De La Rue (DLAR) AI Stock Analysis

• Market Cap: £233.68M
• Dividend Yield: N/A
• Average Volume (3M): 571.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -15.28%
• EPS Growth: N/A
• Country: UK
• Employees: 1,674
• Sector: Industrials
• Sector Strength: 69
• Industry: Corporate Services
• EPS (TTM): -0.08
• Shares Outstanding: 196,368,350
• 10 Day Avg. Volume: 836,484
• 30 Day Avg. Volume: 571,674
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.77
• Price to Cash Flow (P/CF): 7.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

De La Rue's overall stock score is impacted by its challenging financial performance, marked by declining revenues and net losses. However, technical indicators show moderate bullish momentum, and recent corporate developments suggest a potential strategic turnaround. Despite these positive signals, the stock's negative valuation metrics weigh down the overall score.

De La Rue Business Overview & Revenue Model

Company Description

De La Rue (DLAR) is a global leader in the design and manufacturing of secure products and solutions. The company operates primarily in the currency and authentication solutions sectors, providing banknote production, currency management, and anti-counterfeiting technologies. De La Rue serves governments, central banks, and commercial organizations worldwide, offering a range of products including polymer and paper banknotes, security features, and high-security documents.

How the Company Makes Money

De La Rue makes money primarily through its two main segments: Currency and Authentication. The Currency segment includes the design, production, and supply of banknotes and related services to central banks and issuing authorities, which involves both paper and polymer substrates. This segment is the company's largest revenue stream. The Authentication segment focuses on providing anti-counterfeiting and traceability solutions, such as security labels and tax stamps, to governments and commercial entities. Additionally, De La Rue engages in strategic partnerships and long-term contracts with governments and financial institutions, which contribute significantly to its revenue. The company's expertise in secure printing and authentication technologies underpins its revenue model, as it capitalizes on the increasing global demand for secure currency and anti-counterfeiting solutions.

De La Rue Financial Statement Overview

Summary

De La Rue faces significant financial challenges with declining revenues, consistent net losses, and a fragile balance sheet highlighted by negative equity. While there is some strength in cash flow generation, the company's profitability and financial stability are concerning. Immediate strategic adjustments are necessary to improve financial health and operational efficiency.

Income Statement

De La Rue has shown a decline in revenue over recent years, with a significant drop in Total Revenue from 2019 to 2024. The Gross Profit Margin for 2024 is approximately 27.7%, indicating moderate profitability from operations. However, the company has faced net losses in recent years, with a Net Profit Margin of -6.4% in 2024, reflecting ongoing financial challenges. The EBIT and EBITDA margins are low, at 1.9% and 7.4% respectively, indicating limited operational efficiency.

Balance Sheet

The company's balance sheet reveals a concerning financial position, with negative Stockholders' Equity in 2024, indicating that liabilities exceed assets. The Debt-to-Equity ratio cannot be calculated due to negative equity, highlighting financial instability. The Equity Ratio is negative, further confirming the precarious financial health. The Return on Equity (ROE) is also negative due to the net loss and negative equity, reflecting poor returns for shareholders.

Cash Flow

De La Rue shows some positive cash flow metrics, with Operating Cash Flow exceeding Net Income, suggesting good cash generation from operations despite reported losses. The Free Cash Flow in 2024 is positive, at 9 million, indicating some liquidity improvement. However, the Free Cash Flow Growth Rate is challenging to assess due to prior negative values. Overall, cash flow management shows moderate strength in generating operating cash, but historical volatility is a concern.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
310.30M	349.70M	375.10M	397.40M	472.10M
	Gross Profit
85.90M	91.10M	96.60M	106.80M	114.10M
	EBIT
5.80M	28.20M	37.60M	36.50M	22.60M
	EBITDA
23.10M	2.00M	49.00M	36.60M	63.10M
	Net Income Common Stockholders
-20.00M	-55.90M	21.50M	5.90M	34.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.30M	40.30M	24.30M	25.70M	14.60M
	Total Assets
294.30M	348.60M	378.50M	377.10M	407.60M
	Total Debt
128.80M	131.70M	106.80M	89.90M	130.50M
	Net Debt
99.50M	91.40M	82.50M	64.20M	115.90M
	Total Liabilities
291.70M	313.60M	216.70M	265.70M	314.40M
	Stockholders Equity
-11.60M	19.10M	143.80M	95.00M	78.00M
Cash Flow		Free Cash Flow
9.00M	-11.90M	-18.10M	-34.70M	-17.90M
	Operating Cash Flow
26.20M	13.70M	10.30M	-13.60M	-700.00K
	Investing Cash Flow
-7.80M	-21.00M	-25.80M	-20.30M	25.40M
	Financing Cash Flow
-29.00M	22.90M	13.90M	45.40M	-21.50M

De La Rue Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 118.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DLAR, the sentiment is Neutral. The current price of 118.5 is below the 20-day moving average (MA) of 119.65, above the 50-day MA of 114.60, and above the 200-day MA of 101.76, indicating a neutral trend. The MACD of 1.42 indicates Positive momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 49.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:DLAR.

De La Rue Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REL	73 Outperform	£67.58B	35.27	56.34%	1.60%	2.98%	10.10%
GSK	73 Outperform	£61.77B	24.68	19.06%	4.02%	3.46%	-48.06%
BATS	66 Neutral	£69.29B	23.08	5.92%	7.47%	-5.19%	―
SBRY	64 Neutral	£5.96B	43.85	2.25%	5.05%	2.66%	80.49%
Sector *	62 Neutral	$8.17B	12.83	0.26%	3.07%	3.83%	-16.44%
DLAR	51 Neutral	£233.68M	―		―	-15.28%	―

De La Rue Corporate Events

De La Rue Reports Strong Currency Growth and Advances Authentication Sale

De La Rue has reported strong progress in its Currency business for FY25, with a significant increase in its order book, indicating robust growth. The company is also advancing the sale of its Authentication division, expected to complete in the first half of 2025, which will help repay its revolving credit facility. This strategic move is anticipated to enhance focus on its core Currency operations, projecting a substantial performance escalation in FY26.

De La Rue Announces Total Voting Rights Update

De La Rue plc announced that its total issued share capital as of February 28, 2025, consists of 196,368,354 ordinary shares with voting rights, with none held in Treasury. This figure is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules, impacting how they manage their interests in the company.

De La Rue Sees Increase in Voting Rights Held by CMC Markets

De La Rue PLC has announced a significant change in its shareholder voting rights, with CMC Markets UK PLC now holding 9.17% of the voting rights, up from a previous 5.09%. This increase in voting rights could potentially influence company decisions and impact its strategic direction, reflecting growing interest or investment from CMC Markets UK PLC.

De La Rue Announces Change in Major Shareholdings

De La Rue PLC has announced a change in major holdings, with CMC Markets UK PLC now holding 5.09% of the voting rights. This change, effective as of February 7, 2025, could influence the voting dynamics and decision-making processes within De La Rue PLC, potentially impacting its strategic direction and operations.

De La Rue PLC Announces Change in Major Shareholder Holdings

De La Rue PLC has announced a change in its major holdings. The Crystal Amber Fund Limited has reduced its voting rights in the company from 15.86% to 13.31%, crossing the threshold on February 3, 2025. This adjustment in holdings could potentially impact De La Rue’s shareholder dynamics and influence within the industry, as Crystal Amber Fund is a significant stakeholder.

De La Rue Initiates Formal Sale Process Amid Acquisition Interest

De La Rue has announced the commencement of a Formal Sale Process following several preliminary cash offers for the company, including a conditional offer from PSFC Entities. The company’s Board has decided to explore these offers by initiating a structured sale process, which involves inviting expressions of interest from potential buyers. This move comes amid ongoing discussions about selling its Authentication division and exploring strategic options for its Currency division, signaling a significant strategic shift that could impact its future operations and stakeholder interests.

De La Rue Announces Change in Major Holdings

De La Rue PLC has announced a change in its major holdings, with Crystal Amber Fund Limited adjusting its voting rights from 16.48% to 15.86%. This change reflects a disposal of voting rights, potentially impacting the company’s governance and decision-making processes. With a total of 31,100,000 voting rights held, this adjustment may signify a shift in stakeholder influence and could have implications for future strategic directions.

De La Rue Experiences Change in Major Shareholder Holdings

De La Rue PLC has been notified of a change in major holdings by Spreadex LTD, which involves an acquisition or disposal of voting rights and financial instruments. This change results in Spreadex holding a total of 4.3646% voting rights in De La Rue, a decrease from their previous position of 5.7062%. Such movements in holdings can impact De La Rue’s shareholder composition and potentially influence future company decisions and market perception.

De La Rue Receives Conditional Cash Offer Amidst Strategic Divestments

De La Rue has received a preliminary conditional cash offer from Disruptive Capital GP Limited and Pension SuperFund Capital entities for its entire issued share capital at £1.25 per share, following the cessation of discussions on a partial offer. The offer is dependent on the successful sale of its Authentication division to Crane NXT, Co. The board is considering its options, and discussions regarding the sale of the Currency division are ongoing, with no certainty of proposals being made. The deadline for a firm offer has been extended to February 6, 2025.

De La Rue PLC Announces Increase in Voting Rights Holdings

De La Rue PLC has announced a change in its voting rights holdings, with Richard Griffiths increasing his stake to 12.05%, up from 11.44%. This change, effective from December 17, 2024, reflects a strategic shift in shareholder composition that could impact company governance and influence future strategic decisions.