DCC plc (DCC) AI Stock Analysis

• Market Cap: £4.59B
• Dividend Yield: 4.31%
• Average Volume (3M): 361.54K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.37
• 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): 1.11
• Shares Outstanding: 98,957,280
• 10 Day Avg. Volume: 337,842
• 30 Day Avg. Volume: 361,536
• PEG Ratio: 18.92
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.25
• 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: £6,000.00
• Price Target Upside: 29.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• 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

Financial Performance

Group adjusted operating profit was down by c.2% to £703.6m, with constant currency growth of 4.9%.

Market Challenges

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

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 commercial fuels, heating oils, and related products and services; operates retail petrol stations; resells fuel cards; distributes oil; and provides inbound logistics, storage and filling, and outbound logistics services. This segment serves domestic, agricultural, commercial/industrial, forecourt, aviation, and marine customers. The company's DCC Healthcare segment offers products and services to healthcare providers, and health and beauty brand owners; outsourced contract manufacturing services to the health and beauty sector; nutrition products, such as vitamins and health supplements; beauty products; and product development, formulation, manufacturing, and packaging services. In addition, this segment procures and sells exempt medicinal products. Its DCC Technology segment distributes consumer technology products, including smart home products, gaming consoles, peripherals and software, wearable technology, and accessories; business and enterprise technology products, such as tablets, notebooks, and PCs; networking and security products; communication products comprising smartphones; and servers and storage products, audio visual products, printers, peripherals, cables and connectors, and consumables to retailers, resellers, and integrators. It also provides supply chain services. The company was founded in 1976 and is headquartered in Dublin, Ireland.

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. The financials suggest resilience with some areas for improvement, such as net profit margin and return on equity.

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
19.57B	19.86B	22.20B	17.73B	13.41B	14.76B
	Gross Profit
2.61B	2.60B	2.40B	2.04B	1.82B	1.74B
	EBIT
540.51M	529.40M	511.99M	458.36M	422.85M	366.64M
	EBITDA
881.63M	882.88M	856.65M	770.47M	707.32M	640.99M
	Net Income Common Stockholders
213.16M	326.25M	334.02M	312.37M	292.62M	245.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.05B	1.11B	1.42B	1.39B	1.79B	1.79B
	Total Assets
5.43B	9.48B	9.84B	9.56B	8.03B	7.92B
	Total Debt
1.47B	2.31B	2.60B	2.34B	2.09B	2.39B
	Net Debt
420.35M	1.20B	1.18B	943.58M	301.53M	598.67M
	Total Liabilities
3.92B	6.30B	6.78B	6.59B	5.33B	5.38B
	Stockholders Equity
1.48B	3.09B	2.98B	2.91B	2.65B	2.49B
Cash Flow		Free Cash Flow
399.36M	491.67M	427.46M	257.42M	564.89M	348.09M
	Operating Cash Flow
608.16M	722.02M	656.90M	451.77M	727.77M	529.11M
	Investing Cash Flow
-436.73M	-525.29M	-531.52M	-867.43M	-391.52M	-319.50M
	Financing Cash Flow
-166.96M	-472.75M	-100.16M	21.49M	-256.63M	-15.46M

DCC plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4636.00
• 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 4636 is below the 20-day moving average (MA) of 4688.96, below the 50-day MA of 4768.06, and below the 200-day MA of 5020.17, indicating a bearish trend. The MACD of -50.58 indicates Positive momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 39.42 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
SEPL	80 Outperform	£1.28B	9.43	9.56%	5.32%	89.44%	540.95%
NWF	72 Outperform	£83.08M	10.38	9.64%	4.82%	-5.38%	-38.50%
DCC	70 Outperform	£4.59B	22.21	6.75%	4.31%	-6.75%	-0.02%
HBR	68 Neutral	£2.99B	21.62	-2.87%	11.32%	29.33%	―
DEC	67 Neutral	£820.86M	―	-16.60%	8.53%	-11.09%	-110.76%
Sector *	57 Neutral	$7.14B	3.05	-3.47%	5.74%	0.77%	-49.70%
WG		£126.77M	―	-33.79%	―	―	―

DCC plc Corporate Events

DCC plc Sells Healthcare Division to Focus on Energy Business

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.

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.