DFS Furniture (DFS) AI Stock Analysis

• Market Cap: £344.88M
• Dividend Yield: N/A
• Average Volume (3M): 148.50K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.48
• Revenue Growth: 4.38%
• EPS Growth: N/A
• Country: UK
• Employees: 4,722
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.05
• Shares Outstanding: 234,144,420
• 10 Day Avg. Volume: 200,747
• 30 Day Avg. Volume: 148,505
• PEG Ratio: -0.03
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 2.41
• 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: £217.00
• Price Target Upside: 44.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 169.00p ▲(12.67% Upside)

DFS Furniture's overall stock score is driven by its solid financial performance and positive technical indicators. The company's strong cash flow and efficient cost management are significant strengths, although high leverage and low profitability present challenges. The stock's moderate valuation and positive market momentum further support its potential, despite the lack of dividend yield and earnings call data.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates robust financial health, enabling DFS to invest in growth opportunities and manage debt effectively.

Efficient Cost Management

High gross margins reflect efficient cost management, which supports profitability and allows for competitive pricing strategies in the market.

Revenue Growth

Consistent revenue growth suggests a stable market position and effective sales strategies, contributing to long-term business sustainability.

Negative Factors

High Leverage

Significant leverage poses a risk to financial stability, potentially limiting flexibility and increasing vulnerability to economic downturns.

Low Profitability

Low profitability margins indicate challenges in converting revenue into profit, which may affect long-term growth and shareholder returns.

Reliance on Debt Financing

Dependence on debt financing can strain financial resources and impact the company's ability to invest in future growth initiatives.

DFS Furniture Business Overview & Revenue Model

Company Description

DFS Furniture (DFS) is a leading British retailer specializing in the design, manufacture, and sale of upholstered furniture, primarily focusing on sofas and related products. Established in 1969, DFS operates in the home furnishings sector and offers a wide range of customizable furniture options, catering to diverse consumer preferences. The company is known for its commitment to quality and comfort, providing customers with the ability to select various styles, fabrics, and configurations for their furniture.

How the Company Makes Money

DFS generates revenue primarily through the sale of its upholstered furniture products, including sofas, chairs, and accessories. The company operates a multi-channel sales model, including physical retail stores across the UK and an online platform, which allows customers to browse and purchase products conveniently. Key revenue streams include direct sales from these stores, online sales, and finance options provided to customers for larger purchases. DFS also benefits from partnerships with various fabric manufacturers and designers, enabling them to offer exclusive ranges that enhance their product offerings. Additionally, DFS has a strong focus on promotional events and sales campaigns, which drive consumer traffic and boost sales during peak periods. The company's ability to manage production efficiently and maintain a strong supply chain also contributes to its profitability.

DFS Furniture Financial Statement Overview

Summary

DFS Furniture demonstrates a solid financial position with strong cash flow generation and efficient cost management. However, the company faces challenges with high leverage and relatively low profitability. Continued focus on improving net profit margins and managing debt levels will be crucial for sustaining growth and financial stability.

Income Statement

DFS Furniture has shown a moderate revenue growth rate of 4.44% in the latest year, recovering from a decline in the previous period. The gross profit margin is strong at 56.46%, indicating efficient cost management. However, the net profit margin is relatively low at 2.35%, suggesting limited profitability. The EBIT and EBITDA margins are stable, reflecting consistent operational performance.

Balance Sheet

The company has a high debt-to-equity ratio of 1.87, indicating significant leverage, which could pose a risk if not managed properly. Return on equity is moderate at 9.60%, showing decent returns for shareholders. The equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

DFS Furniture's free cash flow growth rate is strong at 15.08%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.55, showing a healthy conversion of income to cash. The free cash flow to net income ratio is high at 0.88, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	1.03B	987.10M	1.09B	1.15B	1.06B
Gross Profit	541.80M	581.70M	550.80M	500.10M	517.70M	513.50M
EBITDA	128.00M	154.30M	131.10M	156.00M	175.20M	218.70M
Net Income	24.20M	24.20M	-4.40M	26.20M	31.40M	88.70M
Balance Sheet
Total Assets	983.60M	983.60M	1.05B	1.06B	1.12B	1.10B
Cash, Cash Equivalents and Short-Term Investments	13.90M	13.90M	26.80M	26.70M	17.30M	22.70M
Total Debt	472.10M	472.10M	591.70M	577.20M	551.20M	493.90M
Total Liabilities	731.40M	731.40M	817.50M	822.10M	851.00M	820.30M
Stockholders Equity	252.20M	252.20M	229.00M	237.10M	268.90M	284.50M
Cash Flow
Free Cash Flow	165.10M	160.30M	94.30M	76.50M	81.70M	243.70M
Operating Cash Flow	174.70M	181.20M	115.90M	111.40M	129.10M	292.90M
Investing Cash Flow	-20.70M	-20.30M	-19.80M	-33.60M	-45.60M	-47.40M
Financing Cash Flow	-170.70M	-185.10M	-98.60M	-56.10M	-84.50M	-301.80M

DFS Furniture Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 150.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DFS, the sentiment is Negative. The current price of 150 is below the 20-day moving average (MA) of 156.22, below the 50-day MA of 153.02, and below the 200-day MA of 151.47, indicating a bearish trend. The MACD of -1.33 indicates Positive momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 18.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DFS.

DFS Furniture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULTP	75 Outperform	£53.63M	9.37	12.08%	10.29%	-3.45%	-44.02%
CFX	74 Outperform	£47.52M	8.49	19.42%	0.56%	2.64%	23.89%
LIKE	70 Neutral	£64.80M	48.15	3.37%	1.41%	9.26%	31.71%
DFS	64 Neutral	£344.88M	14.27	10.06%	―	4.38%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SDG	50 Neutral	£32.82M	―	-19.58%	3.30%	-4.23%	-435.86%
HEAD	41 Neutral	£45.43M	-1.00	-19.28%	―	-11.65%	-273.57%

DFS Furniture Corporate Events

DFS Furniture PLC Grants CEO Conditional Share Award

DFS Furniture PLC has announced the grant of a conditional share award to its CEO, Tim Stacey, under the DFS Group Share Plan. This award, which amounts to 87.5% of his base salary, will vest after a three-year performance period and is subject to a two-year holding period post-vesting. This move is part of the company’s strategy to align executive incentives with long-term performance, potentially impacting its operational focus and stakeholder interests.

The most recent analyst rating on (GB:DFS) stock is a Hold with a £169.00 price target. To see the full list of analyst forecasts on DFS Furniture stock, see the GB:DFS Stock Forecast page.

DFS Furniture Grants CEO Share Awards to Align Incentives

DFS Furniture PLC announced a grant of conditional share awards to Tim Stacey, the CEO, under its Deferred Bonus Plan. This move, involving 93,942 shares, reflects the company’s strategy to align executive incentives with long-term performance, potentially impacting stakeholder confidence and reinforcing its market position.

The most recent analyst rating on (GB:DFS) stock is a Hold with a £169.00 price target. To see the full list of analyst forecasts on DFS Furniture stock, see the GB:DFS Stock Forecast page.

DFS Furniture CEO’s Deferred Bonus Plan Shares Vest

DFS Furniture PLC announced the vesting of a deferred bonus plan for its CEO, Tim Stacey, involving the acquisition and sale of shares. The transaction, conducted under the company’s remuneration policy, highlights DFS’s adherence to regulatory standards and impacts the company’s share distribution, reflecting its strategic approach to executive compensation.

The most recent analyst rating on (GB:DFS) stock is a Hold with a £169.00 price target. To see the full list of analyst forecasts on DFS Furniture stock, see the GB:DFS Stock Forecast page.

DFS Furniture CEO Transfers Shares in Divorce Settlement

DFS Furniture PLC announced a transaction involving Tim Stacey, the company’s CEO, who transferred 167,122 shares to his former spouse as part of a divorce settlement. This off-market transaction, conducted in compliance with a court order, reflects the company’s adherence to regulatory requirements under the UK Market Abuse Regulation, ensuring transparency in managerial dealings.

The most recent analyst rating on (GB:DFS) stock is a Hold with a £169.00 price target. To see the full list of analyst forecasts on DFS Furniture stock, see the GB:DFS Stock Forecast page.

DFS Furniture Releases 2025 Annual Report and AGM Notice

DFS Furniture plc has released its Annual Financial Report for 2025 and announced the date for its Annual General Meeting. The report, prepared in compliance with UK and European regulations, is available online and has been distributed to shareholders. The AGM is scheduled for November 14, 2025, at the company’s registered office in Doncaster. This announcement underscores DFS’s commitment to transparency and regulatory compliance, which may reinforce stakeholder confidence and support its market-leading position in the furniture retail industry.

The most recent analyst rating on (GB:DFS) stock is a Hold with a £169.00 price target. To see the full list of analyst forecasts on DFS Furniture stock, see the GB:DFS Stock Forecast page.

DFS Furniture Reports Strong FY25 Results with Profit Growth and Reduced Leverage

DFS Furniture plc reported significant profit growth and a reduction in leverage for the fiscal year 2025, driven by strategic execution and a strong customer proposition. Despite a challenging market environment, the company achieved a 10.2% increase in like-for-like order intake and improved gross margins. The board remains confident in the company’s growth prospects, although it has decided not to recommend a dividend for FY25 due to current leverage levels and market uncertainties. The company plans to continue focusing on debt reduction and maintaining capital investment discipline.

The most recent analyst rating on (GB:DFS) stock is a Hold with a £130.00 price target. To see the full list of analyst forecasts on DFS Furniture stock, see the GB:DFS Stock Forecast page.

DFS Furniture Reports Strong Profit Growth Amid Market Challenges

DFS Furniture plc reported significant profit growth and a reduction in leverage for the fiscal year 2025, driven by strategic execution and a strong customer proposition. Despite a subdued market, the company achieved a 10.2% increase in like-for-like order intake and a 5.8% rise in gross sales. The company also improved its gross margin and reduced net bank debt, although it decided not to recommend a FY25 dividend due to current leverage being outside the target range. Looking forward, DFS plans to focus on reducing debt levels and maintaining strong capital investment discipline, with expectations for profit growth in FY26.

The most recent analyst rating on (GB:DFS) stock is a Hold with a £130.00 price target. To see the full list of analyst forecasts on DFS Furniture stock, see the GB:DFS Stock Forecast page.

DFS Furniture Announces New Directorship for Gill Barr

DFS Furniture plc announced that Gill Barr, a non-executive director and Chair of the Remuneration Committee, has been appointed as a non-executive director at Bellway plc. This appointment reflects the company’s commitment to strengthening its leadership and governance, potentially enhancing its strategic positioning and stakeholder confidence.

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.