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Distribution Finance Capital Holdings Plc
(LSE:DFCH)
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Rating:74Outperform
Price Target:
79.00 p
▲(47.66% Upside)
Action:Upgraded
Date:08/06/26
Overall score is supported most by improving fundamentals (strong 2024–2025 profitability with generally conservative leverage) and a clear positive technical trend. Valuation also helps due to a low P/E. The main offset is historical volatility in cash flows and the rapid balance-sheet expansion into 2025, which raises sensitivity to credit and funding conditions.
Positive Factors
Revenue & Profit Growth
Sustained top-line and net profit expansion across 2023–2025 indicates durable scale gains and improving operating leverage. Stronger margins and higher absolute earnings help the group self-fund growth, build capital buffers and support long-term lending capacity if credit quality remains controlled.
Negative Factors
Volatile historical cash flows
Past episodes of severe cash outflows highlight execution and timing risk in collections or funding. Such volatility undermines predictability of credit provisioning and capital planning, increasing refinancing and liquidity risk in stressed periods even if recent cash generation has improved.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profit Growth
Sustained top-line and net profit expansion across 2023–2025 indicates durable scale gains and improving operating leverage. Stronger margins and higher absolute earnings help the group self-fund growth, build capital buffers and support long-term lending capacity if credit quality remains controlled.
Read all positive factors
Distribution Finance Capital Holdings Plc (DFCH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£112.67M
Dividend YieldN/A
Average Volume (3M)261.88K
Price to Earnings (P/E)7.7
Beta (1Y)0.99
Revenue Growth18.38%
EPS Growth13.20%
CountryUK
Employees155
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding167,123,340
10 Day Avg. Volume204,929
30 Day Avg. Volume261,885
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)0.68
Price to Sales (P/S)0.94
P/FCF Ratio4.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£90.00Price Target Upside68.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.1
Revenue Forecast (FY)£107.70M
Distribution Finance Capital Holdings Plc Business Overview & Revenue Model
Company Description
Distribution Finance Capital Holdings plc, an investment holding company established in Manchester, UK, in 2016, functions as a specialized bank delivering both personal savings products and commercial financing throughout the United Kingdom. For ...
How the Company Makes Money
DFCH makes money primarily by earning interest income and fees from secured lending products used to finance inventory and assets. The core revenue model is net interest income: the group lends to businesses (for example, dealers, distributors, an...
Distribution Finance Capital Holdings Plc Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 92.06M | 78.06M | 60.35M | 26.56M | 13.54M |
| Gross Profit | 54.68M | 47.36M | 27.05M | 19.48M | 12.97M |
| EBITDA | 22.90M | 20.00M | 5.45M | 4.15M | -380.00K |
| Net Income | 15.16M | 14.02M | 3.15M | 9.76M | -3.68M |
Balance Sheet | |||||
| Total Assets | 999.81M | 786.54M | 691.94M | 582.50M | 388.61M |
| Cash, Cash Equivalents and Short-Term Investments | 137.57M | 110.03M | 93.03M | 111.20M | 29.60M |
| Total Debt | 17.42M | 10.50M | 11.43M | 445.00K | 554.00K |
| Total Liabilities | 872.21M | 671.19M | 591.52M | 486.26M | 302.55M |
| Stockholders Equity | 127.23M | 115.35M | 100.41M | 96.24M | 86.06M |
Cash Flow | |||||
| Free Cash Flow | 20.19M | 8.18M | -38.25M | 3.93M | -1.78M |
| Operating Cash Flow | 23.83M | 9.20M | -37.71M | 5.17M | -945.00K |
| Investing Cash Flow | -185.40M | 14.16M | 8.29M | -106.87M | -180.06M |
| Financing Cash Flow | 189.57M | -1.67M | 9.65M | 182.74M | 189.37M |
Distribution Finance Capital Holdings Plc Technical Analysis
Positive
53.50
Price Trends
63.08
Positive
60.67
Positive
58.51
Positive
Market Momentum
1.69
Positive
65.38
Neutral
90.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DFCH, the sentiment is Positive. The current price of 53.5 is below the 20-day moving average (MA) of 69.66, below the 50-day MA of 63.08, and below the 200-day MA of 58.51, indicating a bullish trend. The MACD of 1.69 indicates Positive momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 90.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DFCH.
Distribution Finance Capital Holdings Plc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £46.44M | 7.58 | 8.28% | ― | 5.19% | 14.53% | |
76 Outperform | £73.29M | 11.91 | 24.15% | ― | 19.95% | 146.39% | |
74 Outperform | £112.67M | 7.71 | 12.38% | ― | 18.38% | 13.20% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | £236.33M | 9.97 | 9.68% | 5.91% | -7.08% | 32.38% | |
58 Neutral | £629.69M | 14.81 | 21.54% | ― | 37.60% | 2766.67% | |
52 Neutral | £197.58M | 18.16 | 2.20% | ― | 6.21% | ― |
* Financial Sector Average
GB:DFCH
Distribution Finance Capital Holdings Plc
70.50
25.00
54.95%
GB:TIME
Time Finance plc
52.00
-3.00
-5.45%
GB:VANQ
Vanquis Banking Group
81.50
-36.90
-31.17%
GB:SUS
S&U plc
1,940.00
182.06
10.36%
GB:FCH
Funding Circle Holdings
234.00
92.00
64.79%
GB:TRU
TruFin
100.00
32.12
47.32%
Distribution Finance Capital Holdings Plc Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
DF Capital adjusts voting share base after treasury share transfer
Neutral
Jul 9, 2026
Distribution Finance Capital Holdings plc has transferred 397,000 ordinary shares out of treasury to satisfy the exercise of nil‑cost share options granted under its Performance Share Plan. Following this transaction, the issued share capita...
Business Operations and StrategyPrivate Placements and Financing
DF Capital renews ENABLE Guarantee to boost UK SME lending capacity
Positive
Jul 1, 2026
Distribution Finance Capital Holdings has renewed its participation in the British Business Bank’s ENABLE Guarantee scheme with a new facility structured to more closely align with its specialist lending strategy. The programme will support ...
Business Operations and StrategyFinancial Disclosures
DF Capital lifts profit outlook as loan book growth beats expectations
Positive
Jun 26, 2026
DF Capital reported strong first-half trading, with new loan origination expected to reach about £1 billion, up 21% year-on-year, and its aggregate loan book exceeding £915 million, more than 25% higher than the prior period. The bank...
Business Operations and StrategyExecutive/Board ChangesStock BuybackShareholder Meetings
DF Capital Wins Shareholder Backing for All AGM Resolutions
Positive
May 21, 2026
Distribution Finance Capital Holdings plc reported that shareholders approved all resolutions at its latest annual general meeting, including the re-election and election of several board members and the reappointment of Deloitte as auditor. Inves...
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.