📊 DCO Key Takeaways
Is Ducommun Inc. /DE/ (DCO) a Good Investment?
Despite modest revenue growth of 4.9% YoY, DCO is experiencing severe operational deterioration with negative operating income of -$32.3M and negative free cash flow of -$48.6M, indicating fundamental business challenges beyond cyclical headwinds. The company's inability to convert gross profit into operating profit, combined with deteriorating cash generation, suggests structural profitability issues that require immediate operational improvement.
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.
Why Buy Ducommun Inc. /DE/ Stock? DCO Key Strengths
- Revenue growth of 4.9% YoY demonstrates underlying demand in aerospace/defense sector
- Strong liquidity position with current ratio of 3.50x and quick ratio of 2.47x providing near-term financial flexibility
- Reasonable leverage with debt-to-equity ratio of 0.45x leaves room for capital structure optimization
- 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
- Operating losses of -$32.3M and negative net margin of -4.1% indicate severe operational distress despite gross margins of 26.9%
- Negative free cash flow of -$48.6M is unsustainable and eroding cash reserves ($45.3M cash available), threatening financial stability within 12 months
- Deteriorating profitability with net income declining 207.8% YoY signals inability to manage costs or operational efficiency despite revenue growth
- 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
- Operating margin recovery path and cost structure normalization
- Free cash flow reversion to positive territory and cash burn rate sustainability
- Gross profit maintenance and operational leverage improvement as revenue grows
- Operating margin recovery
- Operating cash flow trend
Ducommun Inc. /DE/ (DCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.50x 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $174.2M | $2.4M | $0.17 |
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 Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DCO's key strengths?
Claude: Revenue growth of 4.9% YoY demonstrates underlying demand in aerospace/defense sector. Strong liquidity position with current ratio of 3.50x and quick ratio of 2.47x providing near-term financial flexibility. 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: Operating losses of -$32.3M and negative net margin of -4.1% indicate severe operational distress despite gross margins of 26.9%. Negative free cash flow of -$48.6M is unsustainable and eroding cash reserves ($45.3M cash available), threatening financial stability within 12 months. 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 $824.7M.
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 $-2.27.
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 rating reflects both perspectives for balanced insights.
Is DCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Ducommun Inc. /DE/ has a SELL rating with 82% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DCO stock overvalued or undervalued?
Valuation metrics for DCO: ROE of -5.1% (sector avg: 12%), net margin of -4.1% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy DCO stock in 2026?
Our dual AI analysis gives Ducommun Inc. /DE/ a combined SELL rating 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 $-33.4M, with capital expenditures of $15.2M. FCF margin is -5.9%.
How does DCO compare to other Automotive stocks?
Vs Automotive sector averages: Net margin -4.1% (avg: 6%), ROE -5.1% (avg: 12%), current ratio 3.50 (avg: 1.2).