Ducommun Incorporated (DCO) Fair Value & Analysis

Industrials · US · Market cap $2.5B

Below-average quality, and screening another 68% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case ($84.04). The favourable scenario is already priced in.
• Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
• A fairly wide model range ($42.46 to $84.04) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $39.66 – $201.46 · fair‑value band $42.46 – $84.04 · the $197.07 price screens above the $63.25 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Ducommun Incorporated (DCO) currently trades at $197.07, while our model-based Fair Value estimate is $63.25, implying the stock looks roughly 67.9% overvalued today. The Quality Score stands at 40/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Ducommun Incorporated generated revenue of $841M at a net margin of -3.4%. Revenue grew 8.6% year over year. It earns a return on equity of -4.2%. Net debt stands at $301M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $42.46 (bear case) to $84.04 (bull case); at $197.07, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 174% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -59% fair-value upside, at -68%, DCO screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Dividend Discount ($152.67) versus Asset-Based ($29.41). Highest evidence: ROIC Compounder (72).

Key figures & financial health

Quality Score breakdown

About the company

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. It operates through two segments, Electronic Systems and Structural Systems.

Full company description

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. It operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. This segment also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control, as well as provides engineering services for aerospace system design, development, integration, and testing service. The Structural Systems segment designs, engineers, and manufactures complex contoured aerostructure components assemblies and supplies, including composite and metal bonded structures, precision profile extrusions, extruded assemblies, ammunition handling systems, seals, and aerodynamic systems; designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, fuselage structural panels; aircraft wing spoilers, fuselage skins, rotor blades, flight control surfaces, engine nacelle components, feed and eject chutes, storage magazines, custom gun mounts. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs. The company was founded in 1849 and is headquartered in Costa Mesa, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ducommun Incorporated reported revenue of $825M in FY2025 versus $645M in FY2021, a compound +6.3%/yr. Reported net income was −$37.4M in FY2025.

DCO screens 68% overvalued. Compare with General Electric Company →

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

• Boeing, HEICO, and Ducommun Stocks Trade Down, What You Need To Know Yahoo Finance · Jul 8, 2026
• Ducommun Incorporated (DCO): Among The Best Mid Cap Defense Stocks to Buy Yahoo Finance · Jun 26, 2026

Peer Group

Aerospace & Defense · 226 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Explore undervalued stocks

More undervalued Industrials stocks →

Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.