Distribution Finance Capital Holdings Plc (DFCH) AI Stock Analysis

• Market Cap: £109.12M
• Dividend Yield: N/A
• Average Volume (3M): 261.88K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.13
• 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: 73 Outperform
• Price Target: 74.00p ▲(38.32% Upside)

Score is driven mainly by strong financial performance (rapid profit improvement, debt-free balance sheet, and better cash generation) and supportive valuation (low P/E). The main offset is technical risk: while the trend is strong, the stock appears significantly overbought, which raises the chance of a near-term pullback.

Positive Factors

Revenue Growth & Margin Expansion

Sustained top-line growth with a large jump in net margin signals improving underwriting, pricing and cost control in the core lending business. That combination supports durable earnings power, higher retained earnings for capital build-up and greater capacity to fund client growth over months.

Debt-Free Balance Sheet

A debt-free capital structure materially lowers financial risk and interest expense sensitivity. It preserves flexibility to grow the lending book or absorb losses, enabling strategic deployment of equity and internal cash generation without immediate refinancing pressure over the medium term.

Positive Operating and Free Cash Flow

Conversion to positive operating and free cash flow demonstrates stronger cash generation from core activities, supporting reinvestment in credit origination, loan servicing and potential shareholder returns. Reliable cash flow reduces reliance on external funding for growth.

Negative Factors

Weak Cash Conversion Ratio

A 0.66 cash conversion ratio indicates a material portion of reported earnings is not yet cash-backed, which can signal timing issues in collections or provision timing. Persistently weak conversion can constrain usable cash for lending or capital buffers during stress periods.

Sector Concentration Risk

Heavy focus on distribution clients concentrates credit and revenue exposure to supply-chain and inventory cycles. Structural downturns in distribution, manufacturers or inventory turn rates would disproportionately affect asset performance and interest income for several months to quarters.

Limited Operating Profit Visibility

Absence of standard operating-profit metrics hampers assessment of core operating efficiency and comparability with peers. Over time, lack of transparency on expense structure and operating margins can obscure margin pressures and impede informed capital allocation decisions.

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

Strong fundamental momentum: revenue rose to £45.39m (from £37.94m) and net margin improved to 30.9% (from 8.3%). Balance sheet is notably strong with no debt and higher equity (£115.35m) supporting stability and improved ROE (12.2%). Cash flow improved to positive operating cash flow (£9.2m) and free cash flow (£8.18m), though cash conversion is weaker (operating cash flow to net income at 0.66).

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: 53.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 58.96, below the 50-day MA of 53.88, and above the 200-day MA of 47.10, indicating a bullish trend. The MACD of 3.97 indicates Negative momentum. The RSI at 84.43 is Negative, neither overbought nor oversold. The STOCH value of 88.14 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIME	80 Outperform	£48.57M	7.93	8.50%	―	11.71%	31.15%
SUS	74 Outperform	£287.97M	14.43	8.41%	5.33%	-11.17%	6.04%
DFCH	73 Outperform	£109.12M	8.15	12.34%	―	17.35%	91.55%
TRU	73 Outperform	£120.20M	26.70	―	―	203.09%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FCH	66 Neutral	£471.44M	27.13	3.93%	―	7.90%	―
VANQ	49 Neutral	£301.83M	-3.90	-16.30%	―	-3.77%	-147.20%

Distribution Finance Capital Holdings Plc Corporate Events

DF Capital CFO Buys Shares in Specialist Bank

Distribution Finance Capital Holdings has disclosed that its Chief Financial Officer, Sameera Khaliq, purchased 14,834 ordinary shares in the company on 27 January 2026 at a price of £0.66 per share on the London Stock Exchange, for a total consideration of £9,790.44. The insider purchase by a senior executive may be interpreted by the market as a signal of confidence in DF Capital’s prospects and could be of interest to shareholders monitoring management’s alignment with investor interests in the specialist banking group.

The most recent analyst rating on (GB:DFCH) stock is a Buy with a £75.00 price target. To see the full list of analyst forecasts on Distribution Finance Capital Holdings Plc stock, see the GB:DFCH Stock Forecast page.

DF Capital Chair Mark Stephens Increases Stake with Share Purchase

Distribution Finance Capital Holdings has disclosed that its independent non-executive chair, Mark Stephens, purchased 8,563 ordinary shares in the company on 15 January 2026 at a price of £0.58388 per share, for a total consideration of £4,999.76. The director share purchase, conducted on the London Stock Exchange, signals board-level confidence in the AIM-listed lender and is likely to be viewed positively by investors watching insider dealings as an indicator of management’s view of the bank’s prospects.

The most recent analyst rating on (GB:DFCH) stock is a Buy with a £61.00 price target. To see the full list of analyst forecasts on Distribution Finance Capital Holdings Plc stock, see the GB:DFCH Stock Forecast page.

DF Capital Posts Record 2025 Results and Sets Ambitious 2030 Growth and Return Targets

Distribution Finance Capital Holdings reported record full-year trading for 2025, with new loan originations exceeding £1.8bn and the loan book growing 27% to £846m, driving expected statutory pre-tax profit of at least £19m and a roughly 20% rise in tangible net assets per share. Portfolio quality remains strong with arrears and non-performing loans below 1% of the book, while the bank’s new asset finance product is gaining traction with around 120 dealers and introducers, contributing to higher customer satisfaction and strong employee engagement scores. Extending its planning horizon to 2030, DF Capital is targeting a loan book of more than £1.5bn, a cost-to-income ratio of 45–48% and about 20% return on required equity, and expects to fund this growth organically without dilutive equity raises, potentially allowing for accelerated expansion, portfolio acquisitions and, subject to regulatory approval, the initiation of dividends after the 2028 financial year.

The most recent analyst rating on (GB:DFCH) stock is a Buy with a £61.00 price target. To see the full list of analyst forecasts on Distribution Finance Capital Holdings Plc stock, see the GB:DFCH Stock Forecast page.

DF Capital Chair Marks Stake Increase with Share Purchase

Distribution Finance Capital Holdings has disclosed that its independent non-executive chair, Mark Stephens, has purchased 9,415 ordinary shares in the company on the London Stock Exchange at a price of £0.4992 per share, for a total consideration of £4,699.97. The director dealing signals additional board-level alignment with shareholders at the AIM-quoted specialist lender, a move that may be viewed as a modest vote of confidence in DF Capital’s prospects within its niche commercial finance and savings market.

The most recent analyst rating on (GB:DFCH) stock is a Buy with a £55.00 price target. To see the full list of analyst forecasts on Distribution Finance Capital Holdings Plc stock, see the GB:DFCH Stock Forecast page.

DF Capital Chair Purchases Shares, Signaling Confidence

Distribution Finance Capital Holdings Plc announced that Mark Stephens, the Independent Non-Executive Director (Chair), purchased 10,204 ordinary shares at a price of £0.49 each, totaling £4,999.96, on the London Stock Exchange. This transaction reflects a potential vote of confidence in the company’s future prospects and may influence stakeholder perceptions positively.

The most recent analyst rating on (GB:DFCH) stock is a Buy with a £55.00 price target. To see the full list of analyst forecasts on Distribution Finance Capital Holdings Plc stock, see the GB:DFCH Stock Forecast page.

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.

The most recent analyst rating on (GB:DFCH) stock is a Buy with a £59.00 price target. To see the full list of analyst forecasts on Distribution Finance Capital Holdings Plc stock, see the GB:DFCH Stock Forecast page.