Dunelm Group (DNLM) AI Stock Analysis

• Market Cap: £2.21B
• Dividend Yield: 4.07%
• Average Volume (3M): 346.18K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.11
• Revenue Growth: 3.78%
• EPS Growth: 3.29%
• Country: UK
• Employees: 12,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.32
• Shares Outstanding: 201,583,510
• 10 Day Avg. Volume: 246,141
• 30 Day Avg. Volume: 346,178
• PEG Ratio: 5.79
• Price to Book (P/B): 20.30
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 10.93
• 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: £1,310.13
• Price Target Upside: 19.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 1,266.00p ▲(15.72% Upside)

Dunelm Group's overall score reflects strong technical indicators and a fair valuation, supported by positive earnings call insights and corporate events. Financial performance is solid but tempered by high leverage and declining free cash flow growth.

Positive Factors

Revenue Growth

Dunelm's consistent revenue growth and market share gain indicate strong market positioning and effective business strategies, supporting long-term stability.

Digital Expansion

The increase in digital sales reflects Dunelm's successful adaptation to e-commerce trends, enhancing its competitive edge and future growth potential.

Cash Flow and Dividends

Strong cash flow generation and increased dividends demonstrate financial health and shareholder value, supporting long-term investment appeal.

Negative Factors

High Leverage

High leverage could pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Cost Challenges

Rising costs, particularly in labor, could pressure margins and require efficiency improvements, affecting profitability and operational efficiency.

Consumer Market Uncertainty

Ongoing market uncertainty may hinder consumer spending, impacting sales growth and necessitating strategic adjustments to maintain performance.

Dunelm Group Business Overview & Revenue Model

Company Description

Dunelm Group plc retails homewares in the United Kingdom. The company offers furniture for bedroom, living room, dining room, and office; sofas and chairs; bean bags; bed frames, mattresses, storage beds, divan bases, and headboards, as well as kids beds; and bedding products, such as bed linens, duvets, pillows, mattress toppers, protectors, and baby and kids beddings. It also provides curtains, and poles and tracks; blinds; rugs, runners, and door mats; mirrors, pictures and frames, clocks, wallpapers and DIY, cushions and throws, and accessories; lighting products, including ceiling and wall lights, lamp shades, floor and table lamps, and outdoor lights; kitchen products, such as cooking, dining, utility, and electrical products; and storage products for home, clothes, and kitchen, as well as travel and luggage products. In addition, the company offers garden furniture and storage, garden decoration, and entertaining and dining products; and towels and bathmats, bathroom furniture, bathroom décor, and bathroom accessories, as well as trees and decoration, gifts, cook and dine, and trends Christmas products. It operates 175 superstores and 1 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 Money

Dunelm generates revenue primarily through the sale of homeware and furniture products. Its revenue model includes direct sales from its extensive network of retail stores as well as online sales through its e-commerce platform. Key revenue streams include sales of textiles, furniture, and home décor items. Additionally, Dunelm benefits from a strong private label presence, which enhances margins. The company has also invested in improving its digital capabilities and customer experience, driving growth in online sales. Significant partnerships with suppliers and manufacturers enable Dunelm to offer a diverse product range while optimizing costs. Seasonal promotions and loyalty programs further contribute to customer retention and increased sales.

Dunelm Group Financial Statement Overview

Summary

Dunelm Group shows solid revenue growth and operational efficiency, with a strong gross profit margin. However, high leverage and declining free cash flow growth are concerns. The company maintains strong profitability and cash generation, which are positive indicators for future stability.

Income Statement

Dunelm Group has shown consistent revenue growth over the years, with a recent growth rate of 2.51%. The gross profit margin is strong at 52.42%, indicating efficient cost management. However, the net profit margin is relatively modest at 8.83%, suggesting room for improvement in profitability. EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 3.18, indicating significant leverage, which could pose financial risks. However, the equity ratio is reasonable, and the return on equity is strong, suggesting effective use of equity to generate profits.

Cash Flow

Operating cash flow is robust, covering net income well, with a ratio of 0.89. Free cash flow has declined recently, but it remains a significant portion of net income, indicating good cash generation capabilities. The negative growth in free cash flow is a concern that needs addressing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.77B	1.77B	1.71B	1.64B	1.58B	1.34B
Gross Profit	928.30M	928.30M	883.30M	741.80M	730.30M	611.40M
EBITDA	251.20M	251.20M	295.90M	278.20M	297.10M	241.60M
Net Income	156.30M	156.30M	151.20M	151.90M	171.20M	128.90M
Balance Sheet
Total Assets	741.50M	741.50M	682.00M	696.80M	737.90M	766.70M
Cash, Cash Equivalents and Short-Term Investments	30.00M	30.00M	23.40M	46.30M	30.20M	128.60M
Total Debt	377.70M	377.70M	326.60M	334.10M	330.90M	293.30M
Total Liabilities	622.70M	622.70M	544.10M	559.30M	559.60M	485.50M
Stockholders Equity	118.80M	118.80M	137.90M	137.50M	178.30M	281.20M
Cash Flow
Free Cash Flow	220.70M	220.70M	199.90M	217.70M	225.70M	167.80M
Operating Cash Flow	255.90M	255.90M	232.30M	239.50M	249.70M	183.50M
Investing Cash Flow	-67.30M	-65.90M	-38.30M	-21.80M	-41.70M	-15.70M
Financing Cash Flow	-178.30M	-183.00M	-217.30M	-202.20M	-307.50M	-126.80M

Dunelm Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1094.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DNLM, the sentiment is Negative. The current price of 1094 is below the 20-day moving average (MA) of 1098.50, below the 50-day MA of 1109.09, and above the 200-day MA of 1086.29, indicating a neutral trend. The MACD of -1.63 indicates Positive momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 11.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DNLM.

Dunelm Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNLM	75 Outperform	£2.21B	14.16	121.78%	4.07%	3.78%	3.29%
PETS	74 Outperform	£902.78M	12.06	7.90%	6.41%	-1.35%	-12.67%
FRAS	73 Outperform	£2.73B	5.83	19.54%	―	-6.43%	52.93%
CURY	71 Outperform	£1.34B	12.77	5.01%	1.18%	2.71%	-34.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
THG	60 Neutral	£797.98M	-4.55	-18.75%	―	-20.36%	44.33%
SMWH	55 Neutral	£814.00M	126.65	―	4.27%	4.46%	-89.55%

Dunelm Group Corporate Events

Dunelm CFO Invests Bonus in Company Shares

Dunelm Group plc announced that its Chief Financial Officer, Karen Witts, purchased 10,790 ordinary shares at £11.039 per share. This transaction fulfills her obligation to invest two-thirds of her FY25 cash bonus in company shares, as per the company’s remuneration policy. This move reflects the company’s commitment to aligning management incentives with shareholder interests, potentially strengthening stakeholder confidence.

Dunelm Group Updates Share Capital and Voting Rights

Dunelm Group plc has announced that its issued ordinary share capital consists of 203,426,835 shares, with 1,843,320 held in treasury, resulting in 201,583,515 shares with voting rights. This update is crucial for shareholders to determine their notification requirements regarding their interest in the company’s share capital, in compliance with the Disclosure and Transparency Rules.

Dunelm Group Announces Sharesave Scheme Participation and Director Share Purchase

Dunelm Group plc announced the grant of options under its 2025 all-employee Sharesave scheme, with key managerial personnel participating at an option price of £9.27 per share. Additionally, Non-Executive Director Ajay Kavan purchased 3,220 ordinary shares, enhancing his beneficial holding to 10,762 shares. These transactions reflect the company’s ongoing commitment to employee investment and shareholder engagement, potentially strengthening its market position and aligning managerial interests with those of stakeholders.

Dunelm Group Announces Sharesave Options and Director Share Purchase

Dunelm Group plc has announced the granting of options under its 2025 Sharesave scheme, offering shares at £9.27 each to key managerial personnel including the Chief Executive and Chief Financial Officer. Additionally, Non-Executive Director Ajay Kavan has purchased 3,220 ordinary shares at a price of 1067.5p per share, increasing his beneficial holding to 10,762 shares. These transactions reflect the company’s ongoing efforts to align management interests with shareholder value and may impact stakeholder perceptions positively.

Dunelm Group AGM Resolutions Passed with Strong Shareholder Support

Dunelm Group plc announced the results of its Annual General Meeting held on November 19, 2025, where all proposed resolutions were successfully passed by the shareholders. The approval of these resolutions, including those related to accounts, dividends, and board appointments, underscores strong shareholder support and is expected to positively impact the company’s governance and operational strategies.

Dunelm Group Announces Managerial Share Transactions

Dunelm Group announced a transaction involving Luisa Wright, a person discharging managerial responsibility, who exercised nil-cost options under the Long-Term Incentive Plan and sold shares to cover tax liabilities. The transaction involved the exercise of 4,787 options and the sale of 2,257 shares at £11.21 each, impacting the company’s share capital and potentially influencing investor perceptions.

Dunelm Group Awards Share Incentives to Key Management

Dunelm Group plc announced the grant of share incentive awards to key managerial personnel under its 2014 Long Term Incentive Plan. These awards, which are conditional on future performance, reflect the company’s commitment to aligning managerial interests with long-term shareholder value. The exercise of these options is subject to performance conditions over specified financial periods, with certain retention and shareholding requirements in place to ensure sustained alignment with company goals.

Dunelm Group Announces Total Voting Rights

Dunelm Group plc has announced its total voting rights as part of its compliance with the Disclosure and Transparency Rules. The company’s issued ordinary share capital consists of 203,426,835 shares, with 1,944,689 held in treasury, resulting in 201,482,146 shares with voting rights. This information is crucial for shareholders to determine their notification requirements regarding their interest in the company’s share capital.

Dunelm Executives Exercise Share Options Under Long Term Incentive Plan

Dunelm Group plc announced that its CEO, Clo Moriarty, and CFO, Karen Witts, have exercised nil cost options over ordinary shares as part of the company’s Long Term Incentive Plan. Both executives sold a portion of their shares to cover tax and national insurance liabilities, with transactions conducted on the London Stock Exchange, reflecting routine financial management practices within the company.

Dunelm Group Reports Strong First Quarter Growth and Strategic Progress

Dunelm Group plc reported a strong performance in its first quarter trading update, with total sales increasing by 6.2% to £428 million and digital sales rising to 40% of total sales. The company achieved a higher gross margin, benefiting from FX tailwinds and operational efficiencies, and made strategic progress with the launch of its new app and ‘Home of Colour’ campaign. Despite an uncertain consumer environment, Dunelm remains confident in its ability to achieve sustainable, profitable growth, aiming for a 10% market share in the medium term.

Dunelm Group Releases 2025 Annual and Sustainability Reports

Dunelm Group plc has released its Annual Report and Accounts for the year ending 28 June 2025, along with its Sustainability Report for the same year. The company has also announced the date for its Annual General Meeting, scheduled for 19 November 2025. These documents are available on the company’s website and through the National Storage Mechanism, providing stakeholders with comprehensive insights into the company’s financial performance and sustainability initiatives.

Dunelm Group Awards CEO Clodagh Moriarty with Buy-Out Share Options

Dunelm Group plc has announced the granting of buy-out awards in the form of nil-cost options to Clodagh Moriarty, the newly appointed CEO, as compensation for forfeited share awards from her previous employer. These awards, part of the company’s Long-Term Incentive Plan, are structured to vest over several years, aligning with performance conditions and ensuring long-term retention of shares, which could impact the company’s executive stability and strategic direction.

Dunelm Group Announces Total Voting Rights Update

Dunelm Group plc has announced its total voting rights as of October 1, 2025, with an issued ordinary share capital comprising 203,426,835 shares, of which 2,113,064 are held in treasury. This results in 201,313,771 ordinary shares with voting rights, a figure that shareholders can use to calculate their interest in the company’s share capital under the Disclosure and Transparency Rules.

Dunelm Group Reports Strong Financial Performance and Strategic Growth

Dunelm Group plc reported a successful financial year ending June 28, 2025, with total sales increasing by 3.8% to £1,771 million and a profit before tax rising by 2.7% to £211 million. The company expanded its market share in the homewares and furniture sectors, opened new stores, and completed strategic acquisitions, positioning itself for future growth despite inflationary challenges. Dunelm’s focus on digital sales and customer engagement, alongside investments in new product ranges and store expansions, underscores its commitment to sustainable, profitable growth.