NYSE:DCO

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

-4.8%

DCO

-1.4%

US Aerospace & Defense

0.4%

US Market


1 Year Return

3.3%

DCO

7.2%

US Aerospace & Defense

6.9%

US Market

Return vs Industry: DCO underperformed the US Aerospace & Defense industry which returned 7.2% over the past year.

Return vs Market: DCO underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

DCOIndustryMarket
7 Day-4.8%-1.4%0.4%
30 Day-14.8%-4.5%-1.2%
90 Day-8.3%2.5%-0.4%
1 Year3.3%3.3%9.3%7.2%9.3%6.9%
3 Year92.7%92.7%59.7%51.0%45.8%36.4%
5 Year37.2%37.2%92.2%74.1%62.9%45.1%

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?

22.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DCO ($39.34) is trading above our estimate of fair value ($24.52)

Significantly Undervalued: DCO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DCO is good value based on its PE Ratio (22.4x) compared to the Aerospace & Defense industry average (22.4x).

PE vs Market: DCO is poor value based on its PE Ratio (22.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: DCO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: DCO is good value based on its PB Ratio (1.7x) compared to the US Aerospace & Defense industry average (2.4x).


Next Steps

Future Growth

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

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCO's forecast earnings growth (16% per year) is above the savings rate (2.7%).

Earnings vs Market: DCO's earnings (16% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: DCO's revenue (3.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: DCO's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DCO's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Ducommun performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DCO's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: DCO's earnings growth over the past year (9.7%) is below its 5-year average (22.4% per year).

Earnings vs Industry: DCO earnings growth over the past year (9.7%) underperformed the Aerospace & Defense industry 10.5%.


Return on Equity

High ROE: DCO's Return on Equity (7.4%) is considered low.


Return on Assets

ROA vs Industry: DCO's Return on Assets is below or equal to the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: DCO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Ducommun's financial position?


Financial Position Analysis

Short Term Liabilities: DCO's short term assets ($300.5M) exceeds its short term liabilities ($131.0M)

Long Term Liabilities: DCO's short term assets (300.5M) exceeds its long term liabilities (276.4M)


Debt to Equity History and Analysis

Debt Level: DCO's debt to equity ratio (83.7%) is considered high

Reducing Debt: DCO's debt to equity ratio has reduced from 125.6% to 83.7% over the past 5 years.

Debt Coverage: DCO's debt is not well covered by operating cash flow (12.3%).

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


Balance Sheet

Inventory Level: DCO has a high level of physical assets or inventory.

Debt Coverage by Assets: DCO's debt is covered by short term assets (assets are 1.318550x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

2.5yrs

Average management tenure


CEO

Steve Oswald (55yo)

2.8yrs

Tenure

US$5,006,605

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 ($USD5.01M) is about average for companies of similar size in the US market ($USD1.79M).

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


Management Age and Tenure

2.5yrs

Average Tenure

56yo

Average Age

Experienced Management: DCO's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

64.5yo

Average Age

Experienced Board: DCO's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$27,97220 Sep 19
Robert Ducommun
EntityIndividual
Role
Member of the Board of Directors
Director
Shares600
Max PriceUS$46.62
SellUS$46,50018 Sep 19
Robert Ducommun
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$46.50
SellUS$98,32520 Aug 19
Rosalie Rogers
EntityIndividual
Role
Head of Human Resources
VP & Chief Human Resources Officer
Shares2,300
Max PriceUS$42.75
SellUS$90,58027 Jun 19
Robert Ducommun
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$45.29
SellUS$107,86931 May 19
Christopher Wampler
EntityIndividual
Role
Chief Financial Officer
VP, Controller
Shares2,346
Max PriceUS$45.98
SellUS$31,23625 Mar 19
Robert Ducommun
EntityIndividual
Role
Member of the Board of Directors
Director
Shares685
Max PriceUS$45.60
SellUS$20,42612 Dec 18
Christopher Wampler
EntityIndividual
Role
Chief Financial Officer
VP, Controller
Shares530
Max PriceUS$38.54
SellUS$16,72006 Dec 18
Robert Ducommun
EntityIndividual
Role
Member of the Board of Directors
Director
Shares415
Max PriceUS$40.29
SellUS$215,84214 Nov 18
Robert Ducommun
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$43.19

Ownership Breakdown


Management Team

  • Steve Oswald (55yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: US$5.01m
  • Rose Rogers (57yo)

    VP & Chief Human Resources Officer

    • Tenure: 4.8yrs
    • Compensation: US$1.01m
  • Jerry Redondo (59yo)

    Senior VP of Operations & Head of Ducommun Structures

    • Tenure: 2.3yrs
    • Compensation: US$1.30m
  • Christopher Wampler (52yo)

    VP, Controller

    • Tenure: 0.3yrs
    • Compensation: US$875.24k
  • Rajiv Tata

    Secretary

    • Tenure: 0yrs

Board Members

  • Bob Paulson (73yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$140.94k
  • Rick Baldridge (60yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$131.44k
  • Robert Ducommun (67yo)

    Director

    • Tenure: 34.8yrs
    • Compensation: US$139.83k
  • Dean Flatt (68yo)

    Director

    • Tenure: 9.9yrs
    • Compensation: US$122.19k
  • Greg Churchill (62yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$112.19k
  • Jay Haberland (69yo)

    Director

    • Tenure: 10.7yrs
    • Compensation: US$135.19k
  • Steve Oswald (55yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: US$5.01m
  • Shirley Drazba (60yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$42.79k

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$453.667m
  • Shares outstanding: 11.53m
  • Website: https://www.ducommun.com

Number of Employees


Location

  • Ducommun Incorporated
  • 200 Sandpointe Avenue
  • Suite 700
  • Santa Ana
  • California
  • 92707
  • 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, defense, industrial, natural resources, medical, and other industries in the United States. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:34
End of Day Share Price2019/10/18 00:00
Earnings2019/06/29
Annual Earnings2018/12/31


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.