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DFS Furniture
(LSE:DFS)
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Rating:56Neutral
Price Target:
125.00 p
▼(-10.07% Downside)
Action:Reiterated
Date:03/21/26
The score is held back primarily by very weak technicals (price below all major moving averages and negative momentum). Financial performance is moderate, supported by strong cash flow generation but constrained by high leverage and low net profitability. Valuation appears mid-range based on the P/E, with no dividend data to add support.
Positive Factors
Strong Gross Margin
A 56.46% gross margin indicates durable pricing power and effective cost control in core upholstery products. This large gross spread helps absorb operating expenses and supports investment in stores and online capabilities, sustaining profitability over cycles.
Negative Factors
High Leverage
A debt-to-equity ratio of 1.87 signals significant leverage, constraining financial flexibility. Elevated interest and principal obligations reduce capacity for reinvestment and magnify downside during revenue slowdowns, making strategic moves costlier.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Gross Margin
A 56.46% gross margin indicates durable pricing power and effective cost control in core upholstery products. This large gross spread helps absorb operating expenses and supports investment in stores and online capabilities, sustaining profitability over cycles.
Read all positive factors
DFS Furniture (DFS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£354.71M
Dividend Yield0.65%
Average Volume (3M)148.50K
Price to Earnings (P/E)10.1
Beta (1Y)0.87
Revenue Growth8.82%
EPS Growth440.57%
CountryUK
Employees4,702
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.15
Shares Outstanding236,000,000
10 Day Avg. Volume200,747
30 Day Avg. Volume148,505
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)1.53
Price to Sales (P/S)0.38
P/FCF Ratio2.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£200.00Price Target Upside43.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.16
Revenue Forecast (FY)£1.08B
DFS Furniture Business Overview & Revenue Model
Company Description
DFS Furniture plc, headquartered in Doncaster, United Kingdom, and founded in 1969, is a prominent retailer and manufacturer specializing in upholstered furniture. The company manages the entire lifecycle of its products, from design and productio...
How the Company Makes Money
DFS makes money primarily by selling furniture to consumers through its stores and e-commerce channels. The core revenue stream is retail sales of upholstered seating (notably sofas and armchairs), with additional revenue from complementary furnit...
DFS Furniture Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.07B | 1.03B | 987.10M | 1.09B | 1.15B | 1.06B |
| Gross Profit | 528.30M | 581.70M | 550.80M | 500.10M | 517.70M | 513.50M |
| EBITDA | 167.10M | 154.30M | 131.10M | 156.00M | 175.20M | 218.70M |
| Net Income | 35.10M | 24.20M | -4.40M | 26.20M | 31.40M | 88.70M |
Balance Sheet | ||||||
| Total Assets | 966.80M | 983.60M | 1.05B | 1.06B | 1.12B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 20.50M | 13.90M | 26.80M | 26.70M | 17.30M | 22.70M |
| Total Debt | 420.60M | 472.10M | 591.70M | 577.20M | 551.20M | 493.90M |
| Total Liabilities | 688.20M | 731.40M | 817.50M | 822.10M | 851.00M | 820.30M |
| Stockholders Equity | 278.60M | 252.20M | 229.00M | 237.10M | 268.90M | 284.50M |
Cash Flow | ||||||
| Free Cash Flow | 148.80M | 160.30M | 94.30M | 76.50M | 81.70M | 243.70M |
| Operating Cash Flow | 161.10M | 181.20M | 115.90M | 111.40M | 129.10M | 292.90M |
| Investing Cash Flow | -23.20M | -20.30M | -19.80M | -33.60M | -45.60M | -47.40M |
| Financing Cash Flow | -133.80M | -185.10M | -98.60M | -56.10M | -84.50M | -301.80M |
DFS Furniture Technical Analysis
Positive
139.00
Price Trends
135.96
Positive
131.42
Positive
152.26
Positive
Market Momentum
3.57
Negative
68.98
Neutral
89.19
Negative
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 139 is below the 20-day moving average (MA) of 142.85, above the 50-day MA of 135.96, and below the 200-day MA of 152.26, indicating a bullish trend. The MACD of 3.57 indicates Negative momentum. The RSI at 68.98 is Neutral, neither overbought nor oversold. The STOCH value of 89.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DFS.
DFS Furniture Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | £4.58B | 17.14 | 22.80% | 2.86% | 4.15% | 5.60% | |
66 Neutral | £72.73M | 10.39 | 22.35% | 0.43% | 5.39% | 29.50% | |
65 Neutral | £98.33M | 84.29 | 2.10% | 1.23% | 8.88% | 16.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £57.09M | 26.51 | 3.09% | 1.96% | -0.90% | ― | |
56 Neutral | £354.71M | 10.11 | 13.23% | 0.72% | 8.82% | 440.57% | |
39 Underperform | £9.96M | -0.14 | -61.90% | ― | -15.92% | -227.33% |
* Consumer Cyclical Sector Average
GB:DFS
DFS Furniture
153.50
-1.34
-0.86%
GB:CFX
Colefax
1,455.00
610.49
72.29%
GB:HEAD
Headlam
12.40
-67.00
-84.38%
GB:HWDN
Howden Joinery
840.00
4.46
0.53%
GB:SDG
Sanderson Design Group PLC
79.00
27.72
54.05%
GB:LIKE
Likewise Group Plc
29.50
4.40
17.55%
DFS Furniture Corporate Events
Business Operations and StrategyFinancial Disclosures
DFS Furniture lifts profits and cuts debt despite softer market
Positive
Jul 16, 2026
DFS Furniture expects underlying profit before tax excluding brand amortisation to be around £45m for FY26, up about £15m year on year and within its upgraded guidance range, supported by 2.7% revenue growth, gross margin expansion and t...
Business Operations and StrategyExecutive/Board Changes
DFS Furniture appoints Dominique Highfield to board as CFO
Positive
May 6, 2026
DFS Furniture, the market-leading UK retailer of living room and upholstered furniture, operates an integrated network of showrooms and websites in the UK and Republic of Ireland under the DFS and Sofology brands. The group offers a broad range of...
Business Operations and StrategyRegulatory Filings and Compliance
DFS Furniture’s Employee Trust Boosts Stake to Support Share Incentive Plans
Positive
Apr 30, 2026
DFS Furniture has disclosed that its Employee Benefit Trust has completed the purchase of 1,594,929 ordinary shares at an average price of £1.28, funded by a £5.8m gift from the company. Following this transaction, the trust holds 4,486,...
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.