Ducommun Incorporated (DCO) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, DCO scores 40 out of 100, earning a letter grade of D- and the verdict label "Roarable Sell — Vulnerable Balance Sheet & Flow." The five pillars are scored as follows:

• Fundamental cash engine: 7 / 20. The rating cites ROIC of -3.1% and an FCF yield of -1.92%. For an investor, this indicates the business is not currently generating returns above its cost of capital or positive free cash flow relative to its market value. Any upside case would depend on a turnaround in operating performance rather than on existing cash generation.
• Whale / 13F flow: 10 / 20. The rating references institutional accumulation and options positioning. This is a moderate score, suggesting institutional interest is present but not strongly one-directional.
• Insider conviction: 3 / 20. The rating references SEC Form 4 and Congressional PTR cluster flow. This is the weakest pillar relative to its maximum and signals limited insider-side confidence signals in the source data.
• Macro regime fit: 8 / 20. The rating cites a beta of 1.0 and sector sensitivity. A beta of 1.0 means the stock is modeled to move in line with the broader market; the score reflects limited regime-based tailwinds.
• Forensic balance sheet: 12 / 20. The rating cites an Altman Z-Score of 4.43, a Piotroski F-Score of 5/9, and a Debt/Equity ratio of 0.45. The Altman Z-Score figure sits in a range typically associated with lower near-term distress risk, and the Piotroski score is mid-range, so the balance sheet is the relatively stronger pillar, though not decisively so.

Valuation tradeoffs: Several valuation multiples (P/E, forward P/E, EV/EBITDA, EPS) are not available in source data, so a conventional earnings-based valuation cannot be assessed from these sources. Reported FY 2025 net income and operating income were negative, which is consistent with the negative margins and ROIC above. A prospective investor should weigh that the price of $168.06 sits within a 52-week range of $84.76 to $210.39, without earnings support in the provided data to anchor it.

Upside drivers (as implied by the data): A return to positive operating income, as seen in FY 2024 ($42.2M), would be the most direct path to improving the cash-engine and ROIC pillars.

Downside risks: The FY 2025 swing to negative net income (-$37.4M) and negative free cash flow (-$48.6M), combined with debt rising to $300.0M from $230.7M in FY 2024, represents the principal vulnerability the rating identifies.

Ducommun Incorporated (DCO) is a NYSE-listed issuer classified in the Industrials sector and the Military/Government/Technical industry, per the company profile. The source data does not describe specific products, customers, or revenue-generation mechanics beyond this classification. Revenue figures per the SEC financials are reported in the Financial Trend section below.

Per the SEC financials, revenue rose from $757.0M in FY 2023 to $824.8M in FY 2025, while operating income moved from $28.9M to $42.2M in FY 2024 before turning to $-35.7M in FY 2025. Per the market data, gross margin is 26.9%, operating margin is -4.3%, and net margin is -4.5%. ROIC is -3.1%. The forensic metrics per the Roarable RQD rating include an Altman Z-Score of 4.43 and a Piotroski F-Score of 5/9, with Debt/Equity at 0.45. Reported debt grew from $230.7M to $300.0M between FY 2024 and FY 2025 against cash of $45.3M.

Per the recent news and catalysts section, six items were recorded, each tagged with a YELLOW light and a MARKET WIRE impact label:

• Yahoo Finance coverage of DCO trading up on the day.
• MarketBeat coverage describing a "Moderate Buy" rating from sell-side brokerages.
• Yahoo Finance Singapore notice of a Third Quarter Conference Call.
• Stock Titan report of a BlackRock passive stake of 799,271 DCO shares above the 5% threshold.
• Stock Traders Daily algorithmic-framework commentary.
• MarketBeat report of shares crossing above the 200-day moving average.

Watch items: the BlackRock stake and the Third Quarter Conference Call are the most specific catalysts in the feed; the remaining items are general market-wire commentary. No proprietary signals are recorded in the Butterfly Supply-Chain Graph.

Per the Butterfly Supply-Chain Graph, the supply chain is recorded as NONE, with no butterfly links and no proprietary signals. Upstream and downstream dependencies cannot be identified from the source data. Sector correlations are limited to the Industrials classification and the Military/Government/Technical industry. A prospective investor should note that the absence of mapped supply-chain links means second-order bottleneck analysis is not supported by these sources.

• What are the valuation multiples (P/E, forward P/E, EV/EBITDA, EPS TTM) given that earnings are negative in FY 2025?
• What drove the swing from positive FY 2024 operating income ($42.2M) to negative FY 2025 operating income ($-35.7M)?
• What is the composition and maturity schedule of the $300.0M debt balance, and how is it being serviced given negative FCF?
• What are the cash and debt figures for FY 2023, which are recorded as N/A?
• What are the specific sell-side price targets and rating breakdown behind the "Moderate Buy" headline?