LSE:DC.

Stock Analysis Report

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Executive Summary

Dixons Carphone plc operates as a consumer electrical and mobile retailer and service company. More Details

Rewards

Earnings are forecast to grow 132.83% per year

Risk Analysis

No risks detected for DC. from our risk checks.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Dixons Carphone's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DC. is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DC.'s weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-4.7%

DC.

0.03%

GB Specialty Retail

-0.7%

GB Market


1 Year Return

-8.1%

DC.

8.9%

GB Specialty Retail

-10.2%

GB Market

Return vs Industry: DC. underperformed the UK Specialty Retail industry which returned 10.7% over the past year.

Return vs Market: DC. matched the UK Market which returned -9.1% over the past year.


Shareholder returns

DC.IndustryMarket
7 Day-4.7%0.03%-0.7%
30 Day3.3%1.3%8.1%
90 Day24.6%17.5%5.9%
1 Year-6.7%-8.1%9.6%8.9%-6.6%-10.2%
3 Year-17.4%-28.0%19.4%10.7%0.5%-11.8%
5 Year-71.4%-76.7%0.4%-12.9%25.3%-3.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dixons Carphone undervalued compared to its fair value and its price relative to the market?

0.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DC. (£1.12) is trading above our estimate of fair value (£0.43)

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


Price To Earnings Ratio

PE vs Industry: DC. is unprofitable, so we can't compare its PE Ratio to the GB Specialty Retail industry average.

PE vs Market: DC. is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DC.'s PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DC. is good value based on its PB Ratio (0.6x) compared to the GB Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Dixons Carphone forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

132.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DC. is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: DC. is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DC.'s is expected to become profitable in the next 3 years.

Revenue vs Market: DC.'s revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: DC.'s revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DC.'s Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Dixons Carphone performed over the past 5 years?

-47.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DC. is currently unprofitable.

Growing Profit Margin: DC. is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DC. is unprofitable, and losses have increased over the past 5 years at a rate of 47.9% per year.

Accelerating Growth: Unable to compare DC.'s earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DC. is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-15.9%).


Return on Equity

High ROE: DC. has a negative Return on Equity (-7.06%), as it is currently unprofitable.


Next Steps

Financial Health

How is Dixons Carphone's financial position?


Financial Position Analysis

Short Term Liabilities: DC.'s short term assets (£2.5B) do not cover its short term liabilities (£3.1B).

Long Term Liabilities: DC.'s short term assets (£2.5B) exceed its long term liabilities (£2.3B).


Debt to Equity History and Analysis

Debt Level: DC.'s debt to equity ratio (37.9%) is considered satisfactory.

Reducing Debt: DC.'s debt to equity ratio has increased from 14% to 37.9% over the past 5 years.

Debt Coverage: DC.'s debt is well covered by operating cash flow (67.5%).

Interest Coverage: DC. is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Dixons Carphone current dividend yield, its reliability and sustainability?

3.96%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DC.'s dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DC.'s dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DC.'s dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DC.'s dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DC. is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DC.'s dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Alex Baldock

2.58yrs

Tenure

UK£1,038,000

Compensation

Mr. Alex Baldock has been a Group Chief Executive Officer and Director of Dixons Carphone plc., since April 03, 2018. Mr. Baldock served as the Group Chief Executive of Shop Direct Home Shopping Limited fr...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD1.38M) is about average for companies of similar size in the UK market ($USD1.84M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alex Baldock
Group Chief Executive & Director2.58yrsUK£1.04m0.032%
£ 421.0k
Jonathan Mason
Group CFO & Director2.25yrsUK£530.00k0.015%
£ 196.1k
Mark Allsop
COO & Chief Digital Officer0.50yrno datano data
Nigel Paterson
General Counsel & Company Secretary5.58yrsno datano data
Amy Shields
Head of External Communicationsno datano datano data
Paula Coughlan
Chief People Officer1.83yrsno datano data
Jeremy Fennell
Managing Director of Carphone Warehouse5.08yrsno datano data
Ed Connolly
Chief Commercial Officer0.67yrno datano data
Lindsay Haselhurst
Chief Supply Chain Officer0.83yrno datano data
Erik Sønsterud
Chief Executive of Internationalno datano datano data
Neil King
Group Treasurerno datano datano data
Jaan Gjærum Semlitsch
Chief Executive Officer of Nordics7.83yrsno datano data

2.3yrs

Average Tenure

49yo

Average Age

Experienced Management: DC.'s management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alex Baldock
Group Chief Executive & Director2.58yrsUK£1.04m0.032%
£ 421.0k
Jonathan Mason
Group CFO & Director2.25yrsUK£530.00k0.015%
£ 196.1k
Tony DeNunzio
Deputy Chair & Senior Independent Director3.58yrsUK£140.00k0.017%
£ 224.3k
Eileen Burbidge
Independent Non-Executive Director1.83yrsUK£65.00k0.00036%
£ 4.7k
Fiona McBain
Independent Non-Executive Director3.67yrsUK£80.00k0.0024%
£ 31.5k
Andrea Joosen
Independent Non-Executive Director6.25yrsUK£75.00k0.0022%
£ 28.0k
John Murphy
Independent Non-Executive Director6.42yrsUK£69.00k0.0086%
£ 112.1k
Ian Livingston
Chair of the Board3.58yrsUK£297.00k0.018%
£ 230.5k

3.6yrs

Average Tenure

56yo

Average Age

Experienced Board: DC.'s board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

Dixons Carphone plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dixons Carphone plc
  • Ticker: DC.
  • Exchange: LSE
  • Founded: 1937
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Market Cap: UK£1.296b
  • Shares outstanding: 1.16b
  • Website: https://www.dixonscarphone.com

Number of Employees


Location

  • Dixons Carphone plc
  • 1 Portal Way
  • London
  • Greater London
  • W3 6RS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DC.LSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2010
CWBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2010
DCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2010

Biography

Dixons Carphone plc operates as a consumer electrical and mobile retailer and service company. It operates through four segments: UK & Ireland Electricals, UK & Ireland Mobile, Nordics, and Greece. The com...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/22 22:46
End of Day Share Price2020/11/20 00:00
Earnings2020/05/02
Annual Earnings2020/05/02


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.