Ducommun (DCO) AI Stock Analysis

• Market Cap: $1.37B
• Dividend Yield: N/A
• Average Volume (3M): 144.47K
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.78
• Revenue Growth: 3.16%
• EPS Growth: -213.56%
• Country: US
• Employees: 2,180
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.99
• Shares Outstanding: 14,923,743
• 10 Day Avg. Volume: 191,761
• 30 Day Avg. Volume: 144,471
• PEG Ratio: 0.36
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 46.91
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $106.25
• Price Target Upside: 18.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.69
• Revenue Forecast (FY): $827.13M

• Rating: 65 Neutral
• Price Target: $96.00 ▲(7.21% Upside)

Ducommun's overall stock score reflects a stable financial position with operational challenges. The strong performance in the defense segment and positive earnings call outlook are significant strengths. However, bearish technical indicators and a high P/E ratio suggest caution.

Positive Factors

Defense Segment Growth

The strong growth in the defense segment, particularly in missiles and radar, positions Ducommun well in a stable and expanding market, ensuring sustained revenue streams.

Record Revenue and Margins

Achieving record revenue and margins highlights Ducommun's operational efficiency and market demand, supporting long-term financial health and competitive positioning.

Improved Cash Flow

Improved cash flow and reduced interest expenses enhance Ducommun's financial flexibility, enabling reinvestment in growth opportunities and debt reduction.

Negative Factors

Commercial Aerospace Decline

The decline in commercial aerospace revenue reflects ongoing challenges in this segment, potentially impacting overall growth and profitability if not addressed.

Decreased Backlog

A reduced backlog indicates potential future revenue challenges, necessitating strategic efforts to secure new contracts and stabilize order flow.

Aggressive Accounting Concerns

Concerns about aggressive accounting practices could undermine investor confidence and suggest potential risks in financial reporting and future earnings reliability.

Ducommun Business Overview & Revenue Model

Company Description

Ducommun Incorporated (DCO) is a leading provider of engineering services and manufacturing solutions primarily serving the aerospace and defense sectors. The company specializes in producing high-precision components, assemblies, and systems used in aircraft, missiles, and other defense-related applications. Ducommun operates through two main segments: Ducommun Aerostructures, which focuses on airframe structures and systems, and Ducommun Electronic Systems, which provides advanced electronic products and services. With a commitment to innovation and quality, Ducommun supports major aerospace manufacturers and government defense programs.

How the Company Makes Money

Ducommun generates revenue through the sale of its engineered components and systems to major clients in the aerospace and defense industries. The company’s revenue model includes long-term contracts and project-based work, where it provides both manufacturing and engineering services. Key revenue streams come from the production of airframe assemblies, electrical interconnect systems, and other specialized products tailored to customer specifications. Additionally, partnerships with leading aerospace manufacturers and defense contractors enhance Ducommun's market presence and stability. The company benefits from a diverse customer base that includes both commercial and government sectors, allowing it to capitalize on various defense contracts and aerospace programs.

Ducommun Financial Statement Overview

Summary

Ducommun shows a stable financial position with improved leverage and cash generation. However, profitability remains a concern with a negative net income in the TTM period. Continued focus on operational efficiency and cost management is crucial for future growth.

Income Statement

Ducommun's income statement shows a mixed performance. The TTM data indicates a slight improvement in gross profit margin to 25.71% from 25.08% in 2024, suggesting better cost management. However, the company reported a negative EBIT margin of -4.37% and a net loss, indicating operational challenges. Revenue growth is positive at 1.40% TTM, but the negative net profit margin highlights profitability issues.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.36 in TTM, showing a decrease from 0.39 in 2024, indicating improved leverage. Return on equity is modest at 5.82%, suggesting moderate profitability. The equity ratio remains strong, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals a positive trend with a 9.99% growth in free cash flow TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.30, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio of 0.73 shows a decent cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	806.22M	786.55M	756.99M	712.54M	645.41M	628.94M
Gross Profit	208.22M	197.26M	163.19M	144.30M	142.46M	137.74M
EBITDA	-8.99M	85.65M	69.72M	83.58M	213.41M	76.78M
Net Income	-34.61M	31.50M	15.93M	28.79M	135.54M	29.17M
Balance Sheet
Total Assets	1.25B	1.13B	1.12B	1.02B	978.74M	837.35M
Cash, Cash Equivalents and Short-Term Investments	50.92M	37.14M	42.86M	46.25M	76.32M	56.47M
Total Debt	56.42M	272.14M	295.59M	282.84M	320.59M	336.61M
Total Liabilities	599.52M	443.57M	484.82M	495.55M	504.13M	508.01M
Stockholders Equity	649.04M	682.53M	636.09M	525.96M	474.60M	329.33M
Cash Flow
Free Cash Flow	44.69M	20.05M	11.54M	12.99M	-17.43M	101.00K
Operating Cash Flow	59.71M	34.18M	31.07M	32.68M	-565.00K	12.61M
Investing Cash Flow	-12.68M	-13.91M	-133.50M	-19.24M	57.75M	-5.47M
Financing Cash Flow	-33.37M	-26.00M	99.05M	-43.51M	-37.34M	9.74M

Ducommun Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 89.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DCO, the sentiment is Negative. The current price of 89.54 is below the 20-day moving average (MA) of 93.66, below the 50-day MA of 93.44, and above the 200-day MA of 76.99, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 22.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DCO.

Ducommun Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIR	68 Neutral	$3.31B	103.77	2.35%	―	17.59%	-56.15%
ATRO	66 Neutral	$1.66B	―	-1.72%	―	6.19%	52.10%
DCO	65 Neutral	$1.37B	33.76	-5.27%	―	3.16%	-213.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	56 Neutral	$4.70B	―	-2.24%	―	8.63%	72.72%
AIRO	51 Neutral	$451.23M	―	―	―	―	―
SPR	41 Neutral	$4.23B	-1.63	―	―	-1.31%	-78.19%

Ducommun Corporate Events

Ducommun Reports Record Revenue Amidst Challenges

Ducommun Incorporated is a company that provides innovative manufacturing solutions in the aerospace, defense, and industrial markets, specializing in electronic and structural systems for complex products and components. In its third quarter of 2025, Ducommun Incorporated reported record quarterly revenue of $212.6 million, marking a 6% increase compared to the same period last year, along with a gross margin of 26.6%. Despite these achievements, the company faced a net loss of $64.4 million due to significant litigation settlement costs, although its non-GAAP adjusted net income showed a modest increase to $15.2 million.

Ducommun Settles Litigation with $150 Million Payment

On October 3, 2025, Ducommun Incorporated reached a settlement to resolve litigation related to a 2020 fire at its Guaymas, Mexico performance center. The settlement involves a payment of $150 million, partially covered by insurance, and includes a mutual release of claims. The company expects to record a net settlement expense of $94 million and additional legal costs, but it does not anticipate any impact on its ongoing operations or strategic plans, maintaining sufficient financial capacity to continue its growth and acquisition strategies.

The most recent analyst rating on (DCO) stock is a Buy with a $102.00 price target. To see the full list of analyst forecasts on Ducommun stock, see the DCO Stock Forecast page.

Ducommun’s Earnings Call: Record Revenue & Optimism

Ducommun Incorporated’s recent earnings call conveyed a generally optimistic sentiment, underscored by record-breaking revenue and robust growth in the defense segment. The company reported improvements in gross margin and cash flow, although challenges persist in the commercial aerospace sector and backlog reduction. Despite these hurdles, strategic initiatives are showing progress, contributing to a positive outlook.

Ducommun Reports Strong Q2 2025 Financial Results

Ducommun Incorporated is a company that provides innovative manufacturing solutions primarily to the aerospace, defense, and industrial markets, specializing in electronic and structural systems for complex products and components.