LSE:DC.

Stock Analysis Report

Executive Summary

Dixons Carphone plc operates as a consumer electrical and mobile retailer and services company.


Snowflake Analysis

Adequate balance sheet and fair value.


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. has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

DC.

-0.2%

GB Specialty Retail

-2.8%

GB Market


1 Year Return

-18.4%

DC.

20.3%

GB Specialty Retail

8.0%

GB Market

Return vs Industry: DC. underperformed the UK Specialty Retail industry which returned 20.3% over the past year.

Return vs Market: DC. underperformed the UK Market which returned 8% over the past year.


Shareholder returns

DC.IndustryMarket
7 Day3.8%-0.2%-2.8%
30 Day6.5%3.2%-1.9%
90 Day11.5%11.8%0.2%
1 Year-13.4%-18.4%24.7%20.3%13.6%8.0%
3 Year-58.0%-64.5%4.6%-6.0%18.0%2.9%
5 Year-62.5%-69.6%10.7%-6.5%37.0%5.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DC. (£1.28) is trading below our estimate of fair value (£6.12)

Significantly Below Fair Value: DC. is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DC. is unprofitable, so we can't compare its PE Ratio to the 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 (1x).


Next Steps

Future Growth

How is Dixons Carphone forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

75.1%

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 (0.5%).

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 (-0.08% per year).

High Growth Revenue: DC.'s revenue is forecast to decline over the next 3 years (-0.08% 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 (8.5%).


Next Steps

Past Performance

How has Dixons Carphone performed over the past 5 years?

-34.3%

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 -34.3% 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 (2.5%).


Return on Equity

High ROE: DC. has a negative Return on Equity (-11.78%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dixons Carphone's financial position?


Financial Position Analysis

Short Term Liabilities: DC.'s short term assets (£2.3B) do not cover its short term liabilities (£2.5B).

Long Term Liabilities: DC.'s short term assets (£2.3B) exceed its long term liabilities (£1.4B).


Debt to Equity History and Analysis

Debt Level: DC.'s debt to equity ratio (11.6%) is considered satisfactory.

Reducing Debt: DC.'s debt to equity ratio has reduced from 29.7% to 11.6% over the past 5 years.

Debt Coverage: DC.'s debt is well covered by operating cash flow (93.2%).

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


Balance Sheet

Inventory Level: DC. has a high level of physical assets or inventory.

Debt Coverage by Assets: DC.'s debt is covered by short term assets (assets are 7.6x debt).


Next Steps

Dividend

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

5.27%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.0%markettop25%5.3%industryaverage2.8%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: DC.'s dividend (5.27%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: DC.'s dividend (5.27%) is in the top 25% of dividend payers in the UK market (5.27%)


Stability and Growth of Payments

Stable Dividend: DC. has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DC.'s dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: DC. is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DC.'s dividends in 3 years are forecast to be well covered by earnings (36.4% payout ratio).


Next Steps

Management

What is the CEO of Dixons Carphone's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Alex Baldock 0

1.7yrs

Tenure

UK£1,619,000

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 ($USD2.12M) is about average for companies of similar size in the UK market ($USD1.85M).

Compensation vs Earnings: Insufficient data to compare Alex's compensation with company performance.


Management Age and Tenure

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: DC.'s management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

Experienced Board: DC.'s board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUK£85,29021 Jun 19
Jonathan Mason
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Director
Shares75,000
Max PriceUK£1.14
BuyUK£113,38021 Jun 19
Tony DeNunzio
EntityIndividual
Role
Vice Chairman
Deputy Chairman & Senior Independent Director
Shares100,000
Max PriceUK£1.13
BuyUK£10,01521 Jun 19
Fiona McBain
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares9,000
Max PriceUK£1.11
BuyUK£5,47221 Jun 19
Andrea Joosen
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,800
Max PriceUK£1.14
BuyUK£170,58021 Jun 19
Alex Baldock
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive & Director
Shares150,000
Max PriceUK£1.14
BuyUK£113,72021 Jun 19
Ian Livingston
EntityIndividual
Role
Chairman of the Board
Chairman
Shares100,000
Max PriceUK£1.14
BuyUK£57,45021 Jun 19
John Murphy
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceUK£1.15

Ownership Breakdown

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


Management Team

  • Jonny Mason (55yo)

    Group CFO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£765.67k
  • Charles Dunstone (55yo)

    Senior Advisor

    • Tenure: 2.7yrs
    • Compensation: UK£280.00k
  • Neil King

    Group Treasurer

    • Tenure: 0yrs
  • Jaan Gjærum Semlitsch (48yo)

    Chief Executive Officer of Nordics

    • Tenure: 6.9yrs
  • Alex Baldock

    Group Chief Executive & Director

    • Tenure: 1.7yrs
    • Compensation: UK£1.62m
  • Nigel Paterson

    General Counsel & Company Secretary

    • Tenure: 4.7yrs
  • Jeremy Fennell

    Managing Director of Carphone Warehouse

    • Tenure: 4.2yrs
  • Mark Reynolds

    Head of Investor Relations

    • Tenure: 0yrs
  • Steve Ager

    Chief Commercial Officer

    • Tenure: 0yrs
  • Amy Shields

    Head of External Communications

    • Tenure: 0yrs

Board Members

  • Jonny Mason (55yo)

    Group CFO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£765.67k
  • Ian Livingston (55yo)

    Chairman

    • Tenure: 2.7yrs
    • Compensation: UK£300.00k
  • Tony DeNunzio (59yo)

    Deputy Chairman & Senior Independent Director

    • Tenure: 2.7yrs
    • Compensation: UK£143.00k
  • Eileen Burbidge (47yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£23.00k
  • Fiona McBain (58yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£85.00k
  • Andrea Joosen (55yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£75.00k
  • Alex Baldock

    Group Chief Executive & Director

    • Tenure: 1.7yrs
    • Compensation: UK£1.62m
  • Gerry Murphy (66yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: UK£70.00k

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£1.446b
  • 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
DSIT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2010

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 21:23
End of Day Share Price2019/12/06 00:00
Earnings2019/04/27
Annual Earnings2019/04/27


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.