DAVY VIEW

DCC is exactly the type of investment you should own in this market. The business model is extremely resilient, delivering double-digit earnings growth through the last three global recessions. It also recently outlined a new energy strategy to grow its energy businesses through transition, a proposition that investors should take seriously given the team’s credibility. Finally, the ambition for the group out to 2030 is self-funded, double-digit earnings growth, delivering a more ‘balanced’ portfolio mix across Energy, Healthcare and Technology while maintaining excellent ROCE and FCF. Meanwhile, the stock is on its lowest valuation rating in a decade. We see only upside.