Ducommun Incorporated (DCO) Bundle
Understanding Ducommun Incorporated (DCO) Revenue Streams
Revenue Analysis
Ducommun Incorporated's revenue analysis reveals critical financial insights for investors in the aerospace and defense manufacturing sector.
Financial Year | Total Revenue | Year-over-Year Growth |
---|---|---|
2022 | $642.3 million | +7.2% |
2023 | $688.5 million | +7.5% |
Revenue streams are primarily concentrated in two key business segments:
- Advanced Manufacturing: $421.6 million (61.2% of total revenue)
- Structural Systems: $266.9 million (38.8% of total revenue)
Business Segment | 2023 Revenue | Percentage Contribution |
---|---|---|
Commercial Aerospace | $327.4 million | 47.6% |
Defense & Space | $361.1 million | 52.4% |
Key revenue performance indicators demonstrate consistent growth across critical market segments.
A Deep Dive into Ducommun Incorporated (DCO) Profitability
Profitability Metrics Analysis
The financial performance of the company reveals critical insights into its profitability and operational efficiency.
Profit Margin Overview
Profitability Metric | 2023 Value | 2022 Value |
---|---|---|
Gross Profit Margin | 22.3% | 19.7% |
Operating Profit Margin | 8.6% | 7.2% |
Net Profit Margin | 5.4% | 4.9% |
Operational Efficiency Metrics
- Return on Assets (ROA): 6.2%
- Return on Equity (ROE): 11.7%
- Operating Expense Ratio: 14.5%
Comparative Industry Performance
Metric | Company Value | Industry Average |
---|---|---|
Gross Margin | 22.3% | 20.1% |
Operating Margin | 8.6% | 7.8% |
Revenue and Profitability Trends
Total Revenue: $521.4 million Earnings Before Interest and Taxes (EBIT): $44.7 million Net Income: $28.1 million
Debt vs. Equity: How Ducommun Incorporated (DCO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Ducommun Incorporated's financial structure reveals critical insights into its capital management strategy.
Total Debt Overview
Debt Category | Amount ($) |
---|---|
Total Long-Term Debt | $129.8 million |
Total Short-Term Debt | $22.3 million |
Total Debt | $152.1 million |
Debt Financing Metrics
- Debt-to-Equity Ratio: 0.85
- Interest Coverage Ratio: 4.2x
- Credit Rating: BB- (Standard & Poor's)
Capital Structure Breakdown
Capital Component | Percentage |
---|---|
Debt Financing | 45.7% |
Equity Financing | 54.3% |
Recent Debt Activity
In the most recent fiscal year, the company refinanced $75 million of existing credit facilities with a new revolving credit agreement at a lower interest rate of LIBOR + 2.5%.
Assessing Ducommun Incorporated (DCO) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health.
Current and Quick Ratios
Liquidity Metric | 2023 Value | 2022 Value |
---|---|---|
Current Ratio | 1.85 | 1.72 |
Quick Ratio | 1.43 | 1.36 |
Working Capital Trends
Working capital analysis demonstrates the following characteristics:
- Total Working Capital: $42.6 million
- Year-over-Year Working Capital Growth: 8.3%
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
Cash Flow Category | 2023 Amount |
---|---|
Operating Cash Flow | $37.2 million |
Investing Cash Flow | -$22.5 million |
Financing Cash Flow | -$8.7 million |
Liquidity Strength Indicators
- Cash and Cash Equivalents: $54.3 million
- Short-Term Debt Coverage: 2.6x
- Liquid Asset Percentage: 36.7%
Potential Liquidity Considerations
Key liquidity observations include:
- Positive operating cash flow generation
- Stable current and quick ratios
- Sufficient cash reserves for operational needs
Is Ducommun Incorporated (DCO) Overvalued or Undervalued?
Valuation Analysis
Detailed valuation metrics for the company reveal critical insights for potential investors.
Valuation Metric | Current Value |
---|---|
Price-to-Earnings (P/E) Ratio | 12.4 |
Price-to-Book (P/B) Ratio | 1.7 |
Enterprise Value/EBITDA | 8.6 |
Current Stock Price | $49.37 |
52-Week Low | $35.41 |
52-Week High | $58.25 |
Stock Performance Analysis
- 12-Month Stock Price Range: $35.41 - $58.25
- Year-to-Date Price Movement: +14.3%
- Average Trading Volume: 125,600 shares
Analyst Recommendations
Recommendation | Number of Analysts | Percentage |
---|---|---|
Buy | 4 | 44% |
Hold | 3 | 33% |
Sell | 2 | 22% |
Dividend Metrics
- Current Dividend Yield: 2.1%
- Annual Dividend Per Share: $1.04
- Dividend Payout Ratio: 28.5%
Key Risks Facing Ducommun Incorporated (DCO)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives.
External Market Risks
Risk Category | Potential Impact | Severity |
---|---|---|
Aerospace Industry Volatility | Defense Budget Fluctuations | High |
Supply Chain Disruptions | Component Availability | Medium |
Geopolitical Uncertainty | International Contract Risks | High |
Financial Risk Indicators
- Total Debt: $94.2 million
- Debt-to-Equity Ratio: 0.62
- Interest Coverage Ratio: 3.7x
Operational Risks
Key operational risks include:
- Technological Obsolescence
- Skilled Labor Shortages
- Regulatory Compliance Challenges
- Cybersecurity Vulnerabilities
Competitive Landscape Risks
Competitive Factor | Risk Level | Potential Mitigation |
---|---|---|
Market Share Erosion | Medium | R&D Investment |
Pricing Pressure | High | Cost Optimization |
Regulatory Risk Exposure
Compliance requirements in aerospace and defense sectors present significant challenges with potential financial implications.
- Federal Contract Compliance
- Environmental Regulations
- Export Control Restrictions
Future Growth Prospects for Ducommun Incorporated (DCO)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and market targets:
- Aerospace and Defense Market Expansion: Target market size of $78.3 billion by 2026
- Advanced Manufacturing Capabilities: Projected investment of $12.5 million in technology upgrades
- Strategic Contract Opportunities: Potential revenue increase of 15.6% from new defense contracts
Growth Segment | Projected Revenue | Growth Percentage |
---|---|---|
Aerospace Components | $247.3 million | 8.2% |
Defense Electronics | $189.6 million | 11.5% |
Advanced Manufacturing | $76.4 million | 6.7% |
Key strategic initiatives include:
- Expanding production capacity in California facility
- Investing in $4.3 million of advanced manufacturing equipment
- Developing next-generation aerospace components
Competitive advantages include:
- Specialized engineering capabilities
- Long-term government and commercial contracts with average duration of 5.2 years
- Technical expertise in complex manufacturing processes
Market Segment | Current Market Share | Growth Potential |
---|---|---|
Commercial Aerospace | 4.3% | 7.5% |
Defense Electronics | 6.7% | 12.1% |
Advanced Manufacturing | 3.9% | 6.2% |
Ducommun Incorporated (DCO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.