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Dechra Pharmaceuticals

LSE:DPH
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DPH
LSE
£3B
Market Cap
  1. Home
  2. GB
  3. Pharmaceuticals & Biotech
Company description

Dechra Pharmaceuticals PLC develops, manufactures, regulates, markets, and sells veterinary pharmaceuticals and related products for veterinarians worldwide. The last earnings update was 141 days ago. More info.


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DPH Share Price and Events
7 Day Returns
4.8%
LSE:DPH
-0.3%
GB Pharmaceuticals
-0.2%
GB Market
1 Year Returns
-1%
LSE:DPH
8.6%
GB Pharmaceuticals
-1.4%
GB Market
DPH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Dechra Pharmaceuticals (DPH) 4.8% 5.9% 11.9% -1% 137.4% 322.1%
GB Pharmaceuticals -0.3% 2.5% 4.8% 8.6% 13.8% 23.5%
GB Market -0.2% 1.7% 0.2% -1.4% 11.7% 7.5%
1 Year Return vs Industry and Market
  • DPH underperformed the Pharmaceuticals industry which returned 8.6% over the past year.
  • DPH matched the United Kingdom of Great Britain and Northern Ireland Market (-1.4%) over the past year.
Price Volatility
DPH
Industry
5yr Volatility vs Market

Value

 Is Dechra Pharmaceuticals 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 Dechra Pharmaceuticals 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 Dechra Pharmaceuticals.

LSE:DPH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
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:DPH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.733 (1 + (1- 19%) (10.47%))
0.863
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.863 * 6.65%)
6.97%

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

The calculations below outline how an intrinsic value for Dechra Pharmaceuticals 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:DPH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.97%)
2020 108.70 Analyst x6 101.62
2021 111.32 Analyst x5 97.29
2022 123.60 Analyst x1 100.99
2023 134.30 Analyst x1 102.59
2024 141.81 Est @ 5.59% 101.27
2025 147.88 Est @ 4.28% 98.72
2026 152.86 Est @ 3.37% 95.40
2027 157.02 Est @ 2.72% 91.62
2028 160.59 Est @ 2.27% 87.60
2029 163.74 Est @ 1.96% 83.50
Present value of next 10 years cash flows £960.59
LSE:DPH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £163.74 × (1 + 1.23%) ÷ (6.97% – 1.23%)
£2,887.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £2,887.89 ÷ (1 + 6.97%)10
£1,472.67
LSE:DPH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £960.59 + £1,472.67
£2,433.26
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,433.26 / 102.63
£23.71
LSE:DPH Discount to Share Price
Calculation Result
Value per share (GBP) From above. £23.71
Current discount Discount to share price of £29.46
= -1 x (£29.46 - £23.71) / £23.71
-24.3%

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

  • The current share price of Dechra Pharmaceuticals is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Dechra Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Dechra Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:DPH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.24
LSE:DPH Share Price ** LSE (2019-07-16) in GBP £29.46
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry PE Ratio Median Figure of 9 Publicly-Listed Pharmaceuticals Companies 20.66x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 790 Publicly-Listed Companies 16.56x

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

** Primary Listing of Dechra Pharmaceuticals.

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

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

= 29.46 ÷ 0.24

121.04x

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

  • Dechra Pharmaceuticals is overvalued based on earnings compared to the GB Pharmaceuticals industry average.
  • Dechra Pharmaceuticals is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Dechra Pharmaceuticals's expected growth come at a high price?
Raw Data
LSE:DPH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 121.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
27.8%per year
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry PEG Ratio Median Figure of 6 Publicly-Listed Pharmaceuticals Companies 1.61x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 121.04x ÷ 27.8%

4.36x

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

  • Dechra Pharmaceuticals is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Dechra Pharmaceuticals's assets?
Raw Data
LSE:DPH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £4.92
LSE:DPH Share Price * LSE (2019-07-16) in GBP £29.46
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry PB Ratio Median Figure of 25 Publicly-Listed Pharmaceuticals Companies 2.93x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.5x
LSE:DPH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 29.46 ÷ 4.92

5.98x

* Primary Listing of Dechra Pharmaceuticals.

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

  • Dechra Pharmaceuticals is overvalued based on assets compared to the GB Pharmaceuticals industry average.
X
Value checks
We assess Dechra Pharmaceuticals'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 Pharmaceuticals 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 Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Dechra Pharmaceuticals has a total score of 0/6, 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 Dechra Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 9 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
27.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dechra Pharmaceuticals expected to grow at an attractive rate?
  • Dechra Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Dechra Pharmaceuticals's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Dechra Pharmaceuticals's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:DPH Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:DPH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 27.8%
LSE:DPH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 7.2%
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 20.3%
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 7.6%
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:DPH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:DPH Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 624 156 102 2
2022-06-30 593 145 92 2
2021-06-30 562 137 68 8
2020-06-30 522 134 46 9
2019-06-30 477 98 37 9
LSE:DPH Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 444 81 25
2018-09-30 426 73 30
2018-06-30 407 64 36
2018-03-31 394 69 40
2017-12-31 381 75 43
2017-09-30 370 76 35
2017-06-30 359 77 26
2017-03-31 334 69 19
2016-12-31 309 62 11
2016-09-30 278 53 12
2016-06-30 248 44 13
2016-03-31 230 43 17

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Dechra Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
  • Dechra Pharmaceuticals's revenue is expected to grow by 7.2% 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:DPH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Dechra Pharmaceuticals Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DPH Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.97 1.11 0.84 2.00
2022-06-30 0.89 1.01 0.76 2.00
2021-06-30 0.60 0.68 0.50 4.00
2020-06-30 0.43 0.57 0.28 4.00
2019-06-30 0.37 0.49 0.23 5.00
LSE:DPH Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.24
2018-09-30 0.31
2018-06-30 0.37
2018-03-31 0.42
2017-12-31 0.46
2017-09-30 0.37
2017-06-30 0.28
2017-03-31 0.20
2016-12-31 0.12
2016-09-30 0.13
2016-06-30 0.14
2016-03-31 0.19

*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.
  • Dechra Pharmaceuticals is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Dechra Pharmaceuticals'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.
Dechra Pharmaceuticals has a total score of 4/6, 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 Dechra Pharmaceuticals 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 Dechra Pharmaceuticals's growth in the last year to its industry (Pharmaceuticals).
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.
  • Dechra Pharmaceuticals's year on year earnings growth rate has been positive over the past 5 years.
  • Dechra Pharmaceuticals's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Dechra Pharmaceuticals's 1-year earnings growth is negative, it can't be compared to the GB Pharmaceuticals industry average.
Earnings and Revenue History
Dechra Pharmaceuticals'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 Dechra Pharmaceuticals Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DPH Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 444.40 24.70 185.90 29.20
2018-09-30 425.75 30.40 171.00 27.75
2018-06-30 407.10 36.10 156.10 26.30
2018-03-31 393.95 39.59 146.69 26.20
2017-12-31 380.84 43.05 137.27 26.15
2017-09-30 370.07 34.58 133.29 26.27
2017-06-30 359.30 26.10 129.30 26.40
2017-03-31 334.35 18.70 122.03 22.75
2016-12-31 309.39 11.31 114.76 19.10
2016-09-30 278.48 11.99 105.11 14.73
2016-06-30 247.56 12.67 95.46 10.36
2016-03-31 230.44 16.52 89.51 9.81
2015-12-31 213.32 20.38 83.56 9.26
2015-09-30 208.40 19.92 82.29 8.97
2015-06-30 203.48 19.46 81.03 8.67
2015-03-31 201.02 20.79 78.89 8.35
2014-12-31 198.55 22.12 76.76 8.03
2014-09-30 196.06 20.77 75.32 8.14
2014-06-30 193.57 19.42 73.88 8.25
2013-12-31 193.12 14.18 73.44 8.17
2013-09-30 191.15 12.52 72.64 8.07
2013-06-30 189.18 10.85 71.83 7.96
2012-12-31 6.79 1.55 50.29 9.16
2012-09-30 65.56 2.73 50.48 7.45

*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.
  • Dechra Pharmaceuticals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Dechra Pharmaceuticals used its assets less efficiently than the GB Pharmaceuticals industry average last year based on Return on Assets.
  • Dechra Pharmaceuticals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Dechra Pharmaceuticals'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 Pharmaceuticals 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.
Dechra Pharmaceuticals has a total score of 1/6, 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 Dechra Pharmaceuticals'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 Dechra Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Dechra Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Dechra Pharmaceuticals's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Dechra Pharmaceuticals'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.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x 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 Dechra Pharmaceuticals Company Filings, last reported 6 months ago.

LSE:DPH Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 504.10 316.50 86.90
2018-09-30 504.10 316.50 86.90
2018-06-30 505.00 291.10 79.70
2018-03-31 505.00 291.10 79.70
2017-12-31 315.29 174.53 75.82
2017-09-30 315.29 174.53 75.82
2017-06-30 302.60 181.20 61.20
2017-03-31 302.60 181.20 61.20
2016-12-31 287.64 187.18 49.18
2016-09-30 287.64 187.18 49.18
2016-06-30 276.61 155.79 39.27
2016-03-31 276.61 155.79 39.27
2015-12-31 205.20 62.97 45.13
2015-09-30 205.20 62.97 45.13
2015-06-30 194.49 32.56 46.53
2015-03-31 194.49 32.56 46.53
2014-12-31 202.90 33.16 36.27
2014-09-30 202.90 33.16 36.27
2014-06-30 204.81 31.69 26.77
2013-12-31 204.00 32.99 22.51
2013-09-30 204.00 32.99 22.51
2013-06-30 174.62 113.19 32.79
2012-12-31 160.47 118.57 16.60
2012-09-30 160.47 118.57 16.60
  • Dechra Pharmaceuticals's level of debt (62.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (16.2% vs 62.8% today).
  • Debt is well covered by operating cash flow (25.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).
X
Financial health checks
We assess Dechra Pharmaceuticals'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. Dechra Pharmaceuticals has a total score of 3/6, 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 Dechra Pharmaceuticals'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
0.87%
Current annual income from Dechra Pharmaceuticals dividends. Estimated to be 1.15% next year.
If you bought £2,000 of Dechra Pharmaceuticals shares you are expected to receive £17 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?
  • Dechra Pharmaceuticals's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.94%).
  • Dechra Pharmaceuticals's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
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:DPH 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 9 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.1%
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 5.4%

Industry and Market average data is calculated daily.

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

LSE:DPH Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.43 1.00
2022-06-30 0.40 2.00
2021-06-30 0.34 8.00
2020-06-30 0.31 8.00
2019-06-30 0.28 8.00
LSE:DPH Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-09-04 0.255 1.057
2018-09-03 0.255 1.025
2017-09-05 0.214 0.884
2017-09-04 0.214 1.100
2016-09-05 0.185 1.196
2016-08-30 0.185 1.398
2015-09-09 0.169 1.561
2015-09-07 0.169 1.776
2014-09-10 0.154 1.738
2014-09-08 0.154 2.021
2014-02-25 0.144 2.056
2013-09-03 0.140 2.011
2013-02-26 0.128 1.800
2012-09-04 0.123 2.028
2011-09-23 0.121 2.421
2011-09-06 0.121 2.480
2010-09-30 0.105 2.129
2010-09-07 0.105 2.258
2009-09-01 0.091 2.078
2008-09-02 0.083 2.039

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

  • Dechra Pharmaceuticals is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
  • Dechra Pharmaceuticals is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Dechra Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Dechra Pharmaceuticals's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess Dechra Pharmaceuticals'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 Dechra Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Dechra Pharmaceuticals has a total score of 1/6, 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 Dechra Pharmaceuticals'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
Ian Page
COMPENSATION £3,536,000
AGE 58
TENURE AS CEO 17.7 years
CEO Bio

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. Page joined Dechra Pharmaceuticals Plc's Principal trading subsidiary National Veterinary Services(NVS) at its formation in 1989. Mr. Page has played a key role in the development of Dechra's growth strategy. Prior to joining Dechra Pharmaceuticals Plc, he gained extensive knowledge and experience through various positions he held within the pharmaceutical and medical arena. Mr. Page served as Non-Executive Chairman at Sanford DeLand Asset Management Limited since October 7, 2010 until October 2017.

CEO Compensation
  • Ian's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ian'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 Dechra Pharmaceuticals management team in years:

4.6
Average Tenure
52.5
Average Age
  • The tenure for the Dechra Pharmaceuticals management team is about average.
Management Team

Ian Page

TITLE
CEO, MD & Executive Director
COMPENSATION
£4M
AGE
58
TENURE
17.7 yrs

Tony Griffin

TITLE
MD of Dechra Veterinary Products for Europe & Executive Director
COMPENSATION
£1M
AGE
56
TENURE
7.2 yrs

Paul Sandland

TITLE
Acting Chief Financial Officer
AGE
40
TENURE
0.3 yrs

Katy Clough

TITLE
Group HR Director

Mike Eldred

TITLE
President of North America
AGE
49

Melanie Hall

TITLE
Company Secretary
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the Dechra Pharmaceuticals board of directors in years:

5.8
Average Tenure
59
Average Age
  • The tenure for the Dechra Pharmaceuticals board of directors is about average.
Board of Directors

Tony Rice

TITLE
Non-Executive Chairman
COMPENSATION
£126K
AGE
67
TENURE
2.8 yrs

Ian Page

TITLE
CEO, MD & Executive Director
COMPENSATION
£4M
AGE
58
TENURE
22.5 yrs

Tony Griffin

TITLE
MD of Dechra Veterinary Products for Europe & Executive Director
COMPENSATION
£1M
AGE
56
TENURE
6.7 yrs

Julian Heslop

TITLE
Non Executive Director
COMPENSATION
£55K
AGE
65
TENURE
6.5 yrs

Ishbel Jean Macpherson

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£58K
AGE
59
TENURE
5.8 yrs

Lawson MacArtney

TITLE
Non-Executive Director
COMPENSATION
£50K
AGE
62
TENURE
2.6 yrs

Lisa Morrison

TITLE
Non-Executive Director
AGE
51
TENURE
0.4 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 Sell Anthony Griffin Individual 18. Dec 18 18. Dec 18 -5,000 £21.15 £-105,768
X
Management checks
We assess Dechra Pharmaceuticals'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. Dechra Pharmaceuticals 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

Here's Why Dechra Pharmaceuticals (LON:DPH) Can Manage Its Debt Responsibly

We note that Dechra Pharmaceuticals PLC (LON:DPH) does have debt on its balance sheet. … LSE:DPH Historical Debt, July 11th 2019 A Look At Dechra Pharmaceuticals's Liabilities The latest balance sheet data shows that Dechra Pharmaceuticals had liabilities of UK£104.3m due within a year, and liabilities of UK£437.8m falling due after that. … Since Dechra Pharmaceuticals does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time.

Simply Wall St -

Dechra Pharmaceuticals (LON:DPH) Shareholders Have Enjoyed A Whopping 305% Share Price Gain

For example, the Dechra Pharmaceuticals PLC (LON:DPH) share price is up a whopping 305% in the last half decade, a handsome return for long term holders. … During five years of share price growth, Dechra Pharmaceuticals achieved compound earnings per share (EPS) growth of 8.4% per year. … So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return.

Simply Wall St -

Is Dechra Pharmaceuticals PLC (LON:DPH) Expensive For A Reason? A Look At Its Intrinsic Value

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, 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) £77.74 £102.95 £115.87 £135.15 £134.30 £134.20 £134.63 £135.42 £136.48 £137.72 Growth Rate Estimate Source Analyst x5 Analyst x6 Analyst x6 Analyst x2 Analyst x1 Est @ -0.07% Est @ 0.32% Est @ 0.59% Est @ 0.78% Est @ 0.91% Present Value (£, Millions) Discounted @ 6.79% £72.79 £90.27 £95.13 £103.90 £96.68 £90.46 £84.98 £80.04 £75.53 £71.38 Present Value of 10-year Cash Flow (PVCF)= £861.17m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.8%. … LSE:DPH Intrinsic value, May 27th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Is Dechra Pharmaceuticals PLC's (LON:DPH) ROE Of 4.9% Concerning?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Dechra Pharmaceuticals: 4.9% = UK£25m ÷ UK£504m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Dechra Pharmaceuticals's Debt And Its 4.9% ROE Although Dechra Pharmaceuticals does use debt, its debt to equity ratio of 0.63 is still low. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

You Might Like Dechra Pharmaceuticals PLC (LON:DPH) But Do You Like Its Debt?

Dechra Pharmaceuticals PLC (LON:DPH) is a small-cap stock with a market capitalization of UK£2.7b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Should You Be Worried About Insider Transactions At Dechra Pharmaceuticals PLC (LON:DPH)?

Dechra Pharmaceuticals Insider Transactions Over The Last Year. … In the last twelve months, the biggest single sale by an insider was when the MD of Dechra Veterinary Products for Europe & Executive Director, Anthony Griffin, sold UK£106k worth of shares at a price of UK£21.15 per share. … That means that even when the share price was below the current price of UK£26.52, an insider wanted to cash in some shares.

Simply Wall St -

What You Must Know About Dechra Pharmaceuticals PLC's (LON:DPH) Financial Strength

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Dechra Pharmaceuticals PLC (LON:DPH), with a market capitalization of UK£2.5b, rarely draw their attention from the investing community. … Let’s take a look at DPH’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.

Simply Wall St -

Does The Hype Around Dechra Pharmaceuticals PLC's (LON:DPH) Growth Justify Its February Share Price?

Dechra Pharmaceuticals PLC (LON:DPH) is considered a high growth stock. … However its last closing price of £25.68 left investors wondering whether this growth has already been factored into the share price. … Dechra Pharmaceuticals is poised for significantly high earnings growth in the near future

Simply Wall St -

Dechra Pharmaceuticals PLC (LON:DPH): Are Analysts Bullish?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In June 2018, Dechra Pharmaceuticals PLC (LON:DPH) announced its most recent earnings update, whicha

Simply Wall St -

Here's What Dechra Pharmaceuticals PLC's (LON:DPH) P/E Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Dechra Pharmaceuticals PLC's (LON:DPH) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

Dechra Pharmaceuticals PLC develops, manufactures, regulates, markets, and sells veterinary pharmaceuticals and related products for veterinarians worldwide. It operates through European Pharmaceuticals, North American Pharmaceuticals, and Pharmaceuticals Research and Development segments. The company offers various endocrinology, dermatology, analgesia and anesthesia, cardiovascular, and critical care products for dogs and cats; water soluble antibiotics, poultry vaccines, and locomotion and pain management products for poultry, pigs, and cattle; and lameness and pain management products for horses and ponies. It also provides pet nutrition products for dogs and cats under the Specific brand; distributes veterinary pharmaceuticals and equipment; and offers financial services. The company markets its products through wholesaler and distributor networks. Dechra Pharmaceuticals PLC was incorporated in 1997 and is headquartered in Northwich, the United Kingdom.

Details
Name: Dechra Pharmaceuticals PLC
DPH
Exchange: LSE
Founded: 1997
£3,023,496,562
102,630,569
Website: http://www.dechra.com
Address: Dechra Pharmaceuticals PLC
24 Cheshire Avenue,
Cheshire Business Park,
Northwich,
Cheshire, CW9 7UA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE DPH Ordinary Shares London Stock Exchange GB GBP 21. Sep 2000
OTCPK DCHP.F Ordinary Shares Pink Sheets LLC US USD 21. Sep 2000
DB 1PK Ordinary Shares Deutsche Boerse AG DE EUR 21. Sep 2000
BATS-CHIXE DPHL Ordinary Shares BATS 'Chi-X Europe' GB GBP 21. Sep 2000
OTCPK DPHA.Y UNSPONSORED ADR Pink Sheets LLC US USD 04. May 2012
Number of employees
Current staff
Staff numbers
1,437
Dechra Pharmaceuticals employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 20:35
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


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.