DB:DP9

Stock Analysis Report

Executive Summary

Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in North America, Europe, and internationally.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.

Share Price & News

How has Diploma's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

DP9

1.6%

DE Trade Distributors

2.4%

DE Market


1 Year Return

n/a

DP9

-9.7%

DE Trade Distributors

2.3%

DE Market

Return vs Industry: Insufficient data to determine how DP9 performed against the German Trade Distributors industry.

Return vs Market: Insufficient data to determine how DP9 performed against the German Market.


Shareholder returns

DP9IndustryMarket
7 Day2.2%1.6%2.4%
30 Day3.6%-6.3%-0.2%
90 Day17.0%1.2%0.6%
1 Yearn/a-7.1%-9.7%5.5%2.3%
3 Yearn/a-6.7%-13.4%18.9%8.6%
5 Yearn/a30.4%16.3%44.8%25.1%

Price Volatility Vs. Market

How volatile is Diploma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Diploma undervalued compared to its fair value and its price relative to the market?

32.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DP9 (€18.52) is trading above our estimate of fair value (€15.28)

Significantly Undervalued: DP9 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DP9 is poor value based on its PE Ratio (32.2x) compared to the Trade Distributors industry average (14.7x).

PE vs Market: DP9 is poor value based on its PE Ratio (32.2x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: DP9 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: DP9 is overvalued based on its PB Ratio (6.3x) compared to the DE Trade Distributors industry average (1.3x).


Next Steps

Future Growth

How is Diploma forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DP9's forecast earnings growth (9.9% per year) is above the savings rate (0.2%).

Earnings vs Market: DP9's earnings (9.9% per year) are forecast to grow slower than the German market (12.6% per year).

High Growth Earnings: DP9's earnings are forecast to grow, but not significantly.

Revenue vs Market: DP9's revenue (5.3% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: DP9's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DP9's Return on Equity is forecast to be high in 3 years time (23.6%)


Next Steps

Past Performance

How has Diploma performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DP9's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: DP9's earnings growth over the past year (15.9%) exceeds its 5-year average (10.9% per year).

Earnings vs Industry: DP9 earnings growth over the past year (15.9%) underperformed the Trade Distributors industry 17.4%.


Return on Equity

High ROE: DP9's Return on Equity (19.6%) is considered low.


Return on Assets

ROA vs Industry: DP9 has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: DP9 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Diploma's financial position?


Financial Position Analysis

Short Term Liabilities: DP9's short term assets (£205.6M) exceeds its short term liabilities (£95.3M)

Long Term Liabilities: DP9's short term assets (205.6M) exceeds its long term liabilities (18.8M)


Debt to Equity History and Analysis

Debt Level: DP9 is debt free.

Reducing Debt: DP9 has no debt compared to 5 years ago when its debt to equity ratio was 2.8%.

Debt Coverage: DP9 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DP9 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DP9 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DP9's debt is covered by short term assets.


Next Steps

Dividend

What is Diploma's current dividend yield, its reliability and sustainability?

1.55%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.9%industryaverage2.9%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DP9's dividend (1.55%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: DP9's dividend (1.55%) is low compared to the top 25% of dividend payers in the German market (3.86%).

Stable Dividend: DP9's dividends per share have been stable in the past 10 years.

Growing Dividend: DP9's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.6%), DP9's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DP9's dividends in 3 years are forecast to be well covered by earnings (45.3% payout ratio).


Next Steps

Management

What is the CEO of Diploma's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Johnny Thomson (47yo)

0.7yrs

Tenure

0

Mr. Jonathan Thomson, also known as Johnny, has been Chief Executive Officer at Diploma PLC since February 25, 2019. He served as Group Finance Director at Compass Group International B.V. until April 2019 ...


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: DP9's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

4.7yrs

Average Tenure

59yo

Average Age

Experienced Board: DP9's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£341,85726 Feb 19
Jonathan Thomson
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares22,000
Max PriceUK£15.54

Ownership Breakdown


Management Team

  • Nigel Lingwood (60yo)

    Group Finance Director & Executive Director

    • Tenure: 18.3yrs
    • Compensation: UK£1.81m
  • Johnny Thomson (47yo)

    CEO & Director

    • Tenure: 0.7yrs
  • Anthony Gallagher

    Group Company Secretary

    • Tenure: 7.1yrs
  • Stuart Bell

    Finance Director of International Seals

    • Tenure: 1yrs
  • Neil Yazdani

    Group Financial Controller

    • Tenure: 0.8yrs

Board Members

  • Charles Packshaw

    Senior Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£55.00k
  • Andy Smith (58yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£55.00k
  • Nigel Lingwood (60yo)

    Group Finance Director & Executive Director

    • Tenure: 18.3yrs
    • Compensation: UK£1.81m
  • Anne Thorburn (59yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£55.00k
  • Johnny Thomson (47yo)

    CEO & Director

    • Tenure: 0.7yrs
  • John Nicholas (62yo)

    Non-Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: UK£299.13k

Company Information

Diploma PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Diploma PLC
  • Ticker: DP9
  • Exchange: DB
  • Founded: 1931
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£1.856b
  • Listing Market Cap: UK£2.118b
  • Shares outstanding: 113.18m
  • Website: https://www.diplomaplc.com

Number of Employees


Location

  • Diploma PLC
  • 12 Charterhouse Square
  • London
  • Greater London
  • EC1M 6AX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DPLMLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
DPLMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
DP9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in North America, Europe, and internationally. It operates through three business sectors: Life Sciences, S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 21:24
End of Day Share Price2019/10/14 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.