DCC:LSEDCC Plc Analysis
Data as of 2026-03-14 - not real-time
£4,712.00
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
DCC plc is trading at 4,712 GBp, below its 20‑day SMA of 4,997 and 50‑day SMA of 4,784, signalling a short‑term downtrend. The RSI of 39 points to near‑oversold conditions, yet the MACD histogram sits at –51 with a bearish signal line, confirming negative momentum. Volatility is elevated at 35.7 % over the past 30 days and volume is decreasing, adding to short‑term uncertainty.
Valuation is mixed: a trailing P/E of 36.2 far exceeds the industry average of 22.2 and a price‑to‑book of 177× appears excessive, but a discounted cash‑flow model suggests a fair value around 7,650 GBp, implying roughly 29 % upside. The dividend yield of 4.45 % is attractive, though the payout ratio exceeds 150 %, raising sustainability concerns. Recent Q3 results highlighted strong acquisition momentum, providing a catalyst for potential earnings recovery.
Valuation is mixed: a trailing P/E of 36.2 far exceeds the industry average of 22.2 and a price‑to‑book of 177× appears excessive, but a discounted cash‑flow model suggests a fair value around 7,650 GBp, implying roughly 29 % upside. The dividend yield of 4.45 % is attractive, though the payout ratio exceeds 150 %, raising sustainability concerns. Recent Q3 results highlighted strong acquisition momentum, providing a catalyst for potential earnings recovery.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bearish MACD and price below 20‑day SMA
- Decreasing trading volume and high 30‑day volatility
- Proximity to support level at 4,627 GBp
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- DCF implied upside of ~29 %
- Strong acquisition pipeline noted in Q3 statement
- Attractive dividend yield despite high payout ratio
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Strategic diversification into renewables and technology segments
- Low beta (0.33) indicating defensive profile
- Long‑term energy demand and cash‑flow generation potential
Key Metrics & Analysis
Financial Health
Revenue Growth-7.10%
Profit Margin-0.42%
P/E Ratio36.2
ROE4.92%
ROA3.43%
Debt/Equity84.24
P/B Ratio177.3
Op. Cash Flow£614.9M
Free Cash Flow£551.3M
Industry P/E22.2
Technical Analysis
TrendNeutral
RSI39.2
Support£4,626.80
Resistance£5,290.00
MA 20£4,997.10
MA 50£4,783.92
MA 200£4,795.46
MACDBearish
VolumeDecreasing
Fear & Greed Index72.88
Valuation
Fair Value£7,650.08
Target Price£6,078.58
Upside/Downside29.00%
GradeUndervalued
TypeBlend
Dividend Yield4.45%
Risk Assessment
Beta0.33
Volatility35.67%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.