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De La Rue

LSE:DLAR
Snowflake Description

Undervalued with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DLAR
LSE
£306M
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

De La Rue plc designs, manufactures, and delivers banknotes in the United Kingdome, the Middle East, Africa, Asia, the Americas, Rest of Europe, and internationally. The last earnings update was 27 days ago. More info.


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  • De La Rue has significant price volatility in the past 3 months.
DLAR Share Price and Events
7 Day Returns
0.5%
LSE:DLAR
1.9%
GB Commercial Services
0.3%
GB Market
1 Year Returns
-41.8%
LSE:DLAR
-2.4%
GB Commercial Services
-1.9%
GB Market
DLAR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
De La Rue (DLAR) 0.5% -1.8% -33.1% -41.8% -53.9% -60.8%
GB Commercial Services 1.9% 0% 2% -2.4% 12% -5.6%
GB Market 0.3% 1.9% 0.4% -1.9% 11.4% 6.7%
1 Year Return vs Industry and Market
  • DLAR underperformed the Commercial Services industry which returned -2.4% over the past year.
  • DLAR underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.9% over the past year.
Price Volatility
DLAR
Industry
5yr Volatility vs Market
Related Companies

DLAR Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of De La Rue to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for De La Rue.

LSE:DLAR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:DLAR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.671 (1 + (1- 19%) (38.81%))
0.921
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.921 * 6.65%)
7.35%

Discounted Cash Flow Calculation for LSE:DLAR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for De La Rue is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:DLAR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.35%)
2020 0.85 Analyst x2 0.79
2021 11.05 Analyst x2 9.59
2022 19.70 Analyst x2 15.92
2023 27.54 Est @ 39.78% 20.73
2024 35.30 Est @ 28.21% 24.76
2025 42.41 Est @ 20.12% 27.71
2026 48.53 Est @ 14.45% 29.54
2027 53.62 Est @ 10.48% 30.40
2028 57.75 Est @ 7.71% 30.50
2029 61.08 Est @ 5.76% 30.05
Present value of next 10 years cash flows £219.98
LSE:DLAR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £61.08 × (1 + 1.23%) ÷ (7.35% – 1.23%)
£1,009.46
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,009.46 ÷ (1 + 7.35%)10
£496.57
LSE:DLAR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £219.98 + £496.57
£716.56
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £716.56 / 103.84
£6.9
LSE:DLAR Discount to Share Price
Calculation Result
Value per share (GBP) From above. £6.90
Current discount Discount to share price of £2.95
= -1 x (£2.95 - £6.90) / £6.90
57.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price De La Rue is available for.
Intrinsic value
>50%
Share price is £2.95 vs Future cash flow value of £6.9
Current Discount Checks
For De La Rue to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • De La Rue's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • De La Rue's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for De La Rue's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are De La Rue's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:DLAR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in GBP £0.19
LSE:DLAR Share Price ** LSE (2019-07-18) in GBP £2.95
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PE Ratio Median Figure of 29 Publicly-Listed Commercial Services Companies 18.75x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 791 Publicly-Listed Companies 16.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of De La Rue.

LSE:DLAR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:DLAR Share Price ÷ EPS (both in GBP)

= 2.95 ÷ 0.19

15.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • De La Rue is good value based on earnings compared to the GB Commercial Services industry average.
  • De La Rue is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does De La Rue's expected growth come at a high price?
Raw Data
LSE:DLAR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
19.5%per year
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Commercial Services Companies 1.24x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 572 Publicly-Listed Companies 1.43x

*Line of best fit is calculated by linear regression .

LSE:DLAR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.62x ÷ 19.5%

0.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • De La Rue is good value based on expected growth next year.
Price based on value of assets
What value do investors place on De La Rue's assets?
Raw Data
LSE:DLAR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in GBP £-0.38
LSE:DLAR Share Price * LSE (2019-07-18) in GBP £2.95
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PB Ratio Median Figure of 36 Publicly-Listed Commercial Services Companies 1.71x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.51x
LSE:DLAR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:DLAR Share Price ÷ Book Value per Share (both in GBP)

= 2.95 ÷ -0.38

-7.82x

* Primary Listing of De La Rue.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • De La Rue has negative assets, we can't compare the value of its assets to the GB Commercial Services industry average.
X
Value checks
We assess De La Rue's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. De La Rue has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DLAR Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is De La Rue expected to grow at an attractive rate?
  • De La Rue's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • De La Rue's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • De La Rue's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:DLAR Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:DLAR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 19.5%
LSE:DLAR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -11.8%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 29.8%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:DLAR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:DLAR Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 421 41 36 2
2021-03-31 414 32 30 3
2020-03-31 522 28 26 3
2019-03-31 511 46 43 3
LSE:DLAR Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-30 565 -7 19
2018-12-30 536 17 52
2018-09-29 507 41 86
2018-06-29 500 52 90
2018-03-31 494 63 95
2017-09-30 517 47 50
2017-06-30 489 53 49
2017-03-25 462 59 48
2016-09-24 455 41 36
2016-06-24 455 48 41

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • De La Rue's earnings are expected to grow by 19.5% yearly, however this is not considered high growth (20% yearly).
  • De La Rue's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:DLAR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from De La Rue Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DLAR Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 0.35 0.35 0.34 2.00
2021-03-31 0.28 0.30 0.27 3.00
2020-03-31 0.24 0.36 0.17 3.00
2019-03-31 0.42 0.45 0.39 2.00
LSE:DLAR Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-30 0.19
2018-12-30 0.51
2018-09-29 0.84
2018-06-29 0.89
2018-03-31 0.94
2017-09-30 0.49
2017-06-30 0.48
2017-03-25 0.47
2016-09-24 0.35
2016-06-24 0.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if De La Rue will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess De La Rue's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
De La Rue has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DLAR Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare De La Rue's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • De La Rue's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • De La Rue's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • De La Rue's 1-year earnings growth is negative, it can't be compared to the GB Commercial Services industry average.
Earnings and Revenue History
De La Rue's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from De La Rue Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DLAR Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 564.80 19.40 131.20 12.40
2018-12-30 535.80 52.45 143.90 12.10
2018-09-29 506.80 85.50 156.60 11.80
2018-06-29 500.35 90.45 157.65 11.80
2018-03-31 493.90 95.40 158.70 11.80
2017-09-30 516.90 49.60 145.70 10.40
2017-06-30 489.30 48.75 145.90 10.40
2017-03-25 461.70 47.90 146.10 10.40
2016-09-24 455.30 35.50 9.90 9.00
2016-06-24 454.90 41.45 9.95 9.00
2016-03-26 454.50 47.40 10.00 9.00
2015-09-26 396.60 43.80 10.80 6.80
2015-06-26 409.70 37.95 10.75 6.80
2015-03-28 422.80 32.10 10.70 6.80
2014-12-28 483.15 36.65 164.55 10.35
2014-09-27 494.20 39.00 164.10 11.10
2014-06-27 503.75 43.15 164.10 11.10
2014-03-29 513.30 47.30 164.10 11.10
2013-12-29 492.80 42.20 165.65 10.75
2013-09-28 472.30 37.10 167.20 10.40
2013-06-28 478.00 37.15 167.05 10.40
2013-03-30 483.70 37.20 166.90 10.40
2012-12-30 509.65 35.50 166.50 10.50
2012-09-29 535.60 33.80 166.10 10.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if De La Rue has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • De La Rue used its assets more efficiently than the GB Commercial Services industry average last year based on Return on Assets.
  • De La Rue has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess De La Rue's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
De La Rue has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DLAR Health

 How is De La Rue's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up De La Rue's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • De La Rue's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • De La Rue's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of De La Rue's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • De La Rue has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from De La Rue Company Filings, last reported 3 months ago.

LSE:DLAR Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 -29.20 118.70 12.20
2018-12-30 -29.20 118.70 12.20
2018-09-29 -26.90 102.90 9.80
2018-06-29 -26.90 102.90 9.80
2018-03-31 -20.70 63.90 15.50
2017-09-30 -109.80 144.70 9.00
2017-06-30 -109.80 144.70 9.00
2017-03-25 -142.80 136.30 15.40
2016-09-24 -267.30 127.10 11.60
2016-06-24 -267.30 127.10 11.60
2016-03-26 -145.60 146.60 40.50
2015-09-26 -126.10 155.70 52.40
2015-06-26 -126.10 155.70 52.40
2015-03-28 -146.90 141.80 30.80
2014-12-28 -146.90 141.80 30.80
2014-09-27 -117.90 159.30 32.50
2014-06-27 -117.90 159.30 32.50
2014-03-29 -70.40 147.80 57.90
2013-12-29 -70.40 147.80 57.90
2013-09-28 -104.40 130.00 41.30
2013-06-28 -104.40 130.00 41.30
2013-03-30 -66.60 101.50 24.80
2012-12-30 -66.60 101.50 24.80
2012-09-29 -44.10 88.20 24.30
  • De La Rue has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if De La Rue's debt level has increased considering it has negative shareholder equity.
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 16x coverage).
X
Financial health checks
We assess De La Rue's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. De La Rue has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DLAR Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.49%
Current annual income from De La Rue dividends. Estimated to be 8.49% next year.
If you bought £2,000 of De La Rue shares you are expected to receive £170 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • De La Rue's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.94%).
  • De La Rue's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.46%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:DLAR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 2.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:DLAR Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.25 2.00
2021-03-31 0.25 3.00
2020-03-31 0.25 3.00
2019-03-31 0.25 3.00
LSE:DLAR Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-21 0.250 8.363
2019-05-30 0.250 8.278
2018-07-26 0.250 5.586
2017-11-24 0.250 4.421
2017-07-20 0.250 3.827
2016-07-21 0.250 4.041
2015-07-23 0.250 5.303
2014-06-19 0.423 7.380
2014-05-28 0.423 4.945
2013-07-25 0.423 4.856
2012-06-21 0.423 4.330
2012-06-20 0.423 4.184
2011-05-24 0.423 4.860
2010-05-25 0.423 5.633
2010-05-24 0.423 4.750
2009-11-24 0.415 4.380
2009-05-20 0.411 4.621
2008-11-26 0.286 3.031

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of De La Rue's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess De La Rue's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can De La Rue afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. De La Rue has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DLAR Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Martin Sutherland
COMPENSATION £954,000
AGE 49
TENURE AS CEO 4.8 years
CEO Bio

Mr. Martin Sutherland has been the Chief Executive Officer and Executive Director of De La Rue plc since October 13, 2014. Prior to joining De La Rue in 2014, Mr. Sutherland held senior management roles at BAE Systems plc and Detica plc. Mr. Sutherland served as Managing Director of Detica Group plc since October 2008 and served as its Business Unit Director for the Public Sector Business Unit since April 2003. Mr. Martin served as Managing Director of BAE Systems Applied Intelligence Limited since October 2008. Mr. Martin joined Detica Group PLC in 1996. He served as the Head of Detica's Security and Risk Group in 2001 and has expertise to providing advice to many leading UK organisations and to sensitive areas within HM Government in particular. Prior to Detica, he worked for Andersen Consulting and British Telecom. He has been Director of Detica Group Holdings (Ireland) Limited since March 7, 2011. He has been Independent Non-Executive Director at Forterra plc since May 23, 2017. He serves as Director of Detica France SAS, Detica Limited, Detica Holdings Limited, Detica Consulting Group Limited, Detica Consulting LLC, Detica Services, Inc., Detica Group Limited, Detica System Integration Limited, Inforenz Limited, m.a. International Limited, m.a. Management Services Limited, m.a. Ventures Limited, Primary Key Limited, Rubus Limited, Streamshield Limited, Streamshield Networks Limited and Detica International Limited. He served as a Director of Detica (IPR) Limited and Detica Market Solutions Limited.

CEO Compensation
  • Martin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Martin's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the De La Rue management team in years:

5
Average Tenure
49
Average Age
  • The average tenure for the De La Rue management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Martin Sutherland

TITLE
CEO & Director
COMPENSATION
£954K
AGE
49
TENURE
4.8 yrs

Helen Willis

TITLE
CFO & Executive Director
COMPENSATION
£365K
TENURE
1.3 yrs

Bryan Gray

TITLE
Chief Operating Officer
TENURE
2.1 yrs

Selva Selvaratnam

TITLE
Chief Technology Officer

Lili Huang

TITLE
Head of Investor Relations

Ed Peppiatt

TITLE
General Counsel & Company Secretary
AGE
52
TENURE
10.3 yrs

Clare Williams

TITLE
Group Communications Manager

Easton Jo

TITLE
Group Director of Human Resources
TENURE
5.3 yrs

Constance Baroudel

TITLE
Managing Director of Solutions Comprising Security Products and Identity Systems
AGE
45

Keith Brown

TITLE
Managing Director of Currency
TENURE
8.9 yrs
Board of Directors Tenure

Average tenure and age of the De La Rue board of directors in years:

4
Average Tenure
58.5
Average Age
  • The tenure for the De La Rue board of directors is about average.
Board of Directors

Philip Rogerson

TITLE
Non-Executive Chairman
COMPENSATION
£194K
AGE
74
TENURE
7 yrs

Martin Sutherland

TITLE
CEO & Director
COMPENSATION
£954K
AGE
49
TENURE
4.8 yrs

Helen Willis

TITLE
CFO & Executive Director
COMPENSATION
£365K
TENURE
1 yrs

Sabri Challah

TITLE
Independent Non-Executive Director
COMPENSATION
£58K
TENURE
4 yrs

Nick Bray

TITLE
Independent Non-Executive Director
COMPENSATION
£58K
AGE
54
TENURE
3 yrs

Andy Stevens

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£58K
AGE
63

Maria da Cunha

TITLE
Independent Non-Executive Director
COMPENSATION
£50K
TENURE
4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
19. Dec 18 Buy Easton Jo Individual 19. Dec 18 19. Dec 18 2,000 £4.16 £8,325
14. Dec 18 Sell Easton Jo Individual 12. Dec 18 12. Dec 18 -4,656 £4.19 £-19,509
14. Dec 18 Buy Easton Jo Individual 12. Dec 18 12. Dec 18 4,620 £4.20 £19,387
X
Management checks
We assess De La Rue's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. De La Rue has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DLAR News

Simply Wall St News

Do Investors Have Good Reason To Be Wary Of De La Rue plc's (LON:DLAR) 8.5% Dividend Yield?

Dividend paying stocks like De La Rue plc (LON:DLAR) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. In this case, De La Rue likely looks attractive to investors, given its 8.5% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. Remember though, given the recent drop in its share price, De La Rue's yield will look higher, even though the market may now be expecting a decline in its long-term prospects. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Click the interactive chart for our full dividend analysis LSE:DLAR Historical Dividend Yield, July 15th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. De La Rue paid out 133% of its profit as dividends, over the trailing twelve month period. Unless there are extenuating circumstances, from the perspective of an investor who hopes to own the company for many years, a payout ratio of above 100% is definitely a concern. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Unfortunately, while De La Rue pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. Is De La Rue's Balance Sheet Risky? As De La Rue's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. … Dividend Growth Potential Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. … Conclusion To summarise, shareholders should always check that De La Rue's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Is De La Rue plc's (LON:DLAR) Future Growth Already Accounted For In Today's Price?

De La Rue plc (LON:DLAR) is considered a high growth stock. … De La Rue is poised for extremely high earnings growth in the near future. … A PE ratio of 16.2x and expected year-on-year earnings growth of 19% give De La Rue a low PEG ratio of 0.83x.

Simply Wall St -

Estimating The Fair Value Of De La Rue plc (LON:DLAR)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of De La Rue plc (LON:DLAR) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (£, Millions) £14.50 £5.70 £17.10 £19.70 £21.72 £23.36 £24.68 £25.75 £26.63 £27.36 Growth Rate Estimate Source Analyst x2 Analyst x1 Analyst x1 Analyst x2 Est @ 10.27% Est @ 7.55% Est @ 5.66% Est @ 4.33% Est @ 3.4% Est @ 2.75% Present Value (£, Millions) Discounted @ 7.42% £13.50 £4.94 £13.80 £14.79 £15.19 £15.21 £14.96 £14.52 £13.98 £13.37 Present Value of 10-year Cash Flow (PVCF)= £134.25m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = UK£27m × (1 + 1.2%) ÷ (7.4% – 1.2%) = UK£447m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = £UK£447m ÷ ( 1 + 7.4%)10 = £218.54m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is £352.79m.

Simply Wall St -

Will De La Rue plc's (LON:DLAR) Earnings Grow In The Next Couple Of Years?

Below, I've laid out key numbers on how market analysts perceive De La Rue's earnings growth outlook over the next few years and whether the future looks brighter. … Check out our latest analysis for De La Rue Market analysts' consensus outlook for next year seems buoyant, with earnings growing by a robust 38%. … LSE:DLAR Past and Future Earnings, June 9th 2019 Even though it is helpful to understand the growth year by year relative to today’s figure, it may be more valuable to estimate the rate at which the company is moving every year, on average.

Simply Wall St -

Is De La Rue plc (LON:DLAR) Potentially Underrated?

Solid track record average dividend payer In the previous year, DLAR has ramped up its bottom line by 72%, with its latest earnings level surpassing its average level over the last five years. … LSE:DLAR Historical Dividend Yield, May 28th 2019 Next Steps: For De La Rue, I've compiled three pertinent factors you should further research: Future Outlook: What are well-informed industry analysts predicting for DLAR’s future growth? … Take a look at our free research report of analyst consensus for DLAR’s outlook.

Simply Wall St -

Have Insiders Been Buying De La Rue plc (LON:DLAR) Shares This Year?

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for De La Rue The Last 12 Months Of Insider Transactions At De La Rue Over the last year, we can see that the biggest insider purchase was by Chief Technology Officer Selva Selvaratnam for UK£109k worth of shares, at about UK£5.47 per share. … Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. … Over the last year, we can see that insiders have bought 63227 shares worth UK£337k.

Simply Wall St -

Volatility 101: Should De La Rue (LON:DLAR) Shares Have Dropped 45%?

De La Rue plc (LON:DLAR) shareholders should be happy to see the share price up 17% in the last month. … During the unfortunate half decade during which the share price slipped, De La Rue actually saw its earnings per share (EPS) improve by 18% per year. … Because of the sharp contrast between the EPS growth rate and the share price growth, we're inclined to look to other metrics to understand the changing market sentiment around the stock.

Simply Wall St -

Does De La Rue plc's (LON:DLAR) P/E Ratio Signal A Buying Opportunity?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does The De La Rue plc (LON:DLAR) Share Price Fall With The Market?

The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. … Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).

Simply Wall St -

Is There Now An Opportunity In De La Rue plc (LON:DLAR)?

De La Rue plc (LON:DLAR), which is in the commercial services business, and is based in United Kingdom,. … had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of £4.07 to £4.44? … Let’s take a look at De La Rue’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

DLAR Company Info

Description

De La Rue plc designs, manufactures, and delivers banknotes in the United Kingdome, the Middle East, Africa, Asia, the Americas, Rest of Europe, and internationally. It operates through three segments: Currency, Identity Solutions, and Product Authentication and Traceability. The Currency segment offers printed banknotes, polymer substrates, and banknote security components. The Identity Solutions provides passport, e-passport, national ID and eID, driving license, and voter registration schemes. The Product Authentication and Traceability segment produces security documents, including authentication labels, brand licensing products, government documents, cheques, and postage stamps. The company also provides trading and non-trading, as well as insurance services. It serves the governments, central banks, and commercial organizations. The company was founded in 1813 and is headquartered in Basingstoke, the United Kingdom.

Details
Name: De La Rue plc
DLAR
Exchange: LSE
Founded: 1813
£305,821,186
103,844,206
Website: http://www.delarue.com
Address: De La Rue plc
De La Rue House,
Jays Close,
Basingstoke,
Hampshire, RG22 4BS,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE DLAR Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK DELR.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB DL1C Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE DLARL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK DLUE.Y UNSPONSORED ADR Pink Sheets LLC US USD 12. Jan 1993
Number of employees
Current staff
Staff numbers
2,827
De La Rue employees.
Industry
Commercial Printing
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 21:24
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/06/20
Last earnings filing: 2019/06/21
Last earnings reported: 2019/03/30
Last annual earnings reported: 2019/03/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.