Ducommun Inc (DCO) stock analysis

P/E above its 5-year median

Ducommun's P/E of 42.2 is above its own 5-year median of 25.1.

P/E above the industry

Ducommun's P/E of 42.2 is above the Aircraft and Parts median of 27.6.

EV/EBITDA above its 5-year median

Ducommun's EV/EBITDA of 20.0 is above its 5-year median of 14.3.

P/B above the industry

Ducommun's price-to-book of 3.07 is above the Aircraft and Parts median of 2.88.

Trading above fair value

The share price of $145.19 is above our fair value estimate of $99.45.

Margin of safety under 20%

The price is 46.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 5.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 9.0% over the last twelve months; the Aircraft and Parts median is 16.9%.

Guidance issued

The latest outlook (VISION 2027 Adjusted EBITDA, May 12, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 27.8% over the last twelve months, against 25.9% a year earlier.

Return on equity under 15%

Return on equity was 7.9% over the last twelve months and averaged 8.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 7.8%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Ducommun's return on equity of 7.9% is below the Aircraft and Parts median of 9.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 6.1% over the last twelve months, against a 5-year average of 5.1%.

Net margin above the industry

Ducommun's net margin of 6.1% is above the Aircraft and Parts median of 5.5%.

Low debt

Debt is 35.2% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 97.4% five years ago to 35.2%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 1.1% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 3.04 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.31; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Ducommun has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.