olivLaw · European equity research
Dialight plc DIA.L
United Kingdom · London Stock Exchange · ISIN GB0033057794 · Vertical: Listed companies from United Kingdom
Dialight plc is a UK maker of industrial LED lighting and components, in the second year of its Transformation Plan, which cut net bank debt to a much lower level in fiscal 2026. Operating cash generation and inventory reduction suggest the restructuring is producing results, but market demand and geopolitical tensions remain uncertain factors.
At the close of 05 Nov 2026, Dialight plc (DIA.L) stock was 5.30 GBP (−4.33% on the day), with beta 0.53, 52-week range 2.58–6.02 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 41.6
- weak (30–45)
- Bollinger (20, 2)
- 5.15 – 5.92
- in the lower half of the band · %B 0.19 · band width 13.8%
- SMA 50 / 200
- 5.61 / 4.09
- mixed trend
- MACD (12, 26, 9)
- -0.03 / -0.02
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −8.0% | −0.6% | −7.3 pp | — |
| 3 months | +5.2% | −4.2% | +9.3 pp | — |
| 6 months | +80.3% | +4.3% | +75.9 pp | — |
| Year to date | +51.4% | +7.5% | +43.9 pp | — |
| 1 year | +105.4% | +9.9% | +95.5 pp | +5.8% |
| 3 years | +217.4% | +49.8% | +167.5 pp | +26.3% |
| 5 years | +48.5% | +42.8% | +5.6 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
the price (USD) and the reports are in different currencies
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2025 | 2026 |
|---|---|---|
| Revenue | 183.5 m | 166.9 m |
| Revenue YoY | unavailable | −9.0% |
| Net income | -13.8 m | 400.0 k |
| Net income YoY | unavailable | unavailable |
| Diluted EPS | -0.35 | 0.01 |
| Diluted EPS YoY | unavailable | unavailable |
| net % | -7.5% | 0.2% |
| Free cash flow | 3.6 m | 29.1 m |
Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 7.1 m USD
- Financial debt
- 9.0 m USD
- Net debt
- 1.9 m USD
- Equity
- 47.1 m USD
- Total assets
- 101.3 m USD
- Debt / equity
- 0.19x
- Current ratio
- 1.78x
- ROE
- 0.8%
- ROA
- 0.3%
- FCF margin
- 17.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2025 | 2026 | Source (latest year) |
|---|---|---|---|
| Revenue | 183.5 m | 166.9 m | esef· 21 Jul 2026verified |
| Cost of revenue | 117.0 m | 101.8 m | esef· 21 Jul 2026verified |
| Gross profit | 66.5 m | 65.1 m | esef· 21 Jul 2026verified |
| Operating income | -11.6 m | 6.2 m | esef· 21 Jul 2026verified |
| Depreciation & amortisation | 8.7 m | 9.5 m | esef· 21 Jul 2026verified |
| EBITDA | -2.9 m ≈ | 15.7 m ≈ | esef· 21 Jul 2026derived |
| Interest expense | 2.5 m | 2.4 m | esef· 21 Jul 2026verified |
| Pre-tax income | -14.1 m | 3.8 m | esef· 21 Jul 2026verified |
| Income tax | -500.0 k | 3.3 m | esef· 21 Jul 2026verified |
| Net income | -13.8 m | 400.0 k | esef· 21 Jul 2026verified |
| Diluted EPS | -0.35 | 0.01 | esef· 21 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2025 | 2026 | Source (latest year) |
|---|---|---|---|
| Cash | 7.9 m | 7.1 m | esef· 21 Jul 2026verified |
| Receivables | 34.3 m | 27.8 m | esef· 21 Jul 2026verified |
| Inventories | 46.6 m | 30.0 m | esef· 21 Jul 2026verified |
| Current assets | 89.2 m | 65.0 m | esef· 21 Jul 2026verified |
| Property, plant & equipment, net | 13.5 m | 12.3 m | esef· 21 Jul 2026verified |
| Total assets | 131.9 m | 101.3 m | esef· 21 Jul 2026verified |
| Short-term debt | 0 | — | esef· 15 Jul 2025verified |
| Long-term debt | 25.7 m | 9.0 m | esef· 21 Jul 2026verified |
| Current liabilities | 45.5 m | 36.6 m | esef· 21 Jul 2026verified |
| Total liabilities | 84.6 m | 54.2 m | esef· 21 Jul 2026verified |
| Equity | 47.3 m | 47.1 m | esef· 21 Jul 2026verified |
| Shares outstanding at year end | 39.8 m | — | esef· 21 Jul 2026derived |
Cash flow · USD
| Line | 2025 | 2026 | Source (latest year) |
|---|---|---|---|
| Operating cash flow | 7.9 m | 31.3 m | esef· 21 Jul 2026verified |
| Capex | 4.3 m | 2.2 m | esef· 21 Jul 2026verified |
| Free cash flow | 3.6 m ≈ | 29.1 m ≈ | esef· 21 Jul 2026derived |
| Investing cash flow | -2.8 m | -4.3 m | esef· 21 Jul 2026verified |
| Financing cash flow | -8.7 m | -27.2 m | esef· 21 Jul 2026verified |
| Share repurchases | 200.0 k | 100.0 k | esef· 21 Jul 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 43.8% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Price and reporting are in different currencies; market indicators are unavailable.
Key indicators
Coverage and freshness
Score by group
44% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.11 – 0.17 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · not enough peers
- Peers: P/E0.11 – 0.17 (Mid 0.14)17 companies used · median multiple 14.4x · quartiles 11.3x – 17.4x0EV1.L, ABDN.L, ABF.L, AIRE.L, AJB.L, ALFA.L, AMIF.L, APTD.L, ASHM.L, AUTO.L, BAB.L, BAG.L, BATS.L, BBY.L, BCG.L, BKG.L, BME.L
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 43.8% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 9.1% | 29 (vs peers) | 24% |
| Net margin · Quality | 0.2% | 26 (vs peers) | 14% |
| FCF conversion · Quality | 7,275.0% | 100 (on a fixed band) | 14% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 0.1x | 100 (on a fixed band) | 24% |
| Interest coverage · Balance sheet | 2.6x | 17 (on a fixed band) | 14% |
| Current ratio · Balance sheet | 1.8x | 81 (on a fixed band) | 10% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet71/100 · 3/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality48/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
DIALIGHT PLC (DIA.L). Latest full fiscal year: 2026; data up to 2026-03-31.
Figures computed from the financial statements: revenue 166.9 m USD in 2026; YoY growth -9.0%; net margin 0.2%; ROE 0.9%; net debt/EBITDA 0.1x.
The estimated value range is 0.11–0.17 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 7,275.0%
- Net debt / EBITDA: 0.1x
- Current ratio: 1.8x
What contradicts it
- ROIC: 9.1%
- Net margin: 0.2%
- Interest coverage: 2.6x
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
| AEP.LAnglo-Eastern Plantations PLC | — | — | 16.1% | 19.5% | +25.0% | +5% / +113% |
1- and 3-year price returns: for DIA.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Dialight plc is a UK maker of industrial LED lighting and components, in the second year of its Transformation Plan, which cut net bank debt to a much lower level in fiscal 2026. Operating cash generation and inventory reduction suggest the restructuring is producing results, but market demand and geopolitical tensions remain uncertain factors.
SWOT
Strengths
- The company has significantly reduced net bank debt and inventory, strengthening its balance sheet.
- The product portfolio has been simplified and higher-margin products receive more attention.
- Operating cash generation has improved, supporting funding of the transformation plan.
Weaknesses
- Lighting and component sales went through a period of decline and have not yet returned to steady growth.
- The company went through a period of financial difficulty and stabilisation of results is still in progress.
- Board diversity is limited, and management acknowledges that further progress is needed.
Opportunities
- Higher energy prices and bans on older lighting could boost demand for LED.
- Customer demand for emissions reductions and ESG-strong solutions could open new contracts.
- New products and partnerships in components and signalling could add growth in future years.
Threats
- Trade tariffs and geopolitical tensions could disrupt supply chains and demand.
- Competitive pressure from global lighting makers could limit margins.
- Delays in implementing the second stage of the plan could reduce the expected cost benefits.
Risks
- Geopolitical tensions and tariffshigh
Tariffs and the Middle East conflict are identified by management as factors that could affect costs and demand.
- Transformation Plan executionmedium
Expected benefits depend on delivering the second stage and sustaining cost reductions, which could delay results.
- Recovery of LED market demandmedium
If industrial demand does not return to growth, lighting sales could remain below expectations.
- Internal controls and reportinglow
The company is preparing for provision 29 of the UK Corporate Governance Code, and control testing is not yet complete.
- Board diversitylow
Board composition does not meet the diversity targets in the listing rules, which could draw investor attention.
Investment thesis
What would need to be true (bull case)
- If the reduction in debt and inventory holds, the company could have more financial flexibility to invest in growth.
- If energy prices and regulation continue to favour LED, industrial demand could recover in a sustained way.
- If new component and signalling products gain traction, profitability could grow faster than sales.
What would break the thesis
- If geopolitical tensions and tariffs worsen, supply chains could become more costly.
- If demand recovery is delayed, sales could stay weak and plan benefits could be smaller than estimated.
- If global competition pressures prices, margins gained from product simplification could be eroded.
What to watch
- Half-year results and trends in lighting and component sales2027
- Progress of the second stage of the Transformation Plan2027
- Changes in net bank debt and operating cash flownext 10-K
- Adoption of provision 29 of the UK Corporate Governance CodeQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Dialight makes industrial LED lighting and components for signalling and control applications, with facilities in the United States, Mexico, Malaysia and Australia, according to its annual report for the year ended 31 March 2026 1. In fiscal 2026 revenue was 166.9 million USD and cash generated by operations was 35.4 million USD 1. The company has simplified its product range and cut the number of SKUs, focusing on its most profitable products 1.
The Transformation Plan, announced in September 2023, is structured around five pillars: winning hearts and minds, sales transformation, operational transformation, margin improvement and cash generation, and creating a platform for future growth 1. The first phase concluded in March 2026 and is now embedded in day-to-day operations 1. Management says it has reduced fixed costs and inventory, and that a second stage could bring further benefits in 2028 and beyond 1.
The company settled its historic litigation with Sanmina by repaying it early, which removed a significant contingent risk 1. For the coming year management has set goals of steady sales growth, stronger profit growth and eliminating bank debt 1.
Segments
Industrial LED lighting
Industrial LED lighting is the core business. Management expects sales in this segment to return to growth, supported by higher energy prices that improve the payback from LED lighting 1.
Components and signalling
Components and signalling form the second segment. The company has launched new products and a product partnership here and has indicated that component sales could start growing in the next year, with a favourable effect on profitability 1.
Market context
Management says the industrial LED market went through a difficult few years and could return to growth as high energy prices make replacing older lighting more attractive 1. National and international regulations banning older, energy-intensive and hazardous lighting technologies are another driver of demand 1.
Customers who have set net zero targets are looking for quick emissions reductions, and switching to LED is one of the fastest measures available 1. ESG reporting pressure and supplier performance also influence purchasing decisions of industrial customers 1.
Trends
- Bans on older lightingtailwind
Tighter regulation banning older lighting technologies could drive replacement with LED, given their higher carbon emissions 1.
- High energy pricestailwind
Higher energy prices shorten the payback period for LED, which could support industrial demand 1.
- Customer ESG pressuremixed
Industrial customers increasingly expect ESG performance from suppliers, which may favour producers with efficient and strong practices but adds reporting requirements 1.
- Geopolitical tensions and tariffsheadwind
Management cites tariffs and the conflict in the Middle East as headwinds that could affect supply chains and demand 1.
Competitive position
The industrial LED lighting market is competitive, with rivals including global lighting makers and industrial lighting solution providers. The sources provided do not detail the company's market share, so its competitive position remains largely unspecified in this profile 1.
The company's stated advantages are its simplified product portfolio, lower cost base and more flexible operating structure, which allow it to respond quickly to market changes 1. The available sources do not name a directly comparable competitor listed in the United States.
- Global industrial LED lighting suppliers
Generic competitors in industrial LED lighting, not named in the sources provided.
- Lighting component producers
Competitors in components and signalling, not named in the sources provided.
- Regional lighting suppliers
Regional competitors in Europe and other export markets, not named in the sources provided.
- Energy-efficiency solution integrators
Players offering complete energy-efficiency projects that can compete or collaborate, not named in the sources.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202621 Jul 2026
- Annual report 202515 Jul 2025
Sources
- [1] Annual report, fiscal year ended 2026-03-31 (ESEF) · SEC / Dialight plc · 31 Mar 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.