LSE:DIA

Stock Analysis Report

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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. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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

Stable Share Price: DIA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DIA's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

DIA

-4.6%

GB Electrical

0.3%

GB Market


1 Year Return

8.7%

DIA

132.2%

GB Electrical

0.8%

GB Market

Return vs Industry: DIA underperformed the UK Electrical industry which returned 132.9% over the past year.

Return vs Market: DIA exceeded the UK Market which returned 1.1% over the past year.


Shareholder returns

DIAIndustryMarket
7 Day-2.9%-4.6%0.3%
30 Day1.0%-8.8%3.2%
90 Day-4.9%27.4%4.5%
1 Year8.7%8.7%133.5%132.2%6.7%0.8%
3 Year-53.2%-53.2%282.5%268.1%11.5%-1.9%
5 Year-51.3%-51.3%442.0%411.9%41.8%14.5%

Long-Term 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?

24.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DIA (£2.51) is trading below our estimate of fair value (£3.33)

Significantly Below Fair Value: DIA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DIA is unprofitable, so we can't compare its PE Ratio to the GB Electrical industry average.

PE vs Market: DIA is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DIA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DIA is good value based on its PB Ratio (1.2x) compared to the GB Electrical industry average (3x).


Next Steps

Future Growth

How is Dialight forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

112.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

Earnings vs Market: DIA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DIA's is expected to become profitable in the next 3 years.

Revenue vs Market: DIA's revenue (6.1% per year) is forecast to grow slower than the UK market (7.3% per year).

High Growth Revenue: DIA's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DIA's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Dialight performed over the past 5 years?

-42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIA is currently unprofitable.

Growing Profit Margin: DIA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DIA is unprofitable, and losses have increased over the past 5 years at a rate of 42.6% per year.

Accelerating Growth: Unable to compare DIA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DIA is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (20.1%).


Return on Equity

High ROE: DIA has a negative Return on Equity (-23.05%), as it is currently unprofitable.


Next Steps

Financial Health

How is Dialight's financial position?


Financial Position Analysis

Short Term Liabilities: DIA's short term assets (£82.3M) exceed its short term liabilities (£27.3M).

Long Term Liabilities: DIA's short term assets (£82.3M) exceed its long term liabilities (£45.9M).


Debt to Equity History and Analysis

Debt Level: DIA's debt to equity ratio (48.7%) is considered high.

Reducing Debt: DIA's debt to equity ratio has increased from 19.2% to 48.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DIA has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if DIA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

3.0yrs

Average board tenure


CEO

Fariyal Khanbabi (52 yo)

1.58yrs

Tenure

UK£421,000

Compensation

Ms. Fariyal Khanbabi has been as Group Chief Executive Officer at Dialight plc since March 05, 2020. She served as an Interim CEO at Dialight plc since August 09, 2019 until March 05, 2020 and served as it...


CEO Compensation Analysis

Compensation vs Market: Fariyal's total compensation ($USD588.88K) is above average for companies of similar size in the UK market ($USD335.50K).

Compensation vs Earnings: Fariyal's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Fariyal Khanbabi
Group CEO & Director1.58yrsUK£421.00k0.042%
£ 34.1k
Wai Chiang
CFO & Executive Director0.42yrno datano data
David Blood
Chairman1.58yrsUK£74.00kno data
Gotthard Haug
Independent Non-Executive Director0.92yrno datano data
Stephen Bird
Senior Independent Director8.08yrsUK£47.00k0.13%
£ 104.7k
Karen Oliver
Independent Non-Executive Director0.92yrno datano data
David Thomas
Independent Non-Executive Director4.92yrsUK£47.00k0.018%
£ 15.0k
Gaëlle Hotellier
Independent Non-Executive Director4.42yrsUK£64.00k0.0027%
£ 2.2k

3.0yrs

Average Tenure

60yo

Average Age

Experienced Board: DIA's board of directors are considered experienced (3 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

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£81.732m
  • Shares outstanding: 32.56m
  • 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 Analysis2021/03/03 20:17
End of Day Share Price2021/03/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.