DCC plc (DCC) AI Stock Analysis

• Market Cap: £4.71B
• Dividend Yield: 4.19%
• Average Volume (3M): 327.10K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.49
• Revenue Growth: -6.75%
• EPS Growth: -0.02%
• Country: UK
• Employees: 16,700
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 3.34
• Shares Outstanding: 98,966,180
• 10 Day Avg. Volume: 358,598
• 30 Day Avg. Volume: 327,102
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.26
• Price to Cash Flow (P/CF): -177.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 6,600.00p
• Price Target Upside: 38.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

DCC plc's overall score reflects a strong financial position characterized by stable revenue growth and effective cash flow management. The recent leadership changes are promising for strategic alignment but are counterbalanced by technical analysis indicating mixed market sentiment. Valuation remains reasonable with a moderate P/E ratio and attractive dividend yield, making it a potentially stable investment.

Positive Factors

Leadership Restructuring

DCC's leadership restructuring is a strategic move to bolster its focus on the energy sector, leveraging the extensive experience of its new leadership team to drive performance and growth.

Strategic Focus

The focus on the Energy division is expected to double profits and significantly reduce carbon emissions, driven by converting customers to lower emission fuels and building a leading Pan-European Energy Management Services offering.

Valuation Upside

DCC shares currently trade at a 25%+ discount to its historical average and listed peers, indicating potential upside.

Negative Factors

Market Conditions

DCC Energy traded robustly and delivered good operating profit growth, despite the impact of warmer weather conditions.

Operating Profit Decline

Operating profit declined in DCC Technology, driven by a weak market for consumer technology products in the UK and Europe.

Sector Challenges

The sale of DCC Healthcare is expected to unlock substantial value for shareholders, with the potential for a significant cash offer based on its strong track record and market-leading platforms.

DCC plc Business Overview & Revenue Model

Company Description

DCC plc is a leading international sales, marketing, and support services group headquartered in Dublin, Ireland. The company operates through four main divisions: DCC LPG, DCC Retail & Oil, DCC Healthcare, and DCC Technology. It provides a diverse range of products and services, including liquefied petroleum gas, fuel, healthcare products, and technology solutions, serving both consumer and business markets globally.

How the Company Makes Money

DCC plc generates revenue through its diversified operations across its four main divisions. DCC LPG supplies liquefied petroleum gas to both commercial and domestic customers, earning money through direct sales and distribution services. DCC Retail & Oil operates in the sale and marketing of transport fuels and commercial fuels, as well as retailing convenience products through its extensive network of retail sites. DCC Healthcare provides medical devices, pharmaceuticals, and health and beauty products to healthcare professionals and consumers, earning revenue from product sales and distribution agreements. DCC Technology, also known as Exertis, focuses on distributing consumer electronics, IT, and mobile products, generating income from wholesale distribution and value-added services. The company benefits from strategic partnerships, economies of scale, and a focus on operational efficiency, contributing to its earnings.

DCC plc Financial Statement Overview

Summary

DCC plc shows strong financial health with stable revenue growth, effective cost management, and solid cash flow performance. A slight decrease in net profit margin and return on equity is noted, but the company's overall financials suggest resilience and capability for sustained performance in the fossil fuels industry.

Income Statement

DCC plc has demonstrated consistent revenue growth over the years with a stable gross profit margin. The recent revenue decline from 2023 to 2024 suggests some volatility, but the company maintains healthy EBIT and EBITDA margins, indicating operational efficiency. However, the net profit margin has slightly decreased, pointing to increased financial expenses or taxation.

Balance Sheet

The balance sheet of DCC plc shows a moderate debt-to-equity ratio, which indicates a balanced approach to leveraging. While the equity ratio has remained stable, suggesting strong asset backing, the return on equity has slightly declined, which may impact future profitability expectations. Overall, the company's financial position appears stable with low risk of solvency issues.

Cash Flow

DCC plc exhibits strong cash flow management, with positive free cash flow growth and an impressive operating cash flow to net income ratio. This suggests efficient conversion of income to cash, enhancing liquidity and allowing for strategic investments or debt servicing. The free cash flow to net income ratio also indicates a robust cash-generating capability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
28.26B	19.86B	22.20B	17.73B	13.41B	14.76B
	Gross Profit
3.06B	2.60B	2.40B	2.04B	1.82B	1.74B
	EBIT
725.32M	529.40M	511.99M	458.36M	422.85M	366.64M
	EBITDA
1.15B	882.88M	856.65M	770.47M	707.32M	640.99M
	Net Income Common Stockholders
475.07M	326.25M	334.02M	312.37M	292.62M	245.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.11B	1.11B	1.42B	1.39B	1.79B	1.79B
	Total Assets
9.48B	9.48B	9.84B	9.56B	8.03B	7.92B
	Total Debt
2.28B	2.31B	2.60B	2.34B	2.09B	2.39B
	Net Debt
1.17B	1.20B	1.18B	943.58M	301.53M	598.67M
	Total Liabilities
6.30B	6.30B	6.78B	6.59B	5.33B	5.38B
	Stockholders Equity
3.09B	3.09B	2.98B	2.91B	2.65B	2.49B
Cash Flow		Free Cash Flow
427.22M	491.67M	427.46M	257.42M	564.89M	348.09M
	Operating Cash Flow
735.50M	722.02M	656.90M	451.77M	727.77M	529.11M
	Investing Cash Flow
-1.28B	-525.29M	-531.52M	-867.43M	-391.52M	-319.50M
	Financing Cash Flow
57.66M	-472.75M	-100.16M	21.49M	-256.63M	-15.46M

DCC plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4762.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DCC, the sentiment is Negative. The current price of 4762 is below the 20-day moving average (MA) of 5066.65, below the 50-day MA of 5227.26, and below the 200-day MA of 5248.37, indicating a bearish trend. The MACD of -37.45 indicates Positive momentum. The RSI at 43.39 is Neutral, neither overbought nor oversold. The STOCH value of 28.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DCC.

DCC plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMG	76 Outperform	£1.79B	7.79	17.94%	8.18%	18.85%	26.14%
SMIN	75 Outperform	£5.94B	19.94	13.99%	2.46%	6.10%	33.05%
DCC	71 Outperform	£4.71B	14.25	11.08%	4.19%	-6.75%	-0.02%
SPX	71 Outperform	£4.26B	22.30	16.16%	2.79%	-1.03%	4.06%
WPP	66 Neutral	£5.73B	10.56	15.82%	7.41%	-0.70%	388.07%
RTO	62 Neutral	£8.41B	27.50	7.38%	2.71%	1.13%	-19.48%
Sector *	57 Neutral	$7.56B	4.34	-4.83%	6.50%	-0.19%	-64.60%

DCC plc Corporate Events

DCC plc Announces Leadership Changes to Drive Energy Strategy

DCC plc has announced significant leadership changes to align with its strategic focus on the energy sector. Kevin Lucey will transition from CFO to COO, while Conor Murphy will take over as CFO. These changes aim to drive the company’s Cleaner Energy in Your Power strategy and enhance its position as a global energy leader. The leadership restructuring is expected to support the growth of DCC’s energy business and its other divisions, Healthcare and Technology, while continuing to deliver shareholder value.

Spark’s Take on GB:DCC Stock

According to Spark, TipRanks’ AI Analyst, GB:DCC is a Neutral.

DCC plc’s overall score reflects strong financial health characterized by stable revenue growth and solid cash flow performance. While technical analysis suggests mixed market sentiment, the valuation remains reasonable with a moderate P/E ratio and attractive dividend yield. The lack of recent earnings call data or corporate events leaves these areas unaccounted for in the analysis.

To see Spark’s full report on GB:DCC stock, click here.

DCC plc Updates Shareholder Voting Rights Information

DCC plc has announced its total number of Ordinary Shares with voting rights as of 28 February 2025, which amounts to 98,966,179 shares. The total issued share capital is 101,333,904 Ordinary Shares, with 2,367,725 held as Treasury Shares without voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

DCC plc Reports Robust Q3 Performance and Strategic Focus on Energy

In its Q3 trading statement, DCC plc reported robust performance with the group’s adjusted operating profit for the third quarter of 2024 remaining broadly in line with the previous year. While DCC Energy and Mobility segments showed growth, DCC Technology saw a decline due to weak consumer technology markets in the UK and Europe. The company is focusing on the energy sector, planning to dispose of its healthcare division in 2025 to streamline operations and enhance shareholder value. Despite currency translation headwinds, DCC anticipates good operating profit growth and strategic progress for the fiscal year ending March 2025.