Dunelm Group (DNLM) AI Stock Analysis

• Market Cap: £2.26B
• Dividend Yield: 3.73%
• Average Volume (3M): 356.59K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.12
• Revenue Growth: 3.78%
• EPS Growth: 3.44%
• Country: UK
• Employees: 12,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.32
• Shares Outstanding: 201,313,770
• 10 Day Avg. Volume: 362,997
• 30 Day Avg. Volume: 356,594
• PEG Ratio: 5.73
• Price to Book (P/B): 20.09
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 10.82
• 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: £1,282.22
• Price Target Upside: 15.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: 1,227.00p ▲(10.94% Upside)

Dunelm Group's overall stock score is driven by strong financial performance and a positive earnings call, highlighting growth and strategic expansion. However, technical indicators suggest potential bearish momentum, and high leverage remains a concern.

Positive Factors

Digital Expansion

The increase in digital sales to 40% of total sales indicates a successful digital strategy, enhancing customer reach and convenience, which is crucial for long-term growth in the evolving retail landscape.

Market Share Growth

Gaining market share demonstrates competitive strength and effective market positioning, which are vital for sustaining growth and profitability in the competitive retail sector.

Cash Generation

Strong cash generation supports operational flexibility and strategic investments, ensuring the company can fund growth initiatives and withstand economic fluctuations.

Negative Factors

High Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth opportunities, potentially impacting long-term financial stability.

Cost Environment Challenges

Rising operating costs, driven by inflation, can pressure margins and require efficiency improvements, challenging profitability if not managed effectively.

Consumer Market Uncertainty

Ongoing consumer market uncertainty can hinder revenue growth and demand predictability, impacting strategic planning and financial 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, but high leverage and declining free cash flow growth are concerns. Strong profitability and cash generation 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: 1106.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1106 is above the 20-day moving average (MA) of 1098.25, below the 50-day MA of 1153.02, and above the 200-day MA of 1069.16, indicating a neutral trend. The MACD of -5.69 indicates Negative momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 49.07 is Neutral, 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	70 Outperform	£2.26B	14.51	121.78%	3.73%	3.78%	3.44%
CURY	69 Neutral	£1.50B	14.21	5.01%	1.07%	2.71%	-34.19%
FRAS	68 Neutral	£3.13B	10.80	15.02%	―	-11.05%	-24.53%
PETS	67 Neutral	£923.18M	10.81	8.90%	6.25%	0.37%	14.78%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SMWH	55 Neutral	£814.62M	126.74	2.46%	4.33%	4.46%	-89.55%
THG	52 Neutral	£573.46M	―	-18.75%	―	-20.36%	44.33%

Dunelm Group Corporate Events

Dunelm Group Announces Share Capital and Voting Rights Update

Dunelm Group plc has announced that its issued ordinary share capital consists of 203,426,835 shares, with 2,121,271 held in treasury, leaving 201,305,564 shares with voting rights. This information is crucial for shareholders as it affects their calculations regarding their interest in the company’s share capital, in accordance with the Disclosure and Transparency Rules.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £13.50 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

Dunelm Group Reports Strong Q4 Performance and Strategic Progress

Dunelm Group plc reported a strong performance in Q4 2025, with total sales increasing by 4.0% to £415 million, and full-year sales reaching £1.771 billion, up 3.8% year-on-year. Digital sales accounted for 40% of total sales, reflecting the company’s strategic focus on enhancing digital experiences. The company maintained a stable profit before tax margin, despite inflationary pressures, and continued to invest in its business with the opening of new superstores and the acquisition of the Designers Guild brand. The appointment of Clo Moriarty as CEO from October 2025 marks a strategic leadership change, as Dunelm aims to further its market share and strengthen its position as the ‘Home of Homes’.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £13.25 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

Dunelm Director Joins BlackRock World Mining Trust

Dunelm Group plc announced that Marion Sears, a non-executive director of the company, has been appointed as a non-executive director and a member of the Audit and Management Engagement Committees of BlackRock World Mining Trust plc, effective from 27 August 2025. This appointment highlights the recognition of Sears’ expertise and may enhance Dunelm’s industry connections, potentially benefiting its strategic positioning and stakeholder relations.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £13.25 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

Dunelm Group Appoints Clodagh Moriarty as New CEO

Dunelm Group plc has announced the appointment of Clodagh Moriarty as the new Chief Executive Officer, effective from October 1, 2025, succeeding Nick Wilkinson who is retiring. Moriarty, a seasoned retail leader from J Sainsbury plc, is expected to bring her expertise in retail, digital, and strategic operations to drive Dunelm’s next phase of growth as ‘The Home of Homes’.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £13.25 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

Dunelm Group Announces Total Voting Rights Update

Dunelm Group plc has announced its total voting rights as of July 1, 2025. The company’s issued ordinary share capital consists of 203,426,835 ordinary shares, with 2,134,238 shares held in treasury, resulting in 201,292,597 shares with voting rights. This information is crucial for shareholders to determine their notification requirements under the Disclosure and Transparency Rules.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £13.25 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

Dunelm Group Announces Total Voting Rights Update

Dunelm Group plc has announced its current total voting rights in accordance with the Disclosure and Transparency Rules. As of the announcement date, the company has 201,292,597 ordinary shares with voting rights, which shareholders can use as a denominator for calculating their interests in the company.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £13.25 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

Dunelm CFO Exercises Share Options and Sells Shares

Dunelm Group plc announced that its Chief Financial Officer, Karen Witts, exercised 51,496 nil cost options over ordinary shares, granted under the company’s Long Term Incentive Plan. To cover tax and national insurance liabilities, she sold 24,277 shares at £11.78 each. This transaction reflects the company’s ongoing management of executive compensation and incentives, potentially impacting shareholder perceptions and market confidence.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £13.25 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

Dunelm Group Updates Share Capital and Voting Rights

Dunelm Group plc has announced that its total issued ordinary share capital consists of 203,426,835 shares, with 2,209,399 held in treasury, resulting in 201,217,436 shares with voting rights. This information is crucial for shareholders to determine their shareholding interests under the Disclosure and Transparency Rules, impacting how they manage their investments in the company.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £13.25 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

Dunelm Group Director Increases Shareholding

Dunelm Group plc announced a transaction involving the purchase of its ordinary shares by Ajay Kavan, a Non-Executive Director. The transaction, which took place on May 7, 2025, involved the purchase of 2,621 shares at a price of 1141.79 pence per share, increasing Kavan’s beneficial holding to 7,542 shares. This transaction highlights the ongoing engagement and investment of the company’s management, potentially signaling confidence in Dunelm’s market position and future performance.