Distribution Finance Capital Holdings Plc (DFCH) AI Stock Analysis

• Market Cap: £82.05M
• Dividend Yield: N/A
• Average Volume (3M): 261.88K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.99
• Revenue Growth: 17.35%
• EPS Growth: 91.55%
• Country: UK
• Employees: 137
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.04
• Shares Outstanding: 166,726,330
• 10 Day Avg. Volume: 204,929
• 30 Day Avg. Volume: 261,885
• PEG Ratio: 0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 8.57
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 55.00p ▲(10.00% Upside)

Distribution Finance Capital Holdings Plc demonstrates strong financial performance and strategic growth initiatives, as evidenced by recent corporate events. The stock's undervaluation presents a potential opportunity, though technical indicators suggest caution due to bearish trends. Overall, the company's positive trajectory and strategic moves are significant strengths, with technical analysis being the primary risk factor.

Positive Factors

Revenue Growth

Sustained revenue growth highlights the company's expanding market presence and effective business model, supporting long-term financial health.

Balance Sheet Health

A debt-free balance sheet enhances financial stability and flexibility, allowing the company to invest in growth opportunities without financial strain.

Profitability Improvement

Improved profitability margins indicate better cost management and operational efficiency, contributing to stronger long-term earnings potential.

Negative Factors

Cash Conversion Efficiency

Inefficiencies in converting income to cash could impact liquidity and limit the company's ability to fund operations and growth initiatives.

Limited Profitability Analysis

The absence of EBIT and EBITDA data limits comprehensive profitability analysis, potentially obscuring cost structure insights and operational efficiency.

Cash Flow Improvements Needed

While cash flow has improved, further enhancements are necessary to ensure sustainable cash generation, crucial for funding future growth and operations.

Distribution Finance Capital Holdings Plc Business Overview & Revenue Model

Company Description

Distribution Finance Capital Holdings plc, an investment holding company, operates as a personal savings and commercial lending bank in the United Kingdom. The company offers working capital funding solutions to dealers and manufacturers. It also provides floorplan finance, unit stocking finance, and rental and hire fleet finance, as well as personal savings products, including fixed rate deposits and notice accounts. In addition, the company offers inventory finance products to agricultural, industrial, transport, motorhome and caravans, lodges and holiday homes, marine, and motorcycle sectors. Distribution Finance Capital Holdings plc was founded in 2016 and is based in Manchester, the United Kingdom.

How the Company Makes Money

DFCH generates revenue primarily through interest income from the financing solutions it provides to its clients. The company earns interest on loans and credit facilities extended to businesses in the distribution sector, which is a key revenue stream. Additionally, DFCH may charge fees for setting up financing arrangements, as well as ongoing management fees associated with the services provided. Partnerships with industry players, including manufacturers and distributors, enhance its market presence and contribute to its earnings by expanding its client base and enabling cross-selling opportunities. The company may also benefit from economic conditions that favor increased inventory turnover and sales activity within the sectors it serves.

Distribution Finance Capital Holdings Plc Financial Statement Overview

Summary

Distribution Finance Capital Holdings Plc shows strong financial performance with significant revenue and net profit growth. The balance sheet strength is evident with no debt and increased equity, providing financial stability. Cash flow improvements, though positive, still show room for efficiency enhancements. Overall, the company is on a positive trajectory with some areas needing attention.

Income Statement

The company has shown robust revenue growth, increasing from £37.94 million in 2023 to £45.39 million in 2024. Gross profit margin is excellent at 100% for 2024, as expected in financial services. Net profit margin improved to 30.9% in 2024 from 8.3% in 2023, indicating enhanced profitability. However, EBIT and EBITDA margins are not available for 2024, which limits full profitability analysis.

Balance Sheet

The balance sheet is strong with no debt in 2024, reducing financial risk significantly. Stockholders' equity increased to £115.35 million, contributing to a higher equity ratio of 14.7%. The absence of debt enhances the financial stability, and ROE improved to 12.2% in 2024, indicating efficient equity utilization.

Cash Flow

Operating cash flow turned positive in 2024 at £9.2 million, a significant improvement from the negative cash flow in 2023. Free cash flow also improved to £8.18 million. However, the operating cash flow to net income ratio is lower at 0.66, indicating some inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.49M	78.06M	60.35M	26.56M	13.54M	10.29M
Gross Profit	47.93M	47.36M	27.05M	19.48M	12.97M	9.76M
EBITDA	21.21M	20.00M	5.45M	4.15M	-380.00K	-3.73M
Net Income	13.90M	14.02M	3.15M	9.76M	-3.68M	-13.60M
Balance Sheet
Total Assets	831.98M	786.54M	691.94M	582.50M	388.61M	201.32M
Cash, Cash Equivalents and Short-Term Investments	84.86M	110.03M	93.03M	111.20M	29.60M	21.23M
Total Debt	12.88M	10.50M	11.43M	445.00K	554.00K	107.00K
Total Liabilities	714.36M	671.19M	591.52M	486.26M	302.55M	150.43M
Stockholders Equity	117.63M	115.35M	100.41M	96.24M	86.06M	50.89M
Cash Flow
Free Cash Flow	827.00K	8.18M	-38.25M	3.93M	-1.78M	-10.69M
Operating Cash Flow	1.52M	9.20M	-37.71M	5.17M	-945.00K	-10.43M
Investing Cash Flow	-122.96M	14.16M	8.29M	-106.87M	-180.06M	35.45M
Financing Cash Flow	102.53M	-1.67M	9.65M	182.74M	189.37M	-17.91M

Distribution Finance Capital Holdings Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 50 is equal to the 20-day moving average (MA) of 50.00, below the 50-day MA of 50.77, and above the 200-day MA of 44.32, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUS	76 Outperform	£241.19M	12.09	8.41%	5.29%	-11.17%	6.04%
HAT	76 Outperform	―	―	―	―	20.20%	6.12%
DFCH	72 Outperform	£82.05M	6.13	12.34%	―	17.35%	91.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IPF	67 Neutral	£487.85M	6.78	14.70%	4.37%	-7.52%	50.23%
FCH	64 Neutral	£352.01M	20.20	3.93%	―	7.90%	―
VANQ	61 Neutral	£302.84M	-3.92	-16.30%	―	-3.77%	-147.20%

Distribution Finance Capital Holdings Plc Corporate Events

DF Capital Announces Change of Registered Office

Distribution Finance Capital Holdings plc has announced a change in its registered office location to Express Building, Great Ancoats Street, Manchester, effective from 19 November 2025. This move reflects the company’s ongoing commitment to its operations in the UK, potentially enhancing its logistical and operational capabilities. Stakeholders may view this as a strategic step to strengthen its market presence and support its growth ambitions.

DF Capital Reports Record Loan Origination and Strong Q3 Growth

Distribution Finance Capital Holdings plc (DF Capital) reported a strong third quarter, showcasing continued growth across all product lines, including a new asset finance lending product. The company achieved a record £460 million in new loan origination, marking a 30% increase year-on-year, and its loan book exceeded £759 million, surpassing seasonal expectations. Despite a slight increase in arrears and loans in legal recovery, portfolio quality remains robust. The company anticipates further growth, particularly in its asset finance product, which has significant market potential. CEO Carl D’Ammassa expressed confidence in meeting full-year market expectations, buoyed by the company’s performance so far.

DF Capital Transfers Treasury Shares to Satisfy Share Options

Distribution Finance Capital Holdings Plc has announced the transfer of 114,000 ordinary shares from treasury to satisfy share options under the company’s SAYE scheme. This transaction adjusts the company’s issued share capital to 179,369,199 ordinary shares, with 12,642,866 held in treasury and a total of 166,726,333 voting rights available. This update is relevant for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

DF Capital Appoints Richard Green as Non-Executive Director

Distribution Finance Capital Holdings plc has appointed Richard Green as a Non-Executive Director, effective from 17 September 2025. Green brings over 35 years of financial service leadership experience, particularly in consumer, commercial, and insurance sectors, which aligns with DF Capital’s growth ambitions as a multi-product lender. His appointment follows the planned departure of Thomas Grathwohl in May 2026 and is expected to enhance the company’s strategic direction and operational capabilities.

DF Capital Reports Strong H1 2025 Growth and Launches Asset Finance Proposition

Distribution Finance Capital Holdings plc (DF Capital) reported significant growth for the first half of 2025, with a 20% increase in profit before tax to £9.0m and record new lending of £828m. The company has successfully launched an asset finance proposition, expanding its market opportunities and expects full-year profits to exceed market expectations. The strong performance is supported by a robust net interest margin and efficient cost management, positioning DF Capital for continued growth and enhanced shareholder value.