DCC (DCCPY) AI Stock Analysis

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DCC

(Other OTC:DCCPY)

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Rating:62Neutral

Price Target:$46.00▲(7.30% Upside)

Action:reiterated

Date:08/23/26

The score is driven by resilient cash flow and a positive earnings-call outlook (strong cash conversion, solid returns on capital, and disciplined leverage), supported by bullish technical trend signals. These positives are tempered by weakening revenue and a sharp latest-year net income drop, and by a stretched valuation (very high P/E) that increases sensitivity to any further earnings pressure.

Positive Factors

Strong cash conversionCash conversion above operating profit indicates that earnings are translating efficiently into liquidity. This supports reinvestment, acquisitions, dividends and debt management, while structural negative working capital can remain a competitive advantage.

Negative Factors

Persistent revenue and volume declineDeclining revenue and energy volumes indicate pressure on the top-line growth engine, whether from milder weather, weaker commercial activity or disposals. Continued volume weakness could limit operating leverage and make future profit growth more dependent on pricing.

DCC (DCCPY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $7.36B
Dividend Yield: 3.04%
Average Volume (3M): ―
Price to Earnings (P/E): -75.9
Beta (1Y): 0.57
Revenue Growth: -1.71%
EPS Growth: -5.53%
Country: US
Employees: 11,700
Sector: Energy
Sector Strength: 65
Industry: Regulated Gas

DCC Business Overview & Revenue Model

Company Description

DCC plc is a multinational company that delivers a broad spectrum of sales, marketing, and essential support services across the globe. Its operations are organized into several distinct divisions. The DCC LPG segment focuses on the distribution and...

How the Company Makes Money

DCC generates revenue primarily by distributing products and providing value-added services through its operating divisions. In its energy-related activities, it sells and distributes fuels and energy products (and associated services) to commercial,...

DCC Earnings Call Summary

Earnings Call Date:May 19, 2026(Q4-2026)|% Change Since:9.16%|Next Earnings Date:May 18, 2027

Earnings Call SentimentPositive

The call presents a broadly positive picture: core profitability, EPS and cash generation improved, balance sheet metrics are strong, significant capital was returned to shareholders, and the company has materially simplified its portfolio to focus on an attractive energy strategy with clear acquisition plans. Weakness was concentrated in Energy Services and volumes, and there were some one-off benefits and restructuring costs; however, these issues appear manageable and are positioned as temporary against a longer-term growth and compounding strategy.

Positive Updates

Adjusted operating profit growth

Total adjusted operating profit increased 3.6% year-on-year to GBP 634 million, driven by DCC Energy (operating profit up 3.5%).

Negative Updates

Revenue decline

Reported group revenue declined 2.9% to GBP 15.4 billion, primarily driven by lower volumes in DCC Energy.

Company Guidance

Management's guidance and targets stressed a continued focus on energy and strong capital discipline, backed by FY26 metrics: revenue £15.4bn (-2.9%), adjusted operating profit £634m (+3.6%), adjusted EPS 438.1p (+9.9%), free cash flow conversion 108% group (113% in DCC Energy), group ROCE 16.8% (DCC Energy 18.8%), net debt £690m (0.9x EBITDA), working capital days 0.4 (vs 5.7 prior year) with a £101m reduction and ~£50m commodity-driven March benefit, capex £37m above depreciation (capex 1.1x depreciation), Solutions op profit £419.8m (+1.9%) and Mobility £134.4m (+8.6%), energy volumes -3.2% (H2 -1.8%), net M&A contribution 0.5%, committed acquisition spend £110m, £700m returned to shareholders (with a further £100m to follow), a proposed 5% dividend rise to 216.72p, and medium‑term targets of c.3–4% organic growth, c.6–8% acquisition growth, turning ~90% of profits into cash and sustaining high‑teens returns on capital to support the 2030 ambition.

DCC Financial Statement Overview

Summary

Mixed fundamentals: revenue has trended down and the latest year showed a sharp net income drop, but cash generation is strong (higher operating cash flow and improved free cash flow) and leverage appears moderate. The key financial risk is the reduced equity base, which lowers balance-sheet cushion if profitability remains pressured.

Income Statement

46Neutral

Balance Sheet

62Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.55B	15.69B	18.01B	19.86B	22.20B	17.73B
Gross Profit	2.28B	2.30B	2.40B	2.48B	2.40B	2.04B
EBITDA	807.10M	895.66M	882.07M	882.64M	863.49M	787.77M
Net Income	16.56M	13.58M	206.49M	326.25M	334.02M	312.37M
Balance Sheet
Total Assets	8.27B	8.27B	9.26B	9.48B	9.84B	9.56B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.09B	1.09B	1.11B	1.42B	1.39B
Total Debt	2.28B	2.28B	2.31B	2.31B	2.60B	2.34B
Total Liabilities	5.90B	5.90B	6.09B	6.30B	6.78B	6.59B
Stockholders Equity	2.26B	2.26B	3.07B	3.09B	2.98B	2.91B
Cash Flow
Free Cash Flow	483.77M	483.18M	367.73M	491.67M	427.46M	257.42M
Operating Cash Flow	693.82M	695.23M	582.03M	722.02M	656.90M	451.77M
Investing Cash Flow	338.12M	350.53M	-338.14M	-525.29M	-531.52M	-867.43M
Financing Cash Flow	-1.12B	-1.13B	-180.89M	-472.75M	-100.16M	21.49M

DCC Technical Analysis

Technical Analysis SentimentNeutral

Last Price42.87

Price Trends

50DMA42.85Positive

100DMA42.62Positive

200DMA38.96Positive

Market Momentum

MACD0.10Positive

RSI46.47Neutral

STOCH20.77Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DCCPY, the sentiment is Neutral. The current price of 42.87 is below the 20-day moving average (MA) of 43.09, above the 50-day MA of 42.85, and above the 200-day MA of 38.96, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 20.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DCCPY.

DCC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

DCCPY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NJR	74Outperform	$5.55B	15.08	14.42%	3.51%	7.08%	-11.82%
CPK	69Neutral	$3.44B	22.08	9.20%	2.02%	13.91%	12.26%
SR	69Neutral	$5.29B	9.82	15.87%	3.74%	4.12%	93.82%
UGI	69Neutral	$8.05B	12.03	13.15%	4.00%	-0.50%	60.66%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NWN	63Neutral	$2.19B	16.80	8.23%	3.82%	3.16%	20.58%
DCCPY	62Neutral	$7.33B	-75.94	-3.52%	3.04%	-1.71%	-5.53%

* Energy Sector Average

Performance Comparison

DCCPY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DCCPY	DCC Plc Unsponsored ADR	42.87	10.99	34.49%
CPK	Chesapeake Utilities	140.67	9.73	7.43%
SR	Spire Inc	88.27	2.58	3.01%
NJR	New Jersey Resources Corporation	54.82	9.92	22.08%
NWN	Northwest Natural Gas	51.83	5.45	11.76%
UGI	UGI Corp	37.52	3.96	11.79%

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.

Date of analysis: Aug 23, 2026

DCC AI Stock Analysis