Dunelm Group (DNLM) AI Stock Analysis

• Market Cap: £2.26B
• Dividend Yield: 1.44%
• Average Volume (3M): 346.18K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.14
• 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: 201,313,770
• 10 Day Avg. Volume: 246,141
• 30 Day Avg. Volume: 346,178
• 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: £1,390.88
• Price Target Upside: 22.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: 1,224.00p ▲(7.56% Upside)

Dunelm Group's overall stock score is driven by strong financial performance and positive earnings call sentiment. The company's solid revenue growth, operational efficiency, and attractive dividend yield are significant strengths. However, high leverage and technical indicators suggest caution. The positive outlook from the earnings call, with plans for expansion and increased dividends, further supports the stock's potential.

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 is a leading British home furnishings retailer, specializing in a wide range of products including bedding, curtains, furniture, and home accessories. Established in 1979, Dunelm operates through a multi-channel approach, offering both in-store and online shopping options. The company focuses on providing quality products at competitive prices, catering primarily to the domestic market in 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: Positive
• Last Price: 1138.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1138 is above the 20-day moving average (MA) of 1103.60, above the 50-day MA of 1107.86, and above the 200-day MA of 1053.43, indicating a bullish trend. The MACD of 7.84 indicates Negative momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 39.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DNLM.

Dunelm Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PETS	―	£962.70M	11.40	8.90%	6.05%	0.37%	14.78%
CURY	―	£1.52B	14.40	5.01%	1.06%	2.71%	-34.19%
DNLM	―	£2.26B	15.10	121.78%	1.44%	3.78%	3.29%
FRAS	―	£3.30B	11.49	15.02%	―	-11.05%	-24.53%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
THG	―	£669.09M	―	-18.75%	―	-20.36%	44.33%
SMWH	―	£884.38M	137.60	2.46%	4.02%	4.46%	-89.55%

Dunelm Group Corporate Events

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.

The most recent analyst rating on (GB:DNLM) stock is a Hold with a £1140.00 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 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.

The most recent analyst rating on (GB:DNLM) stock is a Hold with a £1224.00 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

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.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £1239.00 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

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.

The most recent analyst rating on (GB:DNLM) stock is a Hold with a £1200.00 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 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.

The most recent analyst rating on (GB:DNLM) stock is a Hold with a £1200.00 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 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.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £1385.00 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

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.