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DFS

DFS FurnitureLSE:DFS Stock Report

Market Cap

UK£626.2m

7D

-9.5%

1Y

6.9%

Updated

26 Nov, 2021

Data

Company Financials +
DFS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends3/6

DFS Stock Overview

DFS Furniture plc designs, manufactures, sells, delivers, installs, and retails upholstered furniture in the United Kingdom and Europe.

DFS Furniture Competitors

Amazon.com

NasdaqGS:AMZN

US$1.8t

NEXT

LSE:NXT

UK£10.0b

Dunelm Group

LSE:DNLM

UK£2.8b

Made.com Group

LSE:MADE

UK£530.1m

Price History & Performance

Summary of all time highs, changes and price drops for DFS Furniture
Historical stock prices
Current Share PriceUK£2.47
52 Week HighUK£3.19
52 Week LowUK£1.96
Beta1.69
1 Month Change-9.02%
3 Month Change-8.18%
1 Year Change6.93%
3 Year Change17.90%
5 Year Change10.47%
Change since IPO-3.14%

Recent News & Updates

Jul 13
At UK£2.63, Is DFS Furniture plc (LON:DFS) Worth Looking At Closely?

At UK£2.63, Is DFS Furniture plc (LON:DFS) Worth Looking At Closely?

DFS Furniture plc ( LON:DFS ), is not the largest company out there, but it saw significant share price movement during...

Jun 03
There Are Reasons To Feel Uneasy About DFS Furniture's (LON:DFS) Returns On Capital

There Are Reasons To Feel Uneasy About DFS Furniture's (LON:DFS) Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Shareholder Returns

DFSGB Consumer DurablesGB Market
7D-9.5%-2.1%-3.0%
1Y6.9%4.5%11.7%

Return vs Industry: DFS underperformed the UK Consumer Durables industry which returned 9.3% over the past year.

Return vs Market: DFS underperformed the UK Market which returned 17.9% over the past year.

Price Volatility

Is DFS's price volatile compared to industry and market?
DFS volatility
DFS Average Weekly Movement3.4%
Consumer Durables Industry Average Movement3.5%
Market Average Movement4.8%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: DFS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DFS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19695,217Tim Staceyhttps://www.dfscorporate.co.uk

DFS Furniture plc designs, manufactures, sells, delivers, installs, and retails upholstered furniture in the United Kingdom and Europe. The company retails sofas under the DFS and Sofology brands; and modern furniture, lighting, and home accessories under the brand name. It also engages in the contract logistics business.

DFS Furniture Fundamentals Summary

How do DFS Furniture's earnings and revenue compare to its market cap?
DFS fundamental statistics
Market CapUK£626.24m
Earnings (TTM)UK£88.70m
Revenue (TTM)UK£1.07b

7.1x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DFS income statement (TTM)
RevenueUK£1.07b
Cost of RevenueUK£466.50m
Gross ProfitUK£601.20m
ExpensesUK£512.50m
EarningsUK£88.70m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.35
Gross Margin56.31%
Net Profit Margin8.31%
Debt/Equity Ratio14.0%

How did DFS perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is DFS Furniture undervalued compared to its fair value and its price relative to the market?

7.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DFS (£2.47) is trading above our estimate of fair value (£1.81)

Significantly Below Fair Value: DFS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DFS is good value based on its PE Ratio (7.1x) compared to the UK Consumer Durables industry average (13.7x).

PE vs Market: DFS is good value based on its PE Ratio (7.1x) compared to the UK market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: DFS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DFS is overvalued based on its PB Ratio (2.2x) compared to the GB Consumer Durables industry average (1.4x).


Future Growth

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

-13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DFS's earnings are forecast to decline over the next 3 years (-13.9% per year).

Earnings vs Market: DFS's earnings are forecast to decline over the next 3 years (-13.9% per year).

High Growth Earnings: DFS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DFS's revenue (2.7% per year) is forecast to grow slower than the UK market (5.7% per year).

High Growth Revenue: DFS's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DFS's Return on Equity is forecast to be very high in 3 years time (87.9%).


Past Performance

How has DFS Furniture performed over the past 5 years?

-28.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DFS has high quality earnings.

Growing Profit Margin: DFS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DFS's earnings have declined by 28.9% per year over the past 5 years.

Accelerating Growth: DFS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DFS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (57.9%).


Return on Equity

High ROE: DFS's Return on Equity (31.2%) is considered high.


Financial Health

How is DFS Furniture's financial position?


Financial Position Analysis

Short Term Liabilities: DFS's short term assets (£107.9M) do not cover its short term liabilities (£424.0M).

Long Term Liabilities: DFS's short term assets (£107.9M) do not cover its long term liabilities (£396.3M).


Debt to Equity History and Analysis

Debt Level: DFS's net debt to equity ratio (6%) is considered satisfactory.

Reducing Debt: DFS's debt to equity ratio has reduced from 81.6% to 14% over the past 5 years.

Debt Coverage: DFS's debt is well covered by operating cash flow (751.3%).

Interest Coverage: DFS's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Dividend

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

3.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DFS's dividend (3.04%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: DFS's dividend (3.04%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


Stability and Growth of Payments

Stable Dividend: DFS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DFS's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.7%), DFS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DFS's dividends in 3 years are forecast to be covered by earnings (50.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Tim Stacey (50 yo)

3yrs

Tenure

UK£2,007,000

Compensation

Mr. Timothy Giles Stacey, also known as Tim, has been Group Chief Executive Officer at DFS Furniture plc and DFS Furniture Company Limited since November 1, 2018 and served as its Chief Operating Officer s...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD2.67M) is above average for companies of similar size in the UK market ($USD1.02M).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DFS's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: DFS's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DFS Furniture plc's employee growth, exchange listings and data sources


Key Information

  • Name: DFS Furniture plc
  • Ticker: DFS
  • Exchange: LSE
  • Founded: 1969
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: UK£626.235m
  • Shares outstanding: 253.54m
  • Website: https://www.dfscorporate.co.uk

Number of Employees


Location

  • DFS Furniture plc
  • 1 Rockingham Way
  • Redhouse Interchange
  • Doncaster
  • South Yorkshire
  • DN6 7NA
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 21:18
End of Day Share Price2021/11/26 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


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.