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Dunelm Group plc (DNLMY)
OTHER OTC:DNLMY
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Dunelm Group
(OTC:DNLMY)
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Rating:80Outperform
Price Target:
$18.50
▲(28.12% 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)
Market Cap
$2.93B
Dividend Yield6.3%
Average Volume (3M)0.00
Price to Earnings (P/E)14.6
Beta (1Y)0.71
Revenue Growth6.66%
EPS Growth6.36%
CountryUS
Employees12,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.42
Shares Outstanding201,305,560
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.72
Enterprise Value/Gross Profit3.33
Enterprise Value/Ebitda12.26
Forecast
1Y Price Target
$18.50Price Target Upside28.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Dunelm Group Business Overview & Revenue Model
Company DescriptionDunelm 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 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 Earnings Call Summary
Earnings Call Date:Sep 09, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Dunelm, with significant growth in sales, market share, and digital channels. Despite some challenges with costs and environmental impact, the company demonstrates strong financial performance and strategic expansion efforts.Q4-2025 Updates
Positive Updates
Sales and Market Share Growth
Sales increased by 3.8% to GBP 1.8 million, with a notable increase in market share to 7.9%, up 20 basis points from the previous year.
Strong Financial Performance
Profit before tax grew by 2.7% to GBP 211 million, and operating cash flow increased by 10% year-on-year.
Digital Channel Growth
Digital sales participation rose by 3 percentage points to make up 40% of total sales, with Click & Collect sales growing by around 30%.
Dividend Increase
An increased total ordinary dividend for the year was announced at 44.5p per share, up 2.3% year-on-year.
Expansion and Acquisitions
First store opened in London and acquisitions made in Ireland. A new in-house production capability for made-to-measure products was established in the Midlands.
Negative Updates
Challenging Cost Environment
Operating costs increased due to inflationary pressures, particularly driven by labor cost inflation and the National Living Wage.
Scope 3 Carbon Reduction Challenges
Progress on Scope 3 carbon reduction has been challenging, with more work needed to measure and reduce both carbon and water consumption across the supply chain.
Lack of Sustained Consumer Recovery
While there was stronger growth in the second half of the year, the company is not yet calling out a consumer recovery.
Company Guidance
The call provided detailed guidance on Dunelm's financial performance and strategic outlook for the fiscal year ending in June 2025. Sales increased by 3.8% to GBP 1.8 million, with a strong gross margin of 52.4%, up 60 basis points year-on-year, and a profit before tax of GBP 211 million, reflecting a 2.7% growth. The company declared a total ordinary dividend of 44.5p per share, alongside a special dividend of 35p, culminating in a total distribution of 79.5p per share. Dunelm's digital sales now constitute 40% of total sales, with Click & Collect sales growing by 30%. The company aims to maintain a stable PBT margin, despite inflationary pressures, by achieving efficiencies and investing in growth initiatives, including the opening of 5 to 10 new superstores and further store refits. Operating cash flow increased by 10%, and the company ended the year with net debt of GBP 102 million, maintaining a net debt-to-EBITDA ratio of 0.3x. Looking ahead, Dunelm anticipates continued strategic progress with a focus on elevating product offerings, enhancing customer experiences across channels, and driving operational efficiencies.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.85
Very Positive
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.70
Positive
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.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.71B | 1.71B | 1.64B | 1.58B | 1.34B | 1.06B |
| Gross Profit | 883.30M | 883.30M | 820.90M | 809.40M | 688.90M | 532.40M |
| EBITDA | 239.70M | 239.70M | 279.30M | 297.60M | 241.40M | 194.40M |
| Net Income | 151.20M | 151.20M | 151.90M | 171.20M | 128.90M | 87.70M |
Balance Sheet | ||||||
| Total Assets | 682.00M | 682.00M | 696.80M | 737.90M | 766.70M | 716.00M |
| Cash, Cash Equivalents and Short-Term Investments | 23.40M | 23.40M | 46.30M | 30.20M | 128.60M | 90.00M |
| Total Debt | 326.60M | 326.60M | 334.10M | 330.90M | 293.30M | 359.00M |
| Total Liabilities | 544.10M | 544.10M | 559.30M | 559.60M | 485.50M | 542.60M |
| Stockholders Equity | 137.90M | 137.90M | 137.50M | 178.30M | 281.20M | 173.40M |
Cash Flow | ||||||
| Free Cash Flow | 202.50M | 199.90M | 218.80M | 227.80M | 168.50M | 219.20M |
| Operating Cash Flow | 232.30M | 232.30M | 240.60M | 251.80M | 184.20M | 244.10M |
| Investing Cash Flow | -38.30M | -38.30M | -20.70M | -41.60M | -15.60M | -24.80M |
| Financing Cash Flow | -217.30M | -217.30M | -204.40M | -309.70M | -127.60M | -148.60M |
Dunelm Group Technical Analysis
Negative
14.44
Price Trends
15.78
Negative
15.76
Negative
14.02
Positive
Market Momentum
-0.44
Positive
37.99
Neutral
40.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNLMY, the sentiment is Negative. The current price of 14.44 is below the 20-day moving average (MA) of 15.13, below the 50-day MA of 15.78, and above the 200-day MA of 14.02, indicating a neutral trend. The MACD of -0.44 indicates Positive momentum. The RSI at 37.99 is Neutral, neither overbought nor oversold. The STOCH value of 40.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNLMY.
Dunelm Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.93B | 14.56 | 119.92% | 6.30% | 6.66% | 6.36% | |
76 Outperform | 24.41B | 22.03 | 51.76% | 1.22% | 3.28% | 9.29% | |
72 Outperform | 3.21B | 9.02 | 17.87% | 1.05% | -2.20% | -17.95% | |
63 Neutral | 5.52B | 7.96 | -47.03% | 3.10% | -0.18% | -18.95% | |
59 Neutral | 6.35B | 50.86 | -14.58% | ― | 2.38% | -38.88% | |
49 Neutral | 3.99B | 39.30 | -261.20% | ― | 9.56% | 205.41% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
DNLMY
Dunelm Group
14.44
-0.12
-0.82%
FLWS
1-800 Flowers
4.72
-3.14
-39.95%
BBWI
Bath & Body Works
25.84
-5.09
-16.46%
WSM
Williams-Sonoma
201.11
52.20
35.05%
RH
RH
211.30
-128.39
-37.80%
ASO
Academy Sports and Outdoors
47.76
-11.16
-18.94%
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.