Ducommun Inc

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DCO : NYSE : Industrial Goods
$22.89 up 0.12 | 0.53%
Today's Range: 22.79 - 23.16
Avg. Daily Volume: 50,100
08/23/16 - 4:02 PM ET

Financial Analysis


DUCOMMUN INC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. DUCOMMUN INC has weak liquidity. Currently, the Quick Ratio is 0.99 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 20.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)133.44174.85
EBITDA ($mil)12.917.35
EBIT ($mil)7.4210.84
Net Income ($mil)3.861.78


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)9.1826.84
Total Assets ($mil)520.3709.97
Total Debt ($mil)186.33265.04
Equity ($mil)205.43258.52


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin23.7521.57
EBITDA Margin9.669.92
Operating Margin5.566.2
Sales Turnover1.141.02
Return on Assets-10.71.11
Return on Equity-27.13.05
Debt Q2 FY16 Q2 FY15
Current Ratio2.663.03
Debt/Capital0.480.51
Interest Expense1.946.45
Interest Coverage3.841.68


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)11.1711.08
Div / share0.00.0
EPS0.340.16
Book value / share18.423.33
Institutional Own % n/a n/a
Avg Daily Volume49870.034612.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.22 indicates a significant discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 27.77. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, DUCOMMUN INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DCO NM Peers 24.28   DCO 13.69 Peers 17.34

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

DCO's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DCO is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DCO 11.77 Peers 19.37   DCO NA Peers 1.87

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DCO is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DCO 1.22 Peers 27.77   DCO -821.42 Peers 161.87

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DCO is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DCO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DCO 0.42 Peers 1.69   DCO -17.93 Peers 3.82

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DCO is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DCO significantly trails its peers on the basis of sales growth

 

 

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