LSE:DFS

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

How has DFS Furniture's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DFS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

DFS

8.2%

GB Consumer Durables

1.7%

GB Market


1 Year Return

-54.0%

DFS

-21.0%

GB Consumer Durables

-21.8%

GB Market

Return vs Industry: DFS underperformed the UK Consumer Durables industry which returned -35.6% over the past year.

Return vs Market: DFS underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

DFSIndustryMarket
7 Day-5.0%8.2%1.7%
30 Day-45.9%-31.3%-12.0%
90 Day-59.9%-34.8%-25.3%
1 Year-51.7%-54.0%-16.7%-21.0%-17.9%-21.8%
3 Year-48.2%-57.1%-2.7%-18.4%-11.8%-22.8%
5 Year-44.4%-57.2%29.2%-2.0%0.1%-22.4%

Price Volatility Vs. Market

How volatile is DFS Furniture's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DFS (£1.13) is trading below our estimate of fair value (£4.3)

Significantly Below Fair Value: DFS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DFS is poor value based on its PE Ratio (52.9x) compared to the Consumer Durables industry average (7.2x).

PE vs Market: DFS is poor value based on its PE Ratio (52.9x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: DFS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: DFS is overvalued based on its PB Ratio (1.2x) compared to the GB Consumer Durables industry average (0.8x).


Next Steps

Future Growth

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

61.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DFS's forecast earnings growth (61.9% per year) is above the savings rate (0.5%).

Earnings vs Market: DFS's earnings (61.9% per year) are forecast to grow faster than the UK market (15.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DFS's revenue (3% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: DFS's revenue (3% 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 high in 3 years time (22.8%)


Next Steps

Past Performance

How has DFS Furniture performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DFS has a large one-off loss of £2.8M impacting its December 29 2019 financial results.

Growing Profit Margin: DFS's current net profit margins (0.5%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: DFS has become profitable over the past 5 years, growing earnings by -2.3% per year.

Accelerating Growth: DFS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DFS had negative earnings growth (-76.4%) over the past year, making it difficult to compare to the Consumer Durables industry average (-9%).


Return on Equity

High ROE: DFS's Return on Equity (2.2%) is considered low.


Next Steps

Financial Health

How is DFS Furniture's financial position?


Financial Position Analysis

Short Term Liabilities: DFS's short term assets (£111.8M) do not cover its short term liabilities (£320.4M).

Long Term Liabilities: DFS's short term assets (£111.8M) do not cover its long term liabilities (£636.7M).


Debt to Equity History and Analysis

Debt Level: DFS's debt to equity ratio (95.9%) is considered high.

Reducing Debt: DFS had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: DFS's debt is well covered by operating cash flow (22.6%).

Interest Coverage: DFS's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

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

7.12%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DFS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DFS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DFS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DFS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DFS is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DFS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Tim Stacey (47yo)

1.42s

Tenure

UK£607,500

Compensation

Mr. Timothy Giles Stacey, also known as Tim, serves as Group Chief Executive Officer at DFS Furniture plc since November 1, 2018 and served as its Chief Operating Officer since October 19, 2015. Mr. Stacey ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD743.83K) is about average for companies of similar size in the UK market ($USD746.31K).

Compensation vs Earnings: Insufficient data to compare Tim's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Stacey
Group CEO & Director1.42yrsUK£607.50k0.22% £521.9k
Mike Schmidt
Group CFO & Executive Director0.75yrno data0.0044% £10.6k
Scott Fishburn
Chief Operating Officer0.50yrno datano data
Russell Harte
Group Technology Director2.25yrsno datano data
Elizabeth McDonald
Group Company Secretary & General Counselno datano datano data
Joanne Shawcroft
Group People Director0.33yrno datano data
Nick Smith
Managing Director of DFS2.25yrsno datano data
Gill Stewart
Chief Executive Officer of Sofa Workshop2.5yrsno datano data
Peter Jenkins
Chief Executive Officer of Dwell1.42yrsno datano data

1.4yrs

Average Tenure

Experienced Management: DFS's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Timothy Stacey
Group CEO & Director1.42yrsUK£607.50k0.22% £521.9k
Mike Schmidt
Group CFO & Executive Director0.75yrno data0.0044% £10.6k
Ian Durant
Non-Executive Chairman2.92yrsUK£168.00k0.013% £31.6k
Alison Hutchinson
Senior Independent Director0.58yrUK£52.00kno data
Jo Boydell
Independent Non-Executive Director1.33yrsUK£31.00kno data
Stephen Johnson
Independent Non-Executive Director1.33yrsUK£29.00kno data
Jane Bednall
Independent Non-Executive Director0.25yrno datano data

1.3yrs

Average Tenure

52yo

Average Age

Experienced Board: DFS's board of directors are not considered experienced ( 1.3 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 company bio, 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£240.423m
  • Shares outstanding: 212.76m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DFSLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2015
DF0DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2015
DFSlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2015

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 05:12
End of Day Share Price2020/04/07 00:00
Earnings2019/12/29
Annual Earnings2019/06/30


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.