DCC PLC (GB:DCC)
LSE:DCC
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DCC plc
(LSE:DCC)
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Rating:66Neutral
Price Target:
6,604.00 p
▲(24.84% Upside)
Action:Reiterated
Date:05/20/26
The score is led by strong cash generation and constructive earnings-call indicators (solid adjusted growth, strong cash conversion/ROCE, and shareholder returns), supported by a clear positive price trend. It is held back by the sharp drop in reported net income and reduced equity cushion, plus a negative P/E that limits valuation support despite a decent dividend yield.
Positive Factors
Strong cash generation
Consistently high operating and free cash flow with 108% conversion provides durable capacity to fund debt service, reinvestment, M&A and shareholder returns. Cash resilience also cushions the business against earnings volatility and supports strategic optionality over the next 2–6 months.
Negative Factors
Sharp earnings and equity drop
A material fall in reported net income and a sizeable reduction in equity weakens the balance-sheet cushion and reduces flexibility. Persistent bottom-line pressure can limit capital deployment, raise stakeholder scrutiny and increase vulnerability to adverse market shocks despite strong cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently high operating and free cash flow with 108% conversion provides durable capacity to fund debt service, reinvestment, M&A and shareholder returns. Cash resilience also cushions the business against earnings volatility and supports strategic optionality over the next 2–6 months.
Read all positive factors
DCC plc (DCC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£5.03B
Dividend Yield4.43%
Average Volume (3M)318.04K
Price to Earnings (P/E)384.0
Beta (1Y)1.24
Revenue Growth-14.26%
EPS Growth-79.14%
CountryUK
Employees16,700
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)0.43
Shares Outstanding85,424,130
10 Day Avg. Volume206,953
30 Day Avg. Volume318,038
Financial Highlights & Ratios
PEG Ratio-3.51
Price to Book (P/B)1.93
Price to Sales (P/S)0.28
P/FCF Ratio9.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£6,190.00Price Target Upside17.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)5.03
Revenue Forecast (FY)£16.47B
DCC plc Business Overview & Revenue Model
Company Description
DCC plc provides sales, marketing, and support services worldwide. The company's DCC LPG segment sells and markets liquefied petroleum gas (LPG), refrigerants, and natural gas. Its DCC Retail & Oil segment markets, sells, and retails transport and...
How the Company Makes Money
DCC primarily makes money by acting as a specialist distributor and service provider across its operating divisions, earning revenue from the sale and delivery of products and from associated services. In its energy activities, it generates revenu...
DCC plc Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call reported solid financial and operational performance: adjusted operating profit and EPS grew, cash conversion and returns on capital remained strong, and the group delivered substantial capital returns while accelerating its strategic focus on energy. These positives were tempered by a revenue decline, weaker energy volumes, and a disappointing year for Energy Services amid market and policy volatility. Management emphasized long-term opportunities in liquid gas and multi-energy solutions and maintained an acquisitive stance with a strong balance sheet.Positive Updates
Adjusted operating profit growth
Total adjusted operating profit increased 3.6% to GBP 634.0m for FY '26, driven by a stronger second half performance (+7.9% H2) despite a weaker first half (approx. -5%).
Negative Updates
Revenue decline and volume weakness
Reported revenue fell 2.9% to GBP 15.4bn; DCC Energy volumes were down 3.2% for the year (down 1.8% in H2), reflecting milder weather, reduced commercial activity in some regions and weak demand in parts of the year.
Read all updates
Q4-2026 Updates
Positive
Negative
Adjusted operating profit growth
Total adjusted operating profit increased 3.6% to GBP 634.0m for FY '26, driven by a stronger second half performance (+7.9% H2) despite a weaker first half (approx. -5%).
Read all positive updates
Company Guidance
The call reiterated a clear energy‑focused guidance and quantified targets: FY‑26 saw adjusted operating profit +3.6% to £634m, adjusted EPS +9.9% to 438.1p, revenue £15.4bn (‑2.9%), free cash flow conversion 108% (113% in DCC Energy), group ROCE 16.8% (DCC Energy 18.8%), net debt £690m (0.9x EBITDA) and £700m returned to shareholders (with a further £100m expected in FY28) alongside a proposed 5% dividend increase to 216.72p and a £110m committed acquisition spend; management reiterated its 2030 ambition to double profits, medium‑term organic growth guidance of 3–4% with 6–8% from M&A to deliver double‑digit earnings growth, a target to convert ~90% of profits into cash and to sustain ROCE in the high teens, noted 87% of group profit now derives from Energy (Solutions 76% / Mobility 24%), highlighted market opportunity (liquid gas TAM c.74bn litres with c.5% share today), and set operational milestones including the intended Nexora sale by end‑2026 and a proposed name change to DCC Energy plc effective 16 July 2026.DCC plc Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
58
Neutral
Cash Flow
75
Positive
| Breakdown | Mar 2026 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.44B | 18.01B | 19.86B | 17.73B | 13.41B |
| Gross Profit | 2.26B | 2.40B | 2.60B | 2.04B | 1.82B |
| EBITDA | 881.33M | 785.73M | 882.88M | 770.47M | 707.32M |
| Net Income | 13.36M | 206.49M | 326.25M | 312.37M | 292.62M |
Balance Sheet | |||||
| Total Assets | 8.27B | 9.26B | 9.48B | 9.56B | 8.03B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 1.09B | 1.11B | 1.39B | 1.79B |
| Total Debt | 2.28B | 2.28B | 2.31B | 2.34B | 2.09B |
| Total Liabilities | 5.90B | 6.09B | 6.30B | 6.59B | 5.33B |
| Stockholders Equity | 2.26B | 3.07B | 3.09B | 2.91B | 2.65B |
Cash Flow | |||||
| Free Cash Flow | 475.45M | 367.73M | 491.67M | 257.42M | 564.89M |
| Operating Cash Flow | 684.10M | 582.03M | 722.02M | 451.77M | 727.77M |
| Investing Cash Flow | 344.92M | -338.14M | -525.29M | -867.43M | -391.52M |
| Financing Cash Flow | -1.11B | -180.89M | -472.75M | 21.49M | -256.63M |
DCC plc Technical Analysis
Positive
5290.00
Price Trends
5205.48
Positive
4938.59
Positive
4807.64
Positive
Market Momentum
213.18
Positive
68.80
Neutral
26.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DCC, the sentiment is Positive. The current price of 5290 is below the 20-day moving average (MA) of 5770.73, above the 50-day MA of 5205.48, and above the 200-day MA of 4807.64, indicating a bullish trend. The MACD of 213.18 indicates Positive momentum. The RSI at 68.80 is Neutral, neither overbought nor oversold. The STOCH value of 26.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DCC.
DCC plc Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £3.34B | 25.49 | 9.72% | 5.64% | 49.70% | -5.56% | |
69 Neutral | £4.83B | -27.21 | -4.05% | 8.77% | 57.55% | -54.80% | |
66 Neutral | £5.03B | 384.01 | 0.55% | 4.43% | -14.26% | -79.14% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | £65.72M | 12.63 | 6.02% | 6.59% | -5.21% | -33.93% | |
64 Neutral | £3.70B | 20.37 | 9.33% | 14.05% | 36.10% | ― | |
63 Neutral | £791.71M | 3.11 | 40.22% | 10.49% | ― | ― |
* Energy Sector Average
GB:DCC
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DCC plc Corporate Events
Business Operations and StrategyExecutive/Board Changes
DCC reshapes board as Workforce Engagement Director retires
Neutral
May 19, 2026
DCC plc, the FTSE 100-listed multi-energy distributor based in Dublin, supplies secure, cleaner and competitive off-grid energy solutions, including liquid gas, service stations and fleet services, to a broad customer base across Europe and the U....
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
DCC Boosts Profits, Tightens Focus on Energy as It Prepares to Rebrand
Positive
May 19, 2026
DCC reported a year of strategic progress and resilient trading for the 12 months to 31 March 2026, as adjusted continuing operating profit rose 3.6% to £634m and adjusted continuing earnings per share climbed 9.9%. The energy-focused group, ...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
DCC non-executive director Alan Ralph joins Cairn Homes board
Positive
May 15, 2026
DCC plc has announced that non-executive director Alan Ralph will join the board of Cairn Homes plc as a non-executive director, effective 1 July 2026. Cairn Homes is listed on Euronext Dublin and has a secondary listing on the London Stock Exchan...
Executive/Board ChangesRegulatory Filings and Compliance
DCC Director Lily Liu to Become CFO of Umicore
Positive
Apr 30, 2026
DCC plc said non-executive director Lily Liu has been appointed chief financial officer of Belgian materials technology group Umicore, effective 1 August 2026. The move underscores ongoing board-level changes at DCC but the company has not indicat...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
DCC Rejects £58-a-Share Approach From Energy Capital Partners and KKR
Neutral
Apr 30, 2026
DCC plc has rejected an unsolicited, indicative and conditional cash proposal from a consortium comprising Energy Capital Partners and KKR to acquire the company at 5,800 pence per share, with the offer assuming no further dividends. The board, ad...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
DCC Confirms Indicative Takeover Approach From ECP–KKR Consortium
Neutral
Apr 29, 2026
DCC plc has confirmed it received an indicative all-cash proposal from a consortium comprising Energy Capital Partners and Kohlberg Kravis Roberts, following recent market speculation about a potential bid for the group. The board, advised by J.P....
Regulatory Filings and Compliance
DCC Updates Share Capital and Voting Rights for Regulatory Disclosures
Neutral
Mar 31, 2026
DCC plc has reported that, as of 31 March 2026, it has 87,609,229 issued ordinary shares of €0.25 each, of which 2,185,094 are held in treasury and do not carry voting rights. This leaves 85,424,135 ordinary shares in issue with voting right...
Business Operations and StrategyExecutive/Board Changes
DCC strengthens board with appointment of former Shell executive John Abbott
Positive
Mar 6, 2026
DCC plc, the Dublin‑headquartered FTSE 100 energy marketing and distribution group, has appointed veteran energy executive John Abbott as a non‑executive director and member of its Nomination and Governance Committee, effective after i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.