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DCC PLC (GB:DCC)
LSE:DCC

DCC plc (DCC) AI Stock Analysis

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GB:DCC

DCC plc

(LSE:DCC)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
4,944.00p
▲(6.55% Upside)
DCC plc's overall stock score reflects a solid financial foundation with stable cash flows and strategic initiatives to enhance shareholder value. However, challenges in profitability and revenue growth, coupled with a negative P/E ratio, weigh on the score. Positive technical indicators and corporate actions provide a supportive backdrop for potential future performance.
Positive Factors
Diversified essential-services model
DCC's multi-sector footprint across energy distribution, IT resale/managed services, healthcare distribution and environmental services provides durable demand diversification. Essential-service exposure smooths cyclicality, enables cross-selling and supports stable revenue bases over the medium term.
Strong cash generation and conversion
Despite declines, DCC converts a high proportion of earnings into cash and maintains healthy operating cash flow. Robust cash generation funds acquisitions, capital returns and reinvestment, giving structural flexibility to pursue strategic simplification and support shareholder returns.
Strategic simplification and disciplined capital returns
Management has executed portfolio simplification and large capital returns while preserving an investment-grade balance sheet. This signals disciplined capital allocation and a sharper focus on higher-return energy businesses, structurally improving potential ROIC and shareholder alignment.
Negative Factors
Sustained revenue decline
Material top-line contraction over two years reduces scale advantages and pressures long-term growth. Persistent revenue erosion risks lower operating leverage, constrains reinvestment capacity, and makes achieving stated organic growth targets and long-term earnings ambitions more challenging.
Margin and profitability pressure
Declining net profit and falling operating margins indicate structural margin pressure from lower volumes, commodity headwinds and weak technology demand. Sustained margin compression undermines ROE and free cash flow potential, making long-term return targets harder without structural fixes.
Moderate leverage limits flexibility
A debt/equity around 0.74 denotes moderate leverage that, combined with falling profits, raises refinancing and covenant risk over time. This constrains strategic optionality for larger acquisitions or sustained buybacks if earnings recovery lags, requiring careful balance-sheet management.

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

DCC plc Business Overview & Revenue Model

Company DescriptionDCC 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 MoneyDCC generates revenue through multiple streams, primarily by providing essential services in its core sectors. In the energy division, the company earns money by distributing fuel and energy products to customers, including retail outlets and commercial businesses. The technology segment contributes to revenue through the resale of IT products and services, as well as managed services tailored to client needs. In healthcare, DCC profits from the distribution of medical equipment and pharmaceuticals to hospitals and clinics. Additionally, in the environmental sector, the company offers waste management and recycling services, which add to its revenue. Key partnerships with suppliers and manufacturers enhance DCC's ability to deliver competitive pricing and comprehensive service packages, further solidifying its market position and contributing to its overall earnings.

DCC plc Earnings Call Summary

Earnings Call Date:Nov 11, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Neutral
The call highlighted significant strategic progress in simplifying the business and focusing on the energy sector, with positive developments in shareholder returns and acquisitions. However, challenges in revenue and profit declines, particularly in the Energy Products and DCC Technology segments, balanced the positive outlook.
Q2-2026 Updates
Positive Updates
Strategic Simplification Progress
Significant progress in simplifying DCC by focusing on energy business and completing the planned changes. Sale of DCC Healthcare and Info Tech business completed, with a tender offer for GBP 600 million to shareholders.
Capital Return to Shareholders
GBP 800 million capital return to shareholders initiated, with GBP 100 million buyback completed and a GBP 600 million tender offer to follow, maintaining a strong balance sheet and investment-grade rating.
Leadership and Strategic Direction
New leadership team with extensive experience in the energy sector in place, focusing on high growth and high returns in energy products and services.
Mobility Business Performance
Mobility operating profit increased by 2.8%, driven by margin management and growth in nonfuel offerings such as EV charging and fleet services.
Acquisitions in Energy Sector
Acquisition of two liquid gas businesses in Europe to strengthen leadership in the Austrian and UK markets.
Negative Updates
Revenue and Operating Profit Decline
Revenue decreased from GBP 7.9 billion to GBP 7.4 billion, with a 5.4% drop in operating profit due to lower energy volumes and a 15% decline in commodity prices.
Challenges in Energy Products
Energy Products volumes decreased by 4.9% and operating profit fell by 12.8%, impacted by warm weather and economic softness in certain markets.
Weaker Performance in DCC Technology
DCC Technology's operating profit declined by 6.9%, with weaker consumer demand and tariff impacts affecting performance in certain categories.
Company Guidance
In the call, DCC provided guidance for fiscal year 2026, highlighting a strategic focus on their energy business, aiming for double-digit growth in earnings by 2030. They maintained their guidance for the year, expecting good operating profit growth, with organic growth projected at 3% to 4% and acquisition growth at 6% to 8% per annum. The company emphasized its strong market positions, targeting higher returns on capital employed in the high teens and converting approximately 90% of profits into cash. DCC also outlined plans for substantial capital returns to shareholders, including a GBP 600 million tender offer following the sale of DCC Healthcare. Despite a 5.4% decline in operating profit for the first half of FY26, the company remains confident in achieving its long-term strategic goals, supported by a robust balance sheet and strong cash generation.

DCC plc Financial Statement Overview

Summary
DCC plc demonstrates stable cost management but faces challenges in revenue and profit growth. The balance sheet reflects moderate leverage, which requires careful management to mitigate financial risks. Cash flows remain healthy, providing a buffer against declining profits. Strategic focus on improving operational efficiency and exploring growth avenues could enhance financial performance.
Income Statement
72
Positive
DCC plc's revenue has shown volatility with a slight decline in recent years, decreasing from 22.2 billion in 2023 to 18 billion in 2025. The gross profit margin remains stable at around 13%, indicating efficient cost management. However, net profit margin has declined, with a noticeable drop in net income from 334 million in 2023 to 206 million in 2025, reflecting challenges in translating revenue to profit. EBIT and EBITDA margins have also seen a downward trend, suggesting pressure on operational efficiency.
Balance Sheet
68
Positive
The balance sheet shows a stable equity base, but a debt-to-equity ratio of around 0.74 indicates moderate leverage, which could pose risks if profitability continues to decline. The equity ratio stands at approximately 33%, showing a decent proportion of funding from equity. Return on equity has decreased from 11.2% in 2023 to 6.7% in 2025, highlighting reduced profitability on shareholders' investments.
Cash Flow
75
Positive
DCC plc's cash flow from operations remains strong, albeit with a decrease from 722 million in 2024 to 582 million in 2025. Free cash flow has declined over the years, but the company maintains a positive free cash flow to net income ratio, suggesting good cash generation relative to earnings. However, the free cash flow growth rate has been negative, indicating challenges in generating cash sustainably.
BreakdownTTMDec 2024Dec 2023Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue16.07B18.01B22.20B19.86B17.73B13.41B
Gross Profit2.03B2.40B2.40B2.60B2.04B1.82B
EBITDA633.78M785.73M856.65M882.88M770.47M707.32M
Net Income-73.31M206.49M334.02M326.25M312.37M292.62M
Balance Sheet
Total Assets8.23B9.26B9.84B9.48B9.56B8.03B
Cash, Cash Equivalents and Short-Term Investments1.33B1.09B1.42B1.11B1.39B1.79B
Total Debt2.22B2.28B2.60B2.31B2.34B2.09B
Total Liabilities5.52B6.09B6.78B6.30B6.59B5.33B
Stockholders Equity2.61B3.07B2.98B3.09B2.91B2.65B
Cash Flow
Free Cash Flow413.75M367.73M427.46M491.67M257.42M564.89M
Operating Cash Flow628.26M582.03M656.90M722.02M451.77M727.77M
Investing Cash Flow603.76M-338.14M-531.52M-525.29M-867.43M-391.52M
Financing Cash Flow-476.82M-180.89M-100.16M-472.75M21.49M-256.63M

DCC plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4640.00
Price Trends
50DMA
4736.96
Negative
100DMA
4760.80
Negative
200DMA
4701.35
Negative
Market Momentum
MACD
-9.42
Negative
RSI
52.85
Neutral
STOCH
84.53
Negative
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 4640 is above the 20-day moving average (MA) of 4516.10, below the 50-day MA of 4736.96, and below the 200-day MA of 4701.35, indicating a neutral trend. The MACD of -9.42 indicates Negative momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 84.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DCC.

DCC plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£2.03B12.5412.03%5.64%159.13%143.76%
71
Outperform
£3.97B-61.483.85%4.43%-17.89%-122.62%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
65
Neutral
£66.96M12.637.18%6.59%-5.00%-32.05%
63
Neutral
£757.85M-4.60-22.53%10.49%56.20%-185.69%
63
Neutral
£3.74B-10.09-11.32%8.77%123.03%-330.89%
54
Neutral
£2.97B-34.05-4.67%14.05%63.10%-161.03%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DCC
DCC plc
4,640.00
-618.61
-11.76%
GB:DEC
Diversified Energy Company
946.00
-292.42
-23.61%
GB:NWF
NWF Group plc
137.00
-9.47
-6.47%
GB:HBR
Harbour Energy
229.20
19.99
9.55%
GB:SEPL
SEPLAT Petroleum Development
351.50
164.48
87.95%
GB:ITH
Ithaca Energy PLC
180.80
69.50
62.44%

DCC plc Corporate Events

Business Operations and StrategyM&A Transactions
DCC expands liquid gas footprint with €48m move into four Central European markets
Positive
Jan 15, 2026

DCC plc has agreed to acquire UGI International’s liquid gas businesses in Poland, Hungary, Czechia and Slovakia, adding more than 200 million litres of annual volume and around 30,000 bulk and cylinder customers to its network. The €48 million cash deal extends DCC’s liquid gas footprint into four new, fragmented Central European markets, anchored by AmeriGas Polska, the second-largest player in Poland with about 13% market share, and three FLAGA-branded operations in neighbouring countries. DCC plans to leverage well-invested infrastructure, a shared service centre in Warsaw and procurement synergies across Continental Europe to boost returns, targeting mid-teen returns on capital employed in the second year. The move underlines liquid gas as a core pillar of DCC’s Energy Solutions growth strategy and strengthens its ambition to become a global leader in lower-carbon energy sales, marketing and distribution, with implications for expanded scale, consolidation power and enhanced positioning in both European and global energy markets.

The most recent analyst rating on (GB:DCC) stock is a Buy with a £4827.00 price target. To see the full list of analyst forecasts on DCC plc stock, see the GB:DCC Stock Forecast page.

Regulatory Filings and Compliance
DCC Updates Share Capital and Voting Rights Ahead of Year-End Disclosure
Neutral
Dec 31, 2025

DCC plc has reported that, as of 31 December 2025, it has 87,609,229 issued ordinary shares of €0.25 each, of which 2,186,132 are held in treasury and therefore do not carry voting rights, leaving 85,423,097 ordinary shares in circulation with voting rights. The company stated that this voting share figure should be used by investors as the reference denominator when assessing whether they must disclose their holdings or changes in holdings under the UK Financial Conduct Authority’s transparency and disclosure rules, ensuring regulatory compliance and clarity for shareholders.

The most recent analyst rating on (GB:DCC) stock is a Buy with a £5553.00 price target. To see the full list of analyst forecasts on DCC plc stock, see the GB:DCC Stock Forecast page.

Business Operations and StrategyStock Buyback
DCC Cancels £600m of Shares After Completing Tender Offer Buyback
Positive
Dec 19, 2025

DCC plc has completed an on-market share repurchase linked to its previously announced tender offer, acquiring 11,605,415 ordinary shares from Davy at £51.70 per share for a total consideration of about £600 million, with the repurchased stock immediately cancelled. The cancellation reduces the number of DCC ordinary shares with voting rights to 85,423,097, with a further 2,186,132 shares held in treasury, and resets the share count used by investors to assess disclosure thresholds under UK transparency rules, tightening the company’s capital base and potentially enhancing earnings and returns per share for remaining shareholders.

The most recent analyst rating on (GB:DCC) stock is a Buy with a £5553.00 price target. To see the full list of analyst forecasts on DCC plc stock, see the GB:DCC Stock Forecast page.

Business Operations and StrategyStock Buyback
DCC Completes £600m Tender Offer, Buying Back 12% of Share Capital
Positive
Dec 19, 2025

DCC plc has completed a £600 million tender offer, purchasing 11,605,415 ordinary shares at a strike price of £51.70, equivalent to about 12% of its issued share capital excluding treasury shares. The offer was fully subscribed, prompting application of a scaling mechanism under which tenders below the strike price or at strike price on a strike-price basis are accepted in full, tenders at £51.70 are scaled back to keep the buyback within the £600 million cap, and tenders above the strike price are rejected. The shares will initially be bought by Davy, acting as financial adviser and broker, and then acquired by DCC under an option agreement, with proceeds to qualifying shareholders expected within 10 business days, marking a sizeable return of capital and a tightening of the company’s free float that may enhance earnings per share and support its long-standing capital returns track record.

The most recent analyst rating on (GB:DCC) stock is a Buy with a £5553.00 price target. To see the full list of analyst forecasts on DCC plc stock, see the GB:DCC Stock Forecast page.

Business Operations and StrategyStock BuybackShareholder Meetings
DCC plc Approves Market Purchases for Tender Offer
Neutral
Dec 11, 2025

DCC plc held an Extraordinary General Meeting where a special resolution was passed to authorize the company to make market purchases related to a tender offer. This tender offer, initially announced on November 17, 2025, will close on December 17, 2025, with results expected to be announced on December 19, 2025. The resolution’s approval allows DCC to proceed with its strategic financial plans, potentially impacting its market operations and shareholder value.

The most recent analyst rating on (GB:DCC) stock is a Buy with a £5553.00 price target. To see the full list of analyst forecasts on DCC plc stock, see the GB:DCC Stock Forecast page.

Regulatory Filings and Compliance
DCC plc Announces Updated Voting Rights and Share Capital Details
Neutral
Nov 28, 2025

DCC plc has announced its total number of Ordinary Shares with voting rights, which stands at 97,028,512 as of 28 November 2025. The total issued share capital is 99,214,644 Ordinary Shares, with 2,186,132 held as Treasury Shares, which do not carry voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:DCC) stock is a Buy with a £5400.00 price target. To see the full list of analyst forecasts on DCC plc stock, see the GB:DCC Stock Forecast page.

Stock BuybackM&A Transactions
DCC plc Proposes £600 Million Return to Shareholders via Tender Offer
Positive
Nov 17, 2025

DCC plc has announced a proposed return of up to £600 million to its shareholders through a tender offer following the sale of DCC Healthcare. This initiative, subject to shareholder approval, will involve acquiring up to 12.3% of its current issued share capital at a premium price range. The tender offer, which opens today and closes on December 17, 2025, aims to provide shareholders with liquidity and optionality while potentially enhancing earnings per share by reducing the number of shares in issue. The tender offer will not affect shareholders’ entitlement to the interim dividend announced earlier in November.

The most recent analyst rating on (GB:DCC) stock is a Hold with a £5156.00 price target. To see the full list of analyst forecasts on DCC plc stock, see the GB:DCC Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
DCC plc Grants Executive Options Under Long Term Incentive Plan
Neutral
Nov 13, 2025

DCC plc announced the grant of options under its Long Term Incentive Plan 2021 to key executives, including the CEO, COO, and CFO. These transactions, involving ordinary shares at €0.25 each, reflect the company’s ongoing strategy to align management incentives with performance metrics such as Group ROCE, EPS, and TSR over a three-year period, potentially impacting stakeholder interests and reinforcing DCC’s commitment to performance-driven growth.

The most recent analyst rating on (GB:DCC) stock is a Hold with a £5156.00 price target. To see the full list of analyst forecasts on DCC plc stock, see the GB:DCC Stock Forecast page.

Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
DCC plc Reports Strategic Progress and Anticipates Profit Growth
Positive
Nov 11, 2025

DCC plc has made significant strategic progress by completing the sale of its Healthcare and Info Tech businesses, returning £100 million to shareholders, and planning a £600 million tender offer. Despite a 5.4% decline in continuing adjusted operating profit due to strong prior year comparatives and mild weather, the company saw improved trading in the second quarter and expects good profit growth for the full year. DCC’s focus on expanding its liquid gas activities in Europe and simplifying operations is expected to strengthen its market position and provide growth opportunities.

The most recent analyst rating on (GB:DCC) stock is a Buy with a £6500.00 price target. To see the full list of analyst forecasts on DCC plc stock, see the GB:DCC Stock Forecast page.

Business Operations and StrategyM&A Transactions
DCC plc Completes Sale of Info Tech Business to AURELIUS
Positive
Nov 3, 2025

DCC plc has completed the sale of its Info Tech business in the UK and Ireland to AURELIUS, marking a significant step in its strategy to simplify operations and focus on its energy business, which is the largest and most profitable division. This move is expected to maximize shareholder value and accelerate growth in the energy sector, aligning with the company’s long-term strategic goals.

The most recent analyst rating on (GB:DCC) stock is a Hold with a £5156.00 price target. To see the full list of analyst forecasts on DCC plc stock, see the GB:DCC Stock Forecast page.

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: Dec 07, 2025