Ducommun Inc.

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DCO : NYSE : Electronic Technology
$28.46 -0.05 | -0.18%
Today's Range: 27.83 - 28.81
Avg. Daily Volume: 63400.0
02/16/18 - 4:02 PM ET

Financial Analysis


DUCOMMUN INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. DUCOMMUN INC has weak liquidity. Currently, the Quick Ratio is 0.84 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 6.44% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)138.69132.57
EBITDA ($mil)13.1114.14
EBIT ($mil)7.58.05
Net Income ($mil)4.665.01


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)3.699.47
Total Assets ($mil)593.85520.98
Total Debt ($mil)222.39176.62
Equity ($mil)224.65211.04


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin22.823.62
EBITDA Margin9.4510.66
Operating Margin5.46.08
Sales Turnover0.941.08
Return on Assets2.26-7.89
Return on Equity5.97-19.49
Debt Q3 FY17 Q3 FY16
Current Ratio2.462.57
Debt/Capital0.50.46
Interest Expense2.091.95
Interest Coverage3.594.14


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)11.3311.17
Div / share0.00.0
EPS0.410.44
Book value / share19.8418.89
Institutional Own % n/a n/a
Avg Daily Volume64895.055961.0

Valuation


HOLD. DUCOMMUN INC's P/E ratio indicates a discount compared to an average of 31.29 for the Aerospace & Defense industry and a value on par with the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 1.44 indicates a significant discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 179.92. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of 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 24.37 Peers 31.29   DCO 7.47 Peers 19.18

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DCO is trading at a discount to its peers.

 

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 significant 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 33.54 Peers 23.31   DCO NM Peers 5.56

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

DCO is trading at a significant premium 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.

DCO's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DCO 1.44 Peers 179.92   DCO 131.20 Peers 17.54

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.

 

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

DCO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DCO 0.58 Peers 2.22   DCO -1.12 Peers 9.68

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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