LSE:DPH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Dechra Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DPH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

DPH

-1.1%

GB Pharmaceuticals

-0.8%

GB Market


1 Year Return

0.1%

DPH

15.5%

GB Pharmaceuticals

-15.4%

GB Market

Return vs Industry: DPH underperformed the UK Pharmaceuticals industry which returned 15.2% over the past year.

Return vs Market: DPH exceeded the UK Market which returned -16% over the past year.


Shareholder returns

DPHIndustryMarket
7 Day0.3%-1.1%-0.8%
30 Day5.4%-1.1%-3.4%
90 Day11.1%11.6%5.6%
1 Year1.4%0.1%19.8%15.5%-11.4%-15.4%
3 Year80.5%74.3%45.4%28.3%-4.5%-16.3%
5 Year204.4%185.2%82.5%46.6%12.7%-12.4%

Price Volatility Vs. Market

How volatile is Dechra Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

104.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DPH (£29) is trading above our estimate of fair value (£17.43)

Significantly Below Fair Value: DPH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DPH is poor value based on its PE Ratio (104.1x) compared to the GB Pharmaceuticals industry average (15.8x).

PE vs Market: DPH is poor value based on its PE Ratio (104.1x) compared to the UK market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: DPH is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: DPH is overvalued based on its PB Ratio (6.2x) compared to the GB Pharmaceuticals industry average (3.7x).


Next Steps

Future Growth

How is Dechra Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DPH's forecast earnings growth (24.2% per year) is above the savings rate (1.2%).

Earnings vs Market: DPH's earnings (24.2% per year) are forecast to grow faster than the UK market (21.5% per year).

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

Revenue vs Market: DPH's revenue (8.3% per year) is forecast to grow faster than the UK market (3.3% per year).

High Growth Revenue: DPH's revenue (8.3% 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 low in 3 years time (18.9%).


Next Steps

Past Performance

How has Dechra Pharmaceuticals performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DPH has a large one-off loss of £10.3M impacting its December 31 2019 financial results.

Growing Profit Margin: DPH's current net profit margins (5.7%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: DPH's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: DPH's earnings growth over the past year (15.8%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: DPH earnings growth over the past year (15.8%) underperformed the Pharmaceuticals industry 26%.


Return on Equity

High ROE: DPH's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is Dechra Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: DPH's short term assets (£260.9M) do not cover its short term liabilities (£278.4M).

Long Term Liabilities: DPH's short term assets (£260.9M) exceed its long term liabilities (£233.0M).


Debt to Equity History and Analysis

Debt Level: DPH's debt to equity ratio (61.6%) is considered high.

Reducing Debt: DPH's debt to equity ratio has increased from 16.3% to 61.6% over the past 5 years.

Debt Coverage: DPH's debt is well covered by operating cash flow (26%).

Interest Coverage: DPH's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DPH's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: DPH's dividend (1.09%) is low compared to the top 25% of dividend payers in the UK market (5.41%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116.3%), DPH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DPH's dividends in 3 years are forecast to be well covered by earnings (34.9% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Ian Page (59yo)

18.67yrs

Tenure

UK£2,974,000

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 1997. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD3.76M) is above average for companies of similar size in the UK market ($USD2.38M).

Compensation vs Earnings: Ian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ian Page
CEO, MD & Executive Director18.67yrsUK£2.97m0.58% £18.2m
Anthony Griffin
MD of Dechra Veterinary Products for Europe & Executive Director7.67yrsUK£1.14m0.065% £2.1m
Paul Sandland
CFO & Executive Director0.75yrno data0.0047% £147.6k
Susan Longhofer
Chief Scientific Officer0.50yrno datano data
Katy Clough
Group HR Directorno datano datano data
Mike Eldred
President of North Americano datano datano data
Melanie Hall
Company Secretary3.08yrsno datano data

3.1yrs

Average Tenure

57yo

Average Age

Experienced Management: DPH's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ian Page
CEO, MD & Executive Director18.67yrsUK£2.97m0.58% £18.2m
Anthony Griffin
MD of Dechra Veterinary Products for Europe & Executive Director7.67yrsUK£1.14m0.065% £2.1m
Paul Sandland
CFO & Executive Director0.75yrno data0.0047% £147.6k
Ishbel Jean Macpherson
Senior Independent Non-Executive Director6.75yrsUK£63.00k0.0054% £170.3k
William Rice
Independent Non-Executive Chairman3.75yrsUK£131.00k0.019% £582.9k
Lawson MacArtney
Independent Non-Executive Director3.58yrsUK£50.00k0.0054% £171.2k
Alison Platt
Non-Executive Director0.33yrno data0.00070% £22.0k
Julian Heslop
Independent Non Executive Director7.5yrsUK£60.00k0.0093% £291.5k
Lisa Morrison
Non-Executive Director1.42yrsUK£23.00kno data

3.8yrs

Average Tenure

59yo

Average Age

Experienced Board: DPH's board of directors are considered experienced (3.8 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 been diluted in the past year, with total shares outstanding growing by 5.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Dechra Pharmaceuticals PLC
  • Ticker: DPH
  • Exchange: LSE
  • Founded: 1997
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£3.147b
  • Shares outstanding: 108.01m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DPHLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 2000
DCHP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2000
DPHLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 2000
1PKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2000
DPH NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNSep 2000
DPHA.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 2012

Biography

Dechra Pharmaceuticals PLC develops, manufactures, regulates, markets, and sells veterinary pharmaceuticals and related products for veterinarians worldwide. 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, locomotion, and pain management for poultry, pigs, and cattle; and lameness and pain management products for horses and ponies. It also provides pet nutrition products for supporting cats and dogs with various therapeutic conditions, such as allergies, obesity, heart, and kidney diseases. In addition, the company distributes veterinary pharmaceuticals and equipment; offers financial services; markets pet diets; and develops, regulates, manufactures, and markets crop protection. It markets its products through wholesaler and distributor networks. The company was incorporated in 1997 and is headquartered in Northwich, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 20:47
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.