79 75.32
2017-04-01 544.79 13.83 74.62
2016-12-31 550.64 25.26 77.14
2016-10-01 564.73 -42.75 77.69
2016-07-02 593.83 -57.28 81.92
2016-04-02 635.24 -59.36 83.34
2015-12-31 666.01 -74.88 83.80
2015-10-03 697.05 -4.55 88.27
2015-07-04 723.54 7.90 90.11
2015-04-04 735.21 12.74 90.61
2014-12-31 742.05 19.87 88.57
2014-09-27 742.41 12.24 84.68
2014-06-28 735.53 13.95 81.98
2014-03-29 740.49 12.83 83.69
2013-12-31 736.65 11.38 84.85
2013-09-28 742.57 17.28 85.42 0.00
2013-06-29 745.38 17.75 86.41 0.00
2013-03-30 738.61 17.75 85.44 0.00
2012-12-31 747.04 17.62 86.35
2012-09-29 741.38 -35.49 86.30 0.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ducommun has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ducommun used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • Ducommun has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ducommun's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ducommun has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ducommun's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ducommun's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ducommun is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ducommun's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ducommun's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ducommun Company Filings, last reported 1 month ago.

NYSE:DCO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-29 272.23 227.89 3.29
2019-03-30 263.78 231.46 3.83
2018-12-31 256.83 229.29 10.26
2018-09-29 255.56 229.40 3.57
2018-06-30 250.00 231.16 3.53
2018-03-31 247.31 209.71 1.80
2017-12-31 235.58 216.06 2.15
2017-09-30 224.65 222.39 3.69
2017-07-01 218.94 169.63 7.37
2017-04-01 214.28 162.16 7.11
2016-12-31 212.10 166.90 7.43
2016-10-01 211.04 176.62 9.47
2016-07-02 205.43 186.33 9.18
2016-04-02 200.67 186.05 6.44
2015-12-31 185.73 240.69 5.46
2015-10-03 249.47 260.04 12.24
2015-07-04 258.52 265.04 26.84
2015-04-04 255.51 280.05 32.71
2014-12-31 256.57 290.05 45.63
2014-09-27 257.55 310.18 40.85
2014-06-28 252.64 317.69 43.75
2014-03-29 244.89 325.20 29.42
2013-12-31 234.27 332.70 48.81
2013-09-28 241.24 343.21 32.60
2013-06-29 233.97 350.72 33.51
2013-03-30 227.22 358.23 29.99
2012-12-31 222.68 365.74 46.54
2012-09-29 218.95 380.76 28.87
  • Ducommun's level of debt (83.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (125.6% vs 83.7% today).
  • Debt is not well covered by operating cash flow (12.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).
X
Financial health checks
We assess Ducommun's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ducommun has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ducommun's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Ducommun dividends.
If you bought $2,000 of Ducommun shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Ducommun's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ducommun's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:DCO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:DCO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
NYSE:DCO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2013-03-04 0.000 0.000
2012-11-07 0.000 0.000
2012-08-06 0.000 0.000
2012-05-07 0.000 0.000
2012-03-05 0.000 0.000
2011-11-07 0.000 0.000
2011-05-05 0.000 0.000
2011-02-09 0.300 1.321
2010-11-05 0.300 1.356
2010-07-29 0.300 1.420
2010-05-05 0.300 1.597
2010-02-02 0.300 1.497
2009-11-06 0.300 1.624
2009-07-30 0.300 1.635
2009-05-07 0.300 1.662
2009-02-03 0.300 1.927
2008-11-10 0.300 1.759

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Ducommun has not reported any payouts.
  • Unable to verify if Ducommun's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ducommun's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ducommun has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Ducommun's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ducommun afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ducommun has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ducommun's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Oswald
COMPENSATION $5,006,605
AGE 55
TENURE AS CEO 2.6 years
CEO Bio

Mr. Stephen G. Oswald, also known as Steve, has been Chief Executive Officer and President at Ducommun Incorporated since January 23, 2017 and Chairman of the Board since May 2, 2018. Mr. Oswald served as Chief Executive Officer of Capital Safety, Inc.(also known as Capital Safety Group) since March 2012 to 2015. He has 30 years of industry experience including executive positions at United Technologies (UTC), General Electric (GE), and the Hoechst Celanese Corporation. He oversaw Capital Safety's global operations, which includes 20 manufacturing, distribution and training facilities worldwide. For fifteen years, Mr. Oswald has held various executive roles at United Technologies Corporation (UTC), lastly serving as the Integration Leader for its acquisition of GE Security. He led this division to over $1 billion in revenue and achieved strong EBITDA growth during his tenure. Mr. Oswald also served as president of Sullair, a subsidiary of the HS Industrial Division and as director of operations for Pratt & Whitney Power Systems, among other leadership roles during his time at UTC. In these positions, Mr. Oswald drove operational excellence across each organization – reducing waste and increasing productivity – and implemented initiatives to improve supply chain management, product development and customer service. He served as the President of Industrial Segment of Hamilton Sundstrand Corporation of United Technologies Corp. since January 2006. Mr. Oswald served as the President of Hamilton Sundstrand Corporation. His role includes strategic leadership and full profit and loss responsibility for the industrial group which comprises three companies - Milton Roy, Sullair and Sundyne. He served as the President of Sullair Corp. since April, 2002. He has held key operations and sales positions at Pratt & Whitney, Hoeschst AG and General Electric. He has been a Director at Ducommun Incorporated since January 23, 2017. He served as a Trustee of Manufacturers Alliance/MAPI, Inc. (now Manufacturers Alliance for Productivity and Innovation, Inc.) since November 2008. Mr. Oswald holds an MBA from the University of Chicago. He also holds a Master's degree in Industrial Engineering from the University of Cincinnati and a Bachelor's Degree in Industrial Engineering from Polytechnic University in Brooklyn, New York. He is a graduate of GE's Manufacturing Management Program (MMP).

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Steve's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Ducommun management team in years:

2.4
Average Tenure
56
Average Age
  • The tenure for the Ducommun management team is about average.
Management Team

Steve Oswald

TITLE
Chairman
COMPENSATION
$5M
AGE
55
TENURE
2.6 yrs

Christopher Wampler

TITLE
VP, Controller
COMPENSATION
$875K
AGE
52
TENURE
0.2 yrs

Jerry Redondo

TITLE
Senior VP of Operations & Head of Ducommun Structures
COMPENSATION
$1M
AGE
59
TENURE
2.2 yrs

Rose Rogers

TITLE
VP & Chief Human Resources Officer
COMPENSATION
$1M
AGE
57
TENURE
4.6 yrs

Rajiv Tata

TITLE
Secretary
Board of Directors Tenure

Average tenure and age of the Ducommun board of directors in years:

6.4
Average Tenure
64.5
Average Age
  • The tenure for the Ducommun board of directors is about average.
Board of Directors

Steve Oswald

TITLE
Chairman
COMPENSATION
$5M
AGE
55
TENURE
1.3 yrs

Robert Ducommun

TITLE
Director
COMPENSATION
$140K
AGE
67
TENURE
34.6 yrs

Jay Haberland

TITLE
Director
COMPENSATION
$135K
AGE
69
TENURE
10.5 yrs

Dean Flatt

TITLE
Director
COMPENSATION
$122K
AGE
68
TENURE
9.8 yrs

Bob Paulson

TITLE
Lead Director
COMPENSATION
$141K
AGE
73

Rick Baldridge

TITLE
Director
COMPENSATION
$131K
AGE
60
TENURE
6.4 yrs

Greg Churchill

TITLE
Director
COMPENSATION
$112K
AGE
62
TENURE
6.4 yrs

Shirley Drazba

TITLE
Director
COMPENSATION
$43K
AGE
60
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Ducommun individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Jun 19 Sell Robert Ducommun Individual 27. Jun 19 27. Jun 19 -2,000 $45.29 $-90,580
31. May 19 Sell Christopher Wampler Individual 30. May 19 30. May 19 -2,346 $45.98 $-107,869
25. Mar 19 Sell Robert Ducommun Individual 21. Mar 19 21. Mar 19 -685 $45.60 $-31,236
12. Dec 18 Sell Christopher Wampler Individual 11. Dec 18 11. Dec 18 -530 $38.54 $-20,426
06. Dec 18 Sell Robert Ducommun Individual 03. Dec 18 03. Dec 18 -415 $40.29 $-16,720
14. Nov 18 Sell Robert Ducommun Individual 12. Nov 18 13. Nov 18 -5,000 $43.19 $-215,842
06. Sep 18 Sell Robert Ducommun Individual 05. Sep 18 06. Sep 18 -5,000 $40.89 $-203,799
X
Management checks
We assess Ducommun's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ducommun has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Ducommun Incorporated's (NYSE:DCO) Earnings Grew 9.7%, Did It Beat Long-Term Trend?

In this commentary, I will examine Ducommun Incorporated's (NYSE:DCO) latest earnings update (29 June 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the aerospace & defense industry performed. … See our latest analysis for Ducommun Commentary On DCO's Past Performance DCO's trailing twelve-month earnings (from 29 June 2019) of US$20m has increased by 9.7% compared to the previous year. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 22%, indicating the rate at which DCO is growing has slowed down.

Simply Wall St -

Should You Be Tempted To Sell Ducommun Incorporated (NYSE:DCO) Because Of Its P/E Ratio?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Ducommun: P/E of 33.18 = $40.43 ÷ $1.22 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … Remember: P/E Ratios Don't Consider The Balance Sheet One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. … Ducommun's Balance Sheet Ducommun has net debt equal to 49% of its market cap.

Simply Wall St -

Is Ducommun Incorporated's (NYSE:DCO) CEO Paid Enough Relative To Peers?

At the time of writing our data says that Ducommun Incorporated has a market cap of US$527m, and is paying total annual CEO compensation of US$5.0m. … Thus we can conclude that Steve Oswald receives more in total compensation than the median of a group of companies in the same market, and of similar size to Ducommun Incorporated. … We compared total CEO remuneration at Ducommun Incorporated with the amount paid at companies with a similar market capitalization.

Simply Wall St -

What Is Ducommun Incorporated's (NYSE:DCO) Share Price Doing?

Ducommun Incorporated (NYSE:DCO), which is in the aerospace & defense business, and is based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. … What’s more interesting is that, Ducommun’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. … With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price.

Simply Wall St -

Is There Now An Opportunity In Ducommun Incorporated (NYSE:DCO)?

This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … If you are no longer interested in Ducommun, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

You Might Like Ducommun Incorporated (NYSE:DCO) But Do You Like Its Debt?

Moreover, DCO has generated US$34m in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 14%, meaning that DCO’s operating cash is less than its debt. … Looking at DCO’s US$118m in current liabilities, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.4x. … Next Steps: DCO’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

How Much Of Ducommun Incorporated (NYSE:DCO) Do Insiders Own?

With a market capitalization of US$566m, Ducommun is a small cap stock, so it might not be well known by many institutional investors. … In the chart below below, we can see that institutions own shares in the company. … In their own names, insiders own US$44m worth of stock in the US$566m company.

Simply Wall St -

Is There An Opportunity With Ducommun Incorporated's (NYSE:DCO) 40% Undervaluation?

In this article we are going to estimate the intrinsic value of Ducommun Incorporated (NYSE:DCO). … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Ducommun Incorporated (NYSE:DCO) Insiders Have Been Selling

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … The Last 12 Months Of Insider Transactions At Ducommun. … In the last twelve months, the biggest single sale by an insider was when the Director, Robert Ducommun, sold US$216k worth of shares at a price of US$43.19 per share.

Simply Wall St -

Read This Before Judging Ducommun Incorporated's (NYSE:DCO) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.035. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

Ducommun Incorporated provides engineering and manufacturing products and services primarily to the aerospace, defense, industrial, natural resources, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment offers cable assemblies and interconnect systems; printed circuit board assemblies; high-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, wire harnesses, 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, and engine components. The company 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. Ducommun Incorporated was founded in 1849 and is headquartered in Santa Ana, California.

Details
Name: Ducommun Incorporated
DCO
Exchange: NYSE
Founded: 1849
$494,144,443
11,531,959
Website: http://www.ducommun.com
Address: Ducommun Incorporated
200 Sandpointe Avenue,
Suite 700,
Santa Ana,
California, 92707,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE DCO Common Stock New York Stock Exchange US USD 02. Jan 1969
DB DUM Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
Number of employees
Current staff
Staff numbers
2,600
Ducommun employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 23:36
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/06
Last earnings filing: 2019/08/05
Last earnings reported: 2019/06/29
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.