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DCC plc (GB:DCC)
:DCC

DCC plc (DCC) AI Stock Analysis

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GB

DCC plc

(LSE:DCC)

Rating:70Outperform
Price Target:
DCC plc scores well due to its strong financial performance and strategic corporate actions, such as divesting from non-core operations and enhancing leadership for energy focus. While valuation metrics are appealing, technical analysis suggests caution due to mixed market signals.
Positive Factors
Shareholder Returns
The group intends to return £800m of DCC Healthcare divestment proceeds to shareholders, commencing shortly with a £100m share buyback programme.
Strategic Focus
The proposed sale of the Healthcare division simplifies the group and focuses DCC on its attractive energy business.
Negative Factors
Operating Profit
Group adjusted operating profit was down by c.2% to £703.6m, with constant currency growth of 4.9%.
Technology Sector Performance
Operating profit declined in DCC Technology, driven by a weak market for consumer technology products in the UK and Europe.

DCC plc (DCC) vs. iShares MSCI United Kingdom ETF (EWC)

DCC plc Business Overview & Revenue Model

Company DescriptionDCC 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 MoneyDCC 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. The financials suggest resilience with some areas for improvement, such as net profit margin and return on equity.
Income Statement
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue19.57B19.86B22.20B17.73B13.41B14.76B
Gross Profit2.61B2.60B2.40B2.04B1.82B1.74B
EBITDA881.63M882.88M856.65M770.47M707.32M640.99M
Net Income213.16M326.25M334.02M312.37M292.62M245.51M
Balance Sheet
Total Assets8.92B9.48B9.84B9.56B8.03B7.92B
Cash, Cash Equivalents and Short-Term Investments829.58M1.11B1.42B1.39B1.79B1.79B
Total Debt2.32B2.31B2.60B2.34B2.09B2.39B
Total Liabilities5.85B6.30B6.78B6.59B5.33B5.38B
Stockholders Equity2.98B3.09B2.98B2.91B2.65B2.49B
Cash Flow
Free Cash Flow399.36M491.67M427.46M257.42M564.89M348.09M
Operating Cash Flow608.16M722.02M656.90M451.77M727.77M529.11M
Investing Cash Flow-436.73M-525.29M-531.52M-867.43M-391.52M-319.50M
Financing Cash Flow-166.96M-472.75M-100.16M21.49M-256.63M-15.46M

DCC plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4728.00
Price Trends
50DMA
4676.85
Positive
100DMA
4864.06
Negative
200DMA
4981.56
Negative
Market Momentum
MACD
-0.81
Negative
RSI
56.63
Neutral
STOCH
83.82
Negative
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 4728 is above the 20-day moving average (MA) of 4652.10, above the 50-day MA of 4676.85, and below the 200-day MA of 4981.56, indicating a neutral trend. The MACD of -0.81 indicates Negative momentum. The RSI at 56.63 is Neutral, neither overbought nor oversold. The STOCH value of 83.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DCC.

DCC plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£7.42B25.2613.99%1.27%6.10%33.05%
GBEMG
75
Outperform
£2.01B8.8217.94%9.61%18.85%26.14%
GBWPP
74
Outperform
£5.57B10.2615.82%7.03%-0.70%388.07%
GBSPX
71
Outperform
£4.49B23.5116.16%2.87%-1.03%4.06%
GBDCC
70
Outperform
£4.67B22.746.75%4.38%-6.75%-0.02%
GBRTO
68
Neutral
£9.02B29.457.38%2.44%1.13%-19.48%
67
Neutral
$14.91B9.646.38%5.29%4.12%-66.77%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DCC
DCC plc
4,728.00
-619.53
-11.59%
GB:SMIN
Smiths Group plc
2,246.00
586.35
35.33%
GB:RTO
Rentokil Initial
352.10
-97.54
-21.69%
GB:EMG
Man Group plc
169.10
-56.87
-25.17%
GB:SPX
Spirax Sarco Engineering
5,955.00
-2,270.92
-27.61%
GB:WPP
WPP
512.60
-163.12
-24.14%

DCC plc Corporate Events

M&A TransactionsBusiness Operations and Strategy
DCC plc Sells Healthcare Division to Focus on Energy Business
Positive
Apr 22, 2025

DCC plc has announced the sale of its healthcare division to HealthCo Investment Limited for an enterprise value of £1,050 million. This move is part of DCC’s strategy to simplify operations and focus on its energy business, which is its largest and highest-returning division. The transaction is expected to complete in the third quarter of the year and will result in a significant return of capital to shareholders. The sale is seen as a step to maximize shareholder value and accelerate growth in the energy sector.

Spark’s Take on GB:DCC Stock

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

DCC plc’s overall score reflects strong financial health with stable revenue growth and solid cash flow performance. The company’s valuation is reasonable, supported by a moderate P/E ratio and a high dividend yield. Technical analysis suggests caution due to mixed market signals, but the positive sentiment from recent leadership changes provides additional support for future growth.

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

Executive/Board ChangesBusiness Operations and Strategy
DCC plc Announces Leadership Changes to Drive Energy Strategy
Positive
Apr 9, 2025

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.

Regulatory Filings and Compliance
DCC plc Updates Shareholder Voting Rights Information
Neutral
Feb 28, 2025

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.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
DCC plc Reports Robust Q3 Performance and Strategic Focus on Energy
Neutral
Feb 5, 2025

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.

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.Date of analysis: Apr 23, 2025