Professional
Added to YB: 2025-10-31
Pitch date: 2025-10-28
DCO [bearish]
Ducommun Incorporated
+1.05%
current return
Author Info
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Company Info
Ducommun Incorporated provides engineering and manufacturing services for products and applications used in the aerospace and defense, industrial, medical, and other industries in the United States.
Market Cap
$1.4B
Pitch Price
$92.92
Price Target
25.00 (-73%)
Dividend
N/A
EV/EBITDA
14.36
P/E
35.11
EV/Sales
2.02
Sector
Aerospace and Defense
Category
N/A
Bad Times Ducommun
DCO Strong Sell: $25 price target (-60% downside). Aggressive ASC 606 revenue recognition pulling forward $61.3M in FY24, contract assets up 5.1% YOY while revenue +2.7%. DSO at 97 days (5-yr high), inventory DSI doubled to 121 days since 2018. Backlog rolling over, book-to-bill 0.70x. Concentrated exposure to struggling Boeing/RTX facing production caps & delays. CEO took 68% of GAAP profits vs 9% peer avg. Material weakness in revenue controls, SEC scrutiny history.
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