Forensic Analysis · Industrials / Manufacturing / Defense · as of Sep 25, 2026
Ducommun Inc /De/ (DCO)
A forensic read on Ducommun Inc /De/ built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
8.6
Distress distance
Clean
Earnings quality
3
Forensic signals
-91.9
P / E (ttm)
-5.6%
ROE
$2.6B
Market cap
0.00%
Dividend yield
4.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Ducommun Inc /De/ earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 8.6, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-2.9%
FY2025
Return on invested capital.Return on invested capital is -2.9% in the latest fiscal year and slipping across FY2023–FY2025 from 2.9%. After-tax operating profit was $26M in FY2023 and ($28M) in FY2025, with operating income at 3.8% of revenue in FY2023, 5.4% in FY2024 and -4.3% in FY2025. The capital base behind it barely moved across FY2023–FY2025 ($902M to $967M, +7%), so there has been little new capital for that return to be earned on. FY2023's operating profit carried a $15M restructuring charge that alone took about 1.5 points off that year's return, so the FY2025 return is being compared with a base year that charge had already pulled down.
+3.4%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +7% over the last 2 years to FY2025 (+3.4%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~6%.
3% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 3% of revenue in FY2025 — about $1.90 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 3.5% a year, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$824.8M
Revenue Growth YoY+4.9%
Revenue CAGR (2yr)+4.4%
Net Margin-4.5%
Free Cash Flow-$48.6M
Return on Equity-5.6%
Debt / Equity0.46x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Ducommun Inc /De/'s actual 10-K/10-Q/8-K filings?