# Diploma PLC (DPLM.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Trading Companies & Distributors. Price 7220p, market value 9.7 billionp.

## Valuation
- **P/E (trailing): 51.2×** (5-yr avg 3985.0×, 3-yr avg 3932.6×). Diploma PLC trades at 51.2× trailing earnings, well below its own five-year average of 3985.0×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 27.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.62**. A PEG of 0.62 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.1×**. Each dollar of revenue is priced at 3.1×.
- **Price / book: 9.2×**. The shares trade at 9.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 13.4×**. Enterprise value is 13.4× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.4%** (5-yr avg 0.0%). Free cash flow equals 4.4% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 2.0%**. The inverse of the P/E: 2.0% of the price is earned each year.

## Profitability
- **Gross margin: 30.3%**. Diploma PLC keeps 30.3% of revenue after the direct cost of what it sells.
- **Operating margin: 19.4%**. 19.4% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 12.1%**. 12.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 18.7%**. 18.7% on shareholders' equity is solid.
- **Return on invested capital: 32.2%**. Return on all capital, debt included, is 32.2%: comfortably above what that capital costs.
- **Return on assets: 16.6%**. Each dollar of assets produces 16.6% of profit.

## Growth
- **Revenue growth (1 yr): 11.8%** (3-yr 14.6%/yr, 5-yr 23.1%/yr). Revenue grew 11.8% over the last year, against 23.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 43.8%** (3-yr 22.0%/yr, 5-yr 26.3%/yr). Earnings per share rose 43.8%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 32.2%/yr**. Free cash flow has compounded at 32.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.47**. Debt is 0.47 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.5×**. It would take 0.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 10.2×**. Operating profit covers interest 10.2× over, a safe margin.
- **Current ratio: 2.04** (quick 1.04). Current assets cover the next year's liabilities 2.04 times.
- **Altman Z-score: 9.03**. A Z-score of 9.03 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.89%** (1p per share, trailing). Diploma PLC yields 0.89%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 44%** (32% of free cash flow). 44% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 14.9%/yr** (1-yr 5.1%). The dividend has compounded at 14.9% a year over five years, doubling roughly every 5 years at that pace.
- **Shareholder yield: 0.9%**. Dividends plus net buybacks return 0.9% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (16 analysts). 16 analysts cover Diploma PLC; the consensus is buy, with an average price target of 8223p (+14% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 33.0%** (YTD 35.8%, 3-mo 1.8%). The shares are up 33.0% over twelve months including dividends.
- **From 52-week high: -7.0%** (45.3% above the low). Trading 7% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 0.75** (volatility 29%). Beta of 0.75 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DPLM.L · Page: https://foliofundamentals.com/stocks/dplm.l

Not investment advice.