LSE:DCG

Stock Analysis Report

Executive Summary

Dairy Crest Group plc processes and markets branded dairy products in the United Kingdom and internationally.

Snowflake

Fundamentals

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Dairy Crest Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.08%

DCG

0.6%

GB Food

1.1%

GB Market


1 Year Return

16.2%

DCG

-3.2%

GB Food

2.7%

GB Market


Shareholder returns

DCGIndustryMarket
7 Day0.08%0.6%1.1%
30 Day-1.7%-5.0%-1.7%
90 Day39.1%-3.6%-2.7%
1 Year22.0%16.2%-0.6%-3.2%7.8%2.7%
3 Year21.6%7.1%-2.1%-9.2%19.3%4.7%
5 Year59.1%28.8%2.9%-7.3%38.0%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dairy Crest Group undervalued compared to its fair value and its price relative to the market?

21.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DCG (£6.21) is trading above our estimate of fair value (£4.32)

Significantly Undervalued: DCG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DCG is poor value based on its PE Ratio (21.8x) compared to the Food industry average (16.9x).

PE vs Market: DCG is poor value based on its PE Ratio (21.8x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: DCG is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: DCG is overvalued based on its PB Ratio (2.9x) compared to the GB Food industry average (1.2x).


Next Steps

Future Growth

How is Dairy Crest Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCG's forecast earnings growth (11.4% per year) is above the savings rate (1.2%).

Earnings vs Market: DCG's earnings (11.4% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: DCG's revenue (2.9% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: DCG's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Dairy Crest Group performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DCG's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: DCG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DCG had negative earnings growth (-71.1%) over the past year, making it difficult to compare to the Food industry average (4.5%).


Return on Equity

High ROE: DCG's Return on Equity (12.8%) is considered low.


Return on Assets

ROA vs Industry: DCG has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: DCG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Dairy Crest Group's financial position?


Financial Position Analysis

Short Term Liabilities: DCG's short term assets (£237.9M) exceeds its short term liabilities (£92.8M)

Long Term Liabilities: DCG's short term assets (237.9M) do not cover its long term liabilities (250.2M)


Debt to Equity History and Analysis

Debt Level: DCG's debt to equity ratio (76.2%) is considered high

Reducing Debt: DCG's debt to equity ratio has reduced from 80.2% to 76.2% over the past 5 years.

Debt Coverage: DCG's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: DCG's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

What is Dairy Crest Group's current dividend yield, its reliability and sustainability?

3.64%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.0%markettop25%5.4%industryaverage2.8%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DCG's dividend (3.64%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: DCG's dividend (3.64%) is low compared to the top 25% of dividend payers in the UK market (5.44%).

Stable Dividend: DCG's dividends per share have been stable in the past 10 years.

Growing Dividend: DCG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.8%), DCG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DCG's dividends in 3 years are forecast to be covered by earnings (59% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Mark Allen (59yo)

12.3yrs

Tenure

UK£2,671,000

Compensation

Mr. Mark Allen has been the Chief Executive of Dairy Crest Group Plc, a holding company of St. Hubert SAS since January 1, 2007 and served as its Head of Household and Liquids since December 2008 and also  ...


CEO Compensation Analysis

Information is not available.

Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.0yrs

Average Tenure

Experienced Management: DCG's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

59yo

Average Age

Experienced Board: DCG's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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Ownership Breakdown


Management Team

  • Mark Allen (59yo)

    CEO, Member of Management Board & Executive Director

    • Tenure: 12.3yrs
    • Compensation: UK£2.67m
  • Robin Miller (47yo)

    General Counsel

    • Tenure: 0yrs
  • Paul Fraser

    Managing Director of MH Foods

    • Tenure: 7.8yrs
  • Kate Goode

    Investor Relations & Corporate Communications Director

    • Tenure: 0yrs
  • Robert Willock

    Group Human Resources Director & Member of Management Board

    • Tenure: 6yrs
  • Tom Atherton

    Deputy Chief Executive

    • Tenure: 5.9yrs
    • Compensation: UK£717.00k
  • Adam Braithwaite

    Group Commercial Director

    • Tenure: 2.8yrs
    • Compensation: UK£417.00k
  • Simon Hewitt

    Group Technical Director

    • Tenure: 0yrs
  • Olivia Seccombe

    Head of External Affairs

    • Tenure: 0yrs
  • Andy Stickland

    Group Supply Chain Director & Member of Management Board

    • Tenure: 0yrs

Board Members

  • Stephen Alexander (63yo)

    Chairman

    • Tenure: 4.6yrs
    • Compensation: UK£155.00k
  • Mark Allen (59yo)

    CEO, Member of Management Board & Executive Director

    • Tenure: 12.3yrs
    • Compensation: UK£2.67m
  • Sue Farr (62yo)

    Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: UK£60.00k
  • Richard MacDonald

    Senior Independent Director

    • Tenure: 6.9yrs
    • Compensation: UK£70.00k
  • John Gibney (57yo)

    Non-Executive Director

    • Tenure: 0.9yrs
  • Tom Atherton

    Deputy Chief Executive

    • Tenure: 5.9yrs
    • Compensation: UK£717.00k
  • Moni Mannings (54yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£17.00k
  • Adam Braithwaite

    Group Commercial Director

    • Tenure: 2.8yrs
    • Compensation: UK£417.00k

Company Information

Dairy Crest Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dairy Crest Group plc
  • Ticker: DCG
  • Exchange: LSE
  • Founded: 1933
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£958.602m
  • Shares outstanding: 154.49m
  • Website: https://www.dairycrest.co.uk

Number of Employees


Location

  • Dairy Crest Group plc
  • Claygate House
  • Littleworth Road
  • Esher
  • Surrey
  • KT10 9PN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DCGLSE (London Stock Exchange)YesOrdinary SharesGBGBPAug 1996
DCGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPAug 1996
GWUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1996
DRCS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2008

Biography

Dairy Crest Group plc processes and markets branded dairy products in the United Kingdom and internationally. The company offers cheese products under the Cathedral City, Davidstow, and Chedds brands; butt ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/04/15 20:40
End of Day Share Price2019/04/15 00:00
Earnings2018/09/30
Annual Earnings2018/03/31


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.