Diploma PLC (GB:DPLM)
LSE:DPLM
Top Page
Diploma
(LSE:DPLM)
Select Model
Select Model
Rating:73Outperform
Price Target:
6,500.00 p
▲(10.73% Upside)
Action:UpgradedDate:03/24/26
Score is anchored by strong financial performance (accelerating growth, improving margins, and robust free cash flow) and supportive technical momentum with price above key moving averages. The main constraint is valuation (high P/E with modest yield), while recent corporate events are largely positive but include some shareholder governance pushback.
Positive Factors
Accelerating Revenue Growth
A ~40% revenue acceleration in 2025 indicates durable demand expansion and effective integration of acquisitions across divisions. Sustained top-line momentum improves scale economics, supports reinvestment in value-added services, and underpins longer-term margin and return improvement when maintained.
Negative Factors
Gross-margin volatility
Material year-to-year swings in gross margin suggest earnings depend on mix, timing of acquisitions, or pricing dynamics, reducing predictability. Persistent volatility complicates forecasting, may compress margins if integration or pricing power weakens, and raises execution risk for margin targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating Revenue Growth
A ~40% revenue acceleration in 2025 indicates durable demand expansion and effective integration of acquisitions across divisions. Sustained top-line momentum improves scale economics, supports reinvestment in value-added services, and underpins longer-term margin and return improvement when maintained.
Read all positive factors
Diploma (DPLM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£7.87B
Dividend Yield1.13%
Average Volume (3M)312.85K
Price to Earnings (P/E)38.5
Beta (1Y)0.87
Revenue Growth11.82%
EPS Growth42.93%
CountryUK
Employees3,597
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.66
Shares Outstanding134,317,400
10 Day Avg. Volume285,214
30 Day Avg. Volume312,846
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)7.19
Price to Sales (P/S)4.67
P/FCF Ratio28.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£6,471.43Price Target Upside10.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.22
Revenue Forecast (FY)£1.71B
Diploma Business Overview & Revenue Model
Company Description
Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in the United Kingdom, rest of Europe, North America, and internationally. It operates through three business sectors: Life Sciences, Seals, and Cont...
Diploma Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
83
Very Positive
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.52B | 1.36B | 1.20B | 1.01B | 787.40M |
| Gross Profit | 377.70M | 628.90M | 261.00M | 335.30M | 288.40M |
| EBITDA | 368.60M | 296.10M | 254.00M | 203.50M | 138.40M |
| Net Income | 184.90M | 129.30M | 117.70M | 94.70M | 69.80M |
Balance Sheet | |||||
| Total Assets | 1.86B | 1.77B | 1.59B | 1.39B | 994.00M |
| Cash, Cash Equivalents and Short-Term Investments | 81.70M | 55.50M | 62.40M | 41.70M | 24.80M |
| Total Debt | 464.90M | 552.10M | 397.30M | 439.70M | 254.50M |
| Total Liabilities | 862.60M | 877.40M | 687.30M | 721.50M | 453.00M |
| Stockholders Equity | 989.70M | 888.00M | 895.60M | 662.00M | 536.30M |
Cash Flow | |||||
| Free Cash Flow | 253.20M | 178.40M | 166.10M | 109.60M | 109.90M |
| Operating Cash Flow | 267.60M | 198.10M | 189.20M | 125.00M | 116.10M |
| Investing Cash Flow | -31.30M | -294.80M | -270.90M | -172.20M | -447.70M |
| Financing Cash Flow | -212.90M | 90.30M | 107.50M | 64.70M | 139.00M |
Diploma Technical Analysis
Positive
5870.00
Price Trends
5486.80
Positive
5434.37
Positive
5332.46
Positive
Market Momentum
121.99
Negative
60.34
Neutral
89.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DPLM, the sentiment is Positive. The current price of 5870 is above the 20-day moving average (MA) of 5481.75, above the 50-day MA of 5486.80, and above the 200-day MA of 5332.46, indicating a bullish trend. The MACD of 121.99 indicates Negative momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 89.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DPLM.
Diploma Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £2.64B | 8.02 | 11.47% | 3.58% | -2.44% | -6.43% | |
73 Outperform | £7.87B | 38.47 | 14.17% | 1.13% | 11.82% | 42.93% | |
64 Neutral | £190.95M | 0.64 | 7.92% | 6.53% | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
50 Neutral | £36.47M | -10.98 | -64.09% | ― | -0.25% | -84.33% | |
47 Neutral | £98.33M | -1.82 | -47.73% | ― | -2.08% | -9.83% |
* Industrials Sector Average
GB:DPLM
Diploma
5,870.00
2,069.34
54.45%
GB:RS1
RS Group PLC
557.00
17.33
3.21%
GB:FLO
Flowtech Fluidpower
45.00
-13.80
-23.47%
GB:SHI
SIG plc
8.47
-4.31
-33.72%
GB:LTHP
James Latham
122.50
7.87
6.87%
GB:ACG
ACG Metals Limited Class A
1,320.00
891.00
207.69%
Diploma Corporate Events
Regulatory Filings and Compliance
Diploma Directors Boost Shareholdings in Regulated Market Dealings
Positive
Mar 23, 2026
Diploma PLC disclosed that Senior Independent Director Katie Bickerstaffe and Non-Executive Directors Geraldine Huse and Ian El‑Mokadem have increased their holdings in the company by purchasing ordinary shares on 19 and 20 March 2026. The t...
Business Operations and StrategyFinancial Disclosures
Diploma lifts FY26 outlook on strong trading and margin gains
Positive
Mar 18, 2026
Diploma has significantly upgraded its full-year 2026 guidance on the back of strong trading, lifting expected organic revenue growth to 9% from 6% and raising its operating margin target to around 25%. The changes imply about a 13% upgrade to con...
Business Operations and StrategyExecutive/Board Changes
Diploma PLC Strengthens Board with Appointment of Cheri Phyfer as Independent Non-Executive Director
Positive
Feb 27, 2026
Diploma PLC has appointed Cheri Phyfer as an independent non-executive director effective 2 March 2026, with roles on the Nomination and Remuneration Committees. Phyfer brings more than 30 years of industry experience, including senior leadership ...
Regulatory Filings and Compliance
Diploma CEO Sells 30,000 Shares in Regulatory Disclosure
Neutral
Jan 16, 2026
Diploma PLC has disclosed that its Chief Executive Officer, Johnny Thomson, sold 30,000 ordinary shares in the company at a price of £56.68 per share on 16 January 2026, in a transaction carried out on the London Stock Exchange. Following the...
Regulatory Filings and Compliance
Diploma Non-Executive Directors Increase Personal Shareholdings
Positive
Jan 15, 2026
Diploma PLC reported that non-executive directors Ian El-Mokadem and Katie Bickerstaffe have increased their personal holdings in the company’s shares following market purchases on 14 January 2026. El-Mokadem acquired 500 ordinary shares at ...
Stock BuybackDividendsShareholder Meetings
Diploma Faces Shareholder Pushback on Pre-Emption Powers at AGM
Negative
Jan 14, 2026
Diploma PLC reported that shareholders approved all resolutions at its annual general meeting except a proposal to further disapply pre-emption rights for acquisitions or specified capital investments, which failed to reach the required 75% superm...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Diploma posts strong Q1 growth and steps up acquisition drive
Positive
Jan 14, 2026
Diploma PLC reported a very strong start to its 2026 financial year, with 14% organic revenue growth in the first quarter to 31 December 2025, underpinned by momentum in both its existing operations and its acquisition strategy. The group complete...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Diploma posts strong Q1 with 14% organic growth and ramps up acquisitions
Positive
Jan 14, 2026
Diploma PLC reported a very strong start to its 2026 financial year, delivering 14% organic revenue growth in the first quarter and maintaining guidance for full-year organic revenue growth of 6% and an operating margin of about 22.5%. The group c...
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.