OTCPK:DLUE.Y

Stock Analysis Report

Executive Summary

De La Rue plc designs, manufactures, and delivers banknotes in the United Kingdome, the Middle East, Africa, Asia, the Americas, Rest of Europe, and internationally.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has De La Rue's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

19.7%

DLUE.Y

-5.3%

US Commercial Services

-7.4%

US Market


1 Year Return

-66.0%

DLUE.Y

14.7%

US Commercial Services

10.5%

US Market

Return vs Industry: DLUE.Y underperformed the US Commercial Services industry which returned 14.7% over the past year.

Return vs Market: DLUE.Y underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

DLUE.YIndustryMarket
7 Day19.7%-5.3%-7.4%
30 Day8.4%-1.6%-3.6%
90 Day2.7%1.6%-0.6%
1 Year-64.3%-66.0%18.5%14.7%12.8%10.5%
3 Year-73.7%-76.8%54.0%44.0%37.4%28.6%
5 Year-74.3%-79.1%91.4%71.1%61.3%43.6%

Price Volatility Vs. Market

How volatile is De La Rue's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is De La Rue 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: DLUE.Y ($5.62) is trading below our estimate of fair value ($15.57)

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


Price To Earnings Ratio

PE vs Industry: DLUE.Y is poor value based on its PE Ratio (49.3x) compared to the Commercial Services industry average (27.1x).

PE vs Market: DLUE.Y is poor value based on its PE Ratio (49.3x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: DLUE.Y is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: DLUE.Y has negative assets, so we can't compare its PB Ratio to the US Commercial Services industry average.


Next Steps

Future Growth

How is De La Rue forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

102.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLUE.Y's forecast earnings growth (102.7% per year) is above the savings rate (1.7%).

Earnings vs Market: DLUE.Y's earnings (102.7% per year) are forecast to grow faster than the US market (13.2% per year).

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

Revenue vs Market: DLUE.Y's revenue is expected to decline over the next 3 years (-13.3% per year).

High Growth Revenue: DLUE.Y's revenue is forecast to decline over the next 3 years (-13.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DLUE.Y's Return on Equity is forecast to be very high in 3 years time (163.4%).


Next Steps

Past Performance

How has De La Rue performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLUE.Y has a high level of non-cash earnings.

Growing Profit Margin: DLUE.Y's current net profit margins (0.6%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: DLUE.Y's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: DLUE.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DLUE.Y had negative earnings growth (-96.4%) over the past year, making it difficult to compare to the Commercial Services industry average (-7.9%).


Return on Equity

High ROE: DLUE.Y's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is De La Rue's financial position?


Financial Position Analysis

Short Term Liabilities: DLUE.Y has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: DLUE.Y has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: DLUE.Y has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: DLUE.Y's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: DLUE.Y's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: DLUE.Y's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: DLUE.Y has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is De La Rue's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.9%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: DLUE.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Clive Vacher 0

0.3yrs

Tenure

0

Mr. Clive Graham Vacher serves as Chief Executive Officer and Executive Director of De La Rue Plc since October 7, 2019. Mr. Vacher was the Chief Executive Officer, President at Dynex Power Inc. Mr. Vacher ...


Leadership Team

NamePositionTenureCompensationOwnership
Clive Vacher
CEO & Executive Director0.3yrsno data0.047% £93.6k
Bryan Gray
Chief Operating Officer2.7yrsno datano data
Selva Selvaratnam
Chief Technology Officer0yrsno data0.033% £65.2k
Paul Sharma
Head of Investor Relations0yrsno datano data
Jane Hyde
General Counsel & Company Secretary0.08yrsno datano data
Clare Williams
Group Communications Manager0yrsno datano data
Easton Jo
Group Director of Human Resources5.8yrsno data0.028% £55.5k
Constance Baroudel
Managing Director of Solutions Comprising Security Products and Identity Systems0yrsno datano data
Keith Brown
Managing Director of Currency9.5yrsno datano data
Richard Hird
Chief Commercial Officer4.4yrsno data0.0019% £3.8k

3.5yrs

Average Tenure

Experienced Management: DLUE.Y's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Clive Vacher
CEO & Executive Director0.3yrsno data0.047% £93.6k
Nicholas Paul Bray
Independent Non-Executive Director3.6yrsUK£58.00k0.018% £35.2k
Kevin Loosemore
Chairman0.3yrsno datano data
Maria da Cunha da Silva
Independent Non-Executive Director18.6yrsUK£50.00k0.0046% £9.1k
Sabri Challah
Senior Independent Director0.3yrsUK£58.00k0.0033% £6.5k

0.3yrs

Average Tenure

58yo

Average Age

Experienced Board: DLUE.Y's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


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

De La Rue plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: De La Rue plc
  • Ticker: DLUE.Y
  • Exchange: OTCPK
  • Founded: 1813
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: UK£153.500m
  • Listing Market Cap: UK£199.701m
  • Shares outstanding: 104.00m
  • Website: https://www.delarue.com

Number of Employees


Location

  • De La Rue plc
  • De La Rue House
  • Jays Close
  • Basingstoke
  • Hampshire
  • RG22 4BS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DELR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
DLARLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
DL1CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
DLARLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
DLUE.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 1993

Biography

De La Rue plc designs, manufactures, and delivers banknotes in the United Kingdome, the Middle East, Africa, Asia, the Americas, Rest of Europe, and internationally. It operates through three segments: Currency, Identity Solutions, and Product Authentication and Traceability. The Currency segment offers printed banknotes, polymer substrates, and banknote security components. The Identity Solutions provides passport, e-passport, national ID and eID, driving license, and voter registration schemes. The Product Authentication and Traceability segment produces security documents, including authentication labels, brand licensing products, government documents, cheques, and postage stamps. The company also provides trading and non-trading, as well as insurance services. It serves the governments, central banks, and commercial organizations. The company was founded in 1813 and is headquartered in Basingstoke, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 23:50
End of Day Share Price2020/02/25 00:00
Earnings2019/09/28
Annual Earnings2019/03/30


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.