LSE:DIA

Stock Analysis Report

Executive Summary

Dialight plc, together with its subsidiaries, primarily develops, manufactures, and supplies LED lighting solutions for use in hazardous and industrial applications in North America, EMEA, and internationally.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

8.8%

DIA

7.4%

GB Electrical

1.9%

GB Market


1 Year Return

-12.0%

DIA

22.0%

GB Electrical

2.4%

GB Market

Return vs Industry: DIA underperformed the UK Electrical industry which returned 22% over the past year.

Return vs Market: DIA underperformed the UK Market which returned 2.4% over the past year.


Shareholder returns

DIAIndustryMarket
7 Day8.8%7.4%1.9%
30 Day-2.8%0.2%-1.1%
90 Day18.2%10.7%-1.8%
1 Year-12.0%-12.0%24.7%22.0%7.4%2.4%
3 Year-51.7%-51.7%18.4%12.3%18.2%3.7%
5 Year-59.3%-59.9%226.1%-87.3%35.7%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

66.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DIA (£3.45) is trading above our estimate of fair value (£2.57)

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


Price To Earnings Ratio

PE vs Industry: DIA is poor value based on its PE Ratio (66x) compared to the Electrical industry average (18.6x).

PE vs Market: DIA is poor value based on its PE Ratio (66x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: DIA is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: DIA is good value based on its PB Ratio (1.4x) compared to the GB Electrical industry average (1.7x).


Next Steps

Future Growth

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

67.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIA's forecast earnings growth (67.8% per year) is above the savings rate (1.2%).

Earnings vs Market: DIA's earnings (67.8% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DIA's revenue (7.7% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: DIA's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DIA's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Dialight performed over the past 5 years?

-18.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DIA's earnings have declined by -18.7% per year over the past 5 years.

Accelerating Growth: DIA's earnings growth over the past year (88.9%) exceeds its 5-year average (-18.7% per year).

Earnings vs Industry: DIA earnings growth over the past year (88.9%) exceeded the Electrical industry 0.2%.


Return on Equity

High ROE: DIA's Return on Equity (2.1%) is considered low.


Return on Assets

ROA vs Industry: DIA's Return on Assets is below or equal to the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: DIA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Dialight's financial position?


Financial Position Analysis

Short Term Liabilities: DIA's short term assets (£85.1M) exceeds its short term liabilities (£33.2M)

Long Term Liabilities: DIA's short term assets (85.1M) exceeds its long term liabilities (20.5M)


Debt to Equity History and Analysis

Debt Level: DIA's debt to equity ratio (15.8%) is considered satisfactory

Reducing Debt: DIA's debt to equity ratio has increased from 11.5% to 15.8% over the past 5 years.

Debt Coverage: DIA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: DIA's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: DIA's debt is covered by short term assets (assets are 6.546150x debt).


Next Steps

Dividend

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

1.10%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.4%industryaverage2.2%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate DIA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DIA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if DIA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DIA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DIA is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DIA's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Fariyal Khanbabi (51yo)

0.2yrs

Tenure

UK£328,000

Compensation

Ms. Fariyal Khanbabi has been an Interim CEO at Dialight plc since August 09, 2019 and serves as its Chief Financial Officer. Ms. Khanbabi served as the Deputy Chief Executive Officer of Dialight PLC since ...


CEO Compensation Analysis

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

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


Management Age and Tenure

1.3yrs

Average Tenure

Experienced Management: DIA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

58yo

Average Age

Experienced Board: DIA's board of directors are considered experienced (3.3 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£61,20017 Dec 18
Martin Rapp
EntityIndividual
Role
Senior Key Executive
Shares20,000
Max PriceUK£3.08

Ownership Breakdown


Management Team

  • Marty Rapp (58yo)

    • Tenure: 0.2yrs
    • Compensation: UK£750.00k
  • Fariyal Khanbabi (51yo)

    Interim CEO

    • Tenure: 0.2yrs
    • Compensation: UK£328.00k
  • Michael Schratz

    Vice President of Marketing & Product Management

    • Tenure: 3.8yrs
  • Chris Fussell

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Kathy Sohrabi

    Director of Technology

    • Tenure: 2.4yrs

Board Members

  • David Blood (60yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: UK£42.00k
  • Steve Bird (58yo)

    Senior Indenendent Director

    • Tenure: 6.7yrs
    • Compensation: UK£49.00k
  • Fariyal Khanbabi (51yo)

    Interim CEO

    • Tenure: 0.2yrs
    • Compensation: UK£328.00k
  • Steve Good (58yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£25.00k
  • David Thomas (64yo)

    Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£47.00k
  • Gaelle Hotellier

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: UK£60.00k

Company Information

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


Key Information

  • Name: Dialight plc
  • Ticker: DIA
  • Exchange: LSE
  • Founded: 1938
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: UK£112.260m
  • Shares outstanding: 32.54m
  • Website: https://www.dialight.com

Number of Employees


Location

  • Dialight plc
  • Leaf C
  • Tower 42
  • London
  • Greater London
  • EC2N 1HQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIALSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 1993
DIAL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1993
DIALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 1993
3HQBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 1993

Biography

Dialight plc, together with its subsidiaries, primarily develops, manufactures, and supplies LED lighting solutions for use in hazardous and industrial applications in North America, EMEA, and internationa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:35
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.