DCC: a top-notch company going cheap

DCC has a stellar long-term record and promising prospects. It has been unfairly marked down

DCC plc logo seen displayed on smart phone
(Image credit: Igor Golovniov/SOPA Images/LightRocket via Getty Images)

Since listing on the London Stock Exchange in 1994, DCC (LSE: DCC) has been one of the market’s best-performing stocks. However, in the last seven years, the shares have disappointed, but have become much cheaper in the process. The management team has a proven record of value creation and is confident about the future. Given the stock’s cheapness, is it now time to buy it once again?

At its current valuation, DCC appears as cheap as it has ever been, having gone through a period of abnormally slow growth. In 2022, the management set out a vision of what the business is to look like in 2030. Since then, the company has outperformed that strategy, but the shares are little changed. Should the firm continue to make progress towards the 2030 milestone, the shares could return 300% in the next five years.

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Jamie is an analyst and former fund manager. He writes about companies for MoneyWeek and consults on investments to professional investors.