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DPH

Dechra Pharmaceuticals LSE:DPH Stock Report

Last Price

UK£32.70

Market Cap

UK£3.5b

7D

0.5%

1Y

-16.6%

Updated

15 May, 2022

Data

Company Financials +
DPH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance5/6
Financial Health5/6
Dividends4/6

DPH Stock Overview

Dechra Pharmaceuticals PLC develops, manufactures, regulates, markets, and sells veterinary pharmaceuticals and related products for veterinarians.

Dechra Pharmaceuticals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dechra Pharmaceuticals
Historical stock prices
Current Share PriceUK£32.70
52 Week HighUK£55.25
52 Week LowUK£30.95
Beta0.59
1 Month Change-14.44%
3 Month Change-13.08%
1 Year Change-16.58%
3 Year Change18.48%
5 Year Change78.79%
Change since IPO2,377.27%

Recent News & Updates

May 08
Calculating The Fair Value Of Dechra Pharmaceuticals PLC (LON:DPH)

Calculating The Fair Value Of Dechra Pharmaceuticals PLC (LON:DPH)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Dechra Pharmaceuticals...

Apr 22
Do Dechra Pharmaceuticals's (LON:DPH) Earnings Warrant Your Attention?

Do Dechra Pharmaceuticals's (LON:DPH) Earnings Warrant Your Attention?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

DPHGB PharmaceuticalsGB Market
7D0.5%-0.5%0.2%
1Y-16.6%26.1%-3.8%

Return vs Industry: DPH underperformed the UK Pharmaceuticals industry which returned 26.1% over the past year.

Return vs Market: DPH underperformed the UK Market which returned -3.8% over the past year.

Price Volatility

Is DPH's price volatile compared to industry and market?
DPH volatility
DPH Average Weekly Movement5.1%
Pharmaceuticals Industry Average Movement7.4%
Market Average Movement6.1%
10% most volatile stocks in GB Market11.7%
10% least volatile stocks in GB Market3.1%

Stable Share Price: DPH is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DPH's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19971,798Ian Pagehttps://www.dechra.com

Dechra Pharmaceuticals PLC develops, manufactures, regulates, markets, and sells veterinary pharmaceuticals and related products for veterinarians. It operates through three segments: European Pharmaceuticals, North American Pharmaceuticals, and Pharmaceuticals Research and Development. The company offers various endocrinology, dermatology, analgesia and anesthesia, cardiovascular, and critical care products for dogs and cats; water soluble antibiotics, poultry vaccines, and pain management for poultry, pigs, and cattle; and lameness and pain management products for horses and ponies.

Dechra Pharmaceuticals Fundamentals Summary

How do Dechra Pharmaceuticals's earnings and revenue compare to its market cap?
DPH fundamental statistics
Market CapUK£3.54b
Earnings (TTM)UK£72.90m
Revenue (TTM)UK£640.60m

48.6x

P/E Ratio

5.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DPH income statement (TTM)
RevenueUK£640.60m
Cost of RevenueUK£276.70m
Gross ProfitUK£363.90m
Other ExpensesUK£291.00m
EarningsUK£72.90m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 05, 2022

Earnings per share (EPS)0.67
Gross Margin56.81%
Net Profit Margin11.38%
Debt/Equity Ratio47.2%

How did DPH perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

61%

Payout Ratio

Valuation

Is Dechra Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


16.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DPH (£32.7) is trading below our estimate of fair value (£39.23)

Significantly Below Fair Value: DPH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DPH is poor value based on its PE Ratio (48.6x) compared to the UK Pharmaceuticals industry average (16.3x).

PE vs Market: DPH is poor value based on its PE Ratio (48.6x) compared to the UK market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: DPH is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: DPH is overvalued based on its PB Ratio (5.5x) compared to the GB Pharmaceuticals industry average (3.6x).


Future Growth

How is Dechra Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DPH's forecast earnings growth (12.3% per year) is above the savings rate (0.9%).

Earnings vs Market: DPH's earnings (12.3% per year) are forecast to grow faster than the UK market (11.2% per year).

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

Revenue vs Market: DPH's revenue (7.1% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: DPH's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DPH's Return on Equity is forecast to be high in 3 years time (22.8%)


Past Performance

How has Dechra Pharmaceuticals performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DPH has high quality earnings.

Growing Profit Margin: DPH's current net profit margins (11.4%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: DPH's earnings have grown by 19.4% per year over the past 5 years.

Accelerating Growth: DPH's earnings growth over the past year (65.7%) exceeds its 5-year average (19.4% per year).

Earnings vs Industry: DPH earnings growth over the past year (65.7%) exceeded the Pharmaceuticals industry 2.2%.


Return on Equity

High ROE: DPH's Return on Equity (11.4%) is considered low.


Financial Health

How is Dechra Pharmaceuticals's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DPH's short term assets (£376.0M) exceed its short term liabilities (£129.2M).

Long Term Liabilities: DPH's short term assets (£376.0M) do not cover its long term liabilities (£409.4M).


Debt to Equity History and Analysis

Debt Level: DPH's net debt to equity ratio (27.8%) is considered satisfactory.

Reducing Debt: DPH's debt to equity ratio has reduced from 64.9% to 47.2% over the past 5 years.

Debt Coverage: DPH's debt is well covered by operating cash flow (39.5%).

Interest Coverage: DPH's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.27%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DPH's dividend (1.27%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: DPH's dividend (1.27%) is low compared to the top 25% of dividend payers in the UK market (4.85%).


Stability and Growth of Payments

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

Growing Dividend: DPH's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (61.4%), DPH's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (87.8%), DPH's dividend payments are covered by cash flows.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average management tenure


CEO

Ian Page (60 yo)

20.5yrs

Tenure

UK£2,624,000

Compensation

Mr. Ian D. Page has been the Chief Executive Officer and Managing Director of Dechra Pharmaceuticals Plc since November 2001 and 1998 respectively and also serves as its Executive Director since June 13, 1...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD3.21M) is about average for companies of similar size in the UK market ($USD2.89M).

Compensation vs Earnings: Ian's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DPH's management team is seasoned and experienced (7.5 years average tenure).


Board Members

Experienced Board: DPH's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DPH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dechra Pharmaceuticals PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Dechra Pharmaceuticals PLC
  • Ticker: DPH
  • Exchange: LSE
  • Founded: 1997
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: UK£3.544b
  • Shares outstanding: 108.39m
  • Website: https://www.dechra.com

Number of Employees


Location

  • Dechra Pharmaceuticals PLC
  • 24 Cheshire Avenue
  • Cheshire Business Park
  • Northwich
  • Cheshire
  • CW9 7UA
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.