Is DCO a high-quality business?

AlphaMadera's AlphaQuality grade scores Ducommun Incorporated on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how DCO compares to a Buffett-style quality bar.

What is Ducommun Incorporated's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to DCO based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes DCO a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

DCO - Ducommun Incorporated

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $141.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C- 45.2 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C- 48.3

5yr Avg ROIC 6.1% 41/100
Operating Margin Trend +0.38 pp/yr 66/100

Capital Efficiency

Weight: 15%

F 23.6

5yr Avg ROE 5.3% 36/100
5yr Share-Count CAGR 5.1% 0/100

Growth Quality

Weight: 10%

C- 50.0

5yr Revenue CAGR 6.3% 67/100
5yr EPS CAGR -42.5% 0/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

D- 30.3

5yr FCF Margin -0.5% 22/100
5yr FCF/NI Conversion 0.42x 40/100

Balance Sheet

Weight: 25%

B 69.1

Net Debt / EBITDA 2.80x 54/100
Interest Coverage (EBIT/Int) 5.82x 68/100
Altman Z-Score 4.42 97/100

Stability

Weight: 20%

D 38.3

EPS Volatility (σ/μ) 1.05 0/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 0/5 100/100

0 of 2 gurus held; 3 full exits.

Holders: 0 -2
Avg Δ position: —
New buys: 0
Full exits: 3

Cooperman sold -100%
Dalio sold -100%
Wood sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.