LSE:DCC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet established dividend payer.


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

Stable Share Price: DCC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

DCC

-3.7%

GB Industrials

-2.0%

GB Market


1 Year Return

-29.5%

DCC

1.6%

GB Industrials

-17.2%

GB Market

Return vs Industry: DCC underperformed the UK Industrials industry which returned 2.7% over the past year.

Return vs Market: DCC underperformed the UK Market which returned -16.4% over the past year.


Shareholder returns

DCCIndustryMarket
7 Day-1.5%-3.7%-2.0%
30 Day-15.9%-4.3%-0.5%
90 Day-26.9%-5.7%-4.4%
1 Year-28.0%-29.5%12.0%1.6%-14.1%-17.2%
3 Year-23.8%-28.2%10.1%-6.8%-10.3%-21.4%
5 Year5.2%-4.0%61.8%28.3%13.4%-12.1%

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?

4.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DCC (£51.24) is trading below our estimate of fair value (£53.52)

Significantly Below Fair Value: DCC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DCC is poor value based on its PE Ratio (20.5x) compared to the XE Industrials industry average (18.6x).

PE vs Market: DCC is poor value based on its PE Ratio (20.5x) compared to the UK market (18x).


Price to Earnings Growth Ratio

PEG Ratio: DCC is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: DCC is overvalued based on its PB Ratio (2x) compared to the XE Industrials industry average (0.9x).


Next Steps

Future Growth

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

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCC's forecast earnings growth (8.4% per year) is above the savings rate (1.2%).

Earnings vs Market: DCC's earnings (8.4% per year) are forecast to grow slower than the UK market (24.1% per year).

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

Revenue vs Market: DCC's revenue (0.1% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: DCC's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DCC's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has DCC performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DCC has high quality earnings.

Growing Profit Margin: DCC's current net profit margins (1.7%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: DCC's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: DCC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DCC had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Industrials industry average (-1%).


Return on Equity

High ROE: DCC's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is DCC's financial position?


Financial Position Analysis

Short Term Liabilities: DCC's short term assets (£4.1B) exceed its short term liabilities (£2.7B).

Long Term Liabilities: DCC's short term assets (£4.1B) exceed its long term liabilities (£2.6B).


Debt to Equity History and Analysis

Debt Level: DCC's debt to equity ratio (83.4%) is considered high.

Reducing Debt: DCC's debt to equity ratio has reduced from 147.6% to 83.4% over the past 5 years.

Debt Coverage: DCC's debt is well covered by operating cash flow (25%).

Interest Coverage: DCC's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DCC's dividend (2.84%) is higher than the bottom 25% of dividend payers in the UK market (1.84%).

High Dividend: DCC's dividend (2.84%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


Stability and Growth of Payments

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 reasonable payout ratio (58.2%), DCC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DCC's dividends in 3 years are forecast to be well covered by earnings (42.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Donal Murphy (54 yo)

3.25yrs

Tenure

UK£2,614,000

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's total compensation ($USD2.73M) is about average for companies of similar size in the UK market ($USD2.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Donal Murphy
CEO & Executive Director3.25yrsUK£2.61m0.14%
£ 7.0m
Kevin Lucey
CFO & Executive Director0.25yrno datano data
Peter Quinn
Chief Information Officer6.33yrsno datano data
Darragh Byrne
General Counsel & Company Secretaryno datano datano data
Nicola McCracken
Head of Group Human Resources4.42yrsno datano data
Conor Costigan
Managing Director of DCC Healthcare14.25yrsno datano data
Eddie O'Brien
Managing Director of DCC Retail & Oil2.75yrsno datano data
Henry Cubbon
Managing Director of DCC LPG2.75yrsno datano data
Conor Murphy
Head of Group Financial Planning & Control3.25yrsno datano data
Tim Griffin
Managing Director of DCC Technology2.33yrsno datano data

3.3yrs

Average Tenure

Experienced Management: DCC's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donal Murphy
CEO & Executive Director3.25yrsUK£2.61m0.14%
£ 7.0m
Kevin Lucey
CFO & Executive Director0.25yrno datano data
Pamela Kirby
Independent Non-Executive Director7.08yrsUK£81.00k0.0025%
£ 125.6k
Mark Breuer
Senior Independent Director0.25yrUK£81.00k0.00035%
£ 17.3k
John Moloney
Independent Non-Executive Chairman6.08yrsUK£314.00k0.0020%
£ 100.4k
Cormac McCarthy
Independent Non-Executive Director4.42yrsUK£81.00k0.0012%
£ 60.3k
Mark Ryan
Independent Non Executive Director2.92yrsUK£81.00k0.0098%
£ 486.6k
David Jukes
Independent Non-Executive Director5.58yrsUK£78.00k0.00010%
£ 4.9k
Tufan Erginbilgic
Non-Executive Director0.50yrno datano data
Jane Lodge
Independent Non-Executive Director8yrsUK£96.00k0.0031%
£ 150.8k
Caroline Dowling
Independent Non-Executive Director1.42yrsUK£72.00k0.00051%
£ 25.2k

4.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: DCC's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£4.945b
  • Shares outstanding: 98.51m
  • 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
DCCP.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

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 Analysis2020/10/27 20:37
End of Day Share Price2020/10/27 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.