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Dunelm Group plc (DNLMY)
OTHER OTC:DNLMY
US Market

Dunelm Group (DNLMY) AI Stock Analysis

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Dunelm Group

(OTC:DNLMY)

Rating:80Outperform
Price Target:
$18.50
▲(16.21%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 (DNLMY) vs. SPDR S&P 500 ETF (SPY)

Dunelm Group Business Overview & Revenue Model

Company DescriptionDunelm Group plc is a leading UK-based home furnishings retailer, known for offering a wide range of products including furniture, bedding, curtains, textiles, and home accessories. The company operates through a network of brick-and-mortar superstores and an online platform, serving customers with quality and affordable homeware solutions. Dunelm is recognized for its value-for-money offerings and an extensive selection of home decor items, catering to a broad consumer base across the United Kingdom.
How the Company Makes MoneyDunelm 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
85
Very Positive
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
70
Positive
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
78
Positive
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
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.71B1.64B1.58B1.34B1.06B
Gross Profit
883.30M820.90M809.40M688.90M532.40M
EBIT
213.30M198.80M217.70M166.40M116.00M
EBITDA
239.70M279.30M297.60M241.40M194.40M
Net Income Common Stockholders
151.20M151.90M171.20M128.90M87.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.40M46.30M30.20M128.60M90.00M
Total Assets
682.00M696.80M737.90M766.70M716.00M
Total Debt
326.60M334.10M330.90M293.30M359.00M
Net Debt
303.20M287.80M300.70M164.70M269.00M
Total Liabilities
544.10M559.30M559.60M485.50M542.60M
Stockholders Equity
137.90M137.50M178.30M281.20M173.40M
Cash FlowFree Cash Flow
199.90M218.80M227.80M168.50M219.20M
Operating Cash Flow
232.30M240.60M251.80M184.20M244.10M
Investing Cash Flow
-38.30M-20.70M-41.60M-15.60M-24.80M
Financing Cash Flow
-217.30M-204.40M-309.70M-127.60M-148.60M

Dunelm Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.92
Price Trends
50DMA
14.80
Positive
100DMA
13.25
Positive
200DMA
13.51
Positive
Market Momentum
MACD
0.29
Positive
RSI
57.93
Neutral
STOCH
56.18
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 15.92 is below the 20-day moving average (MA) of 15.98, above the 50-day MA of 14.80, and above the 200-day MA of 13.51, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 57.93 is Neutral, neither overbought nor oversold. The STOCH value of 56.18 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$3.22B16.6785.96%8.14%5.95%4.29%
WSWSM
75
Outperform
$19.45B17.9051.10%1.71%1.64%8.57%
ASASO
75
Outperform
$3.10B8.6020.14%1.11%-3.57%-17.43%
68
Neutral
$5.62B38.28-39.97%2.18%-32.87%
62
Neutral
$6.86B11.072.77%4.27%2.66%-24.95%
58
Neutral
$5.47B6.90-52.83%3.10%-0.93%-4.07%
RHRH
55
Neutral
$3.55B45.00-38.18%8.31%14.65%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DNLMY
Dunelm Group
16.03
3.26
25.53%
BBWI
Bath & Body Works
27.13
-14.13
-34.25%
WSM
Williams-Sonoma
156.93
7.30
4.88%
RH
RH
182.69
-35.14
-16.13%
ETSY
Etsy
54.53
-3.67
-6.31%
ASO
Academy Sports and Outdoors
44.90
-9.10
-16.85%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.