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DNLM

Dunelm GroupLSE:DNLM Stock Report

Market Cap

UK£2.7b

7D

1.3%

1Y

-2.5%

Updated

27 Oct, 2021

Data

Company Financials +
DNLM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends4/6

DNLM Overview

Dunelm Group plc retails homewares in the United Kingdom.

Dunelm Group Competitors

Amazon.com

NasdaqGS:AMZN

US$1.7t

Next

LSE:NXT

UK£10.2b

DFS Furniture

LSE:DFS

UK£696.5m

Made.com Group

LSE:MADE

UK£619.7m

Price History & Performance

Summary of all time highs, changes and price drops for Dunelm Group
Historical stock prices
Current Share PriceUK£13.08
52 Week HighUK£11.14
52 Week LowUK£15.99
Beta1.16
1 Month Change-11.08%
3 Month Change-2.39%
1 Year Change-2.53%
3 Year Change119.28%
5 Year Change68.56%
Change since IPO607.03%

Recent News & Updates

Oct 12
Estimating The Fair Value Of Dunelm Group plc (LON:DNLM)

Estimating The Fair Value Of Dunelm Group plc (LON:DNLM)

In this article we are going to estimate the intrinsic value of Dunelm Group plc ( LON:DNLM ) by taking the forecast...

Sep 29
With EPS Growth And More, Dunelm Group (LON:DNLM) Is Interesting

With EPS Growth And More, Dunelm Group (LON:DNLM) Is Interesting

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

DNLMGB Specialty RetailGB Market
7D1.3%2.6%0.1%
1Y-2.5%38.8%29.8%

Return vs Industry: DNLM underperformed the UK Specialty Retail industry which returned 35.8% over the past year.

Return vs Market: DNLM underperformed the UK Market which returned 26.7% over the past year.

Price Volatility

Is DNLM's price volatile compared to industry and market?
DNLM volatility
DNLM Beta1.16
Industry Beta1.38
Market Beta1

Stable Share Price: DNLM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DNLM's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197911,084Nick Wilkinsonhttps://www.dunelm.com

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.

Dunelm Group Fundamentals Summary

How do Dunelm Group's earnings and revenue compare to its market cap?
DNLM fundamental statistics
Market CapUK£2.65b
Earnings (TTM)UK£128.90m
Revenue (TTM)UK£1.34b

20.6x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DNLM income statement (TTM)
RevenueUK£1.34b
Cost of RevenueUK£647.30m
Gross ProfitUK£688.90m
ExpensesUK£560.00m
EarningsUK£128.90m

Last Reported Earnings

Jun 26, 2021

Next Earnings Date

Feb 09, 2022

Earnings per share (EPS)0.64
Gross Margin51.56%
Net Profit Margin9.65%
Debt/Equity Ratio0%

How did DNLM perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

55%

Payout Ratio

Does DNLM pay a reliable dividends?

See DNLM dividend history and benchmarks
When do you need to buy DNLM by to receive an upcoming dividend?
Dunelm Group dividend dates
Ex Dividend DateOct 28 2021
Dividend Pay DateNov 19 2021
Days until Ex dividend1 day
Days until Dividend pay date21 days

Does DNLM pay a reliable dividends?

See DNLM dividend history and benchmarks

Valuation

Is Dunelm Group undervalued compared to its fair value and its price relative to the market?

6.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DNLM (£13.08) is trading below our estimate of fair value (£14.02)

Significantly Below Fair Value: DNLM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DNLM is poor value based on its PE Ratio (20.6x) compared to the UK Specialty Retail industry average (10.3x).

PE vs Market: DNLM is good value based on its PE Ratio (20.6x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: DNLM is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: DNLM is overvalued based on its PB Ratio (9.4x) compared to the GB Specialty Retail industry average (2.3x).


Future Growth

How is Dunelm Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNLM's forecast earnings growth (4.5% per year) is above the savings rate (0.9%).

Earnings vs Market: DNLM's earnings (4.5% per year) are forecast to grow slower than the UK market (12.7% per year).

High Growth Earnings: DNLM's earnings are forecast to grow, but not significantly.

Revenue vs Market: DNLM's revenue (5.8% per year) is forecast to grow faster than the UK market (5% per year).

High Growth Revenue: DNLM's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DNLM's Return on Equity is forecast to be very high in 3 years time (93.2%).


Past Performance

How has Dunelm Group performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNLM has high quality earnings.

Growing Profit Margin: DNLM's current net profit margins (9.6%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: DNLM's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: DNLM's earnings growth over the past year (46.7%) exceeds its 5-year average (7.6% per year).

Earnings vs Industry: DNLM earnings growth over the past year (46.7%) underperformed the Specialty Retail industry 118.9%.


Return on Equity

High ROE: DNLM's Return on Equity (45.8%) is considered outstanding.


Financial Health

How is Dunelm Group's financial position?


Financial Position Analysis

Short Term Liabilities: DNLM's short term assets (£315.6M) exceed its short term liabilities (£235.9M).

Long Term Liabilities: DNLM's short term assets (£315.6M) exceed its long term liabilities (£249.6M).


Debt to Equity History and Analysis

Debt Level: DNLM is debt free.

Reducing Debt: DNLM has no debt compared to 5 years ago when its debt to equity ratio was 94.6%.

Debt Coverage: DNLM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DNLM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Dunelm Group current dividend yield, its reliability and sustainability?

3.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DNLM's dividend (3.52%) is higher than the bottom 25% of dividend payers in the UK market (1.4%).

High Dividend: DNLM's dividend (3.52%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


Stability and Growth of Payments

Stable Dividend: DNLM's dividend payments have been volatile in the past 10 years.

Growing Dividend: DNLM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55%), DNLM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DNLM's dividends in 3 years are forecast to be covered by earnings (66.8% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Nick Wilkinson

3.67yrs

Tenure

UK£4,042,000

Compensation

Mr. Nick Wilkinson has been Chief Executive of Dunelm Group plc since February 1, 2018 and serves as Director since February 2018 and has extensive retail experience across a number of consumer brands. He...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD5.55M) is above average for companies of similar size in the UK market ($USD1.67M).

Compensation vs Earnings: Nick's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DNLM's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: DNLM's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: DNLM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Dunelm Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: Dunelm Group plc
  • Ticker: DNLM
  • Exchange: LSE
  • Founded: 1979
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: UK£2.655b
  • Shares outstanding: 202.95m
  • Website: https://www.dunelm.com

Number of Employees


Location

  • Dunelm Group plc
  • Watermead Business Park
  • Syston
  • Leicestershire
  • LE7 1AD
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 21:43
End of Day Share Price2021/10/27 00:00
Earnings2021/06/26
Annual Earnings2021/06/26


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.