NYSE:DCO

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Executive Summary

Ducommun Incorporated provides engineering and manufacturing products and services primarily to the aerospace and defense, industrial, medical, and other industries in the United States. More Details


Snowflake Analysis

Good value with proven track record.


Similar Companies

Share Price & News

How has Ducommun's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DCO's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

10.2%

DCO

3.1%

US Aerospace & Defense

2.8%

US Market


1 Year Return

0.3%

DCO

-23.9%

US Aerospace & Defense

20.9%

US Market

Return vs Industry: DCO exceeded the US Aerospace & Defense industry which returned -23.8% over the past year.

Return vs Market: DCO underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

DCOIndustryMarket
7 Day10.2%3.1%2.8%
30 Day50.1%19.8%11.1%
90 Day27.9%6.0%6.5%
1 Year0.3%0.3%-7.9%-23.9%23.6%20.9%
3 Year77.1%77.1%12.5%-10.0%47.3%37.6%
5 Year209.6%209.6%66.8%25.6%94.3%72.9%

Long-Term Price Volatility Vs. Market

How volatile is Ducommun's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ducommun undervalued compared to its fair value and its price relative to the market?

32.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DCO ($49.01) is trading below our estimate of fair value ($72.89)

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


Price To Earnings Ratio

PE vs Industry: DCO is good value based on its PE Ratio (20.1x) compared to the US Aerospace & Defense industry average (22.5x).

PE vs Market: DCO is poor value based on its PE Ratio (20.1x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: DCO is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: DCO is good value based on its PB Ratio (1.8x) compared to the US Aerospace & Defense industry average (3x).


Next Steps

Future Growth

How is Ducommun forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCO's forecast earnings growth (17.6% per year) is above the savings rate (2.2%).

Earnings vs Market: DCO's earnings (17.6% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: DCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: DCO's revenue (3.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: DCO's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DCO's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has Ducommun performed over the past 5 years?

57.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DCO has high quality earnings.

Growing Profit Margin: DCO's current net profit margins (4.3%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: DCO has become profitable over the past 5 years, growing earnings by 57.5% per year.

Accelerating Growth: DCO's earnings growth over the past year (17.2%) is below its 5-year average (57.5% per year).

Earnings vs Industry: DCO earnings growth over the past year (17.2%) exceeded the Aerospace & Defense industry -1.9%.


Return on Equity

High ROE: DCO's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is Ducommun's financial position?


Financial Position Analysis

Short Term Liabilities: DCO's short term assets ($425.1M) exceed its short term liabilities ($137.9M).

Long Term Liabilities: DCO's short term assets ($425.1M) exceed its long term liabilities ($396.0M).


Debt to Equity History and Analysis

Debt Level: DCO's debt to equity ratio (108.7%) is considered high.

Reducing Debt: DCO's debt to equity ratio has increased from 104.1% to 108.7% over the past 5 years.

Debt Coverage: DCO's debt is not well covered by operating cash flow (9.4%).

Interest Coverage: DCO's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DCO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Steve Oswald (56 yo)

3.83yrs

Tenure

US$5,737,904

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD5.74M) is above average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Oswald
Chairman3.83yrsUS$5.74m1.82%
$ 10.5m
Christopher Wampler
VP, Controller1.42yrsUS$1.08m0.13%
$ 767.4k
Jerry Redondo
Senior VP of Operations & Head of Ducommun Structures3.42yrsUS$1.46m0.29%
$ 1.7m
Rosalie Rogers
VP & Chief Human Resources Officer5.83yrsUS$1.12m0.27%
$ 1.5m
Rajiv Tata
VP, General Counsel & Secretaryno datano data0.051%
$ 293.8k

3.6yrs

Average Tenure

57yo

Average Age

Experienced Management: DCO's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Oswald
Chairman3.83yrsUS$5.74m1.82%
$ 10.5m
Richard Baldridge
Independent Director7.67yrsUS$198.00k0.15%
$ 877.3k
Robert Ducommun
Independent Director35.83yrsUS$200.43k3.54%
$ 20.3m
Dean Flatt
Lead Independent Director0.50yrUS$192.50k0.24%
$ 1.4m
Gregory Churchill
Independent Director7.67yrsUS$193.50k0.15%
$ 877.3k
Jay Haberland
Independent Director11.67yrsUS$203.50k0.26%
$ 1.5m
Shirley Drazba
Independent Director2.08yrsUS$176.00k0.026%
$ 150.0k

7.7yrs

Average Tenure

63yo

Average Age

Experienced Board: DCO's board of directors are considered experienced (7.7 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

Ownership Breakdown

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


Top Shareholders

Company Information

Ducommun Incorporated's company bio, 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
  • Market Cap: US$574.132m
  • Shares outstanding: 11.71m
  • 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

Biography

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 throug...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 00:27
End of Day Share Price2020/11/27 00:00
Earnings2020/09/26
Annual Earnings2019/12/31


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.