Ducommun Incorporated Common Stock (DCO)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I start with the business: Ducommun supplies engineered components and electronic systems into aerospace and defense, an industry with long qualification cycles and switching costs. Those can be real moats, but the numbers must confirm them. They currently show a turnaround. In fiscal Q2 2026, the quarter ended 2026-07-04, revenue was $224.5M and net income was $20.4M, or $1.31 diluted EPS. Fiscal Q1 2026, ended 2026-04-04, had $209.0M revenue, $9.9M net income, and $0.64 EPS. That follows a painful fiscal Q3 2025, ended 2025-09-27, when revenue was $212.6M but net loss was $64.4M, or -$4.30 EPS. For FY2025, ended 2025-12-31, revenue was $824.8M and net loss was $37.4M, or -$2.50 EPS, after FY2024 net income of $21.7M and EPS of $1.44. So the trailing full-year picture is loss-making. Financial health is mixed. The FairStock-calculated Piotroski F-Score is 7/9 and Altman Z-Score is 4.08, while debt-to-equity is 0.48. But trailing free cash flow is -$24.5M and FCF yield is -1.0%. Valuation is the rub. At the 2026-10-13 close of $168.98, FairStock shows a negative P/E of -135.18, P/B of 3.70, and EV/EBITDA of 258.54. The shares sit within a 52-week range of $84.76-$210.39, and the FairStock Score is 47/100. FairStock classifies this as a TURNAROUND—loss in the latest year after earlier profits. I would want sustained profits and positive cash flow before trusting the recovery.

In plain English: Ducommun makes electronic and structural parts for aerospace, defense, and other industries. The company lost money in its latest full year because of one very bad quarter, but its two most recent quarters were profitable. At the recent price, the shares look expensive relative to the latest full-year loss, though the improving profit trend makes it a turnaround story.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-04) · fiscal Q1 2026 10-Q (period ended 2026-04-04) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer