DFS Furniture (DFS) AI Stock Analysis

• Market Cap: £388.71M
• Dividend Yield: 2.84%
• Average Volume (3M): 171.47K
• Price to Earnings (P/E): 60.0
• Beta (1Y): 0.41
• Revenue Growth: -6.00%
• EPS Growth: -69.78%
• Country: UK
• Employees: 4,722
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.03
• Shares Outstanding: 234,144,420
• 10 Day Avg. Volume: 136,210
• 30 Day Avg. Volume: 171,472
• PEG Ratio: -1.16
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.32
• 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: £300.00
• Price Target Upside: 78.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ―

DFS Furniture's overall stock score of 51 reflects weaknesses in financial performance, with declining revenues and profitability challenges. Technical analysis shows bearish indicators, and a high P/E ratio raises valuation concerns. However, positive corporate events provide optimism for future growth and strategic improvements.

Positive Factors

Market Share

The company has increased its market share, particularly benefiting from the disruption faced by a competitor.

Order Intake

Year-to-date order intake has accelerated, indicating continued strong performance.

Profit Recovery

DFS Furniture marked an impressive recovery in profit, continuing strong trading trends.

Negative Factors

Competitor Disruption

The company's market share increase is reliant on the ongoing disruption faced by a competitor.

Debt Expectations

Potential for further improvement in net debt expectations is contingent upon continued strong cash performance.

Market Improvement

Significant scope for margin upside is dependent on market improvements.

DFS Furniture Business Overview & Revenue Model

Company Description

DFS Furniture (DFS) is a leading retailer in the furniture sector, specializing in the design, manufacture, and sale of a wide range of sofas and related home furnishings. Founded in 1969 and headquartered in the United Kingdom, DFS operates through a network of brick-and-mortar showrooms and an online platform, offering customers a diverse selection of high-quality, customizable furniture products to suit various tastes and home settings.

How the Company Makes Money

DFS Furniture generates revenue primarily through the sale of its furniture products, which include sofas, armchairs, beds, and other home furnishings. The company operates an omnichannel retail model, with physical stores providing a direct sales environment and an e-commerce platform offering online shopping convenience. DFS also benefits from its supply chain integration by owning manufacturing facilities that produce many of its products, allowing for cost efficiencies and quality control. Additionally, DFS offers financing options to customers, which can lead to additional income through interest from credit agreements. The company's revenue is further supported by strategic marketing efforts and collaborations with designers to continually refresh its product offerings, ensuring a steady flow of customers seeking contemporary and stylish home furnishings.

DFS Furniture Financial Statement Overview

Summary

DFS Furniture faces challenges with declining revenues and profitability pressures, as reflected in the income statement. The balance sheet highlights high leverage, while cash flow statements show strong operational cash generation. The overall financial health indicates a need for strategic adjustments to improve profitability and reduce leverage risks.

Income Statement

DFS Furniture has shown a declining revenue trend, with a 9.4% decrease from 2023 to 2024. The company also experienced a negative net profit margin due to a net loss in 2024, reflecting profitability challenges. However, the gross profit margin remained relatively stable, indicating some control over production costs.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which can be risky in times of economic downturns. The equity ratio stands at 21.9%, suggesting limited equity relative to assets. Return on equity has turned negative, reflecting the net loss.

Cash Flow

Operating cash flow remains strong, surpassing net income, indicating good cash generation from core operations. Free cash flow has grown by 23.3% from 2023 to 2024, which is a positive sign. However, the high leverage could strain future cash flows.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	986.50M	987.10M	1.09B	1.15B	1.06B	724.50M
Gross Profit	508.10M	550.80M	500.10M	517.70M	513.50M	325.30M
EBITDA	114.90M	131.10M	156.00M	175.20M	218.70M	45.10M
Net Income	6.80M	-4.40M	26.20M	31.40M	88.70M	-69.20M
Balance Sheet
Total Assets	1.01B	1.05B	1.06B	1.12B	1.10B	1.17B
Cash, Cash Equivalents and Short-Term Investments	22.40M	26.80M	26.70M	17.30M	22.70M	62.30M
Total Debt	515.20M	591.70M	577.20M	551.20M	493.90M	735.90M
Total Liabilities	769.30M	817.50M	822.10M	851.00M	820.30M	969.70M
Stockholders Equity	244.50M	229.00M	237.10M	268.90M	284.50M	201.90M
Cash Flow
Free Cash Flow	139.30M	94.30M	76.50M	81.70M	243.70M	23.40M
Operating Cash Flow	148.00M	115.90M	111.40M	129.10M	292.90M	46.80M
Investing Cash Flow	-9.70M	-19.80M	-33.60M	-45.60M	-47.40M	-22.00M
Financing Cash Flow	-129.70M	-98.60M	-56.10M	-84.50M	-301.80M	7.70M

DFS Furniture Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 168.50
• 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 GB:DFS, the sentiment is Positive. The current price of 168.5 is above the 20-day moving average (MA) of 164.75, above the 50-day MA of 157.14, and above the 200-day MA of 140.26, indicating a bullish trend. The MACD of 2.07 indicates Positive momentum. The RSI at 60.87 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DFS.

DFS Furniture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFX	73 Outperform	£45.69M	8.35	18.68%	0.53%	2.96%	9.77%
ULTP	69 Neutral	£46.39M	6.72	14.20%	4.12%	-7.42%	-42.84%
SDG	68 Neutral	£37.87M	6.71	-19.63%	0.95%	-7.45%	-51.68%
Sector *	66 Neutral	S$880.09M	33.27	6.05%	4.26%	6.06%	-31.90%
DFS	51 Neutral	£388.71M	59.96	2.72%	2.84%	-6.00%	-69.78%
HEAD	48 Neutral	£71.61M	―	-12.15%	6.45%	-9.66%	-425.03%

DFS Furniture Corporate Events

DFS Furniture Announces Change in Major Holdings

DFS Furniture Plc has announced a change in its major holdings, as Perpetual Limited, based in Sydney, Australia, has adjusted its voting rights in the company. The notification indicates that Perpetual Limited now holds 9.973% of the voting rights, a slight decrease from its previous position of 10.038%. This adjustment in voting rights may influence the company’s governance and decision-making processes, potentially impacting its strategic direction and stakeholder interests.

The most recent analyst rating on (GB:DFS) stock is a Hold with a £120.00 price target. To see the full list of analyst forecasts on DFS Furniture stock, see the GB:DFS Stock Forecast page.

DFS Furniture Announces FY25 Interim Results Presentation

DFS Furniture plc announced that its CEO, Tim Stacey, and Interim CFO, Marie Wall, will present the FY25 Interim Results via a live session on the Investor Meet Company platform. This presentation is accessible to both current and potential shareholders, allowing them to engage and submit questions, indicating DFS’s commitment to transparency and stakeholder engagement.

DFS Furniture Announces Leadership Transition in Audit & Risk Committee

DFS Furniture PLC announced a leadership change as part of its succession planning, with Jo Boydell set to retire from the Board after the AGM in November 2025. Bruce Marsh, who joined the Board in August 2024, will immediately assume the role of Chair of the Audit & Risk Committee to ensure a smooth transition. This change is expected to maintain the company’s strong governance and operational continuity, reflecting positively on its market position and stakeholder confidence.

DFS Furniture Sees Major Shareholder Increase by FIL Limited

DFS Furniture PLC has announced a significant change in its shareholder structure, with FIL Limited increasing its voting rights from 5.02% to 10.0034% as of April 2, 2025. This acquisition of financial instruments by FIL Limited signifies a strengthened position within the company, potentially impacting its strategic direction and stakeholder interests.