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1. Company Snapshot

1.a. Company Description

DCC plc provides sales, marketing, and support services worldwide.The company's DCC LPG segment sells and markets liquefied petroleum gas (LPG), refrigerants, and natural gas.Its DCC Retail & Oil segment markets, sells, and retails transport and commercial fuels, heating oils, and related products and services; operates retail petrol stations; resells fuel cards; distributes oil; and provides inbound logistics, storage and filling, and outbound logistics services.


This segment serves domestic, agricultural, commercial/industrial, forecourt, aviation, and marine customers.The company's DCC Healthcare segment offers products and services to healthcare providers, and health and beauty brand owners; outsourced contract manufacturing services to the health and beauty sector; nutrition products, such as vitamins and health supplements; beauty products; and product development, formulation, manufacturing, and packaging services.In addition, this segment procures and sells exempt medicinal products.


Its DCC Technology segment distributes consumer technology products, including smart home products, gaming consoles, peripherals and software, wearable technology, and accessories; business and enterprise technology products, such as tablets, notebooks, and PCs; networking and security products; communication products comprising smartphones; and servers and storage products, audio visual products, printers, peripherals, cables and connectors, and consumables to retailers, resellers, and integrators.It also provides supply chain services.The company was founded in 1976 and is headquartered in Dublin, Ireland.

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1.b. Last Insights on DCC

DCC plc's recent performance has been hindered by the UK market's downturn, with the FTSE 100 index closing lower due to weak trade data from China. This has led to a decline in investor sentiment, with concerns about global economic recovery influencing market dynamics. The company's exposure to global economic shifts has exacerbated its challenges, making it vulnerable to market volatility.

1.c. Company Highlights

2. DCC's Interim Results: A Mixed Bag

DCC's interim results for the six months ended September 2025 revealed a decline in revenue to GBP 7.4 billion from GBP 7.9 billion, driven by lower volumes and commodity pricing. Operating profit was down 5.4% on a reported basis and 5.3% on a constant currency organic basis. Adjusted EPS was down 4.2% to a reported figure of 1.11, significantly below analyst estimates of 3.27. The interim dividend was, however, increased by 5%. The company's energy business accounted for 84% of operating profit in the first half.

Publication Date: Nov -15

📋 Highlights
  • Shareholder Returns Plan:: DCC announced a GBP 800 million capital return plan, including a GBP 100 million on-market buyback and a GBP 600 million tender offer, signaling strong confidence in its cash flow generation.
  • Revenue and Profit Decline:: Revenue for continuing operations fell to GBP 7.4 billion (-6.3%) due to lower volumes and commodity prices, with operating profit declining 5.3% on a constant currency basis.
  • Segment Performance:: Energy Products operating profit dropped 12.8% driven by warm weather and business disposals, while Energy Services saw 8.5% growth in operating profit despite 14.3% revenue growth.
  • Acquisition Strategy:: Acquired two European liquid gas businesses ( FLAGA in Austria, UK cylinder business) for 6-8% annual acquisition-driven growth, complementing 3-4% organic growth targets.
  • Cash Flow and Debt:: Net debt rose to GBP 522 million, expected to increase further to GBP 600 million post-buyback, but the company aims to convert 90% of profits into cash and maintain high teens ROCE.

Segmental Performance

The energy business was a major contributor, while the Solutions operating profit declined by 10%, driven by Energy Products. Energy Products volumes were 4.9% lower, and operating profit was down 12.8%, impacted by warm weather, disposal of the Hong Kong and Macau business, and softer economies. In contrast, Energy Services' revenue grew 14.3%, and gross profit grew 16.3%, but operating profit grew only 8.5% due to investments in acquired businesses.

Growth Prospects and Capital Allocation

DCC expects to deliver organic growth of 3-4% and acquisition growth of 6-8% per annum, driving double-digit growth in earnings. The company has a capital allocation framework, allocating over £70 million to capital expenditure, £60 million to acquisitions, and returning £100 million to shareholders through a share buyback, with a further £600 million capital return to be launched via a tender offer. The tender offer process is expected to start shortly and be completed by the end of the calendar year.

Valuation and Outlook

With a P/E Ratio of 24.05 and an EV/EBITDA of 8.46, the market appears to be pricing in a certain level of growth. The Dividend Yield stands at 4.11%, indicating an attractive return for income investors. While the company's volume is expected to bounce back in the second half of the year, driven by potential competitor activity in markets, the lifestyle products piece remains uncertain due to tariffs and price points. Analysts' estimates for next year's revenue growth stand at -16.6%, indicating a challenging outlook.

3. NewsRoom

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Is DCC plc (LON:DCC) Trading At A 33% Discount?

Nov -20

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DCC PLC (DCCPF) (Half Year 2026) Earnings Call Highlights: Strategic Progress Amid Revenue Decline

Nov -12

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Will UGI's (UGI) Austrian LPG Sale and Debt Move Reshape Its Investment Story?

Nov -09

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3 UK Dividend Stocks Offering Up To 8.9% Yield

Oct -22

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UGI International Signs Definitive Agreement to Divest its LPG Business in Austria

Oct -21

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Fabrinet Appoints Caroline Dowling to Board of Directors

Oct -16

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3 UK Dividend Stocks To Consider With Up To 7.9% Yield

Sep -23

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DCC plc's (LON:DCC) Stock Financial Prospects Look Bleak: Should Shareholders Be Prepared For A Share Price Correction?

Sep -16

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.90%)

6. Segments

DCC Energy

Expected Growth: 0.8%

DCC Energy's 0.8% growth is driven by increasing demand for clean energy solutions, strategic acquisitions, and expansion into new markets. Additionally, the segment benefits from DCC plc's diversified business model, which provides a stable platform for growth. Furthermore, investments in digitalization and operational efficiency have improved profitability, contributing to the segment's growth.

DCC Technology

Expected Growth: 1.2%

DCC Technology's 1.2% growth is driven by increasing demand for IT and electronics products, particularly in the UK and Ireland. The segment benefits from its diversified customer base, including major retailers and manufacturers. Additionally, DCC Technology's focus on e-commerce and digital transformation initiatives contributes to its growth, as well as its ability to adapt to changing market trends and customer needs.

DCC Healthcare

Expected Growth: 0.9%

DCC Healthcare's 0.9% growth is driven by increasing demand for healthcare services, expansion into new markets, and strategic acquisitions. Additionally, the segment benefits from a diversified portfolio of healthcare businesses, including pharmaceutical distribution, medical devices, and healthcare outsourcing, which provides a stable source of revenue.

7. Detailed Products

LPG

DCC LPG is a leading distributor of liquefied petroleum gas (LPG) to the retail and commercial markets.

Oil and Fuel Cards

DCC provides oil and fuel cards for businesses, offering a convenient and efficient way to manage fuel expenses.

Heating and Cooling Solutions

DCC offers a range of heating and cooling solutions, including heating oils, fuels, and equipment.

Retail and Commercial Fuels

DCC supplies fuels to retail and commercial customers, including petrol stations, convenience stores, and commercial fleets.

Aerospace and Industrial Chemicals

DCC provides specialized chemicals and lubricants to the aerospace and industrial markets.

Food and Beverage Ingredients

DCC supplies ingredients and additives to the food and beverage industry.

Health and Beauty Products

DCC provides ingredients and additives to the health and beauty industry.

8. DCC plc's Porter Forces

Forces Ranking

Threat Of Substitutes

DCC plc operates in a industry with moderate threat of substitutes. The company's products and services have some substitutes, but they are not easily replaceable.

Bargaining Power Of Customers

DCC plc's customers have low bargaining power due to the company's strong brand presence and diversified product offerings.

Bargaining Power Of Suppliers

DCC plc's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for certain raw materials.

Threat Of New Entrants

The threat of new entrants in DCC plc's industry is low due to high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in DCC plc's industry is high due to the presence of several established players and the need for continuous innovation to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.53%
Debt Cost 6.58%
Equity Weight 60.47%
Equity Cost 7.66%
WACC 7.23%
Leverage 65.38%

11. Quality Control: DCC plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rubis

A-Score: 7.1/10

Value: 8.2

Growth: 5.6

Quality: 4.8

Yield: 9.4

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Aker BP

A-Score: 6.9/10

Value: 6.0

Growth: 7.3

Quality: 5.5

Yield: 10.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
SBM Offshore

A-Score: 5.8/10

Value: 7.6

Growth: 5.3

Quality: 3.9

Yield: 3.1

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
DCC

A-Score: 5.3/10

Value: 6.1

Growth: 3.8

Quality: 3.3

Yield: 6.2

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Esso

A-Score: 4.0/10

Value: 8.8

Growth: 5.2

Quality: 2.0

Yield: 5.6

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Neste

A-Score: 3.5/10

Value: 4.8

Growth: 3.2

Quality: 1.2

Yield: 5.6

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.25$

Current Price

50.25$

Potential

-0.00%

Expected Cash-Flows