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Dignity

LSE:DTY
Snowflake Description

Average dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DTY
LSE
£355M
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

Dignity plc, together with its subsidiaries, provides funeral services in the United Kingdom. The last earnings update was 7 days ago. More info.


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DTY Share Price and Events
7 Day Returns
-3.3%
LSE:DTY
-2.7%
GB Consumer Services
32.1%
GB Market
1 Year Returns
-23.3%
LSE:DTY
-20%
GB Consumer Services
30.9%
GB Market
DTY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Dignity (DTY) -3.3% -3.7% 5.8% -23.3% -70.6% -56%
GB Consumer Services -2.7% -2.4% 3.1% -20% -55.1% -51.9%
GB Market 32.1% 31.6% 40.2% 30.9% 48.1% 12.2%
1 Year Return vs Industry and Market
  • DTY underperformed the Consumer Services industry which returned -20% over the past year.
  • DTY underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 30.9% over the past year.
Price Volatility
DTY
Industry
5yr Volatility vs Market

Value

 Is Dignity 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 Dignity 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 Dignity.

LSE:DTY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.2%
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:DTY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.964 (1 + (1- 19%) (158.06%))
1.802
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.802 * 6.65%)
13.21%

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

The calculations below outline how an intrinsic value for Dignity 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:DTY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 13.21%)
2019 25.50 Analyst x1 22.52
2020 31.40 Analyst x2 24.50
2021 38.60 Analyst x1 26.60
2022 44.30 Est @ 14.76% 26.96
2023 49.04 Est @ 10.7% 26.37
2024 52.89 Est @ 7.86% 25.12
2025 56.00 Est @ 5.87% 23.49
2026 58.50 Est @ 4.48% 21.68
2027 60.55 Est @ 3.5% 19.82
2028 62.26 Est @ 2.82% 18.00
Present value of next 10 years cash flows £235.06
LSE:DTY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £62.26 × (1 + 1.23%) ÷ (13.21% – 1.23%)
£525.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £525.79 ÷ (1 + 13.21%)10
£152.00
LSE:DTY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £235.06 + £152.00
£387.06
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £387.06 / 50.01
£7.74
LSE:DTY Discount to Share Price
Calculation Result
Value per share (GBP) From above. £7.74
Current discount Discount to share price of £7.10
= -1 x (£7.10 - £7.74) / £7.74
8.3%

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

Current Discount
Amount off the current price Dignity is available for.
Intrinsic value
8%
Share price is £7.1 vs Future cash flow value of £7.74
Current Discount Checks
For Dignity to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Dignity's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Dignity's share price is below the future cash flow value, but not 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 Dignity's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Dignity's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:DTY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-28) in GBP £0.63
LSE:DTY Share Price ** LSE (2019-03-20) in GBP £7.1
Europe Consumer Services Industry PE Ratio Median Figure of 11 Publicly-Listed Consumer Services Companies 19.98x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 806 Publicly-Listed Companies 16.06x

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

** Primary Listing of Dignity.

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

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

= 7.1 ÷ 0.63

11.27x

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

  • Dignity is good value based on earnings compared to the Europe Consumer Services industry average.
  • Dignity is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Dignity's expected growth come at a high price?
Raw Data
LSE:DTY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
4.8%per year
Europe Consumer Services Industry PEG Ratio Median Figure of 5 Publicly-Listed Consumer Services Companies 1.17x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.27x ÷ 4.8%

2.35x

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

  • Dignity is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Dignity's assets?
Raw Data
LSE:DTY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-28) in GBP £1.32
LSE:DTY Share Price * LSE (2019-03-20) in GBP £7.1
United Kingdom of Great Britain and Northern Ireland Consumer Services Industry PB Ratio Median Figure of 6 Publicly-Listed Consumer Services Companies 2.15x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,359 Publicly-Listed Companies 1.53x
LSE:DTY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 7.1 ÷ 1.32

5.38x

* Primary Listing of Dignity.

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

  • Dignity is overvalued based on assets compared to the GB Consumer Services industry average.
X
Value checks
We assess Dignity'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 Consumer 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 Consumer Services industry average (and greater than 0)? (1 check)
  5. Dignity has a total score of 2/6, 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.

Future Performance

 How is Dignity expected to perform in the next 1 to 3 years based on estimates from 4 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
4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dignity expected to grow at an attractive rate?
  • Dignity's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Dignity's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Dignity's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:DTY Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:DTY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 4.8%
LSE:DTY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 1%
United Kingdom of Great Britain and Northern Ireland Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 8.6%
United Kingdom of Great Britain and Northern Ireland Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 6.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 6.5%

*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:DTY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:DTY Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 333 1
2022-12-31 328 1
2021-12-31 317 73 37 3
2020-12-31 314 64 35 4
2019-12-31 308 59 34 4
2018-12-31 318 73 42 4
LSE:DTY Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-28 316 58 32
2018-09-28 322 67 42
2018-06-29 329 76 52
2018-03-29 326 75 55
2017-12-29 324 75 58
2017-09-29 325 77 59
2017-06-30 325 78 61
2017-03-31 320 80 59
2016-12-30 314 81 57
2016-09-30 309 81 56
2016-06-24 305 80 55
2016-03-24 305 86 56

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Dignity's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • Dignity's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
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:DTY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Dignity Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DTY Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.72 0.72 0.72 1.00
2020-12-31 0.70 0.70 0.69 2.00
2019-12-31 0.69 0.69 0.69 1.00
2018-12-31 0.84 0.84 0.83 2.00
LSE:DTY Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-28 0.63
2018-09-28 0.84
2018-06-29 1.05
2018-03-29 1.10
2017-12-29 1.16
2017-09-29 1.19
2017-06-30 1.22
2017-03-31 1.19
2016-12-30 1.15
2016-09-30 1.13
2016-06-24 1.10
2016-03-24 1.13

*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.
  • Dignity is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Dignity'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.
Dignity 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.

Past Performance

  How has Dignity 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 Dignity's growth in the last year to its industry (Consumer 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.
  • Dignity has delivered over 20% year on year earnings growth in the past 5 years.
  • Dignity's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Dignity's 1-year earnings growth is negative, it can't be compared to the Europe Consumer Services industry average.
Earnings and Revenue History
Dignity'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 Dignity Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DTY Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-28 315.60 31.50 114.90
2018-09-28 322.25 41.95 101.90
2018-06-29 328.90 52.40 88.90
2018-03-29 326.45 55.10 83.85
2017-12-29 324.00 57.80 78.80
2017-09-29 324.70 59.25 78.50
2017-06-30 325.40 60.70 78.20
2017-03-31 319.50 58.95 76.10
2016-12-30 313.60 57.20 74.00
2016-09-30 309.10 55.85 76.50
2016-06-24 304.60 54.50 79.00
2016-03-24 304.95 55.70 78.30
2015-12-25 305.30 56.90 77.60
2015-09-25 299.90 6.35 75.25
2015-06-26 294.50 -44.20 72.90
2015-03-26 281.70 -49.60 70.50
2014-12-26 268.90 -55.00 68.10
2014-09-26 262.75 -7.15 67.45
2014-06-27 256.60 40.70 66.80
2014-03-27 256.65 40.55 67.35
2013-12-27 256.70 40.40 67.90
2013-09-27 251.50 39.40 66.05
2013-06-28 246.30 38.40 64.20
2013-03-28 237.95 37.05 61.95
2012-12-28 229.60 35.70 59.70
2012-09-28 224.25 36.35 57.70
2012-06-29 218.90 37.00 55.70
2012-03-29 214.50 35.65 53.90

*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.
  • Whilst Dignity made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Dignity used its assets more efficiently than the Europe Consumer Services industry average last year based on Return on Assets.
  • Dignity's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Dignity'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 Consumer 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.
Dignity has a total score of 2/6, 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.

Health

 How is Dignity'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 Dignity's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Dignity is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Dignity's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Dignity'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.
  • Debt is not covered by short term assets, assets are 0.2x debt.
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 Dignity Company Filings, last reported 2 months ago.

LSE:DTY Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-28 66.00 561.20 66.90
2018-09-28 66.00 561.20 66.90
2018-06-29 71.80 561.20 64.00
2018-03-29 71.80 561.20 64.00
2017-12-29 46.40 565.70 49.30
2017-09-29 46.40 565.70 49.30
2017-06-30 27.90 586.00 65.40
2017-03-31 27.90 586.00 65.40
2016-12-30 -3.50 590.30 67.10
2016-09-30 -3.50 590.30 67.10
2016-06-24 -18.10 598.80 120.70
2016-03-24 -18.10 598.80 120.70
2015-12-25 -43.90 602.90 98.80
2015-09-25 -43.90 602.90 98.80
2015-06-26 -61.00 606.80 123.10
2015-03-26 -61.00 606.80 123.10
2014-12-26 -92.50 610.90 86.50
2014-09-26 -92.50 610.90 86.50
2014-06-27 59.50 480.10 86.30
2014-03-27 59.50 480.10 86.30
2013-12-27 42.20 486.90 79.30
2013-09-27 42.20 486.90 79.30
2013-06-28 85.30 363.20 51.20
2013-03-28 85.30 363.20 51.20
2012-12-28 44.60 334.60 55.60
2012-09-28 44.60 334.60 55.60
2012-06-29 32.80 334.50 40.50
2012-03-29 32.80 334.50 40.50
  • Dignity's level of debt (850.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (1143% vs 850.3% today).
  • Debt is not well covered by operating cash flow (10.4%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Dignity'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. Dignity 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.

Dividends

 What is Dignity'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
3.43%
Current annual income from Dignity dividends. Estimated to be 3.44% next year.
If you bought £2,000 of Dignity shares you are expected to receive £69 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?
  • Dignity's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Dignity's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.17%).
Upcoming dividend payment

Purchase Dignity on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:DTY 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 4 Analyst Estimates (S&P Global) See Below
Europe Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4%
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 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

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

LSE:DTY Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.24 3.00
2020-12-31 0.24 4.00
2019-12-31 0.24 4.00
2018-12-31 0.24 4.00
LSE:DTY Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-13 0.244 3.369
2018-04-20 0.244 2.668
2018-03-14 0.244 2.633
2017-04-13 0.236 1.359
2017-03-08 0.236 0.962
2016-04-11 0.215 0.832
2016-03-02 0.215 0.887
2015-04-13 1.460 6.313
2015-03-04 1.460 7.673
2014-07-30 0.142 0.835
2014-04-14 0.129 0.853
2014-03-05 0.129 0.798
2013-07-31 0.000 0.000
2013-03-06 0.189 1.144
2012-04-16 0.230 2.073
2012-03-07 0.230 2.363
2011-07-28 0.114 1.203
2011-07-27 0.114 1.216
2011-04-18 0.104 1.153
2011-03-10 0.104 1.241
2010-07-30 0.000 0.000
2010-03-11 0.166 1.883
2009-03-23 0.151 1.843

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 increased over the past 10 years.
Current Payout to shareholders
What portion of Dignity's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Dignity'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 Dignity afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Dignity has a total score of 4/6, see the detailed checks below.


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

Management

 What is the CEO of Dignity'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
Mike McCollum
COMPENSATION £966
AGE 50
TENURE AS CEO 10.2 years
CEO Bio

Mr. Michael Kinloch McCollum, FCA, also known as Mike, serves as the Chief Executive Officer at Dignity Finance PLC. Mr. McCollum has been the Chief Executive of Dignity Plc (Alternate Name: Dignity Caring Funeral Services Ltd.) since 2009. He served as Finance Director of Dignity Plc from 2001 to December 26, 2008. As Finance Director, he oversaw the management buyout and bank refinancing, both in 2002, the whole business securitization in 2003, the IPO in 2004 and the recent bond issue in February 2006. He joined Dignity's former parent, SCI in 1995 from KPMG Corporate Finance in London to manage acquisition activity in the UK and later in Europe, completed more than 25 acquisitions from to 1999. In 1999, he became responsible for the pre-arranged funeral plan division, restoring its profitability principally through the implementation of the affinity based model. He serves as Director at Moray Crematorium Holdings Limited. He serves as a Director of Phillips Funeral Services Limited. He has been a Non Executive Director of CVS Group plc since April 2, 2013. He has been an Executive Director of Dignity Plc since 2004. He serves as a Director of Dignity Finance PLC. He is a qualified Solicitor. Mr. McCollum has a Law degree from Birmingham University (LL.B) and also holds an MBA from Warwick University.

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year.
  • Mike's remuneration is lower 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 Dignity management team in years:

10.2
Average Tenure
50
Average Age
  • The average tenure for the Dignity management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mike McCollum

TITLE
CEO & Executive Director
COMPENSATION
£966
AGE
50
TENURE
10.2 yrs

Steve Whittern

TITLE
Finance Director & Director
COMPENSATION
£604
AGE
43
TENURE
10.2 yrs

Richard Portman

TITLE
Corporate Services Director & Director
COMPENSATION
£476
AGE
56
TENURE
12.4 yrs

Debbie Ginn

TITLE
Head of Corporate Development – Funerals and Head of Internal Audit

Sue Oakes

TITLE
Head of Customer Client Services

Tim George

TITLE
Company Secretary
TENURE
0.3 yrs

Bethaney Welch

TITLE
Memorial Consultant
Board of Directors Tenure

Average tenure and age of the Dignity board of directors in years:

10.2
Average Tenure
53.5
Average Age
  • The average tenure for the Dignity board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Peter Hindley

TITLE
Non-Executive Chairman
COMPENSATION
£174
AGE
74
TENURE
10.2 yrs

Mike McCollum

TITLE
CEO & Executive Director
COMPENSATION
£966
AGE
50
TENURE
15.2 yrs

Steve Whittern

TITLE
Finance Director & Director
COMPENSATION
£604
AGE
43
TENURE
10.2 yrs

Richard Portman

TITLE
Corporate Services Director & Director
COMPENSATION
£476
AGE
56
TENURE
12.4 yrs

David Blackwood

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£56
AGE
59
TENURE
1.2 yrs

Mary McNamara

TITLE
Independent Non-Executive Director
COMPENSATION
£39
TENURE
2 yrs

Jane Ashcroft

TITLE
Independent Non-Executive Director
COMPENSATION
£47
AGE
51
TENURE
6.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
06. Jun 18 Buy Mary McNamara Individual 04. Jun 18 04. Jun 18 4,500 £10.90 £49,050
X
Management checks
We assess Dignity'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. Dignity 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.

News

Simply Wall St News

Dignity plc (LON:DTY): What Can We Expect From This High Growth Stock?

The latest earnings announcement Dignity plc (LON:DTY) released in December 2018a … revealed … company

Simply Wall St -

Should Dignity plc (LON:DTY) Be Part Of Your Portfolio?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Dignity plc (LON:DTY) has been paying a dividend to shareholders. … Does Dignity tick all the boxes of a great dividend stock?

Simply Wall St -

Did Dignity plc (LON:DTY) Insiders Buy Up More Shares?

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we'll take a look at whether insiders have been buying or selling shares in Dignity plc (LON:DTY). … It's not at all bad to see insiders buy shares at or above current prices.

Simply Wall St -

Does Dignity plc's (LON:DTY) P/E Ratio Signal A Buying Opportunity?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Dignity has a price to earnings ratio of 6.5, based on the last twelve months. … How Do I Calculate A Price To Earnings Ratio

Simply Wall St -

A Closer Look At Dignity plc's (LON:DTY) Impressive ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.73. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should Investors Know About Dignity plc's (LON:DTY) Return On Capital?

and want a simplistic look at the return on Dignity plc (LON:DTY) stock. … To understand Dignity’s capital returns we will look at a useful metric called return on capital employed. … Calculating Return On Capital Employed for DTY

Simply Wall St -

Should Dignity plc (LON:DTY) Be Part Of Your Dividend Portfolio?

Historically, Dignity plc (LON:DTY) has been paying a dividend to shareholders. … Let's take a look at Dignity in more detail. … Here's how I find good dividend stocks

Simply Wall St -

Can Dignity plc's (LON:DTY) ROE Continue To Surpass The Industry Average?

Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden. … Peeling the layers of ROE – trisecting a company’s profitability

Simply Wall St -

Dignity plc (LON:DTY): Is Service Attractive?

is a consumer services company operating in an industry,. … which generally follows the ups and downs of the economic cycle, as its services cater to various industries across different sectors … For example, individuals are more likely to spend money on superfluous services when they feel less need to save

Simply Wall St -

Dignity plc (LON:DTY): Why Return On Capital Employed Is Important

and looking to gauge the potential return on investment in Dignity plc (LON:DTY). … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Thus, to understand how your money can grow by investing in Dignity, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Company Info

Description

Dignity plc, together with its subsidiaries, provides funeral services in the United Kingdom. It operates in three segments: Funeral Services, Crematoria, and Pre–arranged Funeral Plans. The Funeral Services segment provides funerals and ancillary items, such as memorials and floral tributes. The Crematoria segment offers cremation services, as well as sells memorials and burial plots at the company operated crematoria and cemeteries. The Pre–arranged Funeral Plans segment sells funerals in advance to customers wishing to make their own funeral arrangements. As of December 29, 2017, it owned 826 funeral locations and operated 45 crematoria in the United Kingdom. Dignity plc was founded in 1812 and is headquartered in Sutton Coldfield, the United Kingdom.

Details
Name: Dignity plc
DTY
Exchange: LSE
Founded: 1812
£355,063,466
50,008,939
Website: http://www.dignityfunerals.co.uk
Address: Dignity plc
4 King Edwards Court,
King Edwards Square,
Sutton Coldfield,
West Midlands, B73 6AP,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE DTY Ordinary Shares London Stock Exchange GB GBP 02. Apr 2004
DB DN8E Ordinary Shares Deutsche Boerse AG DE EUR 02. Apr 2004
BATS-CHIXE DTYl Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Apr 2004
Number of employees
Current staff
Staff numbers
3,000
Dignity employees.
Industry
Specialized Consumer Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 21:32
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/28
Last annual earnings reported: 2018/12/28


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.