Ducommun Incorporated Intrinsic Stock Value – DUCOMMUN INCORPORATED Reports Financial Results for Q2 FY2023
August 9, 2023
🌥️Earnings Overview
On August 3 2023, DUCOMMUN INCORPORATED ($NYSE:DCO) announced their financial results for the second quarter of FY2023, which concluded on June 30 2023. The total revenue for the quarter was USD 187.3 million, indicating a 7.5% growth compared to the same time period in the previous fiscal year. Unfortunately, net income saw a 42.9% decrease year over year, amounting to USD 2.4 million.
Market Price
The company’s stock opened at $46.2 and closed at $44.3, representing a 8.0% drop from the previous closing price of $48.1. The results also revealed some key areas of improvement for DUCOMMUN INCORPORATED. The company managed to reduce its operating expenses significantly, allowing for greater savings despite the lower profits.
Additionally, the company managed to reduce its debt burden by 8%, which will help in cushioning future losses. Despite improvements in some areas, the company’s stock declined 8% on Thursday, indicating that investors were apprehensive about the future performance of the company. It remains to be seen if DUCOMMUN INCORPORATED can turn things around and ensure sustained growth in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ducommun Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 743.37 | 24.15 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ducommun Incorporated. More…
| Operations | Investing | Financing |
| 16.82 | -135.86 | 104.33 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ducommun Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.12k | 496.61 | 42.7 |
Key Ratios Snapshot
Some of the financial key ratios for Ducommun Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.6% | -4.8% | 6.0% |
| FCF Margin | ROE | ROA |
| -0.6% | 4.8% | 2.5% |
Analysis – Ducommun Incorporated Intrinsic Stock Value
At GoodWhale, we recently conducted a financial analysis of DUCOMMUN INCORPORATED. Our proprietary Valuation Line determined that the fair value of a share of stock for DUCOMMUN INCORPORATED is around $45.1. However, at the current market price of $44.3, the stock is undervalued by 1.8%. We believe that this presents a good opportunity for investors to purchase a stock with potential for growth at a fair price. More…
Peers
The company has about 5,000 employees and is headquartered in Los Angeles, California. Its competitors include LIG Nex1 Co Ltd, Curtiss-Wright Corp, and KWESST Micro Systems Inc.
– LIG Nex1 Co Ltd ($KOSE:079550)
LIG Nex1 Co Ltd is a South Korean defense company specializing in the development and manufacture of military hardware and software. The company has a market capitalization of 2.07 trillion as of 2022 and a return on equity of 20.19%. LIG Nex1 is the largest defense contractor in South Korea and one of the top 100 defense companies in the world. The company’s products include missiles, artillery, radar, and electronic warfare systems.
– Curtiss-Wright Corp ($NYSE:CW)
Curtiss-Wright Corporation is a diversified company that designs, manufactures, and services highly engineered products and services for the aerospace, defense, power generation, and general industrial markets. With headquarters in Davidson, North Carolina, Curtiss-Wright employs approximately 8,400 people worldwide. The company’s products and services are used in a variety of applications, including flight control and actuation systems, propulsion systems, metal treatment and finishing services, and general purpose machinery. Curtiss-Wright has a long history of innovation and has been a leading supplier of technologically advanced products for more than 100 years.
– KWESST Micro Systems Inc ($TSXV:KWE)
KWESST Micro Systems Inc is a Canadian company that specializes in the development and manufacture of microelectronic products. The company has a market cap of 5.02M as of 2022 and a Return on Equity of -328.91%. The company’s products are used in a variety of applications including aerospace, defense, and medical.
Summary
DUCOMMUN INCORPORATED reported its financial results for the second quarter of FY2023 on August 3. Total revenue increased by 7.5% compared to the same period last year, but net income decreased by 42.9%. This resulted in a sell-off of the company’s stock, as investors had been expecting better results.
Going forward, it is important for investors to pay close attention to the company’s performance and strategy to determine whether or not the stock is worth investing in. It may be worth keeping an eye on how the company is adapting to changing market conditions and any new initiatives it is taking to drive growth.
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