Diploma Plc (DPLM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Currys Plc

Diploma Plc

Brickability Group Plc

RS Group Plc

Bunzl Plc

James Latham Plc

Midwich Group Plc

Glencore Plc

SIG Plc

Headlam Group Plc

Yellow Cake Plc

Why is Diploma Plc ?

High Management Efficiency with a high ROCE of 15.93%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 12.31

Healthy long term growth as Net Sales has grown by an annual rate of 23.14%

Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at GBP 417.4 MM
ROCE(HY) Highest at 18.41%
DIVIDEND PER SHARE(HY) Highest at GBP 6.81

With ROE of 17.27%, it has a expensive valuation with a 7.47 Price to Book Value

Over the past year, while the stock has generated a return of 20.77%, its profits have risen by 19.3% ; the PEG ratio of the company is 2.3

Consistent Returns over the last 3 years

Along with generating 20.77% returns in the last 1 year, the stock has outperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Diploma Plc should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Diploma Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Diploma Plc

20.77%

1.28

26.91%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.14%

EBIT Growth (5y)

31.66%

EBIT to Interest (avg)

12.31

Debt to EBITDA (avg)

1.13

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

1.00

Tax Ratio

24.02%

Dividend Payout Ratio

45.18%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

15.93%

ROE (avg)

14.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.47

EV to EBIT

30.20

EV to EBITDA

21.86

EV to Capital Employed

5.59

EV to Sales

5.12

PEG Ratio

2.26

Dividend Yield

80.11%

ROCE (Latest)

18.51%

ROE (Latest)

17.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 417.4 MM

ROCE(HY)

Highest at 18.41%

DIVIDEND PER SHARE(HY)

Highest at GBP 6.81

NET SALES(Q)

Highest at GBP 728.5 MM

RAW MATERIAL COST(Y)

Fallen by -14.39% (YoY

NET PROFIT(Q)

Highest at GBP 83.7 MM

EPS(Q)

Highest at GBP 0.71

-3What is not working for the Company

INTEREST(HY)

At GBP 14.4 MM has Grown at 37.14%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 25.47%

Here's what is working for Diploma Plc

Operating Cash Flow

Highest at GBP 417.4 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Net Sales

Highest at GBP 728.5 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Dividend per share

Highest at GBP 6.81 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Net Profit

Highest at GBP 83.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0.71

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Raw Material Cost

Fallen by -14.39% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Diploma Plc

Interest

At GBP 14.4 MM has Grown at 37.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Dividend Payout Ratio

Lowest at 25.47%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)