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DCO

Ducommun NYSE:DCO Stock Report

Last Price

US$40.08

Market Cap

US$483.9m

7D

-1.7%

1Y

-20.4%

Updated

29 Sep, 2022

Data

Company Financials +

Ducommun Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ducommun
Historical stock prices
Current Share PriceUS$40.08
52 Week HighUS$58.18
52 Week LowUS$38.89
Beta1.26
1 Month Change-9.24%
3 Month Change-8.62%
1 Year Change-20.40%
3 Year Change-0.30%
5 Year Change17.61%
Change since IPO1,451.48%

Recent News & Updates

Jul 18

Ducommun announces new credit facility

Ducommun (NYSE:DCO) has entered into a new credit facility consisting of a $250M term loan and a $200M revolving line of credit to replace its existing debt structure. In connection with the transaction, the Co. extinguished its existing $140M term loan, its existing $100M unused revolving line of credit which would have matured in December 2024 and December 2024 respectively. The new term loan and new revolving line of credit will mature in July 2027. The initial variable rate on the new term loan is Term SOFR plus 1.625%, subject to adjustments based on the Co.’s leverage ratio. “We chose to execute an opportunistic refinancing of our existing credit facility mid-term, with the goal of securing a new five year credit facility while in a favorable term loan environment,” said Stephen G. Oswald, chairman, President and CEO.

Jun 17
What Does Ducommun Incorporated's (NYSE:DCO) Share Price Indicate?

What Does Ducommun Incorporated's (NYSE:DCO) Share Price Indicate?

Ducommun Incorporated ( NYSE:DCO ), is not the largest company out there, but it saw significant share price movement...

Shareholder Returns

DCOUS Aerospace & DefenseUS Market
7D-1.7%-4.7%-3.1%
1Y-20.4%-1.0%-21.5%

Return vs Industry: DCO underperformed the US Aerospace & Defense industry which returned 0.2% over the past year.

Return vs Market: DCO matched the US Market which returned -20.3% over the past year.

Price Volatility

Is DCO's price volatile compared to industry and market?
DCO volatility
DCO Average Weekly Movement4.2%
Aerospace & Defense Industry Average Movement6.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: DCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DCO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18492,480Steve Oswaldhttps://www.ducommun.com

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.

Ducommun Fundamentals Summary

How do Ducommun's earnings and revenue compare to its market cap?
DCO fundamental statistics
Market CapUS$483.88m
Earnings (TTM)US$132.66m
Revenue (TTM)US$665.75m

3.6x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DCO income statement (TTM)
RevenueUS$665.75m
Cost of RevenueUS$526.05m
Gross ProfitUS$139.70m
Other ExpensesUS$7.03m
EarningsUS$132.66m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)10.99
Gross Margin20.98%
Net Profit Margin19.93%
Debt/Equity Ratio51.0%

How did DCO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is DCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DCO?

Other financial metrics that can be useful for relative valuation.

DCO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA9.8x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does DCO's PE Ratio compare to its peers?

DCO PE Ratio vs Peers
The above table shows the PE ratio for DCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24x
NPK National Presto Industries
26.8xn/aUS$454.9m
KAMN Kaman
24.6x26.4%US$784.3m
PKE Park Aerospace
30.6xn/aUS$233.6m
AIR AAR
13.9x17.7%US$1.2b
DCO Ducommun
3.6x-34.0%US$483.9m

Price-To-Earnings vs Peers: DCO is good value based on its Price-To-Earnings Ratio (3.6x) compared to the peer average (24x).


Price to Earnings Ratio vs Industry

How does DCO's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?

Price-To-Earnings vs Industry: DCO is good value based on its Price-To-Earnings Ratio (3.6x) compared to the US Aerospace & Defense industry average (24.2x)


Price to Earnings Ratio vs Fair Ratio

What is DCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.6x
Fair PE Ratio5.5x

Price-To-Earnings vs Fair Ratio: DCO is good value based on its Price-To-Earnings Ratio (3.6x) compared to the estimated Fair Price-To-Earnings Ratio (5.5x).


Share Price vs Fair Value

What is the Fair Price of DCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DCO ($40.08) is trading below our estimate of fair value ($512.72)

Significantly Below Fair Value: DCO is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-34.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCO's earnings are forecast to decline over the next 3 years (-34% per year).

Earnings vs Market: DCO's earnings are forecast to decline over the next 3 years (-34% per year).

High Growth Earnings: DCO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DCO's revenue (6.7% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: DCO's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DCO's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Ducommun performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


47.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DCO has a large one-off gain of $132.3M impacting its July 2 2022 financial results.

Growing Profit Margin: DCO's current net profit margins (19.9%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: DCO's earnings have grown significantly by 47.7% per year over the past 5 years.

Accelerating Growth: DCO's earnings growth over the past year (324.7%) exceeds its 5-year average (47.7% per year).

Earnings vs Industry: DCO earnings growth over the past year (324.7%) exceeded the Aerospace & Defense industry 11.9%.


Return on Equity

High ROE: DCO's Return on Equity (26.7%) is considered high.


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Financial Health

How is Ducommun's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DCO's short term assets ($484.8M) exceed its short term liabilities ($173.7M).

Long Term Liabilities: DCO's short term assets ($484.8M) exceed its long term liabilities ($308.8M).


Debt to Equity History and Analysis

Debt Level: DCO's net debt to equity ratio (43.4%) is considered high.

Reducing Debt: DCO's debt to equity ratio has reduced from 78% to 51% over the past 5 years.

Debt Coverage: DCO's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: DCO's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Ducommun Dividend Yield vs Market
How does Ducommun dividend yield compare to the market?
SegmentDividend Yield
Company (Ducommun)0%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Aerospace & Defense)2.1%
Analyst forecast in 3 Years (Ducommun)n/a

Notable Dividend: Unable to evaluate DCO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DCO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DCO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DCO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: DCO is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DCO has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Steve Oswald (58 yo)

5.67yrs

Tenure

US$6,299,167

Compensation

Mr. Stephen G. Oswald, also known as Steve, serves as Director at The National Wwii Museum Inc since September 2021. Mr. Oswald has been Chief Executive Officer and President at Ducommun Incorporated since...


CEO Compensation Analysis

Steve Oswald's Compensation vs Ducommun Earnings
How has Steve Oswald's remuneration changed compared to Ducommun's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 02 2022n/an/a

US$133m

Apr 02 2022n/an/a

US$137m

Dec 31 2021US$6mUS$897k

US$136m

Oct 02 2021n/an/a

US$34m

Jul 03 2021n/an/a

US$31m

Apr 03 2021n/an/a

US$28m

Dec 31 2020US$5mUS$899k

US$29m

Sep 26 2020n/an/a

US$28m

Jun 27 2020n/an/a

US$30m

Mar 28 2020n/an/a

US$33m

Dec 31 2019US$6mUS$806k

US$32m

Sep 28 2019n/an/a

US$24m

Jun 29 2019n/an/a

US$20m

Mar 30 2019n/an/a

US$14m

Dec 31 2018US$5mUS$773k

US$9m

Sep 29 2018n/an/a

US$18m

Jun 30 2018n/an/a

US$18m

Mar 31 2018n/an/a

US$21m

Dec 31 2017US$5mUS$692k

US$20m

Compensation vs Market: Steve's total compensation ($USD6.30M) is above average for companies of similar size in the US market ($USD2.83M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DCO's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: DCO's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DCO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NYSE:DCO Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
13 Sep 22SellUS$66,270Christopher WamplerIndividual1,500US$44.18
12 May 22SellUS$183,400Christopher WamplerIndividual4,000US$45.85
24 Mar 22SellUS$224,933Robert DucommunIndividual4,250US$53.25
12 Nov 21SellUS$76,455Christopher WamplerIndividual1,500US$50.97

Ownership Breakdown

What is the ownership structure of DCO?
Owner TypeNumber of SharesOwnership Percentage
General Public592,6714.9%
Hedge Funds734,9536.1%
Individual Insiders1,077,1568.9%
Institutions9,667,95480.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 76.58% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
7.47%
Dimensional Fund Advisors LP
902,088$36.2m1.34%0.01%
7.2%
BlackRock, Inc.
869,648$34.9m3.64%no data
6.09%
Paradigm Capital Management, Inc.
734,953$29.5m-0.43%2.09%
4.7%
Robert Ducommun
567,909$22.8m0.32%no data
4.67%
The Vanguard Group, Inc.
563,805$22.6m11.21%no data
4.32%
William Blair Investment Management, LLC
521,643$20.9m-43.43%0.04%
3.88%
Wellington Management Group LLP
468,009$18.8m0.95%no data
3.84%
Goldman Sachs Asset Management, L.P.
464,080$18.6m-0.97%0.01%
3.42%
GAMCO Investors, Inc.
413,226$16.6m1.11%0.07%
3.31%
Royce & Associates, LP
399,402$16.0m-7.37%0.16%
3.2%
RBC Global Asset Management Inc.
386,782$15.5m-4.06%0.01%
2.79%
Deutsche Asset & Wealth Management
337,396$13.5m4.35%0.01%
2.73%
Silvercrest Asset Management Group LLC
329,417$13.2m-1.4%0.1%
2.71%
State Street Global Advisors, Inc.
326,779$13.1m5.22%no data
2.26%
Stephen Oswald
272,540$10.9m-1.66%no data
2.1%
Renaissance Technologies LLC
253,100$10.1m0.52%0.01%
1.75%
Goldman Sachs Group, Investment Banking and Securities Investments
211,395$8.5m1201.21%0.01%
1.66%
Ingalls & Snyder LLC
199,972$8.0m-0.51%0.43%
1.59%
Geode Capital Management, LLC
191,468$7.7m-2.02%no data
1.5%
Teton Advisors, LLC
180,540$7.2m0%1.43%
1.33%
Cove Street Capital, LLC
160,590$6.4m-31.7%1.76%
1.2%
Mutual of America Capital Management LLC
144,909$5.8m30.59%0.07%
0.98%
Eagle Asset Management, Inc.
118,159$4.7m2.38%0.03%
0.96%
Meros Investment Management, LP
115,924$4.6m-0.13%4.72%
0.92%
Kennedy Capital Management, Inc.
111,022$4.4m-0.96%0.13%

Company Information

Ducommun Incorporated's employee growth, exchange listings and data sources


Key Information

  • Name: Ducommun Incorporated
  • Ticker: DCO
  • Exchange: NYSE
  • Founded: 1849
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Implied Market Cap: US$483.875m
  • Shares outstanding: 12.07m
  • Website: https://www.ducommun.com

Number of Employees


Location

  • Ducommun Incorporated
  • 200 Sandpointe Avenue
  • Suite 700
  • Santa Ana
  • California
  • 92707-5759
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DCONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
DUMDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/07/02
Annual Earnings2021/12/31


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.