LSE:DLAR

Stock Analysis Report

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Executive Summary

De La Rue plc designs, manufactures, and delivers banknotes in the United Kingdom, the Middle East, Africa, Asia, the Americas, Rest of Europe, and internationally. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has De La Rue's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DLAR is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: DLAR's weekly volatility has decreased from 30% to 8% over the past year.


Market Performance


7 Day Return

-2.5%

DLAR

2.0%

GB Commercial Services

1.3%

GB Market


1 Year Return

18.4%

DLAR

-8.3%

GB Commercial Services

-6.4%

GB Market

Return vs Industry: DLAR exceeded the UK Commercial Services industry which returned -10% over the past year.

Return vs Market: DLAR exceeded the UK Market which returned -6.8% over the past year.


Shareholder returns

DLARIndustryMarket
7 Day-2.5%2.0%1.3%
30 Day21.4%8.7%14.1%
90 Day12.2%8.1%9.6%
1 Year18.4%18.4%-4.9%-8.3%-2.7%-6.4%
3 Year-71.9%-75.1%2.4%-8.7%3.9%-8.6%
5 Year-58.0%-65.3%25.2%0.7%34.6%4.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is De La Rue undervalued compared to its fair value and its price relative to the market?

50.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DLAR (£1.62) is trading below our estimate of fair value (£3.24)

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


Price To Earnings Ratio

PE vs Industry: DLAR is good value based on its PE Ratio (4.4x) compared to the GB Commercial Services industry average (36.9x).

PE vs Market: DLAR is good value based on its PE Ratio (4.4x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: DLAR is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: DLAR's PB Ratio (2.1x) is in line with the GB Commercial Services industry average.


Next Steps

Future Growth

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

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLAR's forecast earnings growth (25.9% per year) is above the savings rate (1.2%).

Earnings vs Market: DLAR's earnings (25.9% per year) are forecast to grow slower than the UK market (27% per year).

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

Revenue vs Market: DLAR's revenue (4.9% per year) is forecast to grow slower than the UK market (6.8% per year).

High Growth Revenue: DLAR's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DLAR's Return on Equity is forecast to be high in 3 years time (21.7%)


Next Steps

Past Performance

How has De La Rue performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLAR has a large one-off gain of £20.8M impacting its September 26 2020 financial results.

Growing Profit Margin: DLAR's current net profit margins (11.3%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: DLAR's earnings have declined by 8.4% per year over the past 5 years.

Accelerating Growth: DLAR's earnings growth over the past year (1374%) exceeds its 5-year average (-8.4% per year).

Earnings vs Industry: DLAR earnings growth over the past year (1374%) exceeded the Commercial Services industry -10%.


Return on Equity

High ROE: DLAR's Return on Equity (37.8%) is considered high.


Next Steps

Financial Health

How is De La Rue's financial position?


Financial Position Analysis

Short Term Liabilities: DLAR's short term assets (£173.3M) exceed its short term liabilities (£163.6M).

Long Term Liabilities: DLAR's short term assets (£173.3M) exceed its long term liabilities (£55.4M).


Debt to Equity History and Analysis

Debt Level: DLAR's debt to equity ratio (29.7%) is considered satisfactory.

Reducing Debt: DLAR had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: DLAR's debt is well covered by operating cash flow (105.2%).

Interest Coverage: DLAR's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

What is De La Rue current dividend yield, its reliability and sustainability?

0.69%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate DLAR'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 DLAR's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DLAR'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?

1.2yrs

Average management tenure


CEO

Clive Vacher

1.17yrs

Tenure

UK£495,400

Compensation

Mr. Clive Graham Vacher serves as Chief Executive Officer and Executive Director of De La Rue Plc since October 7, 2019. Mr. Vacher was the Chief Executive Officer, President at Dynex Power Inc. Mr. Vacher...


CEO Compensation Analysis

Compensation vs Market: Clive's total compensation ($USD660.96K) is about average for companies of similar size in the UK market ($USD869.06K).

Compensation vs Earnings: Insufficient data to compare Clive's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Clive Vacher
CEO & Executive Director1.17yrsUK£495.40k0.11%
£ 324.5k
Rob Harding
CFO & Executive Director0.17yrno datano data
Bryan Gray
Chief Operating Officer3.5yrsno datano data
Selva Selvaratnam
Chief Technology Officerno datano datano data
Paul Sharma
Head of Investor Relationsno datano datano data
Jane Hyde
General Counselno datano datano data
Clare Williams
Group Communications Managerno datano datano data
Constance Baroudel
Managing Director of Solutions Comprising Security Products and Identity Systemsno datano datano data
Keith Brown
Managing Director of Currency10.33yrsno datano data
Richard Hird
Chief Commercial Officer5.25yrsno datano data
Ruth Euling
Managing Director of Currency1.17yrsno datano data
Andrew Clint
Managing Director of Authentication1.17yrsno datano data

1.2yrs

Average Tenure

Experienced Management: DLAR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Clive Vacher
CEO & Executive Director1.17yrsUK£495.40k0.11%
£ 324.5k
Rob Harding
CFO & Executive Director0.17yrno datano data
Jane Hyde
General Counselno datano datano data
Nicholas Paul Bray
Independent Non-Executive Director4.42yrsUK£58.00k0.014%
£ 41.5k
Kevin Loosemore
Chairman1.17yrsUK£104.00k0.48%
£ 1.5m
Maria da Cunha da Silva
Independent Non-Executive Director19.42yrsUK£54.00k0.015%
£ 46.4k
Baroness Catherine Ashton
Non Executive Director0.25yrno datano data
Margaret Rice-Jones
Non Executive Director0.25yrno datano data

1.2yrs

Average Tenure

57yo

Average Age

Experienced Board: DLAR's board of directors are not considered experienced ( 1.2 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: DLAR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 87.6%.


Top Shareholders

Company Information

De La Rue plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: De La Rue plc
  • Ticker: DLAR
  • Exchange: LSE
  • Founded: 1813
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: UK£306.526m
  • Shares outstanding: 194.99m
  • Website: https://www.delarue.com

Number of Employees


Location

  • De La Rue plc
  • De La Rue House
  • Jays Close
  • Basingstoke
  • Hampshire
  • RG22 4BS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DELR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
DLARLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
DL1CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
DLARLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
DLUE.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 1993

Biography

De La Rue plc designs, manufactures, and delivers banknotes in the United Kingdom, the Middle East, Africa, Asia, the Americas, Rest of Europe, and internationally. It operates through three segments: Curr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 18:39
End of Day Share Price2020/12/02 00:00
Earnings2020/09/26
Annual Earnings2020/03/28


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.