📊 DCO Key Takeaways
Is Ducommun Inc. /DE/ (DCO) a Good Investment?
DUCOMMUN exhibits solid financial stability with excellent liquidity (3.67x current ratio) and manageable leverage (0.44x debt/equity), but fundamentally underperforms through poor capital efficiency with ROE of just 1.5% and ROA of 0.8%. The company generates modest operating cash flow ($11.2M FCF) and operates in the stable aerospace sector, though thin 4.7% net margins and low free cash flow generation relative to its $1.2B asset base indicate a mature business generating inadequate returns on shareholder capital.
Ducommun shows modest top-line growth, but the quality of that growth is weak because it is not translating into earnings or cash generation. Profitability has deteriorated sharply into operating and net losses, while operating cash flow and free cash flow are both negative. The balance sheet and liquidity remain solid enough to limit near-term financial stress, but fundamentals currently point to execution pressure rather than durable operating strength.
Ducommun Inc. /DE/ Key Strengths (DCO)
- Excellent liquidity position with 3.67x current ratio and 2.59x quick ratio
- Moderate and manageable debt levels with 0.44x debt-to-equity ratio
- Positive operating cash flow and free cash flow generation in aerospace defense sector
- Financially stable with no imminent solvency concerns
- Revenue is still growing year over year, indicating underlying demand remains intact
- Liquidity is strong with a 3.50x current ratio and 2.47x quick ratio
- Leverage is manageable with debt/equity of 0.45x and a substantial equity base
DCO Stock Risks: Ducommun Inc. /DE/ Investment Risks
- Severely depressed returns on equity (1.5%) and assets (0.8%) indicate poor capital efficiency
- Low net profit margin of 4.7% and operating margin of 7.5% suggest limited pricing power
- Modest free cash flow ($8.3M) relative to $1.2B asset base limits financial flexibility and growth investment
- Cash position of $39.1M is low relative to $297.6M long-term debt, reducing financial cushion
- Lack of year-over-year revenue and net income comparison prevents assessment of growth trajectory
- Operating margin and net margin are negative, showing the business is currently not converting sales into profits
- Net income and EPS deteriorated sharply year over year, signaling worsening earnings quality
- Negative operating cash flow and free cash flow suggest working capital strain or poor cash conversion
Key Metrics to Watch
- Return on Equity trend - critical to assess if capital deployment improves
- Operating margin expansion - needed to justify current leverage levels
- Free cash flow generation and conversion to debt reduction - key to improving returns
- Revenue growth trajectory - essential for understanding business momentum without historical context
- Operating margin recovery
- Operating cash flow trend
Ducommun Inc. /DE/ (DCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.0% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.67x current ratio provides a solid financial cushion.
DCO Profit Margin, ROE & Profitability Analysis
DCO vs Automotive Sector: How Ducommun Inc. /DE/ Compares
How Ducommun Inc. /DE/ compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ducommun Inc. /DE/ Stock Overvalued? DCO Valuation Analysis 2026
Based on fundamental analysis, Ducommun Inc. /DE/ has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ducommun Inc. /DE/ Balance Sheet: DCO Debt, Cash & Liquidity
DCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ducommun Inc. /DE/'s revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.14 reflects profitable operations.
DCO Revenue Growth, EPS Growth & YoY Performance
DCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $192.5M | $1.4M | $0.09 |
| Q3 2025 | $201.4M | $10.1M | $0.67 |
| Q2 2025 | $197.0M | $6.8M | $0.52 |
| Q1 2025 | $190.8M | $6.8M | $0.46 |
| Q3 2024 | $196.3M | $3.2M | $0.22 |
| Q2 2024 | $187.3M | $2.4M | $0.17 |
| Q1 2024 | $181.2M | $5.2M | $0.42 |
| Q3 2023 | $186.6M | $3.2M | $0.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ducommun Inc. /DE/ Dividends, Buybacks & Capital Allocation
DCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ducommun Inc. /DE/ (CIK: 0000030305)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DCO
What is the AI rating for DCO?
Ducommun Inc. /DE/ (DCO) has a Combined AI Grade of C from Claude (B) and ChatGPT (C) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DCO's key strengths?
Claude: Excellent liquidity position with 3.67x current ratio and 2.59x quick ratio. Moderate and manageable debt levels with 0.44x debt-to-equity ratio. ChatGPT: Revenue is still growing year over year, indicating underlying demand remains intact. Liquidity is strong with a 3.50x current ratio and 2.47x quick ratio.
What are the risks of investing in DCO?
Claude: Severely depressed returns on equity (1.5%) and assets (0.8%) indicate poor capital efficiency. Low net profit margin of 4.7% and operating margin of 7.5% suggest limited pricing power. ChatGPT: Operating margin and net margin are negative, showing the business is currently not converting sales into profits. Net income and EPS deteriorated sharply year over year, signaling worsening earnings quality.
What is DCO's revenue and growth?
Ducommun Inc. /DE/ reported revenue of $209.0M.
Does DCO pay dividends?
Ducommun Inc. /DE/ does not currently pay dividends.
Where can I find DCO SEC filings?
Official SEC filings for Ducommun Inc. /DE/ (CIK: 0000030305) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DCO's EPS?
Ducommun Inc. /DE/ has a diluted EPS of $0.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DCO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ducommun Inc. /DE/ has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DCO stock overvalued or undervalued?
Valuation metrics for DCO: ROE of 1.5% (sector avg: 12%), net margin of 4.7% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is DCO's AI grade for 2026?
Our dual AI analysis gives Ducommun Inc. /DE/ a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DCO's free cash flow?
Ducommun Inc. /DE/'s operating cash flow is $11.2M, with capital expenditures of $2.9M. FCF margin is 4.0%.
How does DCO compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 4.7% (avg: 6%), ROE 1.5% (avg: 12%), current ratio 3.67 (avg: 1.2).