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DPLM

Diploma LSE:DPLM Stock Report

Last Price

UK£22.32

Market Cap

UK£2.8b

7D

1.6%

1Y

-25.1%

Updated

26 Jun, 2022

Data

Company Financials +
DPLM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends4/6

DPLM Stock Overview

Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in the United Kingdom, rest of Europe, North America, and internationally.

Diploma Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Diploma
Historical stock prices
Current Share PriceUK£22.32
52 Week HighUK£35.04
52 Week LowUK£20.90
Beta0.49
1 Month Change-13.29%
3 Month Change-13.29%
1 Year Change-25.10%
3 Year Change45.69%
5 Year Change101.99%
Change since IPO4,127.28%

Recent News & Updates

Jun 21
With EPS Growth And More, Diploma (LON:DPLM) Makes An Interesting Case

With EPS Growth And More, Diploma (LON:DPLM) Makes An Interesting Case

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Jun 08
Diploma (LON:DPLM) Seems To Use Debt Rather Sparingly

Diploma (LON:DPLM) Seems To Use Debt Rather Sparingly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

May 19
Diploma's (LON:DPLM) Dividend Will Be Increased To UK£0.15

Diploma's (LON:DPLM) Dividend Will Be Increased To UK£0.15

Diploma PLC ( LON:DPLM ) has announced that it will be increasing its dividend on the 10th of June to UK£0.15, which...

Shareholder Returns

DPLMGB Trade DistributorsGB Market
7D1.6%1.5%2.3%
1Y-25.1%-19.8%-8.6%

Return vs Industry: DPLM underperformed the UK Trade Distributors industry which returned -19.8% over the past year.

Return vs Market: DPLM underperformed the UK Market which returned -8.6% over the past year.

Price Volatility

Is DPLM's price volatile compared to industry and market?
DPLM volatility
DPLM Average Weekly Movement6.0%
Trade Distributors Industry Average Movement4.9%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

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

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

About the Company

FoundedEmployeesCEOWebsite
19312,700Johnny Thomsonhttps://www.diplomaplc.com

Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in the United Kingdom, rest of Europe, North America, and internationally. It operates through three business sectors: Life Sciences, Seals, and Controls. The Life Sciences sector supplies clinical diagnostics instrumentation and products, consumables, specialty surgical devices, and related consumables and services to public hospitals, private clinics, pathology laboratories, scientific research, and medical segments; surgical equipment for hospital operating rooms; and distributes laboratory diagnostics, specialty medical devices, devices, equipment, and patient monitoring technologies used in operating theatres, as well as medically supervised nutrition.

Diploma Fundamentals Summary

How do Diploma's earnings and revenue compare to its market cap?
DPLM fundamental statistics
Market CapUK£2.78b
Earnings (TTM)UK£73.70m
Revenue (TTM)UK£870.70m

37.7x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DPLM income statement (TTM)
RevenueUK£870.70m
Cost of RevenueUK£552.30m
Gross ProfitUK£318.40m
Other ExpensesUK£244.70m
EarningsUK£73.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Nov 21, 2022

Earnings per share (EPS)0.59
Gross Margin36.57%
Net Profit Margin8.46%
Debt/Equity Ratio62.1%

How did DPLM perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

76%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is DPLM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DPLM?

Other financial metrics that can be useful for relative valuation.

DPLM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.5x
Enterprise Value/EBITDA19.7x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does DPLM's PE Ratio compare to its peers?

DPLM PE Ratio vs Peers
The above table shows the PE ratio for DPLM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.6x

Price-To-Earnings vs Peers: DPLM is expensive based on its Price-To-Earnings Ratio (37.7x) compared to the peer average (11.6x).


Price to Earnings Ratio vs Industry

How does DPLM's PE Ratio compare vs other companies in the Trade Distributors Industry?

Price-To-Earnings vs Industry: DPLM is expensive based on its Price-To-Earnings Ratio (37.7x) compared to the UK Trade Distributors industry average (13.4x)


Price to Earnings Ratio vs Fair Ratio

What is DPLM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DPLM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.7x
Fair PE Ratio27.2x

Price-To-Earnings vs Fair Ratio: DPLM is expensive based on its Price-To-Earnings Ratio (37.7x) compared to the estimated Fair Price-To-Earnings Ratio (27.2x).


Share Price vs Fair Value

What is the Fair Price of DPLM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DPLM (£22.32) is trading below our estimate of fair value (£28.74)

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


Price to Earnings Growth Ratio

PEG Ratio: DPLM is poor value based on its PEG Ratio (2.3x)


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Future Growth

How is Diploma forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DPLM's forecast earnings growth (16.1% per year) is above the savings rate (0.9%).

Earnings vs Market: DPLM's earnings (16.1% per year) are forecast to grow faster than the UK market (10.9% per year).

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

Revenue vs Market: DPLM's revenue (7.4% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: DPLM's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DPLM's Return on Equity is forecast to be high in 3 years time (25%)


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Past Performance

How has Diploma performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DPLM has high quality earnings.

Growing Profit Margin: DPLM's current net profit margins (8.5%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: DPLM's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: DPLM's earnings growth over the past year (47.7%) exceeds its 5-year average (7.2% per year).

Earnings vs Industry: DPLM earnings growth over the past year (47.7%) underperformed the Trade Distributors industry 80%.


Return on Equity

High ROE: DPLM's Return on Equity (13.4%) is considered low.


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Financial Health

How is Diploma's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DPLM's short term assets (£435.9M) exceed its short term liabilities (£184.2M).

Long Term Liabilities: DPLM's short term assets (£435.9M) exceed its long term liabilities (£406.7M).


Debt to Equity History and Analysis

Debt Level: DPLM's net debt to equity ratio (38%) is considered satisfactory.

Reducing Debt: DPLM's debt to equity ratio has increased from 3.2% to 62.1% over the past 5 years.

Debt Coverage: DPLM's debt is well covered by operating cash flow (34.2%).

Interest Coverage: DPLM's interest payments on its debt are well covered by EBIT (17.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DPLM's dividend (1.91%) is higher than the bottom 25% of dividend payers in the UK market (1.88%).

High Dividend: DPLM's dividend (1.91%) is low compared to the top 25% of dividend payers in the UK market (5.18%).


Stability and Growth of Payments

Stable Dividend: DPLM's dividend payments have been volatile in the past 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (76.2%), DPLM's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (49.3%), DPLM's dividend payments are well covered by cash flows.


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Management

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

3.3yrs

Average management tenure


CEO

Johnny Thomson (49 yo)

3.33yrs

Tenure

UK£5,242,000

Compensation

Mr. Jonathan Thomson, also known as Johnny, has been Chief Executive Officer and Director at Diploma PLC since February 25, 2019. He served as Group Finance Director at Compass Group International B.V. unt...


CEO Compensation Analysis

Compensation vs Market: Johnny's total compensation ($USD6.44M) is above average for companies of similar size in the UK market ($USD3.04M).

Compensation vs Earnings: Johnny's compensation has increased by more than 20% in the past year.


Leadership Team

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


Board Members

Experienced Board: DPLM's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

Diploma PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Diploma PLC
  • Ticker: DPLM
  • Exchange: LSE
  • Founded: 1931
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Implied Market Cap: UK£2.779b
  • Shares outstanding: 124.53m
  • Website: https://www.diplomaplc.com

Number of Employees


Location

  • Diploma PLC
  • 12 Charterhouse Square
  • London
  • Greater London
  • EC1M 6AX
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


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.