📊 DCO Key Takeaways
Investment Thesis
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.
DCO 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
DCO 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
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
DCO Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.50x current ratio provides a solid financial cushion.
DCO Profitability Ratios
DCO vs Default Sector
How DUCOMMUN INC /DE/ compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DCO Balance Sheet & Liquidity
DCO 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 Growth Metrics (YoY)
DCO Quarterly 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.
DCO Capital Allocation
DCO SEC Filings
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 an AI rating of SELL with 85% 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.
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.
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.