DCC plc Fundamental Analysis
DCC plc (DCCPY) shows weak financial fundamentals with a PE ratio of 323.66, profit margin of 0.11%, and ROE of 0.68%. The company generates $16.5B in annual revenue with weak year-over-year growth of -9.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DCCPY's fundamental strength across five key dimensions:
Efficiency Score
WeakDCCPY struggles to generate sufficient returns from assets.
Valuation Score
ModerateDCCPY shows balanced valuation metrics.
Growth Score
WeakDCCPY faces weak or negative growth trends.
Financial Health Score
ModerateDCCPY shows balanced financial health with some risks.
Profitability Score
ModerateDCCPY maintains healthy but balanced margins.
Key Financial Metrics
Is DCCPY Expensive or Cheap?
P/E Ratio
DCCPY trades at 323.66 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DCCPY's PEG of -2.22 indicates potential undervaluation.
Price to Book
The market values DCC plc at 2.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.56 times EBITDA. This is generally considered low.
How Well Does DCCPY Make Money?
Net Profit Margin
For every $100 in sales, DCC plc keeps $0.11 as profit after all expenses.
Operating Margin
Core operations generate 3.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.68 in profit for every $100 of shareholder equity.
ROA
DCC plc generates $0.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DCC plc generates limited operating cash flow of $735.10M, signaling weaker underlying cash strength.
Free Cash Flow
DCC plc produces free cash flow of $512.55M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.83 in free cash annually.
FCF Yield
DCCPY converts 8.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
323.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.006
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.007
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How DCCPY Stacks Against Its Sector Peers
| Metric | DCCPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 323.66 | 21.13 | Worse (Expensive) |
| ROE | 0.68% | 1000.00% | Weak |
| Net Margin | 0.11% | -59340.00% (disorted) | Weak |
| Debt/Equity | 1.01 | -0.46 (disorted) | Distorted |
| Current Ratio | 1.20 | 4.95 | Neutral |
| ROA | 0.20% | -2147.00% (disorted) | Weak |
DCCPY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DCC plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.37%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-16.37%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
9.38%
Industry Style: Cyclical, Value, Commodity
Growing