Diploma (DPLM) AI Stock Analysis

• Market Cap: £7.53B
• Dividend Yield: 1.13%
• Average Volume (3M): 312.85K
• Price to Earnings (P/E): 40.1
• Beta (1Y): 1.04
• Revenue Growth: 11.82%
• EPS Growth: 42.93%
• Country: UK
• Employees: 3,597
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.66
• Shares Outstanding: 134,317,400
• 10 Day Avg. Volume: 285,214
• 30 Day Avg. Volume: 312,846
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £6,043.75
• Price Target Upside: 9.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 5,724.00p ▲(3.60% Upside)

Diploma's overall stock score is driven by its strong financial performance, which is the most significant factor, reflecting robust growth and cash generation. However, technical analysis indicates bearish momentum, and valuation metrics suggest the stock may be overvalued, which could limit future gains. The absence of earnings call insights and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand and market expansion, suggesting a strong position in the industry and potential for continued success.

Cash Generation

Strong cash generation capabilities enhance financial flexibility, enabling reinvestment in growth opportunities and providing a buffer against economic downturns.

Profitability

Improved profitability through efficient cost management supports sustainable operations and competitive pricing strategies, reinforcing long-term financial health.

Negative Factors

Leverage Concerns

Increasing leverage, while currently manageable, could pose risks to financial stability if not addressed, potentially limiting future growth and flexibility.

Valuation Concerns

High valuation metrics could limit upside potential and make the stock less attractive to value-focused investors, impacting long-term investment appeal.

Technical Indicators

Bearish technical indicators suggest potential challenges in maintaining stock price momentum, which could affect investor sentiment and capital raising efforts.

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 Controls. The Life Sciences sector supplies clinical diagnostics instrumentation and products, consumables, specialty surgical devices, and related consumables and services to public hospitals, private clinics, pathology laboratories, scientific research, and medical segments; surgical equipment for hospital operating rooms; and distributes laboratory diagnostics, specialty medical devices, devices, equipment, and patient monitoring technologies used in operating theatres, as well as medically supervised nutrition. It also provides supplies specialist containment solutions and analyzers for chemical, petrochemical, environmental research, and pharmaceutical technology. The Seals sector supplies various seals, gaskets, filters, cylinders, components, and kits used in heavy mobile machinery and specialized industrial equipment; and O-rings, custom molded and machined parts, fluid sealing products, and hydraulic cylinder components. The Controls sector offers cable identification, termination, and management products, and cable products; low voltage cables and cable management solutions; harness components and specialist connectors, including protective sleevings, cut-to-length tubing, kitting, connector assemblies, and prototype quantities of customized multi-core cables; fasteners and related technical support, and other value-added services for civil aerospace, motorsport, defense, and general industries, as well as supports customers with automated inventory replenishment solutions; fluid controllers, compressors, valves, temperature and pressure measurement devices, and liquid dispensing components; and silicones, adhesives, and sealants. Diploma PLC was incorporated in 1931 and is based in London, the United Kingdom.

How the Company Makes Money

Diploma generates revenue primarily through the sale of its technical products and services. Key revenue streams include the distribution of specialized components and systems, which are often characterized by high margins due to their technical nature. The company benefits from long-term relationships with suppliers and customers, allowing for consistent repeat business. Additionally, Diploma engages in value-added services such as technical support and consultancy, which further enhance its revenue. Strategic partnerships with leading manufacturers enable the company to access exclusive products and expand its market presence, contributing significantly to its financial performance.

Diploma Financial Statement Overview

Summary

Diploma's financial statements collectively indicate strong growth, profitability, and cash generation capabilities. The income statement shows impressive revenue and profit growth, while the balance sheet reveals a stable financial position with some leverage concerns. The cash flow statement underscores strong liquidity and cash management. Overall, Diploma is well-positioned for continued success, though attention to leverage is advisable.

Income Statement

Diploma has demonstrated strong revenue growth with a 39.95% increase in the latest year, indicating robust demand and market expansion. The gross profit margin has improved significantly, reflecting efficient cost management. The net profit margin is healthy, and both EBIT and EBITDA margins show strong operational performance. Overall, the income statement reflects a company on a positive growth trajectory with solid profitability.

Balance Sheet

The balance sheet shows a stable financial position with a manageable debt-to-equity ratio, although it has increased slightly over the years. Return on equity is strong, indicating effective use of shareholder funds. The equity ratio suggests a solid capital structure, though there is room for improvement in reducing leverage. Overall, the balance sheet reflects stability with some leverage concerns.

Cash Flow

Diploma's cash flow statement highlights impressive free cash flow growth, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio is also strong, further supporting the company's ability to generate cash. Overall, the cash flow statement reflects strong liquidity and cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.52B	1.52B	1.36B	1.20B	1.01B	787.40M
Gross Profit	377.70M	377.70M	628.90M	261.00M	335.30M	288.40M
EBITDA	368.60M	368.60M	296.10M	254.00M	203.50M	138.40M
Net Income	137.00M	184.90M	129.30M	117.70M	94.70M	69.80M
Balance Sheet
Total Assets	1.81B	1.81B	1.77B	1.59B	1.39B	994.00M
Cash, Cash Equivalents and Short-Term Investments	81.70M	81.70M	55.50M	62.40M	41.70M	24.80M
Total Debt	464.90M	464.90M	552.10M	397.30M	439.70M	254.50M
Total Liabilities	815.20M	862.60M	877.40M	687.30M	721.50M	453.00M
Stockholders Equity	989.70M	989.70M	888.00M	895.60M	662.00M	536.30M
Cash Flow
Free Cash Flow	209.00M	253.20M	178.40M	166.10M	109.60M	109.90M
Operating Cash Flow	220.25M	267.60M	198.10M	189.20M	125.00M	116.10M
Investing Cash Flow	-32.10M	-31.30M	-294.80M	-270.90M	-172.20M	-447.70M
Financing Cash Flow	-212.10M	-212.90M	90.30M	107.50M	64.70M	139.00M

Diploma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5525.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5525 is above the 20-day moving average (MA) of 5391.25, above the 50-day MA of 5419.40, and above the 200-day MA of 4994.94, indicating a bullish trend. The MACD of 18.79 indicates Negative momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 85.80 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RS1	74 Outperform	£3.08B	19.07	11.65%	3.58%	-2.44%	-6.43%
DPLM	66 Neutral	£7.53B	40.07	19.69%	1.13%	11.82%	42.93%
LTHP	64 Neutral	£191.94M	―	―	6.53%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SHI	56 Neutral	£117.45M	-1.67	-37.89%	―	-2.08%	-9.83%
FLO	51 Neutral	£36.84M	-1.39	-48.14%	―	-0.25%	-84.33%

Diploma Corporate Events

Diploma CFO Increases Stake and Receives New Long-Term Incentive Award

Diploma PLC has disclosed that its Chief Financial Officer, Wilson Ng, has acquired 410 ordinary shares at £53.69 each, taking his total holding to 5,397 shares, using half of his FY2025 annual bonus after tax in line with the company’s shareholding policy. The company’s remuneration committee has also granted Ng a long‑term incentive award of up to 12,289 ordinary shares at a reference price of £53.40 under its 2020 Performance Share Plan, with vesting contingent on performance conditions over three years to September 2028, underscoring the group’s continued emphasis on performance-linked executive compensation and alignment with shareholder value.

The most recent analyst rating on (GB:DPLM) stock is a Hold with a £5724.00 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.

Diploma PLC Appoints Wilson Ng as Group CFO

Diploma PLC has appointed Wilson Ng as the new Group Chief Financial Officer, effective immediately. Ng, who joined the company in 2022 and has been Acting CFO since August 2025, was chosen after a thorough selection process. With over 20 years of international finance experience, Ng’s appointment is seen as a strategic move to leverage his commercial finance expertise and deep knowledge of the business. This internal promotion underscores Diploma’s focus on talent development and is expected to strengthen the company’s financial leadership, potentially impacting its operations and market positioning positively.

The most recent analyst rating on (GB:DPLM) stock is a Hold with a £5120.00 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.

Diploma PLC Releases 2025 Annual Report and AGM Notice

Diploma PLC has announced the release of its Annual Report and Accounts for the year ended 30 September 2025, alongside a circular for the upcoming Annual General Meeting scheduled for 14 January 2026. These documents have been made available to shareholders and uploaded to the National Storage Mechanism, reflecting the company’s commitment to transparency and regulatory compliance.

The most recent analyst rating on (GB:DPLM) stock is a Buy with a £64.00 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.

Diploma PLC Announces Total Voting Rights Update

Diploma PLC has announced the total number of its issued ordinary shares, which stands at 134,317,398 as of November 30, 2025. This figure is significant for shareholders as it determines their voting rights and obligations to notify changes in their shareholding under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:DPLM) stock is a Buy with a £64.00 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.

Diploma PLC Grants Long-Term Incentive Awards to Executives

Diploma PLC announced the approval of long-term incentive awards for its Executive Directors under the 2020 Performance Share Plan. The awards, granted to CEO Johnny Thomson and Acting CFO Wilson Ng, are contingent on performance conditions over a three-year period, potentially impacting the company’s strategic goals and shareholder interests.

The most recent analyst rating on (GB:DPLM) stock is a Buy with a £6200.00 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.

Diploma PLC Director Increases Shareholding

Diploma PLC announced that Geraldine Huse, a Non-Executive Director of the company, has purchased 750 Ordinary Shares, increasing her total shareholding to 3,191 shares. This transaction, conducted on the London Stock Exchange, aligns with the UK Market Abuse Regulation, reflecting active engagement by company leadership in the firm’s equity, potentially signaling confidence in the company’s future performance.

The most recent analyst rating on (GB:DPLM) stock is a Buy with a £6200.00 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.

Diploma PLC Executives Exercise Share Awards Under Performance Plan

Diploma PLC has announced that its CEO, Johnny Thomson, and Acting CFO, Wilson Ng, have exercised their share awards under the Diploma PLC 2020 Performance Share Plan. These awards, which vested after meeting performance conditions over a three-year period, require the net shares to be held until the fifth anniversary of the grant date. The exercise of these awards and subsequent sale of shares to cover tax and national insurance obligations reflect the company’s adherence to the UK Market Abuse Regulation, potentially impacting stakeholder confidence and market perception.

The most recent analyst rating on (GB:DPLM) stock is a Buy with a £58.50 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.

Diploma PLC Reports Strong Financial Performance with 12% Revenue Growth

Diploma PLC reported strong financial results for the year ending September 2025, with revenue increasing by 12% to £1,524.5 million and adjusted operating profit rising by 20% to £342.7 million. The company achieved an 11% organic revenue growth, driven by volume-led growth across all sectors, and maintained a robust operating margin of 22.5%. The company’s strategic acquisitions in aerospace, defense, and in vitro diagnostics contributed to its growth, and it plans to continue this momentum into the next fiscal year. Diploma’s financial stability is underscored by strong cash generation and low leverage, positioning it well for future growth. The company has proposed a 5% increase in its total dividend per share, reflecting its commitment to delivering disciplined returns to shareholders.

The most recent analyst rating on (GB:DPLM) stock is a Buy with a £58.50 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.

Diploma PLC Issues New Shares to Employee Benefit Trust

Diploma PLC has issued 141,191 new Ordinary Shares to its Employee Benefit Trust to fulfill future performance share awards. These shares are set to be admitted to the premium listing segment of the FCA’s Official List and traded on the London Stock Exchange, impacting the company’s total voting rights and shareholder calculations.

The most recent analyst rating on (GB:DPLM) stock is a Buy with a £58.50 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.

Diploma PLC CEO Takes on Advisory Role at TDR Capital

Diploma PLC has announced that its Chief Executive Officer, Johnny Thomson, has been appointed to a non-executive advisory role at TDR Capital LLP. He will also join the Strategic Committee of TDR’s portfolio company, Applus+, which may enhance the company’s strategic insights and expand its industry connections.

The most recent analyst rating on (GB:DPLM) stock is a Buy with a £6000.00 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.