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Diploma
(LSE:DPLM)
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Rating:75Outperform
Price Target:
7,751.00 p
▲(7.21% Upside)
Action:Reiterated
Date:08/06/26
Score is supported primarily by strong financial performance (rapid growth, improving margins, and high free-cash-flow quality) and clear technical uptrend momentum. The main constraint is valuation: a high P/E and modest dividend yield reduce the overall attractiveness despite solid fundamentals.
Positive Factors
Revenue Growth
Rapid revenue expansion indicates strong demand across Diploma’s specialized distribution and services activities. If sustained, this growth can broaden customer relationships, increase operating scale, and provide a durable base for continued investment and earnings development over the next several quarters.
Negative Factors
Higher Absolute Debt
Although leverage remains manageable and debt-to-equity improved to about 0.47 in 2025, the higher absolute debt load increases the importance of sustained earnings and cash generation. A weaker operating period could reduce financial flexibility and constrain capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Rapid revenue expansion indicates strong demand across Diploma’s specialized distribution and services activities. If sustained, this growth can broaden customer relationships, increase operating scale, and provide a durable base for continued investment and earnings development over the next several quarters.
Read all positive factors
Diploma (DPLM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£9.69B
Dividend Yield0.87%
Average Volume (3M)472.12K
Price to Earnings (P/E)51.2
Beta (1Y)0.89
Revenue Growth13.31%
EPS Growth13.05%
CountryUK
Employees3,390
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)1.41
Shares Outstanding134,317,400
10 Day Avg. Volume383,430
30 Day Avg. Volume472,123
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)7.19
Price to Sales (P/S)4.67
P/FCF Ratio28.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£7,916.67Price Target Upside9.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.68
Revenue Forecast (FY)£2.01B
Diploma Business Overview & Revenue Model
Company Description
Diploma PLC is a global provider of highly specialized technical products and services, operating across the United Kingdom, Europe, North America, and other international markets. The company structures its diverse operations into three primary b...
Diploma Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.01B | 1.52B | 1.36B | 1.20B | 1.01B | 787.40M |
| Gross Profit | 432.55M | 377.70M | 628.90M | 261.00M | 335.30M | 288.40M |
| EBITDA | 479.75M | 368.60M | 296.10M | 254.00M | 203.50M | 138.40M |
| Net Income | 189.40M | 184.90M | 129.30M | 117.70M | 94.70M | 69.80M |
Balance Sheet | ||||||
| Total Assets | 1.97B | 1.86B | 1.77B | 1.59B | 1.39B | 994.00M |
| Cash, Cash Equivalents and Short-Term Investments | 68.70M | 81.70M | 55.50M | 62.40M | 41.70M | 24.80M |
| Total Debt | 501.40M | 464.90M | 552.10M | 397.30M | 439.70M | 254.50M |
| Total Liabilities | 912.00M | 862.60M | 877.40M | 687.30M | 721.50M | 453.00M |
| Stockholders Equity | 1.05B | 989.70M | 888.00M | 895.60M | 662.00M | 536.30M |
Cash Flow | ||||||
| Free Cash Flow | 268.20M | 253.20M | 178.40M | 166.10M | 109.60M | 109.90M |
| Operating Cash Flow | 283.90M | 267.60M | 198.10M | 189.20M | 125.00M | 116.10M |
| Investing Cash Flow | -147.40M | -31.30M | -294.80M | -270.90M | -172.20M | -447.70M |
| Financing Cash Flow | -132.10M | -212.90M | 90.30M | 107.50M | 64.70M | 139.00M |
Diploma Technical Analysis
Negative
7230.00
Price Trends
7433.40
Negative
7319.60
Negative
6706.56
Positive
Market Momentum
-84.00
Positive
40.94
Neutral
19.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DPLM, the sentiment is Negative. The current price of 7230 is below the 20-day moving average (MA) of 7641.00, below the 50-day MA of 7433.40, and above the 200-day MA of 6706.56, indicating a neutral trend. The MACD of -84.00 indicates Positive momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DPLM.
Diploma Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £202.88M | 1.33 | 8.13% | 6.53% | ― | ― | |
75 Outperform | £9.69B | 51.24 | 18.55% | 0.87% | 13.31% | 13.05% | |
65 Neutral | £3.61B | 22.59 | 11.55% | 2.90% | -0.77% | 6.65% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | £51.21M | -14.70 | -5.87% | 2.02% | 20.26% | 89.85% | |
48 Neutral | £105.30M | -2.05 | -46.37% | 3.17% | -0.75% | 25.17% | |
44 Neutral | £409.76M | -4.14 | -381.58% | ― | 15.92% | -1086.87% |
* Industrials Sector Average
GB:DPLM
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Diploma Corporate Events
Regulatory Filings and Compliance
Diploma directors increase stakes with fresh share purchases
Positive
Sep 23, 2026
Diploma PLC disclosed that non-executive director Cheri Phyfer bought 1,241 ordinary shares on 21 September 2026, taking her holding to 1,241 shares, while senior independent director Katie Bickerstaffe acquired 246 shares on 23 September, lifting...
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.