Dicker Data Ltd (ASX: DDR) shares are on the rise today, up 4.09% to $11.26 at the time of writing, But over the last six months, the Dicker Data share price has surged by more than 47%.
Let’s take a look at what’s been happening for the computer hardware distributor.
FY20 financial highlights
According to its FY20 results released last week, Dicker Data experienced significant gains compared to the prior corresponding period (pcp).
Despite the Dicker Data share price falling lower on the day its full-year results were released, the company posted a 12.8% jump in revenue for FY20. Revenue totalled $2 billion vs $1.8 billion in the pcp.
The company advised the gains were partly attributable to it adding new vendors and offering a wider product range as part of its growth strategy.
Gross profit for FY20 was up 20.8% at $191.4 million vs $158.4 million in FY19.
Net operating profit before tax also took a 27.7% jump from $64.1 million in FY19 to $81.2 million in FY20.
Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) gained 23.9% in FY20 at $91.4 million compared to $73.8 million in the year prior.
Total FY20 dividends paid were 35.5 cents per share.
CEO comments on Dicker Data share price
In the company’s annual report released 25 February, CEO David Dicker pointed out:
We listed DDR at 20 cents per share on 24 January 2011, with a market cap of $25 million. Ten years later our shares are trading around $12 and we have a market cap of $2 billion. An original shareholder’s stake of 10,000 shares at $2,000 would now be worth around $120,000. A very satisfying outcome.
Outlook and strategy
The company presently reports selling to over 6,900 partners and added eight new vendors in FY20.
According to Dicker Data, it continues to actively pursue growth opportunities through expanding its vendor network and establishing strategic partnerships.
The business advised that going forward, it will “continue to evolve and differentiate our offerings…” in Australia and New Zealand.
The Dicker Data share price has gained around 93% over the past year. There are presently 172.1 million shares outstanding.
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More reading
- Dicker Data (ASX:DDR) share price lower despite record-breaking result
- Why the Dicker Data (ASX:DDR) share price almost hit a record high today
Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post The Dicker Data (ASX:DDR) share price has pumped 47% in 6 months appeared first on The Motley Fool Australia.
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