DUCOMMUN INC /DE/ (DCO) intrinsic value & 10-year financials

DUCOMMUN INC /DE/ (DCO) has a Graham intrinsic value of $32.03 per share. At $170.76 on Oct 17, 2026, the stock trades 433% above that value. Over the last 10 fiscal years revenue grew 4.6% a year to $824.7M, with an average return on invested capital of 4.7%.

Graham intrinsic value
$32.03
Share price (Oct 17, 2026)
$170.76
Price vs Graham value
433% above
Market cap
$2.6B
Revenue (FY2025)
$824.7M
Revenue growth (10-yr CAGR)
4.6%
ROIC (10-yr avg)
4.7%
Free cash flow (FY2025)
-$48.6M

DCO 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $824.7M -$33.9M -$2.27 -$48.6M -3.9% -2.8%
FY2024 $786.6M $31.5M $2.10 $20.1M 6.6% 5.2%
FY2023 $757.0M $15.9M $1.14 $11.5M 3.8% 3.6%
FY2022 $712.5M $28.8M $2.33 $13.0M 5.6% 4.9%
FY2021 $645.4M $135.5M $11.06 -$17.4M 7.6% 6.2%
FY2020 $628.9M $29.2M $2.45 $101.0K 7.2% 7.3%
FY2019 $721.1M $32.5M $2.75 $32.7M 7.8% 9.4%
FY2018 $629.3M $9.0M $0.77 $28.6M 3.8% 4.5%
FY2017 $558.2M $20.1M $1.74 $7.8M 2.7% 3.7%
FY2016 $550.6M $25.3M $2.24 $26.3M 5.2% 5.1%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

DUCOMMUN INC /DE/ has demonstrated mature, steady growth, with revenue compounding at 4.6% annually over the past decade.

DUCOMMUN INC /DE/ has historically struggled to out-earn its cost of capital, averaging just 4.7% ROIC.

Over the decade, DUCOMMUN INC /DE/ shows that the company has leveraged its balance sheet to sustain operations.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, DUCOMMUN INC /DE/ is modeled at 4.6% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $32.03 per share.

DCO stock: frequently asked questions

What is the intrinsic value of DUCOMMUN INC /DE/ (DCO) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 4.6% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, DCO's intrinsic value is about $32.03 per share.

Is DCO stock undervalued?

At $170.76 (close on Oct 17, 2026), DCO trades 433% above its Graham value of $32.03. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has DUCOMMUN INC /DE/ grown?

Revenue went from $550.6M in fiscal 2016 to $824.7M in fiscal 2025, a compound annual growth rate of 4.6%. Net income was -$33.9M in fiscal 2025.

Does DUCOMMUN INC /DE/ generate free cash flow?

DUCOMMUN INC /DE/ generated -$48.6M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 8 of the last 10 reported years.

What is DCO's return on invested capital?

Average ROIC over the last 10 fiscal years was 4.7%, and average return on equity was 8.8%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this DCO data come from?

From DUCOMMUN INC /DE/'s annual 10-K filings on SEC EDGAR, most recently filed Aug 6, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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