LSE:DCC

Stock Analysis Report

Executive Summary

DCC plc provides sales, marketing, and support services worldwide.

Snowflake

Fundamentals

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

DCC

1.9%

GB Industrials

1.7%

GB Market


1 Year Return

5.4%

DCC

2.0%

GB Industrials

2.9%

GB Market

Return vs Industry: DCC exceeded the UK Industrials industry which returned 2% over the past year.

Return vs Market: DCC exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

DCCIndustryMarket
7 Day2.4%1.9%1.7%
30 Day-0.4%0.5%-0.7%
90 Day1.9%-0.7%-1.8%
1 Year7.6%5.4%5.6%2.0%8.0%2.9%
3 Year11.6%5.7%11.7%1.7%18.2%3.8%
5 Year124.2%105.2%50.2%27.2%35.6%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DCC (£70.18) is trading above our estimate of fair value (£52.86)

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


Price To Earnings Ratio

PE vs Industry: DCC is poor value based on its PE Ratio (25.1x) compared to the Industrials industry average (23.4x).

PE vs Market: DCC is poor value based on its PE Ratio (25.1x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: DCC is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: DCC is overvalued based on its PB Ratio (2.9x) compared to the XE Industrials industry average (1x).


Next Steps

Future Growth

How is DCC forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCC's forecast earnings growth (8% per year) is above the savings rate (1.2%).

Earnings vs Market: DCC's earnings (8% per year) are forecast to grow slower than the UK market (12.9% per year).

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

Revenue vs Market: DCC's revenue (2.4% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: DCC's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DCC's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

How has DCC performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DCC's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: DCC's earnings growth over the past year (13.6%) is below its 5-year average (16.6% per year).

Earnings vs Industry: DCC earnings growth over the past year (13.6%) exceeded the Industrials industry -6.7%.


Return on Equity

High ROE: DCC's Return on Equity (11.1%) is considered low.


Return on Assets

ROA vs Industry: DCC has a higher Return on Assets than the Industrials industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is DCC's financial position?


Financial Position Analysis

Short Term Liabilities: DCC's short term assets (£3.8B) exceeds its short term liabilities (£2.7B)

Long Term Liabilities: DCC's short term assets (3.8B) exceeds its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: DCC's debt to equity ratio (73.3%) is considered high

Reducing Debt: DCC's debt to equity ratio has reduced from 116.9% to 73.3% over the past 5 years.

Debt Coverage: DCC's debt is well covered by operating cash flow (25.8%).

Interest Coverage: DCC's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: DCC's debt is covered by short term assets (assets are 2.140910x debt).


Next Steps

Dividend

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

1.97%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.0%markettop25%5.4%industryaverage3.4%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DCC's dividend (1.97%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: DCC's dividend (1.97%) is low compared to the top 25% of dividend payers in the UK market (5.41%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.4%), DCC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DCC's dividends in 3 years are forecast to be well covered by earnings (40.5% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Donal Murphy (53yo)

2.3yrs

Tenure

UK£3,089,000

Compensation

Mr. Donal Murphy, B.Comm, BFS, MBA has been the Chief Executive Officer of DCC plc since July 14, 2017. Mr. Murphy served as Managing Director of Energy & Environmental Services Divisions at DCC plc since  ...


CEO Compensation Analysis

Compensation vs. Market: Donal has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Donal's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.3yrs

Average Tenure

53yo

Average Age

Experienced Management: DCC's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: DCC's board of directors are considered experienced (4.8 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.


Ownership Breakdown


Management Team

  • Ger Whyte

    Company Secretary & Head of Enterprise Risk Management

    • Tenure: 0yrs
  • Fergal O’Dwyer (59yo)

    CFO & Executive Director

    • Tenure: 19.7yrs
    • Compensation: UK£2.73m
  • Donal Murphy (53yo)

    CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£3.09m
  • Peter Quinn

    Chief Information Officer

    • Tenure: 5.3yrs
  • Conor Costigan (48yo)

    Managing Director of DCC Healthcare

    • Tenure: 13.3yrs
  • Michael Tracey

    Managing Director of DCC Environmental Britain & William Tracey

    • Tenure: 0yrs
  • Clive Fitzharris

    Head of Group Strategy & Development

    • Tenure: 0yrs
  • Kevin Lucey

    Head of Capital Markets

    • Tenure: 0yrs
  • Conor Murphy

    Head of Group Financial Planning & Control

    • Tenure: 0yrs
  • Nicola McCracken

    Head of Group Human Resources

    • Tenure: 3.4yrs

Board Members

  • Pam Kirby (66yo)

    Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: UK£80.00k
  • Mark Breuer (56yo)

    Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£31.00k
  • John Moloney (65yo)

    Non-Executive Chairman

    • Tenure: 5.1yrs
    • Compensation: UK£308.00k
  • Cormac McCarthy (55yo)

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£80.00k
  • Fergal O’Dwyer (59yo)

    CFO & Executive Director

    • Tenure: 19.7yrs
    • Compensation: UK£2.73m
  • Donal Murphy (53yo)

    CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£3.09m
  • Philippe Van de Walle (63yo)

    Senior Independent Director

    • Tenure: 2.8yrs
    • Compensation: UK£110.00k
  • Mark Ryan (60yo)

    Non Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£80.00k
  • David Jukes (60yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£79.00k
  • Jane Lodge (64yo)

    Non-Executive Director

    • Tenure: 7yrs
    • Compensation: UK£95.00k

Company Information

DCC plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DCC plc
  • Ticker: DCC
  • Exchange: LSE
  • Founded: 1976
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: UK£6.906b
  • Shares outstanding: 98.35m
  • Website: https://www.dcc.ie

Number of Employees


Location

  • DCC plc
  • DCC House
  • Leopardstown Road
  • Dublin
  • Co. Dublin
  • 18
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DCCP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1994
DCCLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 1994
DCCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1994
DCCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 1994

Biography

DCC plc provides sales, marketing, and support services worldwide. The company’s DCC LPG segment sells and markets liquefied petroleum gas (LPG). This segment serves approximately 0.7 million customers. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:38
End of Day Share Price2019/10/17 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.