DCO

Ducommun Inc.

Industrial/Transportation


Presented:03/17/2021
Price:$59.67
Cap:$0.71B
Current Price:$64.46
Cap:$0.95B

Presented

Date03/17/2021
Price$59.67
Market Cap$0.71B
Ent Value$0.93B
P/E Ratio24.43x
Book Value$28.08
Div Yield0%
Shares O/S11.83M
Ave Daily Vol47,514
Short Int1.95%

Current

Price$64.46
Market Cap$0.95B
Ducommun, Inc. engages in the provision of engineering and manufacturing services to the aerospace, defence, industrial, and medical industries. It operates through the Electronic Systems and Structural Systems business segment. The Electronic Systems segment offers electronic and electromechanical products used in worldwide technology-driven markets. The Structural Systems segment designs, engineers and manufactures contoured aero structure components, assemblies and supplies composite and metal bonded structures. The firm's products include commercial, military fixed-wing, and military and commercial rotary-wing aircrafts. The firm's products include human machine interface, RF products, and motors and resolvers. The company was founded by Charles Louis Ducommun in 1849 and is headquartered in Santa Ana, CA.

Publicly traded companies mentioned herein: Airbus SE (AIR FP), Boeing Co/The (BA), Ducommun Inc (DCO), Lockheed Martin Corp (LMT), Mercury Systems Inc (MRCY), Northrop Grumman Corp (NOC), Raytheon Technologies Corp (RTX), Spirit AeroSystems Holdings Inc (SPR)

Highlights

The presenter is long shares of Ducommun Inc (DCO), a $700MM market cap company that provides engineering and manufacturing products and services primarily to the aerospace and defense industries. DCO currently trades at $59 per share, which is ~9x his 2023 EPS estimate of $6.50 and ~16x the Street’s $3.75 expectation. The large delta in the earnings projections is based on his bullish outlook for a cycle recovery, earnings power from its defense business, and market share gains. 

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Idea Discussion

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