LSE:DPLM

Stock Analysis Report

Executive Summary

Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in North America, Europe, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

7.5%

LSE:DPLM

1.5%

GB Trade Distributors

0.4%

GB Market


1 Year Return

13.7%

LSE:DPLM

-5.5%

GB Trade Distributors

-6.2%

GB Market

DPLM outperformed the Trade Distributors industry which returned -5.5% over the past year.

DPLM outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.2% over the past year.


Share holder returns

DPLMIndustryMarket
7 Day7.5%1.5%0.4%
30 Day4.1%-1.5%-4.7%
90 Day5.2%5.3%-2.3%
1 Year16.0%13.7%-1.6%-5.5%-1.7%-6.2%
3 Year95.9%84.4%33.9%21.5%16.8%2.9%
5 Year151.8%125.5%73.2%49.9%24.2%-2.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Diploma undervalued based on future cash flows and its price relative to the stock market?

30.38x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Diploma's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Diploma's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Diploma is overvalued based on earnings compared to the GB Trade Distributors industry average.

Diploma is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Diploma is poor value based on expected growth next year.


Price Based on Value of Assets

Diploma is overvalued based on assets compared to the GB Trade Distributors industry average.


Next Steps

Future Growth

How is Diploma expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Diploma's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

Diploma's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

Diploma's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Diploma's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Diploma's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Diploma is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Diploma performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Diploma's year on year earnings growth rate has been positive over the past 5 years.

Diploma's 1-year earnings growth exceeds its 5-year average (15.9% vs 10.9%)

Diploma's earnings growth has exceeded the GB Trade Distributors industry average in the past year (15.9% vs 5.7%).


Return on Equity

Diploma has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Diploma used its assets more efficiently than the GB Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Diploma has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Diploma's financial position?


Financial Position Analysis

Diploma is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Diploma's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Diploma has no debt.

Diploma has no debt compared to 5 years ago when it was 2.8%.

Diploma has no debt, it does not need to be covered by operating cash flow.

Diploma has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Diploma has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

1.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Diploma's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.05%).

Diploma's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.65%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Johnny Thomson (47yo)

0.5yrs

Tenure

0

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


Management Age and Tenure

0.8yrs

Average Tenure

The average tenure for the Diploma management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

59yo

Average Age

The tenure for the Diploma board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUK£296,89026 Feb 19
Jonathan Thomson
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares22,000
Max PriceUK£13.50

Ownership Breakdown


Management Team

  • Nigel Lingwood (60yo)

    Group Finance Director & Executive Director

    • Tenure: 18.2yrs
    • Compensation: UK£1.81m
  • Johnny Thomson (47yo)

    CEO & Director

    • Tenure: 0.5yrs
  • Anthony Gallagher

    Group Company Secretary

    • Tenure: 6.9yrs
  • Stuart Bell

    Finance Director of International Seals

    • Tenure: 0.8yrs
  • Neil Yazdani

    Group Financial Controller

    • Tenure: 0.6yrs

Board Members

  • Charles Packshaw

    Senior Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£55.00k
  • Andy Smith (58yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£55.00k
  • Nigel Lingwood (60yo)

    Group Finance Director & Executive Director

    • Tenure: 18.2yrs
    • Compensation: UK£1.81m
  • Anne Thorburn (59yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£55.00k
  • Johnny Thomson (47yo)

    CEO & Director

    • Tenure: 0.5yrs
  • John Nicholas (62yo)

    Non-Executive Chairman

    • Tenure: 4.6yrs
    • Compensation: UK£299.13k

Company Information

Diploma PLC's company bio, 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
  • Market Cap: UK£1.753b
  • Shares outstanding: 113.18m
  • Website: https://www.diplomaplc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DPLMLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
DPLMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
DP9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in North America, Europe, and internationally. It operates through three business sectors: Life Sciences, S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 20:41
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.