Dunelm Group (DNLMY) AI Stock Analysis

• Market Cap: $3.18B
• Dividend Yield: 8.24%
• Average Volume (3M): 10.00
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.81
• Revenue Growth: 5.95%
• EPS Growth: 4.29%
• Country: US
• Employees: 12,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Specialty Retail
• EPS (TTM): 0.58
• Shares Outstanding: 201,217,440
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 10
• PEG Ratio: 0.46
• Price to Book (P/B): 9.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: $18.50 ▲(15.91%Upside)

Dunelm Group's overall stock score is 80, driven by strong technical momentum and solid financial performance. The stock's valuation is reasonable with an appealing dividend yield, adding to its attractiveness. However, high leverage and declining equity on the balance sheet are areas to monitor.

Dunelm Group Business Overview & Revenue Model

Company Description

Dunelm Group plc retails homewares in the United Kingdom. The company offers furniture and beds products, which include bedroom, living room, dining room, and other furniture, as well as bed and mattresses, and sofas and chairs; bedding products comprising bed linen, dorma, baby and kid's bedding, and duvets, pillows and protectors; curtains and rugs; and venetian, roller, roman, vertical, and made to measure blinds. It also offers range of home decor products, such as mirrors, clocks, ornaments, pictures and frames, candle and home fragrance, flower and plants, vases, kid accessories, cushions, bean bags, and letterbox flowers, as well as housewarming, engagement, anniversary, and wedding gifts; lighting products, including ceiling and wall lights, table and desk lamps, floor lamps, and pendants and lamp shades; and paint, wallpaper, DIY and upcycling, and haberdashery products. In addition, the company provides kitchen and utility products comprising cooking, dining, electrical, utility, and pet products; towel and bathmats, and bathroom accessories, as well as furniture and decor products; storage products, such as travel and luggage, home, clothes, and kitchen storage; kids bedroom, nursery, and accessories products; outdoor products, which include garden furniture and decoration, and entreating and dining products; and trends christmas products and winter essentials. It operates through a network of 177 stores and 2 distribution centers, as well as sells its products through an online store at dunelm.com. Dunelm Group plc was founded in 1979 and is headquartered in Syston, the United Kingdom.

How the Company Makes Money

Dunelm Group primarily makes money through the sale of home furnishings and related products both in-store and online. Revenue streams include the retail of diverse product categories such as furniture, home textiles, kitchenware, and lighting. In-store sales contribute significantly to the company's earnings, driven by a network of superstores strategically located throughout the UK. Additionally, the company's expanding e-commerce platform plays a crucial role in its revenue model, allowing it to reach a wider customer base and adapt to changing consumer shopping behaviors. Dunelm also generates income from its branded credit card services and home delivery options, enhancing customer convenience and engagement. Strategic partnerships with suppliers and a focus on efficient supply chain management further underpin its profitability.

Dunelm Group Financial Statement Overview

Summary

Dunelm Group demonstrates a strong financial position with consistent revenue growth and profitability. The company maintains effective cash flow management, although there are concerns with high leverage and declining equity. Overall, the company's financials are solid but warrant attention to the balance sheet's leverage and equity trends.

Income Statement

The income statement shows a robust performance with consistent revenue growth, highlighted by a recent 4.1% increase from 2023 to 2024. Gross and net profit margins are strong at 51.8% and 8.9%, respectively, indicating effective cost management. However, slight declines in net income and EBITDA margins suggest some pressure on profitability.

Balance Sheet

The balance sheet reflects stable financial health with a debt-to-equity ratio of 2.37, which is a bit high but manageable within the industry. The equity ratio stands at 20.2%, indicating a moderate level of leverage. However, declining stockholders' equity over recent years points to potential risk in capital structure.

Cash Flow

Cash flow analysis shows a healthy operating cash flow to net income ratio of 1.54, suggesting strong cash generation relative to income. Free cash flow growth has been negative recently, but the overall free cash flow remains substantial. The company maintains a solid free cash flow to net income ratio, indicating effective cash management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
877.53M	1.71B	1.64B	1.58B	1.34B	1.06B
	Gross Profit
433.50M	883.30M	820.90M	809.40M	688.90M	532.40M
	EBIT
130.99M	213.30M	198.80M	217.70M	166.40M	116.00M
	EBITDA
152.38M	239.70M	279.30M	297.60M	241.40M	194.40M
	Net Income Common Stockholders
102.08M	151.20M	151.90M	171.20M	128.90M	87.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.59M	23.40M	46.30M	30.20M	128.60M	90.00M
	Total Assets
358.53M	682.00M	696.80M	737.90M	766.70M	716.00M
	Total Debt
69.01M	326.60M	334.10M	330.90M	293.30M	359.00M
	Net Debt
29.42M	303.20M	287.80M	300.70M	164.70M	269.00M
	Total Liabilities
222.99M	544.10M	559.30M	559.60M	485.50M	542.60M
	Stockholders Equity
135.54M	137.90M	137.50M	178.30M	281.20M	173.40M
Cash Flow		Free Cash Flow
127.29M	199.90M	218.80M	227.80M	168.50M	219.20M
	Operating Cash Flow
156.28M	232.30M	240.60M	251.80M	184.20M	244.10M
	Investing Cash Flow
-38.60M	-38.30M	-20.70M	-41.60M	-15.60M	-24.80M
	Financing Cash Flow
-116.20M	-217.30M	-204.40M	-309.70M	-127.60M	-148.60M

Dunelm Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNLMY, the sentiment is Positive. The current price of 15.96 is above the 20-day moving average (MA) of 15.94, above the 50-day MA of 14.53, and above the 200-day MA of 13.50, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 57.77 is Neutral, neither overbought nor oversold. The STOCH value of 24.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNLMY.

Dunelm Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNLMY	80 Outperform	$3.18B	16.36	85.96%	8.24%	5.95%	4.29%
WSM	77 Outperform	$19.45B	17.90	51.10%	1.67%	1.64%	8.57%
ASO	75 Outperform	$2.97B	8.22	20.14%	1.17%	-3.57%	-17.43%
ETSY	68 Neutral	$6.45B	43.92	-39.97%	―	2.18%	-32.87%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
BBWI	56 Neutral	$5.64B	7.12	-52.83%	3.00%	-0.93%	-4.07%
RH	49 Neutral	$3.55B	52.53	-38.18%	―	5.01%	-35.45%