DCC plc (DCC) AI Stock Analysis

DCC plc

(Frankfurt:DCC)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong Cash GenerationStrong cash conversion provides durable capacity to service debt, fund acquisitions, reinvest in operations and support shareholder distributions, even when reported earnings are temporarily weaker.

Negative Factors

Sharp Net Income DeclineThe steep deterioration in bottom-line earnings weakens earnings quality and reduces the company’s financial cushion, raising questions about the sustainability of returns if below-operating-line pressures persist.

DCC plc (DCC) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 5.51B
Dividend Yield: 3.32%
Average Volume (3M): 79
Price to Earnings (P/E): 149.9
Beta (1Y): 0.49
Revenue Growth: -16.57%
EPS Growth: -81.28%
Country: Germany
Employees: 11,700
Sector: Energy
Sector Strength: 65
Industry: Regulated Gas

DCC plc Business Overview & Revenue Model

Company Description

DCC Plc engages in the provision of international sales, marketing, and business support services. It operates through the following DCC Energy and DCC Technology segments. The DCC Energy segment focuses on the sales, marketing, and distribution of s...

DCC plc Earnings Call Summary

Earnings Call Date:May 18, 2026(Q4-2026)|% Change Since:16.07%|Next Earnings Date:Nov 09, 2026

Earnings Call SentimentPositive

The call reported solid financial and operational performance: adjusted operating profit and EPS grew, cash conversion and returns on capital remained strong, and the group delivered substantial capital returns while accelerating its strategic focus on energy. These positives were tempered by a revenue decline, weaker energy volumes, and a disappointing year for Energy Services amid market and policy volatility. Management emphasized long-term opportunities in liquid gas and multi-energy solutions and maintained an acquisitive stance with a strong balance sheet.

Positive Updates

Adjusted operating profit growth

Total adjusted operating profit increased 3.6% to GBP 634.0m for FY '26, driven by a stronger second half performance (+7.9% H2) despite a weaker first half (approx. -5%).

Negative Updates

Revenue decline and volume weakness

Reported revenue fell 2.9% to GBP 15.4bn; DCC Energy volumes were down 3.2% for the year (down 1.8% in H2), reflecting milder weather, reduced commercial activity in some regions and weak demand in parts of the year.

Company Guidance

The call reiterated a clear energy‑focused guidance and quantified targets: FY‑26 saw adjusted operating profit +3.6% to £634m, adjusted EPS +9.9% to 438.1p, revenue £15.4bn (‑2.9%), free cash flow conversion 108% (113% in DCC Energy), group ROCE 16.8% (DCC Energy 18.8%), net debt £690m (0.9x EBITDA) and £700m returned to shareholders (with a further £100m expected in FY28) alongside a proposed 5% dividend increase to 216.72p and a £110m committed acquisition spend; management reiterated its 2030 ambition to double profits, medium‑term organic growth guidance of 3–4% with 6–8% from M&A to deliver double‑digit earnings growth, a target to convert ~90% of profits into cash and to sustain ROCE in the high teens, noted 87% of group profit now derives from Energy (Solutions 76% / Mobility 24%), highlighted market opportunity (liquid gas TAM c.74bn litres with c.5% share today), and set operational milestones including the intended Nexora sale by end‑2026 and a proposed name change to DCC Energy plc effective 16 July 2026.

DCC plc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

DE:DCC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:ITH	76Outperform	GBP 5.01B	25.87	10.32%	8.77%	28.04%	―
GB:NWF	74Outperform	GBP 79.85M	8.74	10.04%	5.40%	1.90%	48.28%
GB:SEPL	74Outperform	GBP 5.33B	22.03	17.69%	1.68%	25.07%	48.96%
GB:HBR	73Outperform	GBP 5.37B	23.85	9.66%	3.87%	17.03%	―
GB:DEC	72Outperform	GBP 763.32M	1.68	64.44%	7.78%	―	―
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

* Energy Sector Average

Performance Comparison

DE:DCC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:DCC	DCC plc	76.50	20.68	37.05%
GB:DEC	Diversified Energy Company plc	1086.00	198.31	22.34%
GB:NWF	NWF Group plc	161.00	-3.96	-2.40%
GB:HBR	Harbour Energy plc	308.00	85.68	38.54%
GB:SEPL	SEPLAT Petroleum Development	888.00	610.55	220.06%
GB:ITH	Ithaca Energy PLC	302.80	99.02	48.59%

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.

DCC plc AI Stock Analysis