F

Ducommun Incorporated — Earnings Quality Grade F

DCO · Industrials

Major red flags

Revenue
$825M
2025
Net Income
-$34M
2025
Gross Margin
26.9%
Free Cash Flow
-$49M
01

Screening Summary

11
Passed
3
Watch
3
Failed
-2.46
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 55 days, change +4 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 4.9%, CFFO -197.7%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -7.2% vs COGS 2.3%. Normal

B2CapEx vs Revenue

CapEx growth 7.8% vs revenue 4.9%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 65.1%. Normal

B4Gross Margin

Gross margin 26.9%, change +1.8pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 0.98. Profits backed by cash

!
C2Free Cash Flow

FCF is negative ($-0.0B)

C3Accruals Ratio

Accruals ratio = -0.0%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 13% of debt $0.3B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.4B = 57% of equity. Over 50%

!
D2Leverage

Debt/EBITDA = 137.3x (>4x). Financial stress

D3Soft Asset Growth

Other assets -12.8% vs revenue 4.9%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

!
E1Serial Acquirer FCF

FCF after acquisitions negative for 2/3 years

E2Goodwill Surge

Goodwill+Intangibles change -4% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.46 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.46
-4.0 Clean-2.22 Grey-1.78 Danger0
1.082
DSRI
AR growing faster than revenue?
0.933
GMI
Gross margin declining?
0.934
AQI
Asset quality deteriorating?
1.049
SGI
Revenue growth rate
1.046
DEPI
Depreciation slowing?
0.993
SGAI
SG&A ratio changing?
-0.0004
TATA
Accruals level
1.119
LVGI
Leverage increasing?
05

Altman Z-Score

4.77
Safe Zone
0 Distress1.102.605.0+ Safe
0.3767
Liquidity
0.3537
Cumulative profit
-0.0263
Operating efficiency
1.2633
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25