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DFS Furniture

DB:DF0
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DF0
DB
£492M
Market Cap
  1. Home
  2. DE
  3. Consumer Durables
Company description

DFS Furniture plc designs, manufactures, sells, delivers, installs, and retails a range of sofas, upholstered furniture, and other living room furniture products in the United Kingdom and Europe. The last earnings update was 137 days ago. More info.


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DF0 Share Price and Events
7 Day Returns
1.2%
DB:DF0
1.5%
DE Consumer Durables
2.9%
DE Market
1 Year Returns
22.4%
DB:DF0
-20%
DE Consumer Durables
-12.1%
DE Market
DF0 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
DFS Furniture (DF0) 1.2% 2.4% 5.3% 22.4% -35.3% -
DE Consumer Durables 1.5% -3.1% 9.8% -20% 7.2% 8.2%
DE Market 2.9% 0.8% 0.2% -12.1% 11.8% 4.9%
1 Year Return vs Industry and Market
  • DF0 outperformed the Consumer Durables industry which returned -20% over the past year.
  • DF0 outperformed the Market in Germany which returned -12.1% over the past year.
Price Volatility
DF0
Industry
5yr Volatility vs Market

DF0 Value

 Is DFS Furniture undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of DFS Furniture to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for DFS Furniture.

DB:DF0 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:DF0
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 9.8%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.695 (1 + (1- 19%) (42.11%))
0.932
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.932 * 9.77%)
9.34%

Discounted Cash Flow Calculation for DB:DF0 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for DFS Furniture is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:DF0 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (GBP, Millions) 52.60 62.45 68.70 72.43 76.36
Source Analyst x2 Analyst x2 Analyst x2 Est @ 5.43% Est @ 5.43%
Present Value
Discounted (@ 9.34%)
48.11 52.24 52.56 50.68 48.87
Present value of next 5 years cash flows £252.46
DB:DF0 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= £76.36 × (1 + 0.23%) ÷ (9.34% – 0.23%)
£840.27
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £840.27 ÷ (1 + 9.34%)5
£537.76
DB:DF0 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £252.46 + £537.76
£790.22
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £790.22 / 212.17
£4.12
DB:DF0 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:DF0 represents 1.10561x of LSE:DFS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.10561x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 3.72 x 1.10561
€4.12
Value per share (EUR) From above. €4.12
Current discount Discount to share price of €2.57
= -1 x (€2.57 - €4.12) / €4.12
37.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price DFS Furniture is available for.
Intrinsic value
38%
Share price is €2.57 vs Future cash flow value of €4.12
Current Discount Checks
For DFS Furniture to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • DFS Furniture's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • DFS Furniture's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for DFS Furniture's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are DFS Furniture's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:DF0 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-07-28) in GBP £0.09
LSE:DFS Share Price ** LSE (2019-02-18) in GBP £2.32
Germany Consumer Durables Industry PE Ratio Median Figure of 7 Publicly-Listed Consumer Durables Companies 9.73x
Germany Market PE Ratio Median Figure of 420 Publicly-Listed Companies 18.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of DFS Furniture.

DB:DF0 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:DFS Share Price ÷ EPS (both in GBP)

= 2.32 ÷ 0.09

26.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • DFS Furniture is overvalued based on earnings compared to the DE Consumer Durables industry average.
  • DFS Furniture is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does DFS Furniture's expected growth come at a high price?
Raw Data
DB:DF0 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
26.4%per year
Europe Consumer Durables Industry PEG Ratio Median Figure of 58 Publicly-Listed Consumer Durables Companies 1.26x
Germany Market PEG Ratio Median Figure of 277 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:DF0 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.12x ÷ 26.4%

0.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • DFS Furniture is good value based on expected growth next year.
Price based on value of assets
What value do investors place on DFS Furniture's assets?
Raw Data
DB:DF0 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-07-28) in GBP £1.19
LSE:DFS Share Price * LSE (2019-02-18) in GBP £2.32
Germany Consumer Durables Industry PB Ratio Median Figure of 9 Publicly-Listed Consumer Durables Companies 1.44x
Germany Market PB Ratio Median Figure of 566 Publicly-Listed Companies 1.79x
DB:DF0 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:DFS Share Price ÷ Book Value per Share (both in GBP)

= 2.32 ÷ 1.19

1.95x

* Primary Listing of DFS Furniture.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • DFS Furniture is overvalued based on assets compared to the DE Consumer Durables industry average.
X
Value checks
We assess DFS Furniture's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. DFS Furniture has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DF0 Future Performance

 How is DFS Furniture expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
26.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is DFS Furniture expected to grow at an attractive rate?
  • DFS Furniture's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • DFS Furniture's earnings growth is expected to exceed the Germany market average.
  • DFS Furniture's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:DF0 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:DF0 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 26.4%
DB:DF0 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 5.9%
Germany Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 17.5%
Germany Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:DF0 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:DF0 Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-07-31 1,057 105 55 5
2020-07-31 1,019 95 46 5
2019-07-31 985 80 38 5
2018-07-31 870 55 33 4
DB:DF0 Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-07-28 871 68 19
2018-04-28 825 67 25
2018-01-27 779 67 32
2017-10-27 771 71 36
2017-07-29 763 75 40
2017-04-29 771 83 45
2017-01-28 780 91 51
2016-10-28 768 93 56
2016-07-30 756 95 60
2016-04-29 743 85 50
2016-01-30 729 76 41
2015-10-30 731 78 25
2015-08-01 706 71 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • DFS Furniture's earnings are expected to grow significantly at over 20% yearly.
  • DFS Furniture's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:DF0 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from DFS Furniture Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:DF0 Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-07-31 0.26 0.27 0.25 2.00
2020-07-31 0.22 0.23 0.20 2.00
2019-07-31 0.18 0.19 0.18 2.00
2018-07-31 0.16 0.16 0.16 1.00
DB:DF0 Past Financials Data
Date (Data in GBP Millions) EPS *
2018-07-28 0.09
2018-04-28 0.12
2018-01-27 0.15
2017-10-27 0.17
2017-07-29 0.19
2017-04-29 0.21
2017-01-28 0.24
2016-10-28 0.26
2016-07-30 0.28
2016-04-29 0.24
2016-01-30 0.20
2015-10-30 0.17
2015-08-01 0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • DFS Furniture is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess DFS Furniture's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
DFS Furniture has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DF0 Past Performance

  How has DFS Furniture performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare DFS Furniture's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • DFS Furniture has delivered over 20% year on year earnings growth in the past 5 years.
  • DFS Furniture's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • DFS Furniture's 1-year earnings growth is negative, it can't be compared to the DE Consumer Durables industry average.
Earnings and Revenue History
DFS Furniture's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from DFS Furniture Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:DF0 Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-07-28 870.50 18.80 430.80
2018-04-28 824.70 25.35 404.85
2018-01-27 778.90 31.90 50.90
2017-10-27 770.80 35.70 44.50
2017-07-29 762.70 39.50 366.10
2017-04-29 771.40 45.15 288.30
2017-01-28 780.10 50.80 210.50
2016-10-28 768.05 55.55 125.20
2016-07-30 756.00 60.30 39.90
2016-04-29 742.55 50.40 37.60
2016-01-30 729.10 40.50 35.30
2015-10-30 731.30 25.10 34.15
2015-08-01 706.10 4.70 33.10
2015-05-01 698.25 -0.75 33.10
2015-01-31 690.40 -6.20 33.10
2014-11-01 674.60 -5.20 33.40
2014-08-02 656.80 -5.00 31.90
2013-07-27 614.40 -14.50 26.30
2012-07-28 567.90 1.40 22.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • DFS Furniture has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • DFS Furniture used its assets less efficiently than the DE Consumer Durables industry average last year based on Return on Assets.
  • DFS Furniture's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess DFS Furniture's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
DFS Furniture has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DF0 Health

 How is DFS Furniture's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up DFS Furniture's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • DFS Furniture's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • DFS Furniture's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of DFS Furniture's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from DFS Furniture Company Filings, last reported 6 months ago.

DB:DF0 Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-07-28 252.40 207.30 47.20
2018-04-28 252.40 207.30 47.20
2018-01-27 233.40 188.30 22.60
2017-10-27 233.40 188.30 22.60
2017-07-29 245.10 209.00 61.00
2017-04-29 245.10 209.00 61.00
2017-01-28 249.00 202.10 69.40
2016-10-28 249.00 202.10 69.40
2016-07-30 250.60 209.90 66.70
2016-04-29 250.60 209.90 66.70
2016-01-30 226.70 198.10 45.00
2015-10-30 226.70 198.10 45.00
2015-08-01 223.90 205.10 40.70
2015-05-01 223.90 205.10 40.70
2015-01-31 -84.10 307.00 54.40
2014-11-01 -82.20 496.80 33.00
2014-08-02 -74.80 507.10 53.80
2013-07-27 -65.00 491.20 38.40
2012-07-28 2.30 413.30 27.00
  • DFS Furniture's level of debt (82.1%) compared to net worth is high (greater than 40%).
  • DFS Furniture had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (32.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.5x coverage).
X
Financial health checks
We assess DFS Furniture's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. DFS Furniture has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DF0 Dividends

 What is DFS Furniture's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.83%
Current annual income from DFS Furniture dividends. Estimated to be 5.45% next year.
If you bought €2,000 of DFS Furniture shares you are expected to receive €97 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • DFS Furniture's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.53%).
  • DFS Furniture's dividend is above the markets top 25% of dividend payers in Germany (3.96%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:DF0 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Germany Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 3.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 332 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:DF0 Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-07-31 0.14 5.00
2020-07-31 0.13 5.00
2019-07-31 0.11 5.00
2018-07-31 0.11 5.00
DB:DF0 Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-10-04 0.112 5.289
2018-05-22 0.112 5.183
2017-10-05 0.112 5.590
2016-10-06 0.110 4.699
2015-10-08 0.124 4.337
2015-03-26 0.062 2.214
2015-03-06 0.020 0.757

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, DFS Furniture has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but DFS Furniture only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of DFS Furniture's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess DFS Furniture's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can DFS Furniture afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. DFS Furniture has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DF0 Management

 What is the CEO of DFS Furniture's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tim Stacey
TENURE AS CEO 0.3 years
CEO Bio

Mr. Tim Stacey has been the Chief Operating Officer of DFS Furniture plc since October 19, 2015 and its Chief Executive Officer since November 1, 2018. Mr. Stacey has been Director of DFS Furniture plc since 2018. Mr. Stacey joined DFS in 2011 and leads the omni channel transformation of the business and the growing on line channels. He leads the acquisition, integration and development of sofa workshop and dwell at DFS. Mr. Stacey served as an Online & Business Development Director of DFS Furniture plc until October 19, 2015. He served for 12 years at Alliance Boots, where he served as Multi Channel Director and was responsible for Boots.com and introducing Order and Collect. He served as Commercial Finance Director of Alliance Boots. He is a qualified Chartered Accountant and trained with KPMG.

CEO Compensation
  • Insufficient data for Tim to compare compensation growth.
  • Insufficient data for Tim to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure of the DFS Furniture management team in years:

1.1
Average Tenure
  • The average tenure for the DFS Furniture management team is less than 2 years, this suggests a new team.
Management Team

Nicola Bancroft

TITLE
CFO & Executive Director
COMPENSATION
£388K
AGE
54
TENURE
2.5 yrs

Ian Filby

TITLE
Executive Officer
COMPENSATION
£666K
AGE
60
TENURE
0.3 yrs

Tim Stacey

TITLE
CEO, COO & Director
TENURE
0.3 yrs

Russell Harte

TITLE
Group Technology Director
TENURE
1.1 yrs

Toni Wood

TITLE
Chief Commercial & Marketing Officer
TENURE
2.3 yrs

Scott Fishburn

TITLE
Chief People & Transformation Officer
TENURE
1.3 yrs

Mike Schmidt

TITLE
Chief Development Officer
TENURE
1.1 yrs

Nick Smith

TITLE
Chief Retail Officer
TENURE
1.1 yrs

Liz McDonald

TITLE
Group Company Secretary
Board of Directors Tenure

Average tenure and age of the DFS Furniture board of directors in years:

1.1
Average Tenure
54
Average Age
  • The average tenure for the DFS Furniture board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ian Durant

TITLE
Non-Executive Chairman
COMPENSATION
£45K
AGE
59
TENURE
1.8 yrs

Nicola Bancroft

TITLE
CFO & Executive Director
COMPENSATION
£388K
AGE
54
TENURE
2.5 yrs

Tim Stacey

TITLE
CEO, COO & Director
TENURE
1.1 yrs

Alison Hutchinson

TITLE
Independent Non-Executive Director
AGE
51
TENURE
0.8 yrs

Christopher Mayhew

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£60K
AGE
65
TENURE
4.3 yrs

Jo Boydell

TITLE
Independent Non-Executive Director
TENURE
0.2 yrs

Steve Johnson

TITLE
Independent Non-Executive Director
AGE
54
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by DFS Furniture insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
18. Dec 18 Buy Ian Durant Individual 17. Dec 18 17. Dec 18 13,000 €2.04 €26,539
X
Management checks
We assess DFS Furniture's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. DFS Furniture has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DF0 News

Simply Wall St News

DF0 Company Info

Map
Description

DFS Furniture plc designs, manufactures, sells, delivers, installs, and retails a range of sofas, upholstered furniture, and other living room furniture products in the United Kingdom and Europe. As of July 30, 2018, it operated a network of 116 DFS stores, as well as 44 stores with converted warehouse space. The company also sells its products online. DFS Furniture plc was founded in 1969 and is headquartered in Doncaster, the United Kingdom.

Details
Name: DFS Furniture plc
DF0
Exchange: DB
Founded: 1969
£562,711,865
212,167,970
Website: http://www.dfscorporate.co.uk
Address: DFS Furniture plc
1 Rockingham Way,
Redhouse Interchange,
Doncaster,
South Yorkshire, DN6 7NA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE DFS Ordinary Shares London Stock Exchange GB GBP 06. Mar 2015
DB DF0 Ordinary Shares Deutsche Boerse AG DE EUR 06. Mar 2015
Number of employees
Current staff
Staff numbers
5,500
DFS Furniture employees.
Industry
Home Furnishings
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 23:30
End of day share price update: 2019/02/18 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2018/10/04
Last earnings reported: 2018/07/28
Last annual earnings reported: 2018/07/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.