LSE:DCC

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 10.11% per year

Pays a high and reliable dividend of 2.18%

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with adequate balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

DCC

-1.9%

GB Industrials

-0.4%

GB Market


1 Year Return

-5.1%

DCC

12.6%

GB Industrials

6.6%

GB Market

Return vs Industry: DCC underperformed the UK Industrials industry which returned 12.7% over the past year.

Return vs Market: DCC underperformed the UK Market which returned 6.2% over the past year.


Shareholder returns

DCCIndustryMarket
7 Day0.5%-1.9%-0.4%
30 Day-1.7%-7.0%-1.7%
90 Day-1.0%-3.8%5.4%
1 Year-3.1%-5.1%16.2%12.6%12.4%6.6%
3 Year-1.6%-7.0%4.2%-5.6%18.5%3.4%
5 Year79.3%64.2%44.7%22.7%35.8%4.7%

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?

26.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DCC (£63.54) is trading above our estimate of fair value (£52.13)

Significantly Below Fair Value: 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 (26.9x) compared to the Industrials industry average (16.4x).

PE vs Market: DCC is poor value based on its PE Ratio (26.9x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: DCC is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: DCC is overvalued based on its PB Ratio (2.6x) compared to the XE Industrials industry average (1.1x).


Next Steps

Future Growth

How is DCC forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCC's forecast earnings growth (10.1% per year) is above the savings rate (0.5%).

Earnings vs Market: DCC's earnings (10.1% per year) are forecast to grow slower than the UK market (12.2% per year).

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

Revenue vs Market: DCC's revenue (2.1% per year) is forecast to grow slower than the UK market (3.5% per year).

High Growth Revenue: DCC's revenue (2.1% 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 (13.2%).


Next Steps

Past Performance

How has DCC performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DCC has high quality earnings.

Growing Profit Margin: DCC's current net profit margins (1.5%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: DCC's earnings have grown by 14.9% 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 (-3.6%) over the past year, making it difficult to compare to the Industrials industry average (7.6%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DCC's financial position?


Financial Position Analysis

Short Term Liabilities: DCC's short term assets (£3.9B) exceed its short term liabilities (£2.6B).

Long Term Liabilities: DCC's short term assets (£3.9B) exceed its long term liabilities (£2.6B).


Debt to Equity History and Analysis

Debt Level: DCC's debt to equity ratio (89.5%) is considered high.

Reducing Debt: DCC's debt to equity ratio has reduced from 156.7% to 89.5% over the past 5 years.

Debt Coverage: DCC's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: DCC's interest payments on its debt are well covered by EBIT (8.9x 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 1.8x debt).


Next Steps

Dividend

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

2.18%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.8%markettop25%5.1%industryaverage3.3%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: DCC's dividend (2.18%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: DCC's dividend (2.18%) is low compared to the top 25% of dividend payers in the UK market (5.15%).


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 (60.4%), 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 (46.3% payout ratio).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Donal Murphy (53yo)

2.6yrs

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's total compensation ($USD3.34M) is about average for companies of similar size in the UK market ($USD3.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Donal Murphy
CEO & Executive Director2.6yrsUK£3.09m0.13% £7.9m
Fergal O'Dwyer
CFO & Executive Director20yrsUK£2.73m0.21% £13.4m
Gerard Whyte
Company Secretary & Head of Enterprise Risk Management0yrsno data0.16% £9.8m
Peter Quinn
Chief Information Officer5.7yrsno datano data
Nicola McCracken
Head of Group Human Resources3.8yrsno datano data
Clive Fitzharris
Head of Group Strategy & Development0yrsno datano data
Kevin Lucey
Head of Capital Markets0yrsno datano data
Conor Murphy
Head of Group Financial Planning & Control0yrsno datano data
Conor Costigan
Managing Director of DCC Healthcare13.6yrsno datano data
Michael Tracey
Managing Director of DCC Environmental Britain & William Tracey0yrsno datano data

5.7yrs

Average Tenure

53yo

Average Age

Experienced Management: DCC's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donal Murphy
CEO & Executive Director2.6yrsUK£3.09m0.13% £7.9m
Fergal O'Dwyer
CFO & Executive Director20yrsUK£2.73m0.21% £13.4m
Pamela Kirby
Non-Executive Director6.4yrsUK£80.00k0.0025% £158.8k
Mark Breuer
Non-Executive Director1.3yrsUK£31.00k0.00035% £21.9k
John Moloney
Non-Executive Chairman5.4yrsUK£308.00k0.0020% £126.9k
Cormac McCarthy
Non-Executive Director3.8yrsUK£80.00k0.0012% £76.3k
Philippe Van de Walle
Senior Independent Director3.1yrsUK£110.00k0.00068% £42.5k
Mark Ryan
Non Executive Director2.3yrsUK£80.00k0.0098% £615.8k
David Jukes
Non-Executive Director4.9yrsUK£79.00k0.00010% £6.3k
Jane Lodge
Non-Executive Director7.3yrsUK£95.00k0.0031% £190.7k

5.2yrs

Average Tenure

60yo

Average Age

Experienced Board: DCC's board of directors are considered experienced (5.2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.1%.


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£6.252b
  • Shares outstanding: 98.40m
  • 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. Its DCC Retail & Oil segment markets, sells, and retails transport and commercial fuels, heating oils, and related products and services; operates retail petrol stations; resells fuel cards; distributes oil; and provides inbound logistics, storage and filling, and outbound logistics services. This segment serves domestic, agricultural, commercial/industrial, forecourt, aviation, and marine customers. The company’s DCC Healthcare segment offers products and services to healthcare providers, and health and beauty brand owners; outsourced contract manufacturing service to the health and beauty sector; nutrition products, such as vitamins and health supplements; and beauty products, including skin care, hair care, bath, and body products. It provides solid dose and injectable products across a range of therapy areas, including beta lactam and other antibiotics, pain management, hematology, anesthesia, addiction, and emergency medicine; and product development, formulation, manufacturing, and packaging services. In addition, this segment procures and sells exempt medicinal products. Its DCC Technology segment distributes consumer technology products, including smart home products, gaming consoles, peripherals and software, wearable technology, and accessories; business and enterprise technology products, such as tablets, notebooks, and PCs; networking and security products; communication products comprising smartphones, feature phones, accessories, and unified communication products; and servers and storage products, audio visual products, printers, peripherals, cables and connectors, and consumables to retailers, resellers, and integrators. It also provides supply chain services. DCC plc was founded in 1976 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 20:48
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
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.